But according to a new Spectrum study, the business model is still new to most investors. When asked to rate their familiarity with various investment terms on a scale of 0 to 100, where 0 is not at all familiar and 100 is very familiar, wealthy investors rated their knowledge of the term “robo-advisor” at just 15.47.
What’s the goal of investing? Many investors will simply answer, “Returns.” Or, more specifically, “Better returns.” But how do you measure returns? The answer is not as straightforward as you might think. What’s the benchmark? The S&P 500? What if your portfolio is nothing like the S&P 500? What if you have a substantial allocation to bonds?
The international markets lagged the US market by a significant margin in 2014. In fact, they have lagged in recent years.
To answer this question I want to clarify that we are talking about an actual human advisor and not automated financial advice or a “robo advisor.” Also, we’re addressing more that returns.
Do you ever leave for vacation, only to be unable to escape a nagging feeling that you forgot to turn off the oven or lock the front door? Plenty of pre-retirees experience just such angst when they worry that they have overlooked a major tax issue when saving for retirement. Here are three things to remember:
Unless you are very rare, we all make mistakes. The important thing is that we learn from them. And I thought you might enjoy reading about lessons from some of the most common investment mistakes:
What does market volatility have to do with biology? According to John Coates, former Wall Street trader turned neuroscientist, and author of The Hour between Dog and Wolf, plenty.
’Tis the season for market predictions. Of course, I’d categorize this annual spate of magazine articles under the heading of “fantasy” rather than “finance.” Not unlike weather forecasts, market predictions—even those from reputable sources—are wrong more often than they are right.
If a picture is worth a thousand words when it comes to investing the Callan Periodic Table of Investment Returns (See image below) is worth one million.
“In an uncertain world statistical thinking and risk communication alone are not sufficient. Good rules of thumb are essential for good decisions.” So says Gerd Gigerenzer in his book Risk Savvy: How to Make Good Decisions.