The Efficient Market Hypothesis (EMH) is the underpinning of my investment philosophy. This philosophy informs the investment strategy I use personally as well as for clients. But just what is it? Today I define EMH and explain it with the story of Sylvia, Fred and Nora. (Based on a story told by Weston Wellington, a Dimensional Fund Advisor executive.) The Efficient Market Hypothesis states that the current prices of publicly traded securities incorporate all available information and expectations. Publicly traded securities are those you buy on the stock exchange. Traditional stock pickers attempt to make money by identifying "mispriced" securities and buying those deemed …
How Does Your Income and Tax Bill Stack Up?
Tax reform is the topic of the day especially for those of us in the biz. As of this writing, November 2017, we have seen the first draft of the House legislation. What the final bill will look like (assuming there is a final bill) is still a question mark. In the meantime you may be interested to learn where YOUR income and tax bill stacks up compared to everyone else in the United States. Kiplinger has created a tax burden calculator that will tell you just that based on IRS data from 2015, the most recently available year. Find it HERE. It's easy to use. Enter your AGI (Adjusted Gross Income) in the box. Your AGI is on Line 37 of the 1040 Form on your tax …
Six Reasons Why You Should Not Add Your Adult Child As Co-Owner To Your Bank Account
You could create unwitting problems for yourself and your adult child by adding his or her name to your bank account. My colleague, **Attorney Danielle Van Ess, of DGVE Law in Hingham sums it up well: "While most parents who add their adult children do so out of trust and with love and gratitude in their hearts, there are many negative, unintended consequences that are all avoidable with some well-counseled financial and legal estate planning." Let's look at some potential consequences: Estate Implication: Upon your death, jointly held accounts pass 100% to the joint account holder. If you have other children, they will not receive any portion of it. This may not be your intent. …
Mandatory Arbitration and Your Investments – what is it and why should you care?
Hello! Frequently in the fine print of lengthy agreements you never read is a "mandatory arbitration clause". This means if you have a dispute with the other party you are denied your constitutional right to a jury by your peers and must instead submit your dispute to an arbitration panel. As an investor, this is not in your best interest. Best, Michelle Morris, CFP®, EA BRIO Financial Planning Does your investment advisor have a mandatory arbitration clause? In a recent newsletter, Dan Solin, a former securities attorney called them "evil". With mandatory arbitration, any dispute you can't resolve must (that's the mandatory …
Do You Have Small Company Stocks in Your Investment Portfolio?
Hello! One of my investing commandments is "Thou shalt diversify". For the stock portion of your investment portfolio this means buying large company stocks and small company stocks from all over the world. Read on to learn more about the "punch" that small company stocks can give your portfolio. Best, Michelle Morris, CFP®, EA BRIO Financial Planning I recently reviewed a prospect's investment portfolio. She had a lot of different mutual funds in several different accounts. A mutual fund is a convenient way to buy a "basket" of many stocks or bonds. Because she had a lot of funds in a lot of accounts she thought she was well …
