Genes, Experience Affect Choices

Genes, Experience Affect Choices

By: Larry Swedroe Are you a value investor or a growth investor? Could your preference be influenced by a biological predisposition partially ingrained from birth? Is it possible that your choice of investment could be explained by your personal experiences, both early on and later in life? The field of behavioral finance advances psychology-based theories to explain investor behavior, behavior that can lead to anomalies that can’t be explained by an efficient market made up of investors who always act rationally. Henrik Cronqvist, Stephan Siegel and Frank Yu—authors of the study “Value Versus Growth Investing: Why Do Different Investors Have Different Styles?”, which appears in the August 2015 issue of the Journal of Financial Economics—contribute a new perspective to the long-standing debate over the two different styles of investing: value and growth. To continue reading, click here.   By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. © 2016, The BAM...
Learning to Deal With the Impostor Syndrome

Learning to Deal With the Impostor Syndrome

By: Carl Richards On paper, your investments in stocks, real estate or even cash may look like your greatest assets. While all those things are super important, you have something else that’s even more valuable. It’s the investment called you. Finding ways to increase your value while doing the things you love may be the most important thing you do. Maybe you pursue more training to qualify for a raise. Maybe you find a way to sell the photography you did as a hobby. Maybe you find a way to turn your freelance writing into full-time work. They all involve doing something new for you, but when you head down this path, you are probably going to run into this thing, this fear that you’re bumping up against the limits of your ability. Then, the voice inside your head may start saying things like: “Who gave you permission to do that?” “Do you have a license to be an artist?” “Who said you could draw on cardstock with a Sharpie in Park City, Utah, and send those sketches to The New York Times?” To continue reading, click here.   By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may...
Unhealthy Stock Attachments

Unhealthy Stock Attachments

By: Joe Delaney As an advisor I often come across prospective clients with “unhealthy stock attachments” to their stock selections. This article discusses this phenomenon when it comes to holding on to losers but the same can be said for holding onto winners too long as well. Click here to read the article.   By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. © 2016, The BAM...
How Much Should You Really Be Spending on That Holiday Gift?

How Much Should You Really Be Spending on That Holiday Gift?

By:  Manisha Thakor The holidays are supposed to be the most wonderful time of the year, but sometimes they can end up feeling like the most stressful time of the year. From hosting (and attending) parties, to navigating jam-packed schedules, to finding the perfect holiday gift for your friends and family members, there’s a lot to juggle—and a lot of money to be spent. And especially vexing is figuring out how much money to spend on each person.The National Retail Federation estimates that the average family will shell out roughly $462 on gifts for family members this year. Add to that the $132 that the typical person will spend on gifts for friends, co-workers, babysitters, and teachers, and you’re looking at a nearly $600 gift budget. But if you don’t have that kind of disposable income, it can make following general gifting guidelines nearly impossible to follow. Here’s how to calculate a budget that works for you. 1. Use Cash The most important rule to follow for holiday gifting, according to Manisha Thakor, director of wealth strategies for women at The BAM Alliance, is that “if you can’t afford to buy a gift right now in cash, you can’t afford to buy it.” Be realistic when it comes to what you can afford, and, if possible, take that money out from the ATM and use it for all of your in-person gift buying. If you’re shopping online, put that money on a Visa or American Express gift card. When it’s empty, you’re done gift shopping. To continue reading, click...
What You Need to Know About Changes to Social Security

What You Need to Know About Changes to Social Security

By: Jim Cornfield Establishing a well-crafted plan that addresses the role Social Security retirement benefits will play in your financial future has never been more important, especially in light of recent changes to how these benefits are administered. On Nov. 2, 2015, President Obama signed into law the Bipartisan Budget Act of 2015. The bill, which had obtained overwhelming support in Congress from both political parties, was originally intended to raise the federal spending and debt limits through 2017. Several seemingly unrelated measures were also incorporated into it. Specifically, the bill (now law) ends two popular and well-used Social Security retirement benefit claiming strategies, “File-and-Suspend” and “Restricted Application.” Below are answers to a few commonly asked questions regarding these recent changes to Social Security, in addition to an explanation of the new rules and how they could impact your long-term, comprehensive financial plan. What is this law intended to do? The Bipartisan Budget Act of 2015 ends two benefit-claiming strategies made possible by the Senior Citizens Freedom to Work Act of 2000. The Senior Citizens Freedom to Work Act was designed to permit seniors who had already begun receiving income from Social Security to suspend their retirement benefits and return to work. These seniors would then earn additional Social Security credits, increasing their now-delayed benefits when they were re-claimed down the road. To continue reading, click here.   By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the...
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