AIP Money Management Tips
Keeping your investment fees low is one the most dependable ways to increase your investment returns. Many investors chase investment performance by purchasing investments that have recently done well. Most quickly learn than past performance is not a good predictor of future returns.
Studies show portfolios that own assets with low expense ratios [...]
Entries Tagged as 'AIP Money Management Tips'
Minimize Your Investment Fees
March 10th, 2010 · No Comments · AIP Money Management Tips
Tags: expense ratios·investment fees·minimize fees·money management tips·money tips·portfolio fees
Don’t Let Trading Programs Steal Your Money
March 8th, 2010 · No Comments · AIP Money Management Tips
AIP Money Management Tip
I don’t know how many people I have seen or heard of paying hundreds and usually thousands of dollars for trading workshops and tutoring packages. Investors are constantly being tempted on traditional media and now social media sites. Promises of easy money, getting rich quickly, and learning to beat the system lure [...]
Tags: Arbor Investment Planner·get rich quick schemes·money management tips·money tips·trading programs·trading tutorials·trading workshops
Don’t Follow the Herd
February 26th, 2010 · 2 Comments · AIP Money Management Tips
AIP Money Management Tip
People feel comfortable and a false sense of safely in numbers. Speculative bubbles feed on themselves because investors grow more and more optimistic as prices rise. Investors who rely on past performance become overly optimistic about high flyers and over pessimistic about laggards that may be a good value.
Investors should look for [...]
Tags: Herd·investment bubbles·money management tip·money tip·past performance·speculative bubbles
Are Your Returns Suffering From Over Diversification?
February 22nd, 2010 · 1 Comment · AIP Money Management Tips, Portfolio Management
AIP Money Management Tip
Over diversification is a serious mistake made by many investors. Some investors have learned the harmful effects of under diversification and mistakenly believe that the more diversification the better. It has become common to diversify to the point of hurting your investment returns. This is particularly harmful in the current environment where [...]
Tags: Arbor Investment Planner·asset allocated portfolio·Asset Allocation·company specific risk·industry risk·over diversification
Should You Abandon Your Target Date Mutual Fund?
February 19th, 2010 · 1 Comment · AIP Money Management Tips
AIP Money Management Tip
The concept of target date funds was to provide investors a single fund to invest toward their “target date” retirement. The idea was the fund would become more conservative as it moved towards the target date, for example 2010 or 2030. In reality, these funds surprised investors with gigantic losses in this [...]
Tags: active asset allocation strategy·fixed asset allocation·target date mutual funds
4% Rule
February 17th, 2010 · 1 Comment · AIP Money Management Tips, Investment Planning
AIP Money Management Tip
As a general rule 4% is the percentage of your retirement portfolio you can safely withdraw the year after your retirement. Adjust for inflation every year after that. In other words, if you need $40,000 per year from your retirement nest egg, you will need approximately $1 million dollars in retirement savings.
Trying to Break-even?
February 12th, 2010 · 1 Comment · AIP Money Management Tips
AIP Money Management Tip
Is loss aversion hurting your portfolio returns? It is common for Investors to want to at least “break-even” on an investment. Maybe you think you should sell but don’t because the stock is lower than when you bought it. Selling as a loss makes you feel like your original decision was a [...]
Tags: break-even·investment portfolio·money management tips·money tips·portfolio
