Insights

Intellectual Capital

Poinciana is committed to staying up to date with the latest financial trends and academic research. We have strategic relationships with some of the most preeminent individuals in academia and leverage our relationships to provided best-in-class institutional research for our clients

Marriage, it turns out, is even more than hefty emotional commitment, a blending of families, and the awesome chance to add another crazy aunt or uncle to your family tree. Specifically, when you are married, you become a single economic unit. Your partner’s successes are your successes; similarly, your partner’s debt or any fallout from a bad financial decision lands on your plate as well. Given what can be at stake financially, don’t let that all-important conversation about money get forgotten or postponed amid the excitement of your upcoming nuptials.
At the start of 2019, I compiled a list of predictions that so-called financial gurus had made for the upcoming year, along with some items I heard frequently from investors, for a consensus on the year’s “sure things.” The turn of the calendar means it is now time for our second quarter review. As is my practice, I will give a score of +1 for a forecast that came true, a score of -1 for one that was wrong, and a 0 for one that was basically a tie.

Set Your Goals

by PAG on
Categories
When a new client comes to our office for the first time, we typically start by asking “How can we help?” Starting a relationship with a financial planner is almost always precipitated by something happening in the client’s life—they want to retire soon, they just received an inheritance, they just learned they are seriously ill, they are dealing with the complexities of life with kids, parents, a house, jobs.
When the subject of Social Security comes up during retirement planning conversations, both younger and older investors often greet it with a healthy dose of cynicism. Such discussions tend to include comments like, “Oh yeah, sure. If there’s even anything left for me” or “Isn’t Social Security going bankrupt?” Sometimes I hear a more draconian stance, like, “I just plan on it not being around when I’m retired.” This last viewpoint actually is quite common. According to a study by AARP, 65% of adults are not confident about Social Security’s future.
Recently, the “I want to retire” mantra seems to be an ever more common theme. I am even hearing a greater number of people in their early 50s, with successful careers and some with high-paying positions, say they want to retire.
Adding a family member is an exciting time. Decorating the nursery, picking out names, going to baby showers, and attending parenting classes all prepare you for your baby’s arrival home. But with the joy of a new family member comes additional responsibility. A whole lot of it. After all, your child is 100% dependent on you for all his or her needs.
Every year, the markets provide us with lessons on the prudent investment strategy. I’ve so far covered what they taught us in 2018 in lessons one through three and then lessons four through seven. We’ll finish up today with lessons eight through 11.
Every year, the markets provide us with lessons on the prudent investment strategy. Many times, markets offer investors remedial courses, covering lessons it taught in previous years. That’s why one of my favorite sayings is that “there’s nothing new in investing, only investment history you don’t yet know.” 2018 supplied 11 important lessons. As you may note, many of them are repeats from prior years. Unfortunately, too many investors fail to learn them—they keep making the same errors. We’ll begin with my personal favorite, one that the market, if measured properly, teaches each and every year.
In a review of recent academic research into the currency carry trade, Larry Swedroe explores some of the fundamental and theoretically motivated sources of risk that drive its returns and help explain the premium.