Ever since the Social Security Act was signed into law in August of 1935, the federal insurance program has grown leaps and bounds in terms of the number of beneficiaries and coverage. According to data from the Social Security Administration, a little over 53,000 people received a total of $1.3 million dollars of benefits in […]
Combating Fear of Loss
In topsy-turvy markets, it is easy to lose sight of our long-term goals. Volatility can cause our actions to be driven by fear or greed if we allow ourselves to get caught up in the noise. Market dislocation often provides a chance to reallocate assets into securities that have more promising total return potential. This […]
The Umbrella Revolution
What Can Hong Kong Show China? A Road to True Democracy and Economic Power This quarter, instead of writing about financial planning, I decided to share something very dear to my heart. I am torn and heartbroken, for my hometown’s fate is now at a crossroads. Many feelings—anger, fear, heartache, sorrow, anxiety, and hope—have struck […]
Stop Being Your Own Worst Enemy
Forecasting and Confirmation Bias As human beings, we cannot help but approach our investing with behavioral biases. Over the next few quarters, we will explore these biases in depth so that we can be careful to counteract them should they begin to affect our portfolios. This is a personal topic as well, since your investment […]
Estate Planning 311: Using Roth IRA With Life Insurance
In my last quarterly letter[1] I discussed life insurance products—term, whole and universal—and their characteristics. This time, I will take a deeper dive into a strategy that benefits younger people when it comes to insuring their lives. First of all, let us refresh our memory on the cost of various life insurance products (Table 1). […]
The Newest Whipping Boy – High-Frequency Trading
Tracking a Changing Marketplace It’s a media feeding frenzy! Michael Lewis’ new book Flash Boys has created a stir among investors and regulators alike as they scramble to understand the ins and outs of high-frequency trading (HFT). To make a long story short, HFT has been around for longer than 15 years. So, this is […]
