Our financial capital is measured in the dollars and cents currently in our bank, investment accounts and personal property. Our human capital is measured by our income earning power over our remaining lifetime. As we grow older, our financial capital usually increases, but our human capital declines.
Read MoreIn the last few years, the buzz about socially responsible investing (SRI) has been rolling through the investment world. Money has poured into socially responsible funds. Investors want to know whether their investments are contributing to positive change in the world. A recent study found that 40% of financial advisors say that SRI is important to them and their clients.
Read MoreHave you thought about how a person can make money investing in real estate? How do the pieces come together, really? And what numbers should you consider? There are four ways real estate investing puts money in investors’ pockets: Cash flow, amortization, tax advantage, and appreciation.
Read MoreBefore saving for your children’s future expenses other priorities should come first. Having an emergency fund (perhaps 6 months of living expenses) and saving for your own retirement (10-20% of income, depending on age, existing savings, and income) are rudimentary. Taking care of your future self financially is a part of taking care of your children.
Read MorePassive investing through index funds has taken the world by storm in the last decade, but what portions of the stock market should we invest in, and why? Maybe it comes as no surprise that certain parts of the stock market, or asset classes, outperform others. In 2013 economist Eugene Fama won a Nobel Prize for his research with Kenneth French for their creation of what became known as the Three Factor Model.
Read MoreAt a dinner party one day I was chatting with a new friend and she mentioned how excited she was to have opened an account at one of the new online automated investment companies. After opening her account she moused through a few sliders, allowing the algorithm to peg her investment time horizon and risk tolerance.
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