Featured Articles

  1. Avoiding the Mistakes Made by Ineffective Investors By Spencer Jakab
    Published in July 2016, AAII Journal.
    • A lesson each generation of investors seems to learn the hard way is that boring companies make for better investments
    • Reaching for yield means ignoring a key lesson of investing: There’s no reward without risk
    • Understand whether or not leverage is used, since investments that use it can experience large losses.
  2. "For Bucket Portfolios, the Devil Is in the Details" written by Christine Benz, Morningstar's director of personal finance.
    Published in July 2018, AAII Journal.
    Article highlights:
    • Bucket strategies structure a portfolio based on the timing of expected withdrawals; they strike a balance between short-term risk and long-term growth.
    • Creating a retirement policy statement helps to manage a bucket strategy by setting up guidelines for how withdrawals will be funded and how the allocation will be adjusted.
    • Investors with multiple accounts can use taxable accounts for shorter-term withdrawals, while putting traditional and Roth IRAs into intermediate- and long-term buckets, respectively
  3. Getting the Same Return With Less Risk: The Power of Factors, An Interview With Larry Swedroe
    Published in April 2019, AAII Journal.
    Article highlights:
    • Since not all factors-a characteristic or trait of a stock-do poorly or well at the same time, combining different ones into a portfolio can smooth out returns.
    • Almost 90% of the risk for a 60% stock/40% bond allocation is caused by the equity allocation. The equity allocation, and its risk, can be reduced without sacrificing expected returns if factors are used instead of a market-like portfolio.
    • Getting exposure to a factor's return premium does not require short-selling certain stocks; an investor simply needs to have more exposure to a given factor than the market does.