The World's Best Book Summaries
What is the smart beta strategy? Will this approach help you make better investment decisions? The smart beta strategy is one of the most influential methods of portfolio construction. Building on previous investment theories, the relatively modern smart beta strategy promises to yield greater returns than the market without an increase in risk. Keep reading for more about the smart beta strategy.
What is the earliest age you can collect social security? What factors should you take into account when deciding when to receive your social security payouts? Choosing when to start drawing social security is an important decision. You can claim Social Security starting at age 62, but the sooner you start, the smaller your checks will be. The longer you hold off up to age 70, the larger they’ll be, but you’ll have fewer years to collect them. Here is what financial blogger J. L. Collins has to say on drawing your social security.
What is behavioral investing? What behavioral traits can cause problems for investors? Behavioral investing theories point out that people are generally not rational decision-makers. This is important for investing because a lot of people are actually irrational investors. Understanding (and avoiding) the common traits of an irrational investor will allow you to make better investment decisions. Keep reading for more about behavioral investing.
What are some safe alternatives to savings accounts? Which is the best choice you for? Keeping a robust cash reserve is essential for emergencies, but it can also be a losing proposition if your savings account interest rate is lower than the inflation rate. There are a number of safe alternatives to savings accounts that will allow your cash to keep pace with inflation. Keep reading for a list of safe alternatives to savings accounts.
What is the best investment strategy, according to economist Burton Malkiel? Why are index funds likely your best bet? In A Random Walk Down Wall Street, economist Burton Malkiel reveals his best investment strategy. If you only take one thing away from the book it should be this: Investors are better off putting their money in a passively managed index fund—a total market index fund, to be precise—than trading stocks themselves or investing in an actively managed mutual fund. Find out more about Burton Malkiel’s best investment strategy below.
What are some of the most popular investment theories? How can these theories improve your understanding of investments? From the firm-foundation theory to the smart beta theory, economists have questioned the best way to approach investments. Key questions proposed by investment theories include whether the market is efficient, whether the diversification of a stock portfolio works, and whether risk can be reduced without proportionally affecting returns. Keep reading for the top investment theories.
What is a retirement annuity? What are the pros and cons of retirement annuities? An annuity is an insurance contract that offers you regular payments for the rest of your life. There are pros and cons of retirement annuities, and understanding them will help you to make the best decision for yourself. Keep reading for our retirement annuity pros and cons list.
What can you learn from A Random Walk Down Wall Street by Burton Malkiel? What are some of the best investment tactics? A Random Walk Down Wall Street by Burton Malkiel is designed as an accessible guide to financial markets for the individual investor. The book covers everything from buying life insurance to pricing commodities to understanding credit default swaps. But, for the most part, Malkiel’s focus is on common stocks—shares in individual firms—and the stock market. Keep reading for an overview of A Random Walk Down Wall Street by Burton Malkiel.
What is the difference between inflation and deflation? Can inflation and deflation be happening simultaneously? What is the problem with having extreme inflation or deflation? In the most simplistic terms, inflation is the general increase in prices, while deflation is the overall decrease. Inflation and deflation can happen simultaneously in different classes. Both are problematic for an economy when taken to their extremes. Keep reading to learn about the difference between inflation and deflation and why either is economically problematic.
Do you want to know how to avoid paying taxes? What methods can stop you from paying unnecessary taxes on investments like pensions and college tuition? With the surfeit of tax-advantaged retirement plans and investment alternatives on offer, there is simply no good reason you should pay taxes on investment earnings for retirement or expenses like college tuition. Understanding how to avoid paying taxes in certain areas will inevitably save you money. Keep reading for tips about how to avoid paying taxes on certain investments.