Category Archives: Personal Finance

Risk Tolerance — The Ability to Deal with Loss

No one knows their financial “risk tolerance” outside of the context of losing money.  Part of the trouble is that risk and return are often described in the same breath as if they are inseparable, when they are more weakly related than most think, and certainly not linear. Surveys, no matter how well-intentioned or -designed […]

Retirement – A Luxury Good

Recently I was approached by Moneytips to ask my opinions about retirement. They sent me a long survey of which I picked a number of questions to answer. You can get the benefits of the efforts of those writing on this topic today in a free e-book, which is located here: http://www.moneytips.com/retiree-next-door-ebook.  The eBook will be […]

The Art of Extracting Large Commissions From Investors

The dirty truth is that some investments in this life are sold, and not bought.  The prime reason for this is that many people are not willing to learn enough to save and invest on their own.  Instead, they rely on others to corral them and say, “You ought to be saving and investing.  Hey, […]

Avoid Illiquidity

There are several reasons to avoid illiquidity in investing, and some reasons to embrace it.   Let me go through both: Embrace Illiquidity You are offered a lot of extra yield for taking on a bond that you can’t easily sell, and where you are convinced that the creditor is impeccable, and there are no […]