For several decades, I’ve written, lectured, and consulted on the difficulties of getting good advice about personal finance. Among the problems is a pervasive imbalance of information. When one party to a transaction knows a great deal more about the subject than the other, … [Read more...]

There has been a lot of talk in Washington DC recently as to whether all financial advisors should be held to a “fiduciary duty” in their dealings with investors. From my point of view, it is hard to see what could possibly be controversial about insisting that those who guide … [Read more...]

In a recent speech, President Obama announced support for a Department of Labor initiative to impose a fiduciary duty on those who give advice about tax deferred retirement investments such as IRA accounts.  It is a modest proposal. Judging by the howls emanating from an industry … [Read more...]

I sometimes ponder how brokers and advisors choose this fund over that one. After all, economic theory suggests that they all tend to perform in tandem with others investing in the same asset class. In such a case, the lion’s share of performance variation will be attributable … [Read more...]

When contemplating a potential investment, how can you know if it is fairly priced? Such a determination is critically important since even the best company will prove a poor investment if its stock is purchased too dear. Paying a fair price for an investment vehicle is just as … [Read more...]