People Have Memories. Markets Don’t.

One of the best things about markets is that they don’t have memories. They don’t remember what happened last week or last year. They don’t even remember what happened a minute ago. Prices change based on what’s happening right now and what people think will happen in the future.

People have memories. Markets don’t. And that’s a good thing.


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Jack O'Connor
Annuities: Understanding their Fees and Costs - Part I

An annuity is an investment that can be used to supplement retirement income, provide an income during retirement, or even protect against the risk of outliving one's income. They offer a steady stream of income to be used either immediately or at some point in the future, making them a popular option for those looking to secure their financial future. Annuities can be structured in a variety of ways, allowing individuals to tailor their annuity to their specific needs and goals. From fixed and variable annuities to immediate and deferred annuities, there are a variety of options available to help provide a secure, reliable stream of income throughout retirement. Annuities can also provide a way to pass on assets to beneficiaries in the event of one's passing.

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Jack O'Connor
Is Your Money Safe?

Over the last few weeks, the cryptocurrency exchange FTX has been in the news. FTX was a platform where traders bought and sold cryptocurrencies, converted one type of digital currency to another (e.g., Bitcoin to Ethereum), and engaged in margin trading with leverage.

A type of "bank run" hit FTX when it was leaked to the press that the firm was insolvent and may not have enough funds to cover all customer losses. This story was followed by FTX users having trouble getting their money out of the platform.

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Jack O'Connor
Five Financial Planning Tips to Keep in Mind as You Wrap up 2022

Financial planning is a dynamic process that requires adjustments to be made as time goes on. Whether it is economic changes (such as increased inflation rates and market volatility) or retirement contribution limit changes, having a fluid financial plan and roadmap is critical for long-term success.

Revising your financial plan allows you to assess how well your goals and objectives are being met. With the year drawing to a close, now is an excellent time to review and make sure your goals are still in alignment with your plan and where you want to be.

Consider these Five Planning Tips as the year comes to a close.

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Jack O'Connor
Why You Shouldn’t Abandon Bonds

While swift bond price declines can be upsetting, it’s important to remain focused on the long-term benefits of higher interest rates. Bond total returns have two main components: price return and return from income.

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Jack O'Connor
The Investor Behavior Series: Overconfidence

In many aspects of life, people tend to overestimate their abilities. For example, most drivers believe they are better than average behind the wheel—and statistics prove them right! In a recent survey by AAA, over 70% of respondents said that they were above-average drivers.

Investors can mistakenly believe they are above-average performers, and make decisions based on these beliefs—which could have disastrous results.

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Jack O'Connor
Midterm Elections: What Do They Mean for Markets?

It’s almost Election Day in the US once again. For those who need a brief civics refresher, every two years the full US House of Representatives and one-third of the Senate are up for reelection. While the outcomes of the elections are uncertain, one thing we can count on is that plenty of opinions and prognostications will be floated in the days to come. In financial circles, this will almost assuredly include any potential for perceived impact on markets. But should long-term investors focus on midterm elections?

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Jack O'Connor
The Dangers of Target Date Retirement Funds - Part 2

A few weeks ago we wrote a post about Target Date Retirement Funds and their dangers. You can read that post here. Often, Target Date Retirement Funds will be marketed under other monikers such as Lifecycle Funds, Lifestyle Funds, or Target Date Funds.

Target Date Funds came on the investment scene in the early 2000's. As of 2021 they have amassed a staggering $3.27 trillion dollars in assets. They remain very popular with investors as well as company sponsored retirement plans.

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Jack O'Connor
The Dangers of Target Date Retirement Funds - Part 1

Have you ever looked at your 401k and thought, "What the heck am I supposed to do with this?"

If so, you're not alone. Many people are unsure how to best invest their money in a 401k, which is why target date retirement funds were created. A target date retirement fund is a type of mutual fund that's designed to help investors stay on track for retirement by automatically adjusting its investment mix to become more conservative over time.The idea behind target date funds is simple: someone investing in a target date fund will not need to actively manage their investments because the fund will automatically adjust asset allocations over time. The investor simply needs to pick the appropriate target date fund based on when they plan to retire.

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Jack O'Connor
What Have You Done For Me Lately? FAANGS Gone Value

This week’s post was inspired from an excellent column by Wes Crill, Head of Investment Strategies for Dimensional Fund Advisors (DFA). Many of you are familiar with DFA since we use DFA Funds in some of our portfolios. DFA is an industry leader that uses academic research in their equity and fixed income products. Their aim is to use rigorous scientific and mathematical methodologies to target higher expected returns without the need to time the market.

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Jack O'Connor
The History of Labor Day

Labor Day has its roots in the labor movement, which is a large group of workers who work together to advocate for better working conditions. In 1882, two Central Labor Union officials met with President Chester Arthur to discuss the idea of creating a holiday for American workers. They wanted their day off to coincide with the end of summer—which would be in September—so that workers could enjoy their time off before returning to work for another grueling winter season. It was also important for them to have a national holiday because many states already had their own local holidays honoring workers' rights, but these didn't always fall on the same day across state lines.

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Jack O'Connor
Understanding Mental Accounting Bias For Better Investing

Over the next few months we will be posting a series of articles called the Investor Behavior Series. Our goal is to provide helpful content that can be a source of information regarding behaviors that hurt investors when it comes to their investment goals. As most of us know (and are in complete agreement with)–investment success and financial peace comes by following a well thought out financial plan. This financial plan is a road map that can guide us in good markets and bad markets.

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Jack O'Connor
Misleading Headlines Like This Only Hurt Investors

As we have written in previous posts, the financial media is not a good guide to follow for prudent investment and financial planning advice. Their aim is to get you to read and react–fear and uncertainty is the game. A good reminder is to realize that their information is merely entertainment and not to be taken too seriously when it comes to planning for your future.

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Jack O'Connor