Tag Archive for: family wealth

A Different Way to Invest in Our Tumultuous World

Everyone loves a good story. It’s what keeps you hooked watching a movie or reading a book…it’s also what keeps investors committed to poor investment solutions. Investors like a good story that keeps them engaged, and that story usually involves a savvy manager. But there is a different narrative—written by financial scientists.

Now, academic finance isn’t exactly an engaging story. However, it has changed the face of investing and market analysis for every investor. In the 1960’s, University of Chicago romance-language-scholar-turned-economist Eugene Fama and his protégé’s (namely, Michael Jensen of Jensen’s Alpha performance measurement “fame”)  first used the power of advanced computing and the capital asset pricing model (CAPM) to price securities and study what impacts returns. Their breakthroughs in finance led to an understanding that, on average, mutual fund managers don’t outperform the market, as well as the idea that there are other factors in the marketplace that contribute to investment returns.

Enter: Evidence-based investing Read more

The Boomerang Generation – Planning for the Unplanned

Nearly double the number of 25- to 35- year-old Millennials were living with their parents in 2016 than their Silent Generation counterparts in 1964.1 In fact, the percentage of 18- to 34-year-olds living in their parents’ home grew from 26.0% in 2005 to 34.1% only ten years later. Of this group, 1 in 4 are idle, meaning that they neither go to school nor work.2 These young adults are known as the “Boomerang Generation”. When they boomerang back to their parents’ home, it is often unplanned and can create financial, emotional, and relationship strain. But…with a bit of creative planning, the recipient of the boomerang can help their young adult without sacrificing their financial future.

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