Own both U.S. and international small caps Many higher quality small cap stocks: Dominate business niche Conservatively run Pay dividends
ACTION POINT
RECOGNIZE THE VALUE OF CASH IN YOUR PORTFOLIO
RECOGNIZE THE VALUE OF CASH IN YOUR PORTFOLIO Cash: Protects portfolios from losses Provides buying power when assets get cheap again
MAKE SURE YOU AND YOUR INVESTMENTS MATCH, IN SUBSTANCE, STYLE AND PERSONALITY
Over the years we have covered the distressing difference between how mutual funds’ perform and the poorer results investors in those same funds get. We call it the underperformance gap. It’s not just fees, trading costs and taxes that explain the difference: a huge factor is investor behavior. The moral to this story is: if […]
FAMILIARIZE YOURSELF WITH IMMEDIATE ANNUITIES
Payouts are still much higher than what you can get on long term U.S. treasuries. Mary Beth Franklin recommends pre-retirees check out deferred income annuities: you pay a lump sum to the insurance company and you determine the date future payments begin.
MAKE SURE YOU OWN SOME STOCKS
As far as inflation beating returns, preserving your purchasing power, U.S. stocks beat U.S. government bonds hands down.
CONSIDER INVESTING IN CHINA
China’s economy and markets have reached such a level of size, power, diversity and complexity that it deserves to be treated as a distinct asset class, requiring different investment approaches, as investors have had for years in the U.S. market
