Category: Investments
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The Rise of Index Investing—And Why You Should Care
The indexing approach to investing accounts for over half of US equity investments in 2025. Compare that to the 1970s, when it was almost non-existent. Among many investors and their advisors, indexing has become conventional wisdom. There are good reasons for indexing’s growth. The case for indexing is strong, and we will…
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A Surprising Case for Crypto
I’m going to tell you of a surprising, hard-to-refute case for “investing” in crypto. But first, let’s look at some background. If you’re old enough, you may remember the stories that used to be told about the 1920s stock market, shortly before the great crash of 1929. One of the most…
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Are Taxes Killing Your Compounding?
We were recently interviewed for a piece on CBS. We discussed the magic of compounding. Compounding is at the core of investing. One of the biggest enemies of compounding is taxes. Tax-Exempt AccountsYou know, and undoubtedly speak with clients, about the compounding benefits of tax-free accounts including IRAs, 401(k)s, in…
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Tesla Without Musk? What Then?
When we last blogged about Tesla almost a year ago,[1] we advised “If Tesla won’t own the world, consider selling your shares.” Tesla was then trading at $269 per share. And since then, it doesn’t look like Tesla will own the world. Tesla shares closed on Friday at $178 each.…
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Beware This “Abusive” Tax-Planning Trap; What to Do Instead
Recently we have talked to several advisors who have been pitched by promoters offering Deferred Sales Trusts – “DSTs” and Monetized Installment Sales – “MISTs.” Those are two names for basically the same scheme. The scheme (the IRS’ word, see below) is promoted as a tax deferral strategy. California has…
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Estate Exemption: Hidden AUM Opportunities
The lifetime estate tax exemption now is about $13.6 million for an individual and $27.2 million for a couple. Under current law, the exemption is scheduled to drop, about in half, on January 1, 2026. The new exemptions[1] will be about $7 million for an individual and about $14 million…
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Can Smoking Be Good for Your Lifetime Budget?
Many anti-smoking advocates make the blanket claim that smoking is bad for your finances.[1] But are those claims justified? This blog entry is purely an exercise in analysis. Please do not read it as advocacy. My purpose here is merely to make clear the lifetime financial implications of a pack-a-day…
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Does This Terrify You?
Does it terrify you that this man has the President’s ear in economic matters? Here is a video of President Biden’s Chairman of the Council of Economic Advisors trying to explain, well, you use your own judgment. I’m not sure what he’s trying to explain. Does it terrify you that…
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Buffett is Selling Apple. Should You?
In a report released May 4, 2024, Berkshire Hathaway revealed that it has sold about 115 million shares of Apple, for proceeds of about $20 billion. About a year ago, in June 2023, we observed that Apple shareholders had enjoyed a phenomenal run. At that time, about a year ago,…
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Record-High Gold Prices: Does Gold Belong in An Investment Portfolio?
Gold is trading at record highs, with spot prices exceeding $2250 per ounce as I write this. The chart above might lead you to wonder if you should be investing in gold. In this post, we address two related questions: We’ll first give you the answers, offer brief explanations, and…