One of our clients recently asked us if he was invested in the best exchange-traded funds. He readily accepts our investment management philosophy. He understands the importance of asset allocation, diversification, asset location (for tax efficiency), cost containment and rebalancing. But he knows we use a variety of funds to build client portfolios and he […]
In many retirement plans, a significant amount of a participant’s earnings are lost to fees. The New York Times recently featured an article on the challenges that one retired 401(k) plan participant is facing in his efforts to hold his employer accountable for the costs associated with the plan. Despite a federal requirement that plan […]
The financial services industry spends millions of marketing dollars every year trying to convince investors that the key to financial success is picking the right stocks (or mutual fund) or correctly timing the market. Yet study after study over the past four decades has shown that most actively-managed mutual funds under-perform their benchmarks. For example, […]
In trying to understand the concept of active management, and its potential for success, let’s begin with the question: What is a stock? A stock is simply an ownership share in a company. Each share of stock in a company represents a part ownership for the shareholder. And each share of stock represents a claim […]
At Springwater, we believe that the best strategy for generating superior long-term investment results is to focus on setting the appropriate asset allocation (or mix of categories of investments, like large cap stocks, small cap value stocks, real estate, bonds, etc) and then implementing that allocation in the most cost-effective and tax-efficient manner. For us, […]
“Low cost is the single best predictor of subsequent performance [for mutual funds] … it’s definitely not past performance.”, according to the director of fund research at Morningstar. Do you know what the expense ratios are for the funds in which you’re invested? Or the blended expense ratio for your portfolio? With a five-year bull […]
We’re pleased to have added a new video to our Springwater Wealth website. This video introduces the conceptual underpinnings of proper portfolio diversification, discusses its benefits, and explains how to implement it. You can watch the video on our Videos page here.