We’ve talked in the past about the merits of index funds vs. ETFs. Today I wanted to highlight the views of one my favorite financial authors, William Bernstein.
In his book “The Intelligent Asset Allocator,” Bernstein said the following about ETFs in general, and SPDRs (i.e., ETFs that track the S&P 500) in particular:
“They have both [...]

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It’s widely recognized that the transaction costs incurred by investors are made up of two primary components: brokerage fees (i.e., commissions), and the bid-ask spread. While most people are familiar with brokerage fees, fewer people are familiar with the concept of the bid-ask spread.
The bid-ask spread, sometimes referred to as the bid-offer spread, refers to [...]

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Earlier this week, ING Direct announced a new promotion aimed at generating more deposits. Dubbed the “Added Value” CD, they are offering a 12 month CD that pays a 0.15% premium over and above their standard rate. As of right now, that means you’ll get 2.25% APY vs. the standard 2.10% APY.
The catch here is [...]

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As September came to a close, I was enjoying an 11.98% net annualized return with Lending Club. Once again, I spent the month expanding my holdings beyond my original “High Risk” and “Low Risk” test portfolios. My overall rate of return has slipped a bit as the loans I’ve been investing in recently are, on [...]

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As August came to a close, I was enjoying a 12.40% net annualized return with Lending Club. Throughout the month, I focused on expanding my holdings beyond my original “High Risk” and “Low Risk” test portfolios. In addition to those two portfolios, each of which has 20 loans, I’ve created an “Ongoing” portfolio with an [...]

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Readers often e-mail me for tips on how to keep their finances manageable. There are so many options out there that it can be overwhelming. I was speaking with my mom about this some time ago, and she felt the same way.
My mom has been responsible with her money, but she felt that she could [...]

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Target date mutual funds are designed to automatically adjust their allocation depending on how long you have until the “target date.” These funds thus invest rather aggressively early on, automatically moving to a more conservative allocation over time.
While these funds are a convenient “set and forget” solution for many investors, they’re not for everyone. I’ve [...]

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Last week I mentioned the possibility that 401(k) limits might be reduced in 2010. This week, I wanted to highlight some proposed retirement savings changes that President Obama outlined in his weekly radio address. Here they are:

Auto-enrollment in retirement plans. The administration plans on clearing up some of the bureaucratic hurdles that make auto-enrollment a [...]

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I’m now convinced that investing through Lending Club is (at least for me) more than just a passing fancy. As such, I decided that it was high time to start tracking things in Quicken.
I’ve actually been avoiding this task because I’ve already invested in over 100 loans, and the prospect of tracking so many independent [...]

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According to human resources consulting firm Mercer, the IRS might be forced to reduce 401(k) contribution limits in 2010. Next year’s limits, which are tied to inflation, will be announced in October.
Inflation has been negative since March so, unless it picks up between now and October, the IRS will have no choice but to reduce [...]

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