What Made Jack Bogle Special?

Little light bulb man plugging himself inA simple idea made Jack Bogle special.

Some ideas are complex — quantum theory, for instance.

Some ideas are silly– drinking this kind of sugared burp water will make me irresistible to the opposite sex.

Some ideas are appealing but wrong — sadly we haven’t invented warp drive.

Jack Bogle had a very simple idea and he was right.

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10 Ways to Lose Money In the Stock Market

Burning a $100 billIf you wanted to lose money in the stock market, how would you do it?

This is a challenge, as the S&P returned 5.3% per year over the past 15 years (yes, even counting the dreaded 2008).

While it seems nearly impossible to lose money, a lot of work has been put into giving you ways to reliably lose money (although I’d plead with you not to use any of them).

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Is Tax Reform Good or Bad for Roth Conversion?

self assured cartoon faceSo, is the new tax reform good or bad for Roth conversions?  The easy answer is “yes”!

Roth conversions are a useful option to move money from a standard IRA to a Roth IRA.  Standard IRA contributions are tax deductible but you’re taxed when you withdraw the money.  Roth gives no up front tax break, but the money isn’t taxed when you withdraw it.

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Your 401k and the New Year

Little man leaning on a stack of coinsWe’re in the season now, aren’t we?  The season of telling your employer your benefit choices for next year.

In belated celebration of Ted Benna Day let’s think through the 401k.  The 401k is kind of like the Social Security system except that:

  • Contributions are voluntary
  • Returns tend to be much better
  • The system is solvent
  • The money is always yours

Unless you’re sure that the in-the-red Social Security system is going to become much more generous than it is right now, you should use your 401k  to maximize your chances for a good financial future.

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One last Scaramucci speech to analyze

Baseball player clearly outWhat did Anthony Scaramucci do before briefly entertaining us/appalling us as press secretary?  He was the very successful founder of Skybridge Capital.  By successful, I mean that he made a lot of money from mom and pop investors and provided them with below average returns.  See Skybridge Capital’s own dismal report card.

In the very engaging Freakonomics broadcast of The Stupidest Thing You Can Do With Your Money, the host, Stephen Dubner, interviews Scaramucci about his hatred of the Fiduciary Rule and of index funds.  Scaramucci’s answers are worth thinking about.  It’s a shame he didn’t think about them.

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