1. Canadian Capitalist reports that the average equity investor has underperformed the S&P 500 index by 6.48% per year over the last 20 years. After buying the index, most of us would be better off doing nothing.
2. Larry MacDonald finds it’s not easy to follow Warren Buffett and buy whatever stocks he buys.
3. Million Dollar Journey looks at what factors to consider when deciding whether to break a mortgage to get a better interest rate.
4. Larry Swedroe looks at the positives and negatives of using Monte Carlo simulations of your portfolio. One of the negatives is that these simulations usually use a normal distribution of returns, which understates the chances of extreme returns. I’ve never understood why this has to be the case. Why not just use a more accurate distribution in the simulation?
5. Where Does All My Money Go gives us an insider’s understanding of what a financial advisor’s “turn on assets” means.
6. The Wealthy Boomer reports that ETFs continue to take business away from mutual funds.
7. The Big Cajun Man debates what to do with found money. I’d say to pay off debt, or if you have no debt, invest it. If you feel strongly about blowing some of it, maybe you could blow the interest savings or investment returns instead.