My only post during my last two weeks of vacation was:
The Limits of Retirement Simulators
Here are some short takes and some weekend reading:
Why Facts Don’t Change Our Minds is a fascinating article explaining why acting irrationally in certain ways was a beneficial adaptation.
The Reformed Broker reports on an interesting experiment where a brokerage reported to account holders whether their trading produced any value.
Larry Swedroe reports on some interesting insights into investors’ preference for dividends.
Boomer and Echo explains the main problems with most of Canada’s mutual fund industry: closet indexing and high fees.
Big Cajun Man says the RRSP should really be called the Tax Deferral Savings Plan. He makes a good point that people shouldn’t look at their RRSP balances and think of it as all their money
Million Dollar Journey has a good primer on asset allocation. Near the beginning are two sets of returns illustrating the effect of bonds on long-term returns. The first set is based on returns for the past 30 years and the second is based on the last 90 years. It’s not hard to see that the last 30 years have given us an amazing bull market in bonds. It will be interesting to see if we get a bear market in bonds in the coming decade or so.
My Own Advisor explains the downside of income tax refunds.