So far we’ve covered the reasons why diversification is essential to sound portfolio management. Now that we’ve graduated from residency, it’s time to put all of this into practice.

Over the past few months I’ve discussed the benefits of a diversified portfolio, but there are several reasons why diversification has been criticized as an inferior investment strategy.

So far we’ve discussed the importance of asset allocation and the challenges of individual stock picking. To make your portfolio “breathe,” you need to diversify.

A primer on stock investments . . . and the case for saying goodbye to
individual stock investing entirely. 

Last month I discussed the upcoming income tax and Social Security tax changes. As you can see in Table 1 below, you should expect to pay about 10% more in income taxes in a few years. But that’s just one of the tax law changes that will directly affect you in the next two years. Here’s a run-down.

April always starts out great: the weather warms up, baseball season begins, and my kids have spring break. But it turns decidedly sour come April 15th, when I mail my tax returns and realize how little remains after Uncle Sam takes his compulsory share of my labor.

 

2008…what a year. I’m not sure whether to call it a year to remember or a year to forget.