Brighton Perspective

should-you-rebalance-moneywatch: Personal Finance News from Yahoo! Finance

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via finance.yahoo.com

The author makes valid points for rebalancing though the articles premise is to knock active management. Unfortunately, he uses a straw man approach - he tells us what active management is and then tells us why it is wrong and why it is not active management to rebalance.

Anything other than a true buy/hold strategy employing index funds or ETFS is active management. Determining when and why to rebalance, even if using a static approach, is active.

Regardless of what you call it, rebalancing periodically is very important and vital to maintaining a healthy risk/return profile for your investments.

Fund Managers Reveal 6 Traits of a Good Investor

As an investor, you've no doubt thought long and hard about what makes a good mutual fund manager. But have you ever wondered what fund managers think makes a good investor? At a recent meeting in Washington, D.C., a panel of heavyweights shared what they thought had made them successful and what they looked for when hiring other managers.

via www.kiplinger.com

Good article, well worth reviewing. LaPorte's comments, in particular, are very useful.

What to Do When Your Parents Can No Longer Manage Their Money - FoxBusiness.com

My first memory of thinking "something's not right with Uncle Charlie, Aunt Kate or Pop-Pop" was back in the early 1960s; but as a young teen, you were treading on sacred ground to bring up any notice of someone "slipping."

via www.foxbusiness.com

This is an important issue to consider for all adult children. Understanding your parents finances and being in a position to step in if necessary can prevent or minimize the damage done by a scam. As the author notes - "while it's important not to overreact, kids need to stay alert".

Inflation Fears: Real or Hysteria? - Seeking Alpha

Debate continues to rage between the inflationists who say the money supply is increasing, dangerously devaluing the currency, and the deflationists who say we need more money in the economy to stimulate productivity. The debate is not just an academic one, since the Fed’s monetary policy turns on it and so does Congressional budget policy.

via seekingalpha.com

There are several good points in this article, mostly quotes from respected economists. Inflation is a short term concern but with high unemployment, low GDP growth, an output gap, and poor money velocity and money multiplier, long-term prospects for a significant uptick in inflation look minimal. This "recipe" would suggest that consumers are very price-sensitive and thus increases in prices of end goods/services should cause consumers to adjust their spending habits. That should, in turn, lead to a negative price adjustment. So, short-term inflation is an issue, intermediate and long-term, not yet.

5-ways-make-401k-like-pensions: Personal Finance News from Yahoo! Finance

It may feel like as though 401(k)s have been around forever, but they've only been with us since the 1980s (okay, maybe that is forever). Until the 401(k) came along, if you had a workplace retirement plan it came in the form of a traditional defined benefit pension.

via finance.yahoo.com

For most of us, the DB plan is long gone. Maximizing your 401k contributions and carefully managing your 401k portfolio is critical to retiring with a lifestyle you desire. Consider adapting these article points to your portfolio.

how-to-do-investment-portfolio-analysis-bankrate: Personal Finance News from Yahoo! Finance

Each of your investments won't be a home run, but your portfolio's performance should at least be in line with your expectations. If the gap between your expectations and reality is consistently the size of the Grand Canyon, it's time to re-evaluate your portfolio.

via finance.yahoo.com

We drill this point repeatedly - reassessing your portfolio on a regular basis is critical to long-term success. Success is achieving your specific goals within your risk tolerance, not maximizing return. Evaluate whether the positions have performed as expected but also consider changes to your environment - need for liquidity, time horizon, risk tolerance, etc. These issues are just as important as whether investment X outperformed or underperformed it's index and peers. As Yogi Berra once said, "if you don't know where you're going, you won't get there"