Our Weight: It’s Gaining On Us

Since the late 1980s, America’s average Body Mass Index, or BMI, has been climbing rapidly. As a result, we’re losing life expectancy relative to people in other rich countries.

DFA Gives Managed Accounts a New Dimension

“For as long as I’ve known him, David Booth has had a desire to find a way to improve retirement for everyone, not just people who have millions of dollars,” Michael Lane told RIJ this week. “That’s his vision, and that’s the whole reason we acquired SmartNest in the first place.”

Three Annuity Cures for Sequence Risk

New York Life and Fidelity have introduced a variable annuity with principal-protection over 10 years. Similar protection could be obtained with an indexed annuity or with a combination of a fixed rate annuity and an S&P500 index fund.

How Debt Affects Retirement

“Remaking Retirement? Debt in an Aging Economy," was the theme of the 65th annual symposium of the Wharton School's Pension Research Council, held last week in Philadelphia. (Photo: Kitchen and retirement makeovers sometimes occur in tandem.)
Anecdotal Evidence

It’s No Joke: The Fed’s Comic Book is Wrong

The educational comic book from the New York Fed means well but perpetuates the myth that money was created in the private sector to facilitate barter and enabled commerce to flourish. History shows otherwise.
Anecdotal Evidence

The SmartNest Back-Story

SmartNest, the software behind DFA’s new managed account program, was valued at $1.1 million when Trinsum Group, its previous owner, failed in 2009. Last summer, DFA insider Michael Lane, 45, (above) replaced David Deming as the venture’s CEO.
Anecdotal Evidence

Cold Turkey for Thanksgiving? No Thanks.

Let me channel, for a few paragraphs, the ideas of Warren Mosler, Stephanie Kelton and other proponents of Modern Monetary Theory—which is not a theory so much as a clearer understanding of the way our financial system actually functions.
Anecdotal Evidence

Bank holding companies earn $1.58bn from annuities in first half of 2012

Despite an overall increase in the banks' annuity revenues in the first half of 2012, twice as many bank holding companies saw lower annuity commissions and fees this year than in the first half of 2011. The director of the American Bankers Insurance Association called that “troubling.”
Anecdotal Evidence

Investors shun full-service firms: Hearts & Wallets

The percent of investors who cite a financial professional as their primary provider of investment advice fell to 21% in 2012 from 25% in 2011, according to the Boston area research firm. Usage dropped sharply among households with $100,000 to $500,000 and over $2 million in investable assets.
Anecdotal Evidence

“HENRYs” control $8.3 trillion in savings: SBI

The 21.5 million "high-earning not rich yet" households control 31% of total financial assets in the United States—about $8.3 trillion—and have a combined annual income of $3.1 trillion, says Strategic Business Initiatives. (Left: O. Henry)
Anecdotal Evidence

Quote of the Week

"Investors are not irrational; they are undecided about which path will be chosen by future investors." -- Roger E. A. Farmer, PhD, from "How The Economy Works" (Oxford, 2010), p. 92.