Academic research helps explain how this risk-seeking behavior manifests in stock markets. It’s well documented in the literature that a subset of individual investors are systematically drawn to stocks with lottery-like features – typically highly volatile, small companies with the potential for extreme positive returns.
Failures of Active Management
Most traditional investment providers offer actively managed investment products as the solution to their clients’ needs. This means picking individual stocks and timing the market with the goal of beating an index or benchmark.
Do we really have to do what is best for the investor?
Believe it or not, this question is at the heart of a hotly debated new rule proposed by the Department of Labor (DOL) surrounding the investment alternatives and advice provided to retirement plan sponsors and participants. Simply put, many brokers who provide this advice can offer a number of alternatives to ERISA based plans and […]
How much do I need to save for retirement?
Watch Massi De Desantis, PHD, Senior Researcher & Vice President Dimensional Fund Advisors discuss how much you need to save for retirement. Potomac Wealth Management is a Dimensional Funds-approved financial advisor, specializing passively managed index fund investments. If you are interested in working with PWM and making the most of your retirement we invite you to […]
How much income do you need in retirement?
Watch Marlena Lee, PHD, Vice President of Dimensional Fund Advisors discuss how much income you need in retirement. Potomac Wealth Management is a Dimensional Funds-approved financial advisor, specializing passively managed index fund investments. If you are interested in working with PWM and making the most of your retirement we invite you to contact us.
The Power of Markets
At Potomac Wealth Management we’re different than many other wealth management firms. This video from Dimensional Fund Advisors spells out our market philosophy and how we can put the power of the markets to work for you. If you are interested in diving deeper on active vs passive investing I highly recommend Rex Sinquefield piece, Active […]