Financial Planning Archives

Investing Isn’t About Being Mostly Right

Investing isn’t about being mostly right. In fact you can be mostly wrong and beat portfolios that were mostly right! Today, we’ll explore how investors can potentially improve portfolio outcomes by targeting two seemingly contradictory but deeply complementary systems as outlined in the latest Mauboussin-Callahan paper, Probabilities & Payoffs: The Practicality and Psychology of Expected Value. But understanding this counterintuitive reality requires a shift in mindset—one that embraces uncertainty and focuses on the power of diversification.

Do Women Receive Worse Financial Advice?

A study based in Hong Kong by using undercover auditors found that female clients were more likely to be advised to invest in individual or local securities instead of getting a mix of different investments.

High school financial education courses in the United States

This article provides detailed insights into how high school financial education policies are implemented at the local level.

Overconfidence May Lead to Poor Emergency Planning

How does the perception of the need to hold emergency cash relate to overconfidence in one's degree of financial literacy? The answer is surprising.

Robo-advisors: A well-researched topic

Along with the rapid growth in the utilization of robo-advisors, there has been similar growth in academic interest about robo-advisors. What is the current state and what are the main research streams in the literature?

Financial Literacy and Financial Resilience: Evidence from Italy

The paper aims to contribute to the literature by providing insights into the current state of financial literacy in Italy, its implications for financial well-being and resilience, and the demographic disparities therein.

Professional Athletes and Money Skills

Until that framework is defined, an assessment of the financial acumen of professional athletes will remain unfocused. This research addresses that gap.

Here are the themes found in financial planning research. What’s missing?

In this academic article, the authors pull together an analysis of the types of thematic structures found most often in financial planning studies as well as the theories most often referenced.

Financial Literacy in the US…Doesn’t look great!

This paper aims to analyze financial literacy in the United States, utilizing the most recent data from the National Financial Capability Study (NFCS) collected in 2021 by the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation. The paper focuses on the importance of financial literacy, particularly in the context of the economic conditions in the US, such as the COVID-19 pandemic, inflation, and changes in the financial system.

Do racial barriers prevent Black and Hispanic households from pursuing financial advice?

This article seeks to examine what research says about the interplay between risk tolerance, financial literacy, and trust and their collective impact on the pursuit of financial advice by Black and Hispanic households.

How I Invest My Own Money: Robust to Chaos.

A lot of people ask me how I invest my own money, and I am always happy to oblige. But I have never discussed the topic in the public (unlike my friend Meb, who has a post dedicated to the subject). However, this past week Justin and Jack asked if they could grill me on my personal portfolio for their excellent podcast, "Excess Returns."

Do Mutual Funds Increase Disclosure Complexity to Hide Fees?

Do mutual funds create unnecessarily complex disclosures and fee structures to obfuscate weak net performance? Yes.

Do Financial Advisors Transmit their Biases to Clients? Yes.

Are there similarities in the trading behavior of financial advisors and their clients? Are fees paid by advisors and clients similar too? Are advisers overconfident in their skill at identifying active managers and in their ability to outperform passive investments?

Are You Ready to Become a Better Investor?

Important Disclosures