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Financial Hypochondria

Individuals who suffer from hypochondria have an excessive preoccupation with their physical health, which manifests itself into an unrealistic fear of having a serious disease. As they focus on and worry about physical sensations, a cycle of symptoms and worry...
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Free Lunch

A common expression in life is, "There's no such thing as a free lunch." In other words, it’s virtually impossible to get something for nothing. However, in our approach to investing, there are a few “free lunches” that we’re able to exploit and feed to our clients.
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To Wade or Plunge?

Jeff Troutner of TAM Asset Management coined the terms “wade” and “plunge” for investing a sum of capital slowly over time or all at once. The wading approach has historically been known as dollar-cost-averaging. Proponents of wading view plunging as reckless and argue wading is much more sensible for the risk-adverse investor. Proponents of plunging believe that wading reduces returns more often than it increases them.
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Include Value Stocks

The fundamental axiom of modern portfolio theory is that risk and return are related. Investment strategy is defined as the science of capturing the maximum return at a stated level of risk. The asset class of value stocks represents a distinctive risk for which we expect compensation. When the risk and return characteristics of value stocks are blended with other asset classes, the result is a diversification benefit. Therefore, including value stocks in a broadly diversified portfolio is expected to increase return while reducing risk.
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Include Small Cap Stocks

There are only two reasons to add an asset class to your portfolio. Either you want it to reduce risk or you want it to add return. Adding small cap stocks to a portfolio of large cap stocks can do both. Small cap stocks have provided returns with a different performance pattern than large cap stocks. In addition, small cap stocks have...
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Use Only Short Term Bonds

At Resource Consulting Group, we believe in using strictly short-term bonds in building the fixed income portion of portfolios. To explain why, we must begin by asking, “Why do we invest in bonds in the first place?”
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Stay Fully Invested

Market timing adds uncertainty, reduces efficiency, and increases taxes and costs. Thus, it reduces the probability of achieving long-term goals. Systematically adhering to an investment policy uses the opportunities inherent in appropriate asset classes to maximize the probability that you will achieve your goals.
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Have an Appropriate Allocation to Equities

One of the most important investment decisions an individual can make is the determination of an appropriate allocation to equities. Popular beliefs have always and continue to label bonds as a “safer” investment than equities. History demonstrates...
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