Read Doug’s articles originally printed in The Jerusalem Post.
Profile Perspectives
Proper financial planning can change your relationship with money.
What is the Best Way to Reduce Risk in Your Portfolio
Wouldn’t it be great if there was a fail-proof way to reduce risk in your retirement portfolio?
Any investment ad worth its weight in gold has a disclaimer, “All investments are subject to risk.” That is because risk is the operative term when it comes to investing. In theory,… Read more
Which Is More Important: Steady Income or Potential Growth
Retirees often include bonds in their retirement portfolio because of their perceived safety and the consistent income they provide. However, while bonds play a valuable role in a retiree’s portfolio, it is important to fully understand how they work before buying them.
Holding bonds may reduce potential growth
If your goal is to leave an inheritance to your children when you pass away,… Read more
Does Investor Bias Make You Underperform the Market?
A friend recently had a losing streak at the casino. Instead of walking away, he played more hands of blackjack. “I was determined to win,” he lamented. In fact, he was playing to recoup his losses.
He was a victim of investment biases subconsciously affecting his decision-making. Gambler’s Fallacy – the belief that after a streak of losses his luck would turn – duped him into doubling his losses…. Read more
Should You Follow Investment Trends or Bet against the Masses?
Today, many “investment trend” websites are enticing online traders to join. Investors who follow the trend – also known as “momentum trading” – invest in stocks based on rising market prices rather than company fundamentals.
The strategy of following the investment trend performs best in a bull market. However, selling before the trend reverses is a skill that eludes most investors…. Read more
Do You Look at the Risk-Reward Ratio of Your Stocks and Bonds?
The risk-reward ratio is an attempt to quantify the amount of risk you need to take in order to get an anticipated return from any investment.
If you were to only consider past returns when deciding whether to invest in stocks or bonds, stocks would appear to be the clear winner…. Read more
Can Optimism Increase Your Investment Returns?
Are your investment returns determined by your worldview? Are people hardwired to be pessimists?
Millions of years ago, if an optimistic caveman dismissed a rustle in a bush as the wind blowing, our ancestor may have ended up as a tiger’s lunch. As a result of this early conditioning, the part of our brain called the amygdala scans everything we see and hear for negative news…. Read more
How to Safely Boost Returns in a Low Interest Rate Environment
To the dismay of yield-seeking investors, interest rates remain at historic lows. Although rates on long-term bonds may begin to inch up, analysts generally expect that we may remain in a low-interest-rate environment for a while longer. So, what are income investors to do? It is important to understand the risks of reaching for higher yields and realize there may be less risky ways to increase income…. Read more
Secrets to a Financially Strong Marriage
Displayed prominently in our living room is a list titled, “Abba’s Secrets to Success”. Now, as my oldest daughter is about to get married, I’ve compiled “Abba’s Secrets to a Financially Secure Marriage” for her and her groom. With their permission, I’d like to share it with you:
Be completely honest – Open communication is better than financial infidelity…. Read more
Do You Have to Stop Working When You Reach Retirement Age?
Does reaching retirement age mean you have to stop working?
In Israel, the official retirement age for a man is 67. For women, it fluctuates between 60 and 62, depending on date of birth. Retirees until the age of 70 (or 69 for a woman born before 1950), are eligible for a state pension,… Read more
How to Prepare for the Next Stock Market Crash
Over the past several years, the market has climbed to historic highs, prompting analysts to sound the alarm over the next stock market crash. While I can’t say when the next crash will occur, I can say it’s reasonable to assume that there will be another stock market drop at some point…. Read more