Weekend Reading for 3/31/2017

Weekend Reading for 3/31/2017

Confidence Allocation

Investing, like many things in life, can be confusing.  Even the best financial professionals have a hard time keeping up with the details.  When you start thinking about how you should be investing your money, it’s easy to become overwhelmed.  With new research and products coming out every day, how can you decide what is right for you?  The answer is a bit cliche, but I’ll say it anyway.  The best investment strategy for you, is one that you can stick with.

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Chart of the Week

In 1958 the average tenure for a firm in the S&P 500 was 61-years.  By 1980 that number had narrowed to 25 years.  Today the number is 18 years.  At the current churn rate, 75% of the S&P 500 will be replaced by 2027.

Creative Destruction

Creative Destruction

Source: Innosight

3 Good Reads

Can I Throw This Financial Paperwork Out? (Christine Benz)

“One of the most common sources of confusion regarding financial matters doesn’t relate to investments, or how to get rid of debt, or how to invest for college.  Rather, it’s a lot more mundane: Which financial documents do I need to hang on to–and for how long–and which can I safely toss or shred? And where should I keep my truly important documents, like the deed for my house or my will?”

Friend Trying to Sell You Life Insurance? (Matt Becker)

“A friend, or maybe a family member, calls you up and asks you out for lunch or coffee so you can catch up. They offer to pay, so of course, you say yes!  You get there and wonder why they’re a little dressed up, but you don’t really think much of it. They probably just came from work.  The two of you sit down and start talking. Maybe it’s been a little while since you last saw each other and there’s a lot to catch up on. You order some food with the special joy of knowing that you aren’t the one paying the bill. Life is good!  Then, all of a sudden, the conversation changes. Your friend mentions how great it is to hear about your job and your family and asks if you’ve given any thought to securing your financial future.  Wait, what? Where did that come from?

Deep Work in a Distracted World (Taylor Pipes)

“Of course, social media is not bad, and we’d be silly to suggest otherwise. Most of us have an irrational fear of missing out, (FOMO)—so we’ve become dependent on social media, groomed to always check in. But, if we understand that distraction can negatively impact our deep work, then we can start to take steps to help us focus on complicated cognitive functions. What do we get out of that? We’re rewarded with mastery of complicated tasks, better information processing, and producing more in less time.

Enjoy your weekend!

Tim Brennan

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