Financial Risks and Personal Finance Risk Management, Part 1

Financial Risks and Personal Finance Risk Management, Part 1 1

Risk management is a methodology to mitigate negative consequences resulting from threats and uncertainties. In this article, I’ll be exploring financial risks focused on personal finance and how to minimize these risks. Since risk management is a huge topic, I am going to limit it within the scope of the REAL Wealth Building framework — … Read more

Introduction to Morningstar Style Box

Introduction to Morningstar Style Box 2

In doing your investment research, you may have come across a Tic-Tac-Toe-like box similar to the one below. This box is called the Morningstar Style Box. This particular one came from Vanguard 500 Index (VFINX) profile on Yahoo! Finance. What Is a Morningstar Style Box? Morningstar Style Box is a visual tool created by Morningstar, … Read more

Efficient Market Hypothesis (EMH)

In The Only Guide To A Winning Investment Strategy You’ll Ever Need, Larry Swedroe dedicated a major portion of the book to the discussion of the Efficient Market Hypothesis (EMH), specifically to explain why investing in passively managed funds is a winning investment strategy. What is Efficient Market Hypothesis? The Efficient Market Hypothesis asserts that … Read more

What is Your Thought on Socially Responsible Investing (SRI)?

Recently, I wrote about lending money on Prosper, which is one of the many peer-to-peer lending networks that are popping up everywhere. The post itself didn’t say anything about socially responsible investing (also known as, SRI, morally responsible investing or ethical investing). However, a lively discussion on this topic came up when Kevin stated his … Read more