Investing/ Markets

What Are Powers of Attorney?

August 15, 2024 by Hans Blake, CFA, CPA

Reading Time: 3 minutes

On our latest episode of Intelligent Money Minute, we had the pleasure of interviewing Chace Campbell, an experienced attorney with over 20 years of legal expertise. During the conversation, Chace broke down the often-confusing concepts surrounding powers of attorney, providing clarity on the differences between durable, limited, and general powers of attorney. For those navigating estate planning or concerned about future incapacities, understanding these distinctions is crucial.

What Are Powers of Attorney?

To begin, Chace explained that the term “power of attorney” essentially refers to the legal authority given to one person (the agent) to act on behalf of another (the principal). This authority can vary significantly in scope, depending on the type of power of attorney in place.

General Power of Attorney: This is the broadest form, allowing the agent to act on behalf of the principal in a wide range of matters. Chace highlighted that this could include managing financial affairs, making healthcare decisions, or handling legal matters, especially if the principal becomes incapacitated and unable to manage these tasks themselves.
Limited Power of Attorney: In contrast, a limited power of attorney restricts the agent’s authority to specific tasks or decisions. For example, Chace mentioned scenarios where someone might need to authorize another person to withdraw a specific amount from their bank account or sign documents for the sale of a property while they are out of town. The limitations are clearly defined within the document, ensuring the agent’s authority only extends as far as necessary.
Durable Power of Attorney: The concept of durability adds another layer to powers of attorney. As Chace explained, durability ensures that the agent’s authority remains in effect even if the principal becomes legally incapacitated. This is particularly important in cases where the principal might fall into a coma or suffer from a condition that prevents them from making informed decisions. Without this durability clause, the power of attorney would typically become void if the principal loses mental capacity.

Legal Incapacity and Its Implications

Delving deeper, Chace clarified what legal incapacity entails and how it relates to the durability of a power of attorney. Legal incapacity can arise in several situations, such as when a principal is in a coma, suffers from severe cognitive impairment, or is otherwise unable to understand and manage their affairs.

Chace emphasized that the durability clause is vital in these scenarios because it ensures that the agent can continue to act on behalf of the principal, providing continuity and protection for their interests. This clause is essential for anyone concerned about the possibility of becoming incapacitated and wanting to ensure that their affairs are managed according to their wishes.

Key Takeaways

As our conversation with Chace Campbell highlighted, understanding the distinctions between general, limited, and durable powers of attorney is crucial for effective estate planning and legal preparedness. Each type serves a specific purpose, and selecting the right one depends on the individual’s circumstances and the level of authority they wish to grant.

For those looking to secure their future and ensure that their legal and financial matters are handled appropriately, consulting with an experienced attorney like Chace is a wise step. By doing so, you can create a tailored plan that addresses your unique needs and provides peace of mind, knowing that your affairs are in capable hands.

Stay tuned for more interviews with Chace, where we’ll dive deeper into his expertise and the valuable lessons he has to share with our intelligent investing audience, so be sure to subscribe to our Intelligent Money Minute podcasts.

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Chace Campbell Bio

Chace is a seasoned legal professional with over 20 years of experience in estate planning, business law, and probate. He began his career in 1997 at Culp, Elliot, and Carpenter, P.L.L.C., focusing on tax and corporate law before discovering his passion for family law, probate, and small businesses in 2002.

Chace is renowned for his exceptional communication skills and careful listening. He is dedicated to helping clients navigate complex legal landscapes, providing comprehensive understanding and effective resolutions through litigation, mediation, negotiation, or forward planning. He emphasizes both resolving and preventing legal issues, offering accurate information, honest advice, and concrete action steps.

Outside of work, Chace enjoys time with his wife Michelle and their three children, preparing for outdoor adventures at REI, and indulging in his passion for coffee.

Credits: This blog was written in part by ChatGPT, an AI language model developed by OpenAI. The content of this blog reflects the knowledge and opinions of ChatGPT, may or may not reflect the knowledge and opinions of Intelligent Investing, and is protected by copyright laws. Please do not reproduce or distribute without giving proper credit to ChatGPT and OpenAI.

Chace Campbell’s Journey to Becoming a Legal Expert

August 1, 2024 by Hans Blake, CFA, CPA

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Reading Time: 3 minutes

On this episode of Intelligent Money Minute, we interviewed Chace Campbell, a distinguished attorney based in Greenville, with over 20 years of legal experience. Chace’s story is one of diverse experiences and deep-rooted passion for the law, family, and business.

Early Influences and Entrepreneurial Roots

Chace’s journey began in his childhood, growing up as the only child of a serial entrepreneur. His father’s ventures provided Chace with an early education in business, sparking his interest and shaping his understanding of what it means to be a business owner. He recalls fondly the times his father would take him along to business meetings, allowing him to observe and learn the intricacies of various industries.

These experiences were more than just father-son bonding moments; they were foundational lessons that would later inform Chace’s legal practice. “The education I got from those experiences has stayed with me throughout my life,” Chace reflects. This early exposure to business operations equipped him with a unique perspective that he brings to his legal practice, especially when dealing with business owners and entrepreneurs.

The Path to Law

Despite his entrepreneurial upbringing, Chace always aspired to be a lawyer. Initially influenced by iconic TV lawyers like Perry Mason and Matlock, Chace pursued his dream, earning his JD with honors from the University of South Carolina School of Law in 1997. His early career at Culp, Elliot, and Carpenter, P.L.L.C. saw him specializing in tax and corporate law, but it wasn’t long before he found his true calling.

In 2002, Chace transitioned to focus on family law, probate, and small businesses. This shift was driven by his passion for the interpersonal dynamics within these areas, where he felt he could make the most significant impact. His ability to listen attentively and communicate effectively has made him a trusted advisor for his clients, helping them navigate complex legal landscapes.

Building His Own Practice

After several years of working with established firms, a pivotal moment in Chace’s career came when he was appointed to represent three children whose mother had been incarcerated. This experience was a turning point, inspiring him to start his own practice. In 2002, he founded Chace Law, initially focusing on guardianship cases before expanding to encompass business and estate planning.

Chace’s practice is characterized by a holistic approach, recognizing the interconnectedness of business, probate, and estate planning law. “Those are not really three different areas to us; those are really interconnected,” he explains. This integrated perspective allows Chace to offer comprehensive legal solutions tailored to the unique needs of his clients.

A Day in the Life

Today, Chace’s clients range from entrepreneurs and business owners to individuals dealing with estate planning and probate issues. His practice areas may seem distinct, but they often intersect, reflecting the complexity of modern legal challenges. Chace’s goal is to provide decisive legal action balanced with compassionate understanding, ensuring his clients receive the best possible outcomes.

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Chace Campbell Bio

Outside of work, Chace enjoys time with his wife Michelle and their three children, preparing for outdoor adventures at REI, and indulging in his passion for coffee.

Why Do We Try to Keep Up with The Joneses?

July 24, 2024 by Hans Blake, CFA, CPA

Reading Time: 4 minutes

The phrase “Keeping up with the Joneses” originated in early 20th century America from Arthur (Pop) Momand’s comic strip titled “Keeping Up With The Joneses,” which first appeared in the New York Globe in 1913. The strip quickly gained popularity, and by September 1915, it was adapted into a cartoon film shown in US cinemas. The ‘Joneses’ in the comic were not based on specific individuals but served as a generic representation of neighbors, with ‘Jones’ being a common surname.

In today’s fast-paced world, appearances can be deceiving. The notion of “keeping up with the Joneses” has become increasingly prevalent, fueled by social media and a culture of instant gratification. But as Dave Ramsey wisely points out, “Very few people who look like they have money actually do.” This phenomenon often leads individuals and families into precarious financial situations. At Intelligent Investing, we believe in organizing financial “junk drawers” to ensure our clients can make informed decisions without the pressure of maintaining appearances.

The Illusion of Wealth

The rise of social media platforms has created a continuous stream of visible consumption. It’s now easier than ever to see the luxurious cars, sprawling homes, and exotic vacations that friends, family, and influencers indulge in. This constant exposure has led to a significant number of Americans experiencing what psychologists call “money dysmorphia” — a feeling of insecurity regarding their financial well-being, even if they aren’t as financially unstable as they perceive.

Similarly, in today’s 24/7 news cycle, it’s easy to feel overwhelmed by the sheer volume of information we are exposed to daily. News outlets often emphasize sensational stories to attract viewers and boost ratings. This can lead to a skewed perception of reality, where the world seems more dangerous or chaotic than it actually is. At Intelligent Investing, we understand that this constant exposure to negative news can affect not only your mental health but also your financial decisions.

According to a survey by Qualtrics for Intuit Credit Karma, 29% of American adults report feeling this financial insecurity. The psychological disconnect between perception and reality is even more pronounced among younger generations. A LendingTree survey found that 62% of Gen Z Americans feel financial pressure to keep up with their peers, leading 51% to admit to overspending to impress others. Amongst this group, 56% are now in debt due to their attempts to maintain these appearances.

Lifestyle Inflation and Debt

Borrowing money to splurge on luxury items just to impress others can trigger unsustainable lifestyle inflation. Once a budget is stretched to accommodate a new car, a bigger home, or a lavish vacation, sustaining those expenditures becomes increasingly difficult. This is likely why many high-income Americans are struggling financially. A recent Lending Club survey revealed that roughly half of six-figure earners live paycheck to paycheck.

At Intelligent Investing, we emphasize the importance of understanding the true cost of debt and the impact it can have on long-term financial health. Our proprietary financial software, Intelligrations®, helps clients see the bigger picture and make decisions that align with their values and goals, rather than societal pressures.

True Indicators of Wealth

On his website, Ramsey outlines his definition of financial success: “True wealth is about three things: making an impact through giving, leaving a legacy, and having options for how you live your life.”

At Intelligent Investing, we resonate with this definition. We believe that financial success involves compassion, legacy, integrity, excellence, nimbleness, and truth — core values that guide our approach to wealth management. Being able to donate to charitable causes is a genuine indicator of economic security. In 2022, regular Americans made 64% of all charitable donations in the U.S., reflecting a strong culture of giving.

Leaving a legacy is another significant sign of wealth. A USA Today Blueprint report found that 68% of Gen Z and millennial Americans expect to receive an inheritance, with the average size being $320,000. This transfer of wealth is a testament to the financial planning and foresight of previous generations.

The freedom to choose one’s lifestyle is perhaps the most subjective measure of wealth. The ability to decide where to live, how to spend one’s time, and the flexibility to pursue one’s passions are invaluable aspects of financial success. At Intelligent Investing, we strive to help our clients achieve this level of freedom through personalized financial strategies.

Practical Steps to Financial Health

Assess Your Financial Situation: Consider using tools like Intelligrations® to get a comprehensive view of your finances.
Set Realistic Goals: Align your financial goals with your values and long-term aspirations.
Create a Budget: Track your income and expenses to ensure you live within your means.
Build an Emergency Fund: Save enough to cover 3-6 months of living expenses.
Invest Wisely: Diversify your investments and seek professional advice to ensure your portfolio aligns with your risk tolerance and goals.
Avoid Unnecessary Debt: Borrow only what you can afford to repay and focus on paying off high-interest debt first, if you have any.

Avoiding the Trap of Appearances

A classic example of someone who pursued the appearance of wealth only to face financial ruin can be found in the biblical story of the Prodigal Son. In this parable, a young man demands his inheritance from his father and promptly leaves home to indulge in a life of extravagance and excess. He spends his wealth on lavish living, attempting to portray an image of affluence and success. However, his reckless spending quickly depletes his fortune, leading to his downfall. Stricken by poverty and regret, he finds himself destitute and humbled, forced to work as a swineherd. Ultimately, he returns to his father’s house, repentant and seeking forgiveness. The story illustrates the perils of prioritizing the appearance of wealth over financial prudence, demonstrating how the pursuit of superficial status can lead to ruin and the eventual realization of what truly matters.

The pursuit of appearing wealthy can lead to financial ruin. Instead, true wealth is about financial security, the ability to give back, leaving a legacy, and enjoying the freedom to live life on your terms. At Intelligent Investing, we help our clients achieve these goals through strategic planning and a focus on what truly matters. Remember, all that glitters is not gold, and real wealth lies in the peace of mind that comes with sound financial management.

Consider joining our clients and making Intelligent Investing your financial accountability partner. Together, we can navigate the uncertainties of election seasons and beyond, ensuring that your investments remain aligned with your long-term objectives.

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Navigating Election Volatility in Your Portfolio

July 2, 2024 by Hans Blake, CFA, CPA

Reading Time: 4 minutes

Election years often stir up market volatility, especially when candidates present starkly different viewpoints. While historical data can provide some insights, the future remains unpredictable. Election processes have evolved, with mail-in voting and concerns about voting fraud becoming more prominent issues. In fact, there is a thing called Election Stress Disorder, and perhaps you’ve experienced it.

Election Stress Disorder (ESD) refers to the heightened anxiety and stress individuals experience during election seasons. This phenomenon can be triggered by constant exposure to political news, social media debates, and the uncertainty surrounding election outcomes. Symptoms may include irritability, difficulty sleeping, and feelings of helplessness. Managing ESD involves limiting news consumption, and maintaining perspective on the election’s impact on daily life.

It’s crucial to remember that elections, despite generating headlines, should not deter you from adhering to your financial plan. While it’s natural to have concerns about the election’s impact, history suggests it will likely be a nonissue for your portfolio.

Elections Matter (But Not So Much to Your Investments)

Contrary to what the news might suggest, a wealth of empirical research indicates a different narrative. Vanguard conducted a comprehensive study on stock market performance during presidential election years. One key finding was that market returns do not vary drastically between election and non-election years. Examining data from 1860 to 2010, the average return difference is a mere 0.8%. In addition, Dimensional Fund Advisors has an interactive blog on “How Much Impact Does the President Have On Stocks.”

Markets Tend to Ignore Election Years

Another common concern is market volatility leading up to an election. Headlines and public sentiment might suggest increased market instability as elections approach. However, data shows otherwise. Analysis of the S&P 500’s volatility 100 days before and after elections reveals that volatility remained consistent at 13.8% in both periods. This demonstrates that markets generally tend to ignore the noise surrounding elections.

Staying the Course with Intelligent Investing

At Intelligent Investing, our mission is to minimize financial stress and maximize your life. We act as a buffer between sensational headlines and your portfolio. It’s natural to feel uneasy during election seasons, but it’s crucial to stay grounded and focus on your long-term financial plan.

Successful investing involves focusing on what you can control and keeping emotions secondary to your financial strategy. By maintaining perspective, discipline, and a long-term outlook, you can continue progressing toward your financial goals, despite the short-term uncertainties elections may bring.

The stock market often acts as a leading indicator, beginning to rise before an economic recovery is fully evident. This is one reason why markets can show upward movement even amid negative headlines. Pundits, economists, and other financial advisors will inevitably speculate on election outcomes and other significant events, but our investment philosophy is not based on short-term predictions. We believe in long-term investing, diversification across asset classes, and adherence to risk management principles.

As Leo Tolstoy wisely said, “The two most powerful warriors are patience and time.” Regardless of the election outcome, we appreciate our clients’ trust in us as their financial accountability partner. Our mission is to guide our clients away from emotional extremes, coaching them on adhering to their financial plan, and helping them stay aligned with their long-term goals and risk tolerance.

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Disclosures:
Returns Graphic: Vanguard calculations, based on data from Global Financial Data as of December 31, 2019. Data represents the 60% GFD US-100 Index and 40% GFD US Bond Index, as calculated by historical data provider Global Financial Data. The GFD US-100 Index includes the top 25 companies from 1825 to 1850, the top 50 companies from 1850 to 1900, and the top 100 companies by capitalization from 1900 to the present. In January of each year, the largest companies in the United States are ranked by capitalization, and the largest companies are chosen to be part of the index for that year. The next year, a new list is created and it is chain-linked to the previous year’s index. The index is capitalization-weighted, and both price and return indices are calculated. The GFD US Bond Index uses the U.S. government bond closest to a 10-year maturity without exceeding 10 years from 1786 until 1941 and the Federal Reserve’s 10-year constant maturity yield beginning in 1941. Each month, changes in the price of the underlying bond are calculated to determine any capital gain or loss. The index assumes a laddered portfolio that pays interest on a monthly basis.
Volatility Graphic: Vanguard calculations of S&P 500 Index daily return volatility from January 1, 1964, through December 31, 2019, based on data from Thomson Reuters. Note: Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.
Notes:
Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. All investing is subject to risk, including possible loss of principal. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Diversification does not ensure a profit or protect against a loss. Investments in bonds are subject to interest rate, credit, and inflation risk.

The Case for Global Investing: Beyond U.S. Market Dominance

May 23, 2024 by Hans Blake, CFA, CPA

In recent years, many investors have questioned the value of international diversification, given the U.S. stock market’s outstanding performance since the Great Financial Crisis. With the U.S. stock market significantly outpacing international markets, it’s understandable why some might feel international diversification is unnecessary. However, this perspective might be too narrow.

The U.S. Market’s Dominance

Since 2009, the U.S. stock market has delivered impressive returns, with a total U.S. stock market index fund up over 660%, compared to around 180% for a total international index fund. This dominance can be attributed to various factors such as a larger tech sector, a strong dollar, and a more favorable regulatory environment. Additionally, many large U.S. corporations generate a substantial portion of their sales and earnings from overseas markets, further strengthening the case for investing solely in the U.S.

But does this mean international diversification is obsolete?

The Case for International Diversification

Despite the U.S. market’s recent success, there are compelling reasons to consider international diversification. Historical performance is not a reliable indicator of future performance. The stock market is cyclical, and the best-performing market in one decade may not be the best-performing market in the next. For instance, U.S. stocks performed poorly in the 1970s and 1980s, highlighting the importance of diversification across different regions and markets.

At Intelligent Investing, we believe in the value of a diversified portfolio that spans the globe, echoing the investment philosophies upheld by the CFA Institute. Diversification helps mitigate risks inherent in concentrating investments in a single market, which can be prone to specific economic, political, and financial factors.

Risk Management and Potential Opportunities

Diversification isn’t just about mitigating risk; it’s also about uncovering new investment opportunities. By diversifying globally, investors can potentially benefit from the growth of emerging markets and other regions that may outperform the U.S. market in the future. As legendary investor Peter Bernstein once said, “I view diversification not only as a survival strategy but as an aggressive strategy because the next windfall might come from a surprising place.”

Emerging markets, for instance, offer growth potential that is often unmatched by developed markets. Countries in Asia, Latin America, and Africa are experiencing rapid economic growth, increasing urbanization, and favorable demographic trends. These factors can drive higher returns in the long term. Moreover, investing in international markets allows investors to capitalize on different economic cycles, currency fluctuations, and industry trends that might not be present in the U.S. market.

Conclusion: Embracing a Global Perspective

While the U.S. stock market has been a strong performer in recent years, history has shown that market leadership can change. International diversification remains a prudent strategy for managing risk and potentially uncovering new investment opportunities. By diversifying across different regions and markets, investors can position themselves to navigate the uncertainties of the global economy and capitalize on the growth of diverse markets.

At Intelligent Investing, we stand by our commitment to act in our clients’ best interests at all times, providing holistic and personalized investment strategies. By embracing a global perspective and diversifying investments, we help ensure that our clients are well-positioned for the future, no matter where the next market windfall may come from.

International diversification is not just a theoretical concept but a practical approach to building a resilient and growth-oriented investment portfolio. It’s about being prepared for the ever-changing dynamics of the global economy and seizing opportunities wherever they arise. So, let’s look beyond the U.S. market dominance and embrace the benefits of a globally diversified portfolio.

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Insights for DIY Investors and Fiduciary Seekers

April 25, 2024 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

At Intelligent Investing Advisors, we often delve into discussions about the intricacies of financial planning, wealth management, and investment strategies. Recently, we had the opportunity to sit down with Rob Isbitts, a seasoned investment expert, to explore the realm of do-it-yourself (DIY) investing.

Recognizing the Value of Professional Guidance

In our dialogue, Rob drew parallels between DIY investing and everyday tasks like lawn care or tax preparation. While there’s merit in autonomy, he stressed the point where outsourcing to professionals can yield superior outcomes. Recognizing when professional guidance is essential, especially in finance’s complexity, becomes paramount.

Rob illuminated the mindset of the DIY investor, who may view financial advisors as sales-oriented rather than focused on client welfare. While autonomy is admirable, he cautioned against navigating the financial landscape solo. Developing a robust investment philosophy and seeking guidance on non-investment aspects are crucial steps for DIY investors.

Establishing an Investment Philosophy

Emphasizing the cornerstone of successful investing, Rob highlighted the significance of a well-defined investment philosophy. Articulating beliefs and principles guides decision-making amidst market fluctuations. At Intelligent Investing Advisors, we align with Rob’s stance, emphasizing values and goals alignment in our investment strategies.

Rob stressed the importance of combating behavioral biases in today’s information-rich investment environment. At Intelligent Investing Advisors, we acknowledge behavioral finance’s impact on outcomes and empower clients to make informed decisions grounded in sound financial principles.

As the debate between DIY investing and professional guidance persists, Intelligent Investing Advisors stands firm in empowering clients with knowledge and tools for informed decisions. Whether seasoned or new investors, we offer tailored guidance for each unique financial journey. Let’s navigate the markets together, one informed decision at a time.

Rob Isbitts Bio

Rob Isbitts, the founder of ETFYourself.com, is a seasoned investment expert renowned for his role as a serial myth-buster and educator in the finance industry. With 30 years of professional investment experience, he transitioned from a Wall Street grunt to a fiduciary advisor for nearly three decades. Notably, he sold his advisory practice and “retired” in 2020 at 56, only to enter a “10-year, no-cut contract” to provide model portfolio services. In 2020, he founded Sungarden Investment Publishing, followed by ETFYourself.com in 2023. Rob has authored over 1,000 articles for esteemed platforms like etf.com, Forbes, and Marketwatch, and is a frequent guest on podcasts. He’s recognized as a straight-talker, fair-play advocate, and champion of diversity in investing, with accolades including three-time mutual fund manager, author, and honoree in Worth Magazine’s “Top 100 U.S. Wealth Advisors” list. His wife, Dana Isbitts, plays a pivotal role in managing their ventures.

What An Intelligent Investor Should Do with Market Outlooks

November 30, 2023 by Hans Blake, CFA, CPA

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Reading Time: 3 minutes

In this episode of Intelligent Money Minute, I had the pleasure of interviewing Larry Swedroe, head of Financial and Economic Research at Buckingham Strategic Wealth, on what an intelligent investor should do with market outlooks.

The Reality of Market Forecasts

Larry firmly grounds his perspective in empirical evidence, highlighting that market forecasts hold no genuine value. The research indicates that predicting the future is beyond the prowess of even the most esteemed experts. Warren Buffett, revered for his investing prowess, hasn’t entertained macro forecasts for over 25 years, emphasizing their futility in guiding long-term plans.

An intriguing paradox emerges when investors revere individuals like Buffett or Peter Lynch yet often disregard their advice. Larry notes the danger of succumbing to predictions by market gurus like Jeremy Grantham, whose forecasts have often faltered, leading investors astray. The empirical evidence reaffirms that forecasting market trends accurately remains elusive.

The Ark Investment Phenomenon

Kathy Wood’s approach at Ark Investments soared on a narrative of disruptive technologies, akin to the late 90s tech boom. However, as Larry points out, this strategy historically led to significant volatility and long-term underperformance. Wood’s fund initially gained traction, attracting billions of dollars during its successful periods, only to face substantial challenges when those speculative trends faltered.

The pattern echoes a cycle familiar in investing: rising investor interest leads to inflows, magnifying the fund’s exposure and driving up the prices of thinly traded stocks. This reinforcement ultimately feeds back into the momentum, creating a self-fulfilling prophecy. However, when these high expectations are not substantiated by earnings, the bubble bursts, leaving investors vulnerable.

Prudent Advice for Investors: Tune Out Market Forecasts

Larry’s analysis emphasizes that while Kathy Wood’s strategies occasionally yield short-term successes, they often culminate in long-term disappointments. This rollercoaster ride in performance, influenced by speculative investments in disruptive technologies, serves as a cautionary tale for investors.

Larry Swedroe’s wisdom is clear: investors should tune out market forecasts and strategists and adhere to well-crafted investment plans. Instead of chasing returns or following the latest headlines, the focus should remain on executing well-thought-out plans. He cautions against hasty reactions driven by market noise.

For those seeking a financial advisor or aiming to reevaluate their investment strategies, we extend an invitation to connect with us. Our goal is to help you minimize financial stress and maximize your life’s potential through informed, tailored financial decisions.

Schedule a short discovery call or meeting

We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books.

Larry Swedroe Bio

Since joining Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing.

In his role as chief research officer and as a member of the firm’s Investment Policy Committee and Board of Directors, Larry regularly reviews the findings published in dozens of peer-reviewed financial journals, evaluates the outcomes and uses the result to inform the firm’s formal investment strategy recommendations.

Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television shows airing on NBC, CNBC, CNN and Bloomberg Personal Finance. Larry is a prolific writer, contributing regularly to multiple outlets, including Advisor Perspectives and ETF.com.

Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp.

Larry holds an MBA in finance and investment from NYU and a bachelor’s degree in finance from Baruch College.

What An Intelligent Investor Should Do When an Asset Class Falls Out of Favor

November 16, 2023 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

All Risk Investments: Enduring the Ebb and Flow

Larry emphasizes a fundamental truth: every risk investment, whether it’s stocks, bonds, commodities, or others, experiences prolonged periods of underperformance. Investors often underestimate these cycles, mistakenly assuming that three, five, or even ten years are lengthy evaluation periods. However, historical evidence proves otherwise, with instances where the S&P 500 trailed behind treasury bills for 13-year durations occurring three times since 1929.

The crux of Larry’s advice centers on diversification across various unique risks, aligning with one’s risk tolerance. This strategy, substantiated in his book, “Your Complete Guide to Factor-Based Investing,” promotes the inclusion of assets proven to offer premiums over time. Diversifying globally and including varied sources of risk—be it stocks, bonds, commodities, or currencies—reduces dependency on any single investment, mitigating the impact when a particular asset class is out of favor.

Intelligent Investing: A Holistic Approach

Larry Swedroe’s wisdom underscores the importance of persistence and diversification in an investor’s journey. When faced with an asset class in decline, staying committed to a diversified strategy tailored to individual risk tolerances is key. We invite you to engage with us in exploring your unique risk profile and leveraging our financial technology to fortify your investment journey.

Schedule a short discovery call or meeting

We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Larry Swedroe Bio

Since joining Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing.

Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp.

Larry holds an MBA in finance and investment from NYU and a bachelor’s degree in finance from Baruch College.