I have the view, which I consider fairly obvious but not always clearly articulated, that virtually all low-enough-cost, adequately-diversified investments will yield positive nominal returns over the appropriate investment time horizon. If you own yen-denominated Japanese bonds, you should expect to receive a positive yen-denominated return over the term structure of the … [Read more...] about What’s the optimal amount of home-country (currency) bias?
To call the finance industry a "mixed bag" would be a gross understatement. There are a few functions essential to industrial capitalism that banks, bill brokers, and financiers mastered centuries ago, like moving funds from savers to borrowers, a process described marvelously by Walter Bagehot in 1873. Then there's the constant stream of financial "innovations," as bankers … [Read more...] about Indexed annuities are bad
Back during the Affordable Care Act repeal debate I wrote pretty extensively about the threat repeal posed to entrepreneurs and entrepreneurship by preventing self-employed people from being able to sign up for affordable, comprehensive health insurance. Instead of the doing the same thing for the House and Senate tax "reform" bills, I thought I'd take a different approach … [Read more...] about Five questions about tax “reform”
I think that, to a degree that sometimes seems unusual in these heated times, I enjoy reading and listening to people who don't just disagree with me, but fundamentally disagree with me. This is partly because I don't even agree with the people who agree with me, so I get annoyed whenever a Democrat suggests a new means-tested tax credit and I see in my mind's eye the dozens … [Read more...] about On mutual understanding
On Friday I wrote about how people making payments in excess of the minimum to student loans need to make sure their student loan servicers have instructions to credit the excess payments to their highest-interest-rate loans first. It's the kind of simple measure you can take to save money on student loan interest, and all it takes is a single letter to put the appropriate … [Read more...] about The low-hanging fruit of personal finance