Author - Matthew J. Illian, CFP®, AIF®

1
Marotta’s 2016 Gone-Fishing Portfolio
2
Overfunded College 529 plan? No Problem!
3
How to Get Jobs for “Unemployable” Degrees
4
Schwab Intelligent Portfolios: Incomplete Rebalancing Algorithm
5
Are CEOs Talented or Just Lucky?

Marotta’s 2016 Gone-Fishing Portfolio

In 2011, we made the Marotta Gone Fishing Portfolio and have updated and reviewed it every year since. A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility. Its primary appeal is simplicity. But a secondary virtue is that it avoids the worst mistakes of the financial services industry. The Marotta gone-fishing portfolio is used by many subscribers as a free and simple way of low-cost investing.

The gone-fishing portfolio provides suggested asset allocations for investors up to age 70 and up to $1 million. Comprehensive financial planning can …

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Overfunded College 529 plan? No Problem!

While most Americans have made little if any progress in their college savings goals, others have a more enviable dilemma of potentially running past the finish line. Still others have found that their children aren’t choosing the collegiate path. No need to worry. You have many great options when managing an overfunded 529 college savings plan.

Withdraw the Funds

If you have more money than college expenses, you can simply withdraw the funds. The down side is that your earnings are included in taxable income and incur a 10% penalty. If you invested ten thousand dollars which grew to fourteen …

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How to Get Jobs for “Unemployable” Degrees

There are a ton of majors in college – UVA has just under 60 – and yet something seems to motivate college students to choose all the unemployable ones.

I remember sitting in UVA’s dining hall as a first year telling my peers I was thinking about majoring in English (#10 for unemployment and #6 in popularity) and Psychology (#1 for unemployment and #2 in popularity). One of my best friends was thinking the same. We bonded over our shared passion for analyzing people and the written word. There was little conversation of potential careers.

“College …

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Schwab Intelligent Portfolios: Incomplete Rebalancing Algorithm

Schwab recently released Schwab Intelligent Portfolios (SIPs), “an automated investment advisory service.” It claims to “make professional advisory services available to anyone with $5,000 to invest.”

In reality, SIPs only offers one service: to “build, monitor and rebalance your portfolio,” and it doesn’t do that well.

We previously explained how SIPs builds a portfolio based on your risk tolerance, a useless measure. Now we review the two pros and nine cons of how Schwab monitors and rebalances portfolios.

Pro: Drift-Based Rebalancing

SIPs provides “daily check-ins” where “excess ETF shares are sold, and the proceeds are used to …

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Are CEOs Talented or Just Lucky?

Are CEOs Talented or Just Lucky?

For too long, the only voices accusing many of America’s corporate executives of excessive pay came from a small group of academics and activist investors. When the divorce of a billionaire oil executive went to court, an unlikely voice joined the chorus.

The legal defense of Harold Hamm, chief executive of Continental Resources, hinged on the belief that a majority of his wealth was simply the result of happenstance and luck. The defendant wasn’t talented, they argued, he was simply part of an energy industry experiencing a rising tide of growth. If the courts agreed with Hamm’s feeble self-assessment, it …

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