bam alliance

Think Rightly

Today I’d like to take a look at some important concepts contained within Daniel Pink’s bestselling book, A Whole New Mind. His focus on the ascendance of right-brain thinking fits squarely into our continuing conversation about ways to best train our youth to meet the financial, educational and career challenges facing the Millennial generation. My…

Talking Dollars Makes Sense

It’s not easy having conversations about money. Carl Richards, director of investor education for the BAM ALLIANCE, says they can “leave us feeling confused, misunderstood, and even angry.” That doesn’t mean you are better off not having these talks. In his book, “The Behavior Gap: Simple Ways to Stop Doing Dumb Things With Money,” Carl writes…

Overview of Mortgage Backed Securities

Q: What are mortgage-backed securities? A: Investors of mortgage-backed securities (MBS) own an undivided interest in a pool of mortgages that serves as the underlying asset for the security, and these investors then receive a share of the resulting cash flows. A nationwide network of lenders — such as mortgage bankers, savings-and-loan associations and commercial…

Quick Take on Fixed Income – Effects of Lowering Credit Quality in Municipal Bond Portfolio

Q: Can you capture higher returns on a municipal portfolio by lowering its credit quality? A: Investors generally demand a higher yield when purchasing lower-credit-quality municipal bonds due to their greater risk. The assumption is the greater the risk, the greater the expected return. However, evidence has shown that investors have not realized higher risk-adjusted…

Quick Take on Fixed Income

Q: What are the characteristics of preferred stocks? A: Preferred stocks can be viewed as a hybrid of stocks and bonds. Preferred shareholders receive preference over common equity holders (hence the term “preferred”) for dividend payouts and in the event of a Chapter 11 bankruptcy filing. However, all debt holders would be paid before any…

Learning to Shun the Instagram Life

“We should just move to the country and live in a tent.” I mention this idea to my wife every time I’m confronted with one of the realities of living in Park City, Utah. It seems like almost everyone here is an athlete of some sort, and they take their sports seriously. From mountain biking…

Quick Take on Fixed Income

Q: Can you capture higher returns on a municipal portfolio by lowering its credit quality? A: Investors generally demand a higher yield when purchasing lower-credit-quality municipal bonds due to their greater risk. The assumption is the greater the risk, the greater the expected return. However, evidence has shown that investors have not realized higher risk-adjusted…

How can you effectively harvest tax losses in bonds

Q: How can you effectively harvest tax losses in bonds? A: The prospect of higher interest rates scares a lot of investors as that can mean lower bond prices and the potential for losses. You can, however, take advantage of these losses to help improve the overall portfolio return. The simplest, most effective way to take…

10 “sure things” for 2014: Not so much

CBS News

At the beginning of each year, I compile a list of predictions that financial gurus and industry experts tell us are a “sure thing.” And each year, I track how many of these predictions actually come true. So, it’s now time for our second quarterly review of 10 financial predictions that pundits forecast as certain…

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