Individual investor underperformance is typically caused by conflicted and/or bad advice.

individual investors

Individual investors about to get picked off.

Individual investors realized investor returns are awful.  The reasons start with poor financial planning and work outward from there. Spinning Gold into Straw Every year, Dalbar studies the realized returns of investors in equity and fixed income mutual funds.  Every year they find the same thing:  investors

dramatically underperform the benchmarks, across every time-period, from 12 months to 30 years.[1] For example, over the 30-year period ending December 31, 2015, equity mutual fund investors received, on average, an annualized return of 3.66 percent.  Over the same time-period the benchmark index returned an annualized 10.35 percent.[2] These investors realized about 35…

We are excited to announce the launch of the Bantam YouTube channel, which can be found here.  In the next few weeks we will also be launching the Bantam podcast.  This will enable you to access our financial planning and strategy content via audio, video, or text. Please let us know if

there are any topics you would like us to address in our blogs or video content.  Some of our previous blog topics have addressed the need to keep fees low, the effect of taxes on returns, and the rising risks in the municipal bond market.  Separately, we have launched…

By using a Total Wealth perspective, large Company Town Risks become obvious.

flooded subway in manhattan

New York City subway flooding. Photo Credit: Justin Lane/EPA

In my previous blog posts in this series, I identified how AmLaw 100 attorneys in Manhattan are exposed to pervasive (and hidden) Company Town Risks® (“CTRs”).  Those posts can be found here and here. In my work, I have found that almost all investors, including ultra-high net worth investors,

are exposed to CTRs that are rarely addressed in traditional financial planning , let alone identified. Many CTRs cannot be eliminated, however some can be reduced.  In this post, I will explore how our representative AmLaw 100 partner could reduce her exposures using methods that are available to most investors. Attorneys…

Ultra high net worth investors in Manhattan should be diversifying their municipal bond portfolios away from New York City issuers.

state by state migration

Source: Business Insider

The risks to Manhattan municipal bonds are rising.  However, there's not much anyone can do about the causes of these risks.  Thus, attorneys and others living and working in or near Manhattan should eliminate those bonds from their portfolios and diversify elsewhere. Manhattan Municipal Bonds Municipal bonds have long been

a staple in the portfolios of ultra high net worth individuals and families.  Last year, I wrote a book about how risks are increasing for municipal bonds. While my book highlighted the increasing risk to municipal bonds generally, I believe those risks are rising for Manhattan residents in particular.  New…

Most AmLaw 100 partner's balance sheets are shot through with Company Town Risks.

Manhattan blackout

New York City blackout after Hurricane Sandy. New York Magazine

My first blog post in this series focused on financial planning for attorneys and the risks they face.  In it, I examined Company Town Risks® and how a Total Wealth financial planning approach can reveal previously hidden concentrated risks. In this post, I

continue my analysis using the example of a 50 year-old AmLaw 100 partner, living and working in Manhattan.  Her total wealth is comprised of the following: Human Capital: $17.3M; Pensions:             $5M; Real Estate:         $5M; Financial:             $10M. Financial Planning for Attorneys - Company Town Risk®…