Professor Elroy Dimson of the Cambridge Judge Business School believes factor investing leads to better results. This is because, he says, if you expose your portfolio to a variety of factors (different from just investing in different industries or sectors), these distinctive attributes have a very important impact on how a portfolio performs.
When selecting investments, consider factors like: Sensitivity to inflation, company size, high/low dividend yield.
How to talk to your parents about their finances? Doug shares “10 Secrets to Talking to Your Parents About Money.” It’s hard to discuss money with a parent, but it is essential for solid financial planning. This top ten list is available for people who need help beginning that conversation.