The Kennon Retirement Insurance Plan

One of the Things That Helped Me … From time to time, you may come across reference to my “stupidity” insurance or my “reserve” fund.  I’ve had a bunch of readers write me over the years and ask about various comments I’ve made so I thought it might be useful to explain it.  My parents, [...]

from Joshua Kennon

Tweedy, Browne Value Investing

For years, my family has maintained a substantial portion of our retirement accounts through Tweedy, Browne & Company, the oldest value investing firm in the world. Originally serving as stock broker to the father of value investing, Benjamin Graham, Tweedy, Browne & Company converted to a money management company and eventually launched several highly successful mutual funds [...]

from Joshua Kennon

Common Misconceptions About Dollar Cost Averaging

It is a common misconception that dollar cost averaging is merely the regular saving of money through automatic investment.  Technically, this is not dollar cost averaging, although it closely resembles it.  Instead, dollar cost averaging is the regular investing of a fixed amount of money as opposed to putting it in to the market in [...]

from Joshua Kennon

How Investors Who Practiced Dollar Cost Averaging Were Richer Within Only 2 Years of the Credit Crisis Meltdown

Citing data provided by Vanguard, one of the premier mutual fund and 401(k) providers in the world, The New York Times recently reported that 60 percent of 401(k) accounts now have more money in them than they did before the stock market crash and worst recession since the Great Depression began two years ago. That [...]

from Joshua Kennon

The Basics of Dollar Cost Averaging

Dollar cost averaging is an investing technique that can lower your risk, increase your profits, make market volatility less emotionally painful, and help put you on the road to financial independence.  When combined with asset allocation, it’s a nearly unstoppable force that can grow your wealth far beyond what you ever imagined.  This guide to dollar [...]

from Joshua Kennon

Tactical Asset Allocation and Your Portfolio

Tactical Asset Allocation vs. Value Investing The difference between tactical asset allocation portfolio management and value investing is that tactical asset allocation only seeks to find undervalued asset classes – not individual securities or investments. That is important.  An investor that is using a tactical asset allocation approach may look at stocks, bonds, real estate, [...]

from Joshua Kennon

International Asset Allocation 101

Most growth asset allocation model portfolios call for exposure to the international asset class. In fact, in the article Factor In Your Income Sources When Seeking Diversification, I explained that one of the ways my own family reduced the risk involved with having such a big part of our net worth invested in private businesses [...]

from Joshua Kennon

Passive Income Asset Allocation Model Portfolio

Asset allocation models designed to generate passive income for investors remain among the most popular of all time because everyone wants to be able to live off their money.  Whether you are retired and need to augment your Social Security income, or you are wealthy and want to generate passive income without touching your principal, [...]

from Joshua Kennon

Use ETFs to Make Asset Allocation Investing Even Better

ETFs, or exchange traded funds, are like mutual funds only they trade on the open market as if they were stocks.  (I’ve written about them over at Investing for Beginners many, many times.)  This means ETFs can be shorted, or fall above or below the net asset value, unlike a traditional open-ended mutual fund.  ETFs [...]

from Joshua Kennon