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The allure of target date funds is simple: a single fund that provides a diversified portfolio and alters its allocation as shareholders approach the date when cash withdrawals will be taken. The promise of an “all-in-one solution” to investing for retirement is attracting...

Covered call writing is one of several ways options are traded. While often done on an ad hoc basis, one can assemble and manage a portfolio of covered call option positions as either a part of a larger portfolio or on a stand-alone basis. Such an approach does require more detailed...

Optimism among individual investors about the short-term direction of the stock market rebounded to a four-week high in the latest AAII Sentiment Survey. Neutral and bearish sentiment both declined, but remain above their respective historical averages. Bullish sentiment, expectations...

An InvestmentNews.com article reported that Fidelity Investments will lower expense ratios on 27 index funds and ETFs on July 1, ramping up its competition with Vanguard. According to the article, the Fidelity 500 Index fund (FUSEX), which tracks the Standard & Poor’s...

There are many headlines warning investors about the next possible financial emergency—the lack of liquidity in the bond market. The meaning of liquidity and the essence of the problem are not obvious. The media tends to look at the bond market as a monolithic block with bond...

What’s the allure of dividend-paying stocks? Dividends provide a segment of return that is always positive. Increases in dividends provide an increased positive cash return and, consequently, increase the value of the instrument producing that return. Positive fluctuations are...

Many retirees reflexively believe that they can live off of the interest from their investments while preserving principal. Using interest payments alone to fund one’s living expenses in retirement may have been possible in decades past when life expectancies all but guaranteed...

Determining how much to allocate to each of your investments can seem a tall order. But with an understanding of how factors such as position size, number of holdings, and rebalancing contribute to the success of your portfolio, the decision becomes clearer. Position Size The influence...

This article originally appeared in the October 2013 issue of the AAII Journal. Interested in the benefits that individual bonds can offer, but not ready for the complications? The hybrid defined-maturity bond funds are one alternative. What are they and what do you need to know...

This article originally appeared in the October 2013 issue of the AAII Journal. Legendary investor Charles Ellis has spent 50 years working closely with nearly 100 investing organizations, knowing many of the world’s most effective and successful investment managers, teaching...