AAII Home AAII Blog

Broker, registered investment adviser, financial planner, insurance agent, investment adviser and wealth managers: These are a few of the common terms used to describe various financial professionals. Many individual investors are confused by these terms, and do not have a clear...

Risk is a fundamental concept in any investment program. Beta and standard deviation are two common risk measures. But many investors prefer to view risk differently, at least mathematically. Others do not understand how a complex formula for deriving individual betas and standard...

Advertised as a one-stop shopping, automatic-pilot retirement vehicle, life cycle or target date mutual funds have become increasingly popular. These funds are aimed at individuals seeking an all-in-one retirement fund to invest his or her retirement nest egg, with a target date...

Borrowing money through a margin account to purchase securities can be a profitable and wise investment strategy. But debt creates financial leverage: The money in a full payment purchase can instead be used as a type of down payment to buy a much larger block of stock. This means...

If you are like most people, you learned history in classes that largely covered facts related to dates, places and people … and you probably couldn’t wait until the school bell rang. Sadly, children’s exposure to history is often framed in a way that is less interesting...

Editor’s note: This post was excerpted with permission of the publisher, John Wiley & Sons Inc. from “The Forbes CFA Institute Investment Course: Timeless Principles for Building Wealth.” Copyright © 2011 by Forbes, LLC. More information about the book and a multimedia...

The Alliance for Investor Education is sponsoring a free Investor Boot Camp on Tuesday, December 5, at The Army and Navy Club in Washington, D.C. Attendees of Funding Your Future: The 2017 Investor Boot Camp will hear from experts on a range of investing topics, explore free resources,...

Mutual funds are permitted to report investment returns for one, three, five and 10 years (“alpha”), but how many investors actually kept their investments unchanged for those specific periods? If all investors did not hold on to their investments for those precise periods,...

Individuals have varying needs for assets that are readily available. How does one decide the appropriate level? A Keynesian analysis comes from the late Baron of Tilton. How much of a liquid balance should investment portfolios contain? That question crops up frequently in financial...

The primary goal of a rebalancing strategy is to minimize risk relative to a target asset allocation, rather than to maximize returns. It is well documented that a portfolio’s asset allocation is the major determinant of a portfolio’s risk-and-return characteristics (assuming...