You and Your Paycheck: To Have and To Withhold
August 31,2018 — In the wake of last year’s Tax Cuts and Jobs Act, you may not discover whether your 2018 tax bill ends up higher or lower until you or your accountant start plugging numbers into the IRS’s new filing forms sometime after year-end. But there is one task worth crossing off the to-do list today: Is your employer withholding an appropriate amount for your taxes owed?
You and Your Biases: The Blind Spot Bias Within
August 17, 2018 — I continue today with my periodic review of investors’ most dangerous instinct-driven biases. Today, I want to talk about blind spot bias. It’s perhaps the biggest bias around, because it explains why we still fall for all the rest of them (such as recency and familiarity, where we favor people, places and events that are more recent or familiar to us) even once we’ve learned how they trick us.
Target Date Funds: Simple May Not Be Ideal
August 3, 2018—Employers are increasingly offering Target Date Funds (TDFs), in their company retirement plans. I understand their appeal. TDFs manage themselves and are easy to understand. They’re turnkey portfolios that start with a prefab mix of stocks, bonds and cash; they then automatically shift toward an increasingly conservative, 20% stock/80% bond & cash “target” allocation by a particular year.