Here you will be able to find communications from the RIM team as well as helpful resources and articles.
Purpose based financial planning is about helping you with a plan that aligns your money with what is important to you so that you can confidently get what you want.
The S&P 500 (as measured by SPY) returned 15.21% in the first half of the year. This would be an excellent full-year return. It’s always good to look at what drives a return. Strong earnings growth that is sustainable demonstrates that actual value has been created by the companies in the index, while an increase in the valuation investors are willing to pay today for future earnings merely pulls forward future returns into the current period.
There is no perfect strategy that works all the time, in every environment. Rather, there are various approaches that generally earn a little extra return or reduce risk on average over full market cycles.
Based on the Shiller P/E, 99% of the return in the first half was driven by valuation increasing, and 1% by the underlying companies producing value. The 36.3x multiple is 68% above its fifty-year average, and 38% above its twenty-year average. For historical reference, prior peaks were 29.1x in September 1929, 45.5x in April 2000, and 39.6x in 12/21.
It’s been said that diversification is the only free lunch on Wall Street.Everyone, from investment professionals to lay people, knows that diversification is prudent and is investment best-practice. On the other hand, there are some people who have ignored the principle of diversification and done extremely well. There are some advantages to concentration instead of diversification.
This fun read was Richard Thaler’s account of his both his own journey and how behavioral economics started as a fringe movement and ended up being widely accepted as more explanatory of how decisions are made in the real world than classical economics.