RESOURCES

For generations, real estate investors have relied on IRS Section 1031 to do “exchanges” of their investment real estate without causing tax realization. This feature has been one of the pillars that have made real estate investing with taxable (non-retirement) money attractive. Investors can adjust their portfolio to reflect their current needs and the present opportunities while still deferring taxes. What if equity investors could do the same? Now, they can.

The S&P 500 rebounded 10.8% in the quarter, mostly on valuation expansion, as the Schiller P/E (price based on inflation-adjusted earnings over the last ten years) jumped 9.8%. At 37.9x, it is 72% above its 50-year average, and 41% above its twenty-year average.

The Behavioral Portfolio was written for financial advisors, but would also be useful for engaged individual investors.

Your asset allocation decision is one of the most important decisions you will make in your life and is worthy of significant time and thought. Almost all of your returns and risk will be determined by asset class selection.

Whether you're new to investing or a seasoned pro, this glossary helps make financial terms clear—so you can focus on your future with confidence and clarity.