A Nobel Prize winner dispels myths about retirement, real-estate investing tips, and advice for family-estate planning
by Joe Ciolli, Business Insider US
Dear Readers,
No one wants to hear they’re saving for retirement all wrong. But maybe when that wisdom is being doled out by a Nobel Prize winner, it’s time to listen.
Economist Richard Thaler received the top honor in 2017, and recently sat down with Pimco CEO Emmanuel Roman to dispel some widely held myths around retirement.
In short, Thaler thinks annuities and defined-benefit retirement plans are declining in popularity precisely at a time when they should be a professional’s top choice. Here’s his full argument in favor of them.
Speaking of sage advice, the Investing team at Business Insider also covered some recent tips provided by Neal Bawa, the CEO of Grocapitus and MultifamilyU. He’s a real-estate mogul who owns more than 1,000 units, and he relies heavily on a data-driven approach that helps him make the right decision “90-plus percent of the time.”
He uses population growth, income growth, home-pricing growth, job growth, and crime reduction as criteria in his strategy. Read about his full methodology here.
Going beyond that, here’s a rundown of our other main coverage from the last week. It includes a look at how to set up your family for generations of financial security, the unveiling of five stock picks from a tech-investing heavyweight, and how one top-ranked money manager is feasting on downtrodden unicorns.
A leading money manager explains how 70% of a family’s wealth is burned by the 3rd generation – and shares the 10 questions you should ask yourself to avoid that fate
John Parise, managing partner and founder of Copper Beech Financial Group, says that bickering and communication issues between family members leads to a 70% reduction in a family’s wealth over three generations.
In order to combat this irrational behavior, Parise details 10 deep and meaningful questions that you should be able to answer in order to preserve your wealth long into the future.
Baillie Gifford invested early in Tesla, Amazon, and other tech juggernauts. Here are its top themes and 5 stock picks for 2020, according to the US equities chief.
Baillie Gifford, the $264 billion asset manager based in Edinburgh, Scotland, was an early investor in multiple tech giants including Amazon and Tesla. The firm is known for taking a long-term approach to investing in companies.
Tom Slater, the head of the US equities team, shared with Business Insider the themes and stock picks he finds attractive heading into the new year.
The world’s No. 1 mid-cap fund manager has a new specialty he calls ‘fallen angel investing.’ He explains how he’s taking advantage of recent IPO failures – and shares his top 3 stock picks.
The equity portfolio manager Aram Green runs the top-ranked mutual fund of the past three years, and he says the assorted IPO-market struggles of the past several months have created a lot of opportunities.
While investors have grown cautious about investing in new companies that aren’t profitable, he says some of those companies are inexpensive and promising. Green goes on to share the fallen unicorns he thinks still have the most potential.
Other good stories from the investing realm:
- ‘A lot of people don’t need to pay back their debt’: A student-loan expert explains why popular repayment advice is false – and shares how to save up to 50% on interest payments
- For 30 years, Renaissance Technologies achieved 66% annualized returns. Here’s how a group of academics with no trading experience became the most successful hedge fund in history.
- 5 top leaders at Wells Fargo’s $1.9 trillion investing business told us the 4 areas they’re most bullish heading into 2020 – even as returns slow
- Goldman’s credit-investing chief explains how he’s profited from widespread recession fears – and breaks down the next big opportunities he’s exploiting
- Mark Vaselkiv makes his living trading the market’s riskiest bonds, and has beaten competitors for 20 years. Here’s where he’s putting his money right now.
- 2 investment chiefs who helped swell $65 million in firmwide assets to $940 million describe their Warren Buffett-inspired approach to investing – and explain why traditional market metrics are ‘irrelevant’
- A $750 billion investing giant says there’s a 50% chance of a US recession in a year – and the smallest companies will reveal its fate