DFA Funds: Lower Costs & New ETFs

A majority of True Wealth clients own investments from Dimensional Fund Advisors (DFA) – a science-based money manager with more than $600 billion in assets under management as of March 2021. We wanted to give a brief update on some … Continue reading

Investment Return Expectations

Having reasonable assumptions for investment returns is critically important for many reasons. These assumptions will impact the success of your retirement plan, investment allocation decisions, and your peace of mind to name a few. Why peace of mind? Well, if … Continue reading

Why Small, Cheap Stocks Still Make Sense

When Nobel winner Eugene Fama studied the long-term performance of U.S. equities in the early 1990s, he found that stock returns had decreased with size and cost. The smallest, cheapest companies had provided higher investment returns than the biggest, costliest firms.

Though initially counter-intuitive to many – why wouldn’t you want to invest in the biggest and best companies? – it made sense. Large-growth stocks were safer economic choices, operating reliable businesses well-positioned to survive recessions. Thus, they were handsomely valued, at prices that limited their potential for future increases. Continue reading

Ep 67: Beyond Diversification: Terminal Wealth Dispersion

Putting the odds of investing and retirement success in your favor should be a given as is being diversified. But what does diversification really mean? Ten stocks? One hundred stocks? Two asset classes or ten?

Diversification is not just minimizing variability or owning the S&P 500. It’s also reducing the risk of underperformance by owning the stocks and assets classes that will deliver higher returns and reducing the variability in dollar outcomes from your portfolio. Continue reading

Top-Dog Investments & The Winner’s Curse

When you are shopping for a new car, you compare price and attempt to get the best value for your dollar. Same too for real estate purchases or about anything else you can think of. Well, except investments. Continue reading