The AAII Journal

March 2012 Issue

Editor's Note »

Editor's Note

by Charles Rotblut, CFA

This month's issue contains comparative performance data that is historically infrequent and that, with the possible exception of next year, may not be repeated for a long time. The feature article reveals the mutual funds with the highest annual returns over the past five years.

Features »

The Top Funds Over Five Years: Bond Funds Take the Lead

by Charles Rotblut, CFA

Out of the 10 top-ranking mutual fund categories, nine are in the bond arena, thanks to falling interest rates and weak five-year returns for stocks.

Portfolio Strategies »

Portfolio Rebalancing: Diversification, Risk Control and Withdrawals

by Charles Rotblut, CFA

Rebalancing maintains the benefits of diversification, provides a hedge against behavioral mistakes and works with annual withdrawals.

Insurance Products »

Life Insurance and Estate Gifting

by Peter Katt

Potential changes in the tax law next year make it a smart estate-planning strategy to give as a large of a gift now as possible.

AAII Model Portfolios »

Model Mutual Fund and ETF Portfolios: Value and Small Stocks Impact Returns

by James B. Cloonan

Value stocks and small-cap stocks have superior long-term performance but hurt the portfolios’ returns last year.

Financial Statements »

The Income Statement: From Net Revenue to Net Income

by Joe Lan, CFA

The income statement shows a company’s sales, expenses and profits. Learn how to analyze the income statement and spot important trends.

• Briefly Noted
  Current news items of interest to individual investors.
• Investments That Concern FINRA
• Current Conditions Alter Future Expectations
• A Majority of Advisers Are Investment, Not Financial, Planners
• On the Bookshelf
• Letters
  Member questions and comments on recent AAII Journal articles.