THE AAII JOURNAL NOVEMBER 2018 ISSUE

COVER ARTICLE

Beyond the Index Card: Implementing the Advice of the Financial Experts

The story behind Pollack’s index card, which contains the best financial advice individuals need, and the lesson’s he’s learned.

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Features

in Level3 Passive Portfolio

A Closer Look at the Level3 Passive Portfolio's ETFs

By John Bajkowski

In this detailed look, we explain how the portfolio's funds differ from the S&P 500 and highlight the traits that could lead to outperformance.

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in Retirement Planning,Value Investing,IRAs,Portfolio Strategies

Illustrating the Value of Retirement Accounts

By Aaron Brask

Two examples show the considerations to be taken into account when deciding between a taxable account, a traditional IRA and a Roth IRA.

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in AAII Stock Ideas

Momentum Investing the Richard Driehaus Way

By Wayne A. Thorp

Based on the concepts espoused by the “father” of momentum investing, this strategy seeks outperforming smaller-cap stocks.

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in Technical Analysis

Online Point & Figure Charting

By Wayne A. Thorp

Two websites that offer point & figure charts, along with many other features that those interested in technical analysis will find useful.

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in Portfolio Strategies,Retired Investor

Revisiting the Risks of Retirement Spending Rules

By Charles Rotblut

Find out the risks of spending only portfolio income, spending returns or making inflation-adjusted withdrawals.

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in Technical Analysis

The X’s and O’s of Point & Figure Charting

By Wayne A. Thorp

These charts focus on significant price movements by using X's and O's to make it easy to identify trend reversals.

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Notes & Opinions

in Editor's Note

Editor's Note

By Charles Rotblut

University of Chicago professor Harold Pollack simplified financial advice down to a list of actionable suggestions that fit on a 4x6 index card. While your financial acumen will increase, it's important to stay with products and strategies that you can understand.

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in Dispatches

Investment Knowledge and Age Associated With ETF Ownership

Owners of exchange-traded funds (ETFs) tend to have higher levels of financial knowledge than do investors who do not own ETFs. ETF holders also tend to be younger in age.

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in Dispatches

Multiple Share Class Mutual Funds Have Unfavorable Traits

Multiple share (MS) class mutual funds are likelier to have lower board quality ratings, have managers whose wealth and compensation is less dependent on fund performance and charge higher fees than their single-share class funds.

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in Dispatches

Order of Transactions Influences Investors’ Repurchasing Decisions

Individual investors’ tendency to repurchase a previously owned stock is influenced significantly by the last stock they sold. Repurchases are most likely to occur if the stock being purchased was the last one sold and was sold at a profit.

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in Dispatches

Time in the Market Influences Millennials’ Investing Attitudes

Millennial investors have often been described as being overly conservative with their portfolio allocations. An analysis by Vanguard finds the reality is more nuanced than the common perception would suggest.

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in Letters to the Editor

Letters

By AAII Staff

Members comments and questions on sustainable investing, shadow stock transactions, and measuring the quality factor.

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Expand to Read More

The AAII Journal, a leading investment publication, provides readers with a continuing stream of insights and ideas that focus on how you can improve your investment results. Unlike many investment magazines, ours is completely unbiased, educational and contains no advertising.

AAII has published this prestigious financial journal every month for more than 40 years. Members receive it for free and have access to thousands of evergreen articles online so they can reference information and strategies for previous market situations with a few clicks of the mouse.

Our stock journal helps individual investors manage their portfolios, build sound investment strategies and navigate all types of financial conditions. Articles range from optimizing target-date fund portfolios to retirement account withdrawal strategies and analysis on robo-advisor performance.

The magazine also has recurring features our members find invaluable. Every quarter, we dissect our model stock portfolio and provide updates to its holdings and performance. This analysis helps individual investors manage small-cap value investments.

We also offer an annual tax guide in our financial magazine. This detailed investment magazine issue covers many details that individual investors need to consider when filing their taxes. It keeps readers updated on any recent changes to tax laws and provisions and provides a handy guide to tax implications of personal investments to cut through any tax filing confusion.

Another annual feature covers ETFs (exchange-traded funds) and mutual funds. This edition helps individual investors understand what to look for when investing in funds. Online, we accompany those articles with sortable tables so that members have an interactive component to their investment research. This helps individual investors plan their portfolios and invest with confidence.

Other regular features in the AAII Journal include financial planning, stock ideas and investor professor. Financial planning articles walk investors through the process and difficulties of crafting strategies for creating wealth regardless of age. They also cover difficult situations, such as estate planning, and helpful advice for getting kids and grandchildren interested in investing.

Stock ideas, as the name implies, give readers a peek at new screens and the stocks that pass them. This part of our investing magazine helps readers identify new opportunities in the markets, flagged by a mix of quantitative and qualitative analysis. Because we all, as investors, need ideas, this remains one of the most popular categories.

Investor professor helps readers invest with knowledge and confidence. It deals with contingencies, such as “What happens to your investment if a company goes bankrupt?” and gives actionable advice on what resources you should use when considering a new broker. Our readers enjoy this section because of its practicality and enduring tips.

Frequent internal contributors include president John Bajkowski; AAII Journal editor and vice president Charles Rotblut; Stock Superstars Report lead analyst Wayne A. Thorp; and Dividend Investing editor Derek Hageman. Together, these internal contributors have nearly a century of market wisdom and research, which they share with clear and concise prose to help individual investors improve their knowledge and portfolios.

The AAII Journal also includes frequent guest contributions from the financial and economic space. Articles from outside industry experts differentiate our financial magazine from others and provide additional points of view for our readers. Previous guest authors have included John C. Bogle, founder of Vanguard; Jay Clayton, chairman of the U.S. Securities and Exchange Commission; Charles Schwab; and Nobel laureate and Yale professor Robert Shiller.

We hope you’ll enjoy our articles and, if you’re not a member, consider joining the Association so you can get our prestigious magazine sent to your door every month.