THE AAII JOURNAL JUNE 2020 ISSUE
COVER ARTICLE
Coronavirus Returns for Robo-Advisers Expose Differences
While performance has varied among providers, most robo portfolios represent a viable, low-cost option for professional management.
Features
in Investing Basics,AAII InvestoGraphic,PRISM Wealth-Building Process
A Process for Creating Your Own Investing Plan
Our goal is to give you a framework to think through the various aspects of investing—from your goals to monitoring and reviewing your portfolio and investment profile. Introducing AAII’s new project.
in First Cut Stocks
Companies With Fast Cash Burn Rates
As important as it is to identify promising stocks, it is equally important, if not more important, to avoid bad ones. One area of consideration is its available cash levels and the rate of cash consumption, which is known as the burn rate.
in First Cut ETFs,Socially Responsible Investing
ESG Equity ETFs
Environmental, social and governance (ESG) investing attempts to match investors’ investments with their beliefs. This month’s ETF First Cut seeks out exchange-traded funds classified as following a socially responsible approach to investing.
in First Cut Mutual Funds,Socially Responsible Investing
ESG Equity Mutual Funds
Environmental, social and governance (ESG) investing attempts to match investors’ investments with their beliefs. This month’s Mutual Fund First Cut seeks out mutual funds classified as following a socially responsible approach to investing.
in Stock Strategies
Is a Rights Offering the Right Stuff?
In the wake of the coronavirus pandemic, companies may turn to equity capital to avoid becoming too leveraged. A rights offering is one of the fairest ways to proceed.
in Financial Planning,Retirement Planning,2021 Investor Conference 360
The Benefits and Costs of Long-Term Care Insurance
A little bit of insurance coverage for long-term care could make a big difference for your entire family. And now there’s a new policy type worth considering.
in Financial Planning,Retired Investor,Social Security
The Relationship Between Wealth and Delaying Social Security Benefits
Taxpayers with moderate levels of wealth can often lower the taxable portion of their Social Security benefits by delaying the start of these benefits.
in Mutual Funds,AAII How-To
Top Considerations When Comparing Funds
How to conduct a head-to-head comparison of two mutual funds, taking into consideration the relationship between risk and return and the impact of costs and taxes on your realized returns.
in Financial Planning,Fraud,Advisers
What the SEC Is Doing for Individual Investors
The SEC chairman and education director address AAII members’ concerns in a wide-ranging discussion covering the volatile markets, investor scams, SEC initiatives and teaching your kids.
Notes & Opinions
in Editor's Note
Identifying a Path When Uncertainty Still Looms
Having a set list of rules helps to limit the impact of emotions on your portfolio decisions during this uncertain time. To assist you, AAII is developing a process you can use to easily create your own personal investing plan.
in Dispatches,Socially Responsible Investing
Stock Performance Is Affected by a Firm’s Social Responsibility Rating
One argument for favoring socially responsible investments is that they allow investors to do well while doing good. Does this argument hold up?
in Dispatches
Back to Black: How Music Affects Investor Sentiment
The level of happiness in music listened to by individual investors affects their market sentiment. The study’s authors used Thomson Reuters Tick History (TRTH) from Refinitiv for their market data and streaming service Spotify for music data. They looked at the top 200 songs in the U.S. played on Spotify over the period of 2017 to 2019. This research follows other studies that have tried to analyze investors’ mood swings based on the weather, the outcome of major sports events and air disasters. Music was chosen as a correlated factor because “music can give voice to emotions that cannot be expressed in words and would not be captured by a word-based sentiment measure.”
in Dispatches
Debt Leads to Delayed Retirement
Older households approaching retirement are becoming increasingly more indebted and leveraged, which results in an inability to cover their debt with financial assets.
in Dispatches
How ETFs Change Their Fund Families
Mutual funds of companies that also offer exchange-traded funds (ETFs) perform worse than before those ETF products were launched.
in Member News
Member News 2020
This year’s Member News introduces two new AAII features available to all members: our regular webinar series and the robust My Portfolio tool. Read also about how local chapters are reaching members during the coronavirus pandemic. In addition, we present our yearly financial summary, special member benefits and academic research awards.
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.
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