THE AAII JOURNAL OCTOBER 2020 ISSUE
COVER ARTICLE
The Price We Pay for Being Different
There are definite short-term challenges we are likely to face when we pursue a “different” investing approach, which is why understanding and conviction are crucial.
Features
in First Cut Mutual Funds,Mutual Funds
Emerging Markets Mutual Fund Winners
The list of no-load emerging market funds that have outperformed their peers over the past one- and three-year periods is short.
in First Cut ETFs,Exchange-Traded Funds
Emerging Markets ETF Winners
This month’s ETFs First Cut screened the field of emerging markets ETFs to identify those that have outperformed their category peers on a one- and three-year basis.
in Alternative Investments,Investor Professor
Special Purpose Acquisition Companies (SPACs) Explained
With a SPAC, an investment firm raises cash from public investors with the goal of acquiring a private company to bring it public.
in AAII How-To,Mutual Funds,Exchange-Traded Funds
Comparing Funds That Track the Same Index
Although index mutual funds and ETFs seek to mimic the composition and performance of an index, they are usually not exact copies of the index itself.
in AAII InvestoGraphic,PRISM Wealth-Building Process
Determining Your Portfolio Management Preferences
Thinking about how your allocation will be implemented and who is going to manage your portfolio will help you to develop management rules for your portfolio.
in Retired Investor,Estate Planning
The Importance of Personal Property in Estate Planning
When it comes to what we are leaving to our children, it’s important to know whether it is a positive or negative legacy. Four reminders to keep you on the right path.
in Computerized Investing,Financial Planning
Comparing and Contrasting Budgeting Apps
Using a budgeting app makes setting up and managing a personal budget easier, faster and more accurate.
in Financial Planning,Retired Investor,Social Security
A Primer on Social Security
Understanding the key concepts involved in calculating Social Security benefits can aid in your retirement planning.
in Beginning Investor,Investing Basics
Getting a Start With Dollar-Cost Averaging
Dollar-cost averaging and value averaging allow investors to ease into the market over time, which reduces timing risk.
in Stock Strategies,First Cut Stocks
Recent Stock Splits and Stock Dividends
This month’s Stocks First Cut seeks out exchange-listed stocks that have undergone a positive stock split or stock dividend this year.
in AAII Model Portfolios
Third-Quarter Review Triggers Changes to Model Shadow Stock Portfolio
Removing a Shadow Stock based on the earnings sell rule allows for the addition of two new stocks.
Notes & Opinions
in Editor's Note
Use Financial Planning Month to Take Stock
Since October is National Financial Planning Month, now may be a good time to review your estate plans and think about where your physical possessions will go and who will receive them. You can also use a worksheet in this issue to help you define your portfolio management preferences.
in Dispatches,Retired Investor,Risk
Retirees Don't Accurately Perceive Their Risks
Retirees’ expectations of their future risks differ from the more probable risks they will encounter.
in Dispatches
Failing to Buy and Hold Leads to Higher Realized Volatility
The volatility of investor returns is higher than the corresponding volatility of buy-and-hold stock returns in almost all specifications.
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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