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Dan Solin
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Dan Solin is The New York Times' best-selling author of the Smartest series of books. His next book, The Smartest Sales Book You'll Ever Read, will be published in March, 2014.

Entries by Dan Solin

Learn From the Fall of Active Management

(0) Comments | Posted August 26, 2014 | 5:19 PM

Proponents of evidence-based investing, myself included, doubted whether this day would ever come. Investors are now actually paying attention to the overwhelming data supporting evidence-based investing and are fleeing active management. Some of the recent developments reinforcing this growing trend are:

Index funds are mainstream

John Rekenthaler is the vice...

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The Algorithm Scam

(1) Comments | Posted August 19, 2014 | 5:10 PM

An algorithm is defined as a set of detailed instructions that result in a predictable end-state from a known beginning.

The discovery of an algorithm that would consistently generate outsized returns would be the holy grail of investing. The individual who came up with such an algorithm and...

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401(k) Madness

(0) Comments | Posted August 12, 2014 | 5:43 PM

All across America, a familiar ritual is repeated at least quarterly. Sponsors of 401(k) plans meet with their brokers, insurance companies or other advisers. The purpose of the meeting is to decide which funds to keep as investment options and which ones to eliminate. Everyone has a familiar role. The...

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Brain Tricks May Reduce Your Returns

(0) Comments | Posted August 5, 2014 | 6:18 PM

What if you could create a forum for discussing the best way to invest in a responsible and intelligent manner? Who would you invite to participate in this debate? Here are my suggestions:

There would be no shortage of candidates to advocate stock picking, market timing and fund manager selection....

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Listen to Your Brain to Sense a Market Correction

(0) Comments | Posted July 16, 2014 | 1:43 PM

The financial media continues to stoke anxiety and fear -- and trading -- with "news" about a coming market correction. On its list of "must reads" for July 16, Yahoo Finance featured these articles:

"Investors haven't been this optimistic since 1987. Here's why that's bad."

"This...

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Ignore the Babble Masking as "Financial News"

(0) Comments | Posted July 15, 2014 | 7:21 PM

You are besieged with a daily onslaught of what passes for "financial news." Much of it is nonsense, self-serving and unreliable. Yet the sheer volume, and the clever way it is packaged and disseminated, may lead you to take action.

Here are two categories of typical financial news, with my...

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Three Facts You Don't Know About Mutual Funds

(0) Comments | Posted July 8, 2014 | 5:30 PM

Mutual funds are a huge and profitable business. According to the Investment Company Institute, at the end of 2013, $30 trillion worldwide was invested in these funds. More than half that amount was invested by approximately 96 million Americans in U.S.-based funds. U.S. retirement market assets are an...

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The Great American Pension Rip-Off

(0) Comments | Posted July 1, 2014 | 5:58 PM

Unless you work for a city or state government, you probably don't have a traditional pension -- also known as a "defined benefit plan." The number of employers offering these plans has decreased sharply, and now, by some estimates, only 29 percent of workers in the United States...

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Canadian Investors Are (Mostly) Losers

(4) Comments | Posted June 24, 2014 | 6:11 PM

I have nothing but great respect and admiration for our neighbors up north. If you spend any time in Canada, you will be struck by the kindness, civility and charm of its people. Canadians enjoy long life expectancy, high average incomes and extensive social ties. The country ranks...

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The Fleecing of Investors Continues

(0) Comments | Posted June 17, 2014 | 5:44 PM

Here's information you won't see, read or hear in what passes for "financial news":

Harken back to a decade ago. Your broker recommends an investment in a hedge fund. Your registered investment adviser disagrees. She recommends you invest in an index fund composed of 60 percent stocks and 40 percent...

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A Sad Cautionary Tale of Fraud

(0) Comments | Posted June 10, 2014 | 6:38 PM

Recently, an adviser told me how one of his clients was scammed out of hundreds of thousands of dollars by his son.

Let's call the client "Bill," the son "Robert," the adviser "Phil" and the advisory firm "Registered."

Phil works on a team at Registered with another wealth adviser...

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A Cheap Investment That Could Return Millions

(0) Comments | Posted June 3, 2014 | 7:02 PM

In 2006, I wrote The Smartest Investment Book You'll Ever Read. Prior to that time, many investment books were long and mind-numbing, filled with charts, and intended to make investing so complex that readers would be incentivized to consult with the author or other financial experts.

Smartest Investment broke...

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Investing Lessons From the Donald Sterling Saga

(0) Comments | Posted May 27, 2014 | 6:12 PM

According to the Law Blog on The Wall Street Journal website, controversial Los Angeles Clippers owner Donald Sterling has retained Maxwell Blecher, a highly respected Los Angeles antitrust lawyer in his fight against the NBA. (Full disclosure: I have enjoyed a personal and professional relationship with Mr. Blecher...

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The Potential Problem Looming in Your Retirement Portfolio

(0) Comments | Posted May 20, 2014 | 6:07 PM

There is a potential problem looming in your retirement portfolio. Unfortunately, there is little you can do about its cause because it resides in the deep recesses of your brain.

As we age, the likelihood that many of us will be afflicted with Alzheimer's or other dementia increases. By...

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Learn Investing Tips From Property Transfers

(0) Comments | Posted May 13, 2014 | 7:02 PM

Sometimes, valuable insights about investing can be derived from unlikely sources. According to published reports, the largest home purchase in U.S. history recently closed. The property is an 18-acre estate located in East Hampton, N.Y. The purchase price was an astounding $147 million.

Was the purchaser a famous...

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A Risk-free Investment With High Expected Returns

(0) Comments | Posted May 6, 2014 | 5:37 PM

For much of the past decade, I have been on a mission to persuade you to fundamentally change the way you invest. It's my firmly held view that the road to financial perdition begins with a call to a broker or adviser who claims to be able to "beat the...

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A Tale of Two Investors

(1) Comments | Posted April 29, 2014 | 7:04 PM

This is a tale of two fictional investors, Paul and Mary. They approach investing very differently. I suspect you will be able to identify with one of them, and perhaps learn something from both.

Both Paul and Mary are deeply troubled by market volatility. They are still scarred by the...

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The Secret to Higher Expected Returns

(0) Comments | Posted April 15, 2014 | 6:15 PM

Everyone wants higher returns. To many investors, success in investing means generating "alpha." If you are an investor in mutual funds, that means trying to generate returns in excess of the benchmark index designated by the fund.

There are still many investors who participate in the pursuit of alpha, but...

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Make the "Rigged" Markets Work for You

(0) Comments | Posted April 8, 2014 | 7:08 PM

The recent appearance by Michael Lewis on 60 Minutes and the publication of his book Flash Boys has generated a furor over the perceived inequities of high-frequency trading.

The idea that those engaged in high-frequency trading are permitted to "see" your trades, purchase stock ahead of your order and...

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Find the Needles in the Financial Pornography Haystack

(0) Comments | Posted April 1, 2014 | 7:19 PM

It's unfortunate that most of what passes for financial news is misleading and harmful to investors. It consists of supremely confident "financial gurus" predicting the future. They are either warning us of an imminent crash or observing that a bull run is just beginning.

We are inundated with conflicting...

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