The consideration of after tax returns is also important, because different investments offer different tax rates and these differences can be significant. Interestingly, the author here also does not touch upon diversification or indeed any other key tenets of modern portfolio theory. Risk aversion is not mentioned either, even though this is a key element in people's satisfaction with their investment performance. Another interesting and overlooked element is that of fees. All costs must be considered in financial planning, though it is understandable from the financial manager's perspective that discussion of cost be kept to a minimum. The main weakness of the Fort Worth article is that it focuses on only a handful of issues. The advice lacks focus, or synthesis. Overall, both of these articles have strong elements, but are incomplete in scope. In both cases, the theoretical underpinnings of financial planning are not given much if any time. This can be taken as a strength in that the reader is likely to be turned off by such discussion, but it is also a weakness in that the theoretical information helps for...
The issues presented in both of these articles are important to understand, but they are not at the core of building a strong investment portfolio. The approachability of these articles is admirable, but it comes at the expense of complete understanding of financial planning.Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
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