Sometimes our clients come on board with a few bad habits learned from prior investment experiences. They may be focusing on events outside of their control, or they may have confused strategy and outcome (meaning they don’t recognize that their good returns were mere luck). In a recent video from AQR, founding principal John Liew draws a clear difference between good and bad investors. We love his definitions for each, and we’ll continue our work converting more people to good investors. Click here for the video.

There’s a longstanding belief propagated in financial services that withdrawing no more than 4% of your portfolio might provide you with a 30-year time horizon before running out of money. We certainly don’t base our advice on rules of thumb, and in this recent essay, the author reminds readers not to overly rely on any assumed rate of withdrawal. Click here to request a copy of the essay.

Many great discoveries are made by accident, and it turns out that Odds On: The Making of an Evidence-Based Investor is great for kids. Having one of the few advanced reader copies and curious to get some get a child’s perspective, I gently encouraged my 12-year-old daughter, Kathryn, to read it. She certainly enjoys reading, but business books are not her usual fare. While the rest of the family was watching Peyton Manning win Super Bowl 50, Kathryn was making deposits into her financial memory bank.

The next morning, while driving carpool, I asked her if she was enjoying the book. To my amazement, she had already completed it! To quote Kathryn: “I have a better understanding of what investing is…the old way is based on guessing and the new way is based on evidence.” While stated simply, it’s a powerful message that she’s sure to remember.