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4th Deadly Sin

How Plan Sponsors Can Help 401k Investors Avoid Overdiversification

How Plan Sponsors Can Help 401k Investors Avoid Overdiversification

By Christopher Carosa, CTFA | November 3, 2011

Two easy actions to take right now to give 401k investors a better chance to achieve their retirement goals.

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Posted in Education | Tagged 401k, 4th Deadly Sin, 7 Deadly Sins, Benartzi, Better Investing, Citizen Kane, diversification, DOL, ERISA, Investor, Orson Welles, Overdiversification, Thaler | 1 Response

Why Overdiversification Matters to the ERISA Fiduciary

Why Overdiversification Matters to the ERISA Fiduciary

By Christopher Carosa, CTFA | November 1, 2011

A lurking liability within the bowels of the DOL safe harbor provision, prudence demands 401k plan sponsors cannot overlook this Deadly Sin.

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Posted in Education | Tagged 401k, 4th Deadly Sin, 7 Deadly Sins, Bill Staton, Confucius, DOL, Fiduciary Responsibility, Gotham Capital, Joel Greenblatt, Louis Lowenstein, Overdiversification, Richard Brealey | 1 Response

Overdiversification and the 401k Investor – Too Many Stocks Spoil the Portfolio

Overdiversification and the 401k Investor – Too Many Stocks Spoil the Portfolio

By Christopher Carosa, CTFA | October 27, 2011

Some practical advice to 401k investors that relies on real world results rather than just on academic studies.

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Posted in Due Diligence | Tagged 401k, 4th Deadly Sin, 7 Deadly Sins, diversification, invest, Morningstar, Optimal Holdings, Overdiversification, Warren Buffett | Leave a response

A Trip Down Memory Lane – Revisiting Portfolio Optimization

A Trip Down Memory Lane – Revisiting Portfolio Optimization

By Christopher Carosa, CTFA | October 26, 2011

It took finance professors more than half a century to conclude what a 1956 Elvis chart-topper told us in 2 minutes and 33 seconds.

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Posted in Education | Tagged 4th Deadly Sin, 7 Deadly Sins, Al Suqaier, Al Zuyud, Archer, Chung, diversification, Elton, Elvis, Evans, Fisher, Gruber, Lorie, Markowitz, Mayshar, Modern Portfolio Theory, Overdiversification, Portfolio Optimization, Presley, specific risk, Statman, systemic risk, Tole, unsystemic risk | Leave a response

7 Deadly Sins Every ERISA Fiduciary Must Avoid: The 4th Deadly Sin – Overdiversification

7 Deadly Sins Every ERISA Fiduciary Must Avoid: The 4th Deadly Sin – Overdiversification

By Christopher Carosa, CTFA | October 25, 2011

You won’t find it in the dictionary but you’re likely to find it in every 401k plan.

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Posted in Education | Tagged 4th Deadly Sin, 7 Deadly Sins, Harvard College v. Amory, Ontario Science Center, Overdiversification, Prudent Investor Act, Prudent Investor Rule, Prudent Man Rule, Uniform Prudent Investor Act | 1 Response

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