Ron Ross

Ron is a Certified Financial Planner™, holds a Ph.D. in economics, and taught at California’s Humboldt State University for a decade. He has authored financial advice columns, as well as the acclaimed financial text, The Unbeatable Market.
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Recent Posts

Active Investing: Leave it Out of Your Financial Planning Process

By Ron Ross | February 09, 2016

It is not uncommon for investors to ask us about the alluring possibilities of active investing. They wonder if they should try to beat the market by picking "the best" stocks or by following certain money managers.  Here's why our wealth advisors would advise not to follow this tumultuous investment style.

We certainly understand why they might be curious about this wealth management strategy – after all, Wall Street and the financial media promote it at every turn.

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Active Investing Financial Strategies: Tax Consequences

By Ron Ross | February 03, 2016

We’re often asked about the tax consequences that come hand-in-hand with active investing. Given the substantial tax impact of high portfolio turnover, it’s easy to understand these concerns.

Our wealth advisors think that the IRS must love financial advisors who pursue active investing because of the massive about of taxes which are routinely generated. Given the additional tax burden created by active investment models it is very hard to understand why so many investors willingly follow financial advisors who are committed to active stock picking.

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Rebalancing Your Portfolio: Part of the Financial Planning Process

By Ron Ross | January 28, 2016

In regards to rebalancing investment portfolios, the three most common questions our wealth advisors hear are: "How often should rebalancing be done?", "How important is it?", and "What happens if it’s put off to a later date?"

While rebalancing isn’t one of those tasks anyone necessarily looks forward to with any amount of enthusiasm – in fact, for many investors (and investment professionals) it’s about on the same level as cleaning leaves out of the roof gutters or organizing your file cabinet – it’s also a key

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What if All Investors Added Indexing to Their Financial Strategies?

By Ron Ross | January 22, 2016

Recently, a savvy client asked what would happen if every investor subscribed to passive investing strategies as a wealth management solution; in other words, what if everyone indexed?

Given the advantages of indexing, this question didn’t come as a shock.

After all, wealth management strategies based on passive indexing offer a number of advantages, including built-in diversification, lower costs and a decreased tax burden. So what would happen if everyone was in on this “secret?” 

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Financial Strategies: Index vs. Passive Management?

By Ron Ross | January 16, 2016

Our clients often ask their wealth advisor to explain the differences between indexing, asset-class investing and passive management.

It’s easy to see why these terms need clarification; after all, they’re describing closely related concepts that share many similarities. 

But the terminology frequently used when discussing this investment approach -- such as index funds, asset-class funds, and passively managed funds – also have many notable distinctions. Here’s the low-down

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Wealth Management Strategies: Asset Class Diversification

By Ron Ross | January 10, 2016

While most of our clients already understand the importance of diversifying their portfolios by including securities from a range of industries, many ask their wealth advisor to provide investment guidance as to how asset allocation impacts diversification and portfolio performance.

While the concept of diversifying across investments is easy to understand, asset class diversification is a bit more complicated.  

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Financial Planning Tools: Creating Real World Investment Portfolios

By Ron Ross | January 04, 2016

Our clients often come to us feeling confused about how to create investment portfolios that work in the “real world.” We understand; after all, with all of the investment guidance, wealth management strategies and theories floating around out there, it’s easy to feel confused.

If you believe, as our wealth advisors do, that a "passive-style" investment approach works best, what steps should you take to construct a real-world portfolio? Here’s what our investment professionals think. 

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Why Would Investment Professionals Sell Their Secrets?

By Ron Ross | December 29, 2015

Sometimes clients come to us with questions about a book they’ve bought or a website they have come across that purports to reveal “secrets” about investing.

While it’s only human to dream about achieving huge returns, when our clients ask us, “Why would a personal investment professional sell their best-kept secrets to investing success?” the answer is simple: They wouldn’t.

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Can You Trust Your Investment Professional? Warning Signs to Look For

By Ron Ross | December 23, 2015

It's understandable that, in general, investors assume they can trust their investment professional and investment firm to competently manage their money.

Unfortunately, we often hear stories involving violations of that trust. The sad truth is that, unbeknownst to many investors, incompetent or unscrupulous investment professionals overcharge and abuse investors every single day. 

To help investors avoid under-qualified investment professionals, we want to shine

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Don't Look to the Past: Base Wealth Strategies on Diversification

By Ron Ross | December 17, 2015

Sometimes, clients wonder if basing current and future investment decisions on past performance is a good idea. After all, we’re often told to take a lesson from history.

While learning from the past may be a good idea in many areas of life, as it turns out, when it comes to investments – not so much. Here’s why past performance isn’t always the best way to predict future results.

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