Category: finance

Why do we use relative numbers for gains and losses?

I suppose you’re very familiar with hearing news like “The Dow is down 2.5% today,” or “The S&P is up 3%.” Mapping into basic mathematics, that would be -2.5% and +3%, relatively speaking. But why are these figures couched in relative numbers? In my previous article about rebalancing my portfolio, I talked about a scenario where…


Rebalancing my portfolio – Part 1

I’ve recently started a plan to rebalance my portfolio. The first leg is to stop investing in my 401k, and instead route that money into an overfunded Equity Indexed Life Insurance policy (EIUL). More on exactly what that is in a moment. Mutual funds won’t earn you 12% Over the past six months, I have…