Interest rates and bonds prices are inversely related; when interest rates rise, the value of a bond falls. Given that rates on US Treasury Bonds have climbed to levels we have not seen since 2011, bond prices are down year to date. As of November 1, 2018, the YTD returns on the Vanguard Total Bond…
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Most of us have heard of asset allocation – the process of dividing a portfolio’s assets across various parts of the market according to an investment plan that takes into account an investors goals and risk tolerance. Asset location, on the other hand, is a tax minimization strategy that takes into account how different…
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One of the major changes that were made to the tax code by the Tax Cuts and Jobs Act of 2017 was the expansion of the Standard Deduction to $12,000 for individuals and $24,000 for married couples. This means that going forward, many more taxpayers will be taking the standard deduction rather than itemizing.
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One of the major changes resulting from the passage of the Tax Cuts and Jobs Act was the elimination of all miscellaneous itemized deductions. This category of deductions included unreimbursed job expenses, tax preparation fees, and investment advisory fees.
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Whether the market is in a bit of turmoil or when it has been performing quite well, it’s important to revisit some of the common behavioral mistakes that can potentially derail even the most well thought out financial plans. Below are six behaviors that we should all look to avoid. Fear and Panic Perhaps the…
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By now, you’ve probably heard the news: our own behavioral biases are often the greatest threat to our financial well-being. As investors, we leap before we look. We stay when we should go. We cringe at the very risks that are expected to generate our greatest rewards. All the while, we rush into nearly every…
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A 401k plan can be a wonderful benefit to offer employees as well as a great way for a business owner to reduce taxes. Unfortunately, many plans are too complicated, too costly, and offer little to no advice, education or help to plan participants. As a result, these plans have been a failure in helping…
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Offering a 401K plan can be a great benefit for both the owner of a business and its employees. But a 401K requires time, money and some human resource acumen to set up and maintain
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The 12 month period ending 6/30/2017 marked the first time in about five years that non-US stocks performed better than US stocks on a trailing 12 month basis. Regardless of recent performance, investing in companies based overseas is a crucial component of a diversified portfolio. Below are some of the reasons we invest abroad: Investing overseas…
DetailsA little while back I began jotting down some of the rules that I try and live by when it comes to personal finance. Eventually, I turned it into what you see below, something I’m calling a personal finance vision statement. My plan is to update this over time as I continue to learn more about money, investing and life. For now, here is version one.
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