Please keep in mind that changes to the Social Security benefits do not necessarily mean that delaying social security benefit until age 70 is no longer a good strategy. It just means that in some cases, delaying will not be as good a deal as it was before.
DetailsWhenever the market is in a bit of turmoil, it’s important to revisit some of the common behavioral mistakes that can potentially derail even the most well thought out financial plans. Below I discuss six mistakes that we should all look to avoid. Fear and panic: Perhaps the most costly and pervasive of all behavioral…
DetailsIndex fund investing is as popular as ever. In 2014, Vanguard alone recorded record mutual fund inflows totaling $216 billion. Investors are catching on to the benefits of index and other passively managed funds – benefits that include lower costs, broader diversification, lower turnover, and greater transparency. But, as Wall Street Journal columnist and author…
DetailsHigh earners who would otherwise be excluded from contributing to a Roth IRA may want to consider this strategy. If ever there were a tax-efficient saving vehicle, it is the Roth IRA. It can: Provide you with the double benefit of tax-free growth and tax-free withdrawals in retirement Is not subject to Required Minimum Distributions (RMDs)…
DetailsIn today’s world, there are several different types of investment firms, but with important differences between them that confuse not only consumers but even many investment professionals. The short article below provides a basic overview of the various types of firms and how they differ. “Brand Name” Brokerage Firms Much investment advice in the U.S.…
DetailsWhile there is no official definition, a bear market has traditionally been defined as a 20% decline in a broad stock market index. Needless to say, bear markets can be horrifying. Not only because of the pain of seeing account balances go lower and lower, but because bear markets are often accompanied by a general sense of…
Details
In a previous article, we discussed the idea that a properly diversified portfolio provides investors with an effective tool for reducing risk and volatility, without necessarily giving up a return. Below is an example of how diversification across asset classes really works. Let’s compare two blended index portfolios for the 20 year period ending December 31,…
DetailsAs consumers, before we make a purchase, we read the fine print and compare labels. Unfortunately, it’s not all that easy for investors to compare one financial firm to another. Various firms may seem similar, but there are important differences to be aware of.
DetailsAmong the most important tools available to investors is diversification. Diversification allows an investor to reduce investment risks while potentially improving investment returns. But even though the benefits of diversification have been well-documented and widely explained by some 60 years of academic research, the concept is at first glance, counterintuitive. After all, why in the…
DetailsWhen a non-spouse is named the beneficiary of an IRA, he or she has several options as to how to receive the IRA inheritance. If the account holder was over 70 ½, the first thing that should be done, prior to making any distributions, transferring any assets or retitling any accounts is to make sure…
Details