Tuesday, 28 April 2020
Keep It Simple With Low Costs and Tax Efficiency
In the last ten years we’ve seen an explosion in e-commerce, and a major phenomenon within e-commerce has been the direct to consumer (DTC) model. Savvy entrepreneurs realized that they could lower price by removing supply chain middlemen—without compromising profit.
Friday, 10 April 2020
Feddy Warbucks does it again
The uncharted waters for our society have created chaos in the financial markets. Like every other crisis we have huge drops in financial assets and panic selling. That’s to be expected.
Luckily, the Federal Reserve can step in like a rich uncle whenever we get ourselves in trouble.
Friday, 27 March 2020
There's a sale going on...
The silver lining in a temporary decrease in financial assets is the ability to get a better entry point on planned investment and ride up a future rally in tax-preferred accounts like Roth IRAs, 529s, and HSAs.
Thursday, 19 March 2020
Take Advantage of A Temporary Drop In Asset Prices
It’s definitely hitting the fan out there. The virus has hit almost every asset class and nothing is safe other than cash. Even bonds are selling out.
This is the proverbial “Black Swan Event” that, no doubt, creates a sense of panic every time we look at the markets.
But you should look at this as a temporary downturn in financial assets.
Friday, 28 February 2020
Don't freak out when the market goes south.
Since Monday the Dow Jones has tumbled further than any week since October 2008. The equity markets are officially in correction territory and most experts are attributing the selloff to the effects of the coronavirus.
In light of the market mania, it can be difficult to stick to fundamentals and very easy to abandon your prior planning and hard work.
Wednesday, 12 February 2020
Gambling, gaming, speculating.....it's not investing.
Wednesday, 29 January 2020
This may sound absurd to some people, especially those of an older generation, but I almost never advise clients to make an early or lump sum payment on their home mortgage.
It's not the 1980s anymore. Mortgages are no longer a double digit interest rate monster that wreak havoc on your personal finances.
Thursday, 16 January 2020
Estate plans aren’t usually at the top of mind for young, busy families. But leaving your affairs to the state in the event of an untimely death can cause stress for your spouse and children. Also, you might reduce taxes.
Friday, 27 December 2019
When you time the markets, you miss great years.
By all accounts, this was a banner year for many asset classes. Bonds are up over 8%. But somehow, I suspect many people did not participate in this growth because of the market volatility that occurred in 2018.
Monday, 16 December 2019
This cost is a non-factor for long term investors.
Much media hype has been made around discount online brokerages like Schwab and Fidelity cutting their fees from $10, to $7, to $5, and finally $0. For long term investors, this is a trivial cost that massive companies want you to think is important so you invest in their funds.
Tuesday, 26 November 2019
Insurance for insurance, investment for investment. Don't mix the two.
Thursday, 14 November 2019
Sometimes, making good financial decisions is simply about understanding your options, choosing a course of action, and following through with persistence.
My client had worked for the same employer since the mid 1970’s. He was on track to retire around age 67. In early 2019, however, he had a health event that caused him to be hospitalized for several weeks, with months of recovery thereafter.
This was an unplanned retirement.
Wednesday, 30 October 2019
529 Plans Are Your Friend
I’m often surprised by the level of skepticism I hear regarding 529 college savings plans.
The 529 plan allows for easy investment choices, tax free growth and tax-free distributions to pay for college. With an early start to funding, this can create tens of thousands in savings for a family over the many years leading up to college.
Friday, 11 October 2019
So many of my clients express a huge desire to save for their kids’ college educations at the expense of their own retirement. I’ve also seen parents mortgage their home and liquidate portfolios to make tuition payments. As soon as an acceptance letter arrives from a target school (or any school, sometimes)—the examination of cost is almost absent from further action. It becomes “pay the bill by any means necessary.”
Friday, 20 September 2019
Retirement projections are too long range to provide meaningful action steps. Consider a five year cash flow schedule to use as your personal "business plan" for meeting your goals.