Taxes in Retirement – Case Studies
Key Takeaways: Your sources of income will change, but you will still owe taxes in retirement. In general, your principal (or “cost basis”) will be returned to you tax-free. A diversified portfolio protects in down markets and provides flexibility when planning for taxes. When you’ve spent your adult life working and saving, retirement […]
Paying Down Debt vs. Saving for Retirement
Here is one we hear all the time – “How can I save for retirement with all of these monthly debt payments?” For what is seemingly a simple question, the answer can actually be somewhat complicated. Striking the right balance between debt payments and savings contributions will vary with each household and the solution is […]
Market Volatility & Behavior Finance
If you feel like the stock market has been all over the place recently, there is some merit behind the feeling. So far, during 2022 we have experienced 41 days where the S&P 500 has returned greater than a +/- 1% return. This represents approximately half of the trading days of the year so […]
Give and Get: Qualified Charitable Distributions
Key Takeaways Tax reform has decreased the households who itemize to about 10% of taxpayers. Those who don’t itemize may not realize tax benefits from charitable donations. Qualified Charitable Distributions help donors above age 70 ½ realize a tax benefit. Donors younger than 70 ½ should consider the timing of their contributions. With Scottie Scheffler […]
The Inverted Yield Curve of April 2022
Key Takeaways: The 2-year/10-year yield curve inverted for the first time since 2019. This type of inversion has preceded the last eight recessions. Proper portfolio allocation can help insulate investors from the negative outcomes of recessions. Three years ago today, on April 4, 2019, I wrote about the Inverted Yield Curve […]
Markets are Digesting a TON of Information
Over the last few months, market volatility has dramatically increased. The CBOE Volatility Index or VIX, created by the Chicago Board Options Exchange, is a real-time market index representing the market’s expectations for volatility over the coming 30 days. The VIX started the year at just over 17 and has already reached over 28 during […]
How Much Cash Should I Hold?
Key Takeaways Rising inflation increases the opportunity cost of holding cash We believe the benefits of cash outweigh any loss in purchasing power Market drawdowns like today are relatively good times for long-term investment The question we are getting more than any other these days is, “What should I do with […]
Top 10 Personal Finance Best Practices
As more investors seek out and embrace personalized asset management and individualized financial advice, industry tycoons Vanguard and Russell Investments researched the value created by professional advice. Both companies measured the impact on investor returns when partnering with an advisor who provides skilled management and guidance. Russell Investments identified up to an additional annualized […]
Behavioral Finance and Asset Allocation
Summary Points: We simply have to watch money flow to know how “average investors” behave. Investor emotions typically run opposite to sound decision making. Sound allocation planning can provide other positive impacts on your overall plan. An emotional investor is very likely to make poor decisions over his or her financial life. Various […]
Asset Allocation Factors: Time and Emotion
When we meet with a new client, one of our tasks is to determine an appropriate asset allocation for the funds they invest. At a very basic level, the question we are trying to answer is “what percentage of the investment portfolio will be comprised of equities (stocks), and what percentage will be fixed-income (bonds)?” […]
Managing a Household Allocation
One of our mantras in planning is to “Know What You Own.” Peter Lynch popularized this term during his management of a Fidelity mutual fund in the 1980’s, and we think it applies to more than just investments. Your home, your health insurance, your business, and yes, your investments each have features, risks, and opportunities […]
Stock Market Bubbles are Inevitable – Are You Prepared for the Next Burst?
In addition to this commentary, we would like to extend an invitation for you to join us on a live video feed where we will discuss the attached article and answer any questions in real-time. Watch the video discussion about this article here. It was our second week of remote work, COVID-19 had just […]
