Posts Tagged: Wealth Preservation

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Costs Matter

"You get what you pay for." is an old saying we all know.  Ironically, the reverse can hold true when it comes to investing.  Avoiding exorbitant fees and minimizing costs leave more dollars invested and growing.  Dimensional Fund Advisors shares the academic basis to this simple truth and highlights that high-priced investments are often the underperformers.  Stay diversified. ...

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By Phil Goldsmith of LWBJ

Employees separating from service with their employer may realize a tax benefit if they hold employer stock or securities within their company 401(k) plan. A little-known rule within the tax code allows the Net Unrealized Appreciation (NUA) within the employer stock to be distributed without being subject to immediate taxation. The rule allows an individual to convert what would otherwise be ordinary income upon...

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“I’ll Have What She’s Having!”  Not always the best idea when looking at Medicare options… This famous line, spoken by director Rob Reiner’s very own mother, Estelle, at Katz’s Deli in the romantic comedy, When Harry Met Sally, always makes me laugh.  When we are making big and small decisions, we often consult our friends.  Many times, we decide to take the path of least resistance by electing to make the...

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Ross Polking Thumbnail Photo

This year promises to bring change.  Some good, some bad.  What’s good and bad is simply a matter of one’s perspective.  The Affordable Care Act is one item high on the list of potential changes.  Those changes won’t come without much debate.  What that means to physicians in the form of regulation, requirements, hours, lifestyle, liability, and revenue stream is yet to be seen.  The ever-present threat of change really...

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For many years, Foster Group has approached asset allocation using an analysis we call our Lifeboat Drill.  Setting a proper mix of growth assets like stocks or real estate, and preservation assets like bonds, begins with understanding our clients’ future cash flow needs. – First, we explore the minimum return rate you must earn on your portfolio assets to meet all of your anticipated future cash flow needs.  Quantifying this return allows...

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The total return of the S&P 500 index over the past five calendar years (2011-2015) is +80.7%.  The 13 best trading days during those five years (i.e., 13 days out of 1,258 total trading days) produced a 55.1% gain.  Thus, 1% of the trading days were responsible for 68% of the index’s total return. * 20-plus years ago, Jerry and I used to record a cassette tape--yes, that’s right, a...

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Joe Bantz and I had an introductory meeting with potential clients earlier this year. They were referred by a friend. Questions – from both sides of the table – set the agenda for this initial meeting. In this case, they had a number of questions about our investment philosophy and fee structure. Joe and I asked about their financial history, hopes and concerns, and their reasons for considering Foster Group. During...

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Like many Americans, I keep looking out my window for pigs with wings…the euphemism “when pigs fly” having been recently invoked for:

  1. The Chicago Cubs winning the World Series after a 108 year drought, finding themselves down three games to one to the Cleveland Indians on October 30 (15% probability*)
  2. Donald Trump winning the United States Presidential election after an aggregated index of national polls gave him less than a...

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