Confession time – I love rock and roll! As a child of the 80’s, there’s nothing like cranking up the radio to Styx, Boston, Joan Jett, or even Loverboy to lift my mood and get my heart racing. Now, as a father of four, I am under pressure to help each sweet child of mine understand how to manage money. So let’s jump into this list of financial truths we...
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A recent report from the Insured Retirement Institute found that only 24% of Baby Boomers feel they have enough savings to last throughout their retirement years. Whether you are just starting your career or nearing retirement, this staggeringly low number indicates the critical need to pay close attention to your budget and monitor life changes to properly adjust your current financial approach. To help steer your retirement in the right direction,...
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Worm or beetle, drought or tempest, on a farmer’s land may fall. Each is loaded full o’ ruin, but a mortgage beats ‘em all. ~Will Carleton The farmer evokes images of the kind of hard work many Americans today have not, and never will, experience. He must be persistent yet patient, strong yet gentle, and above all, he must love his work. Set against the audio backdrop of Paul Harvey’s 1978...
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The U.S. Labor Department shook up the retirement plan landscape in early April. They ruled financial advisors managing retirement accounts must adhere to a “fiduciary” standard of care. The enforcement date will begin January, 2018, and, in typical government fashion, it took them nearly 1,200 pages to spell out all the guidelines and parameters. In simpler terms, all those in the business of providing advice on how to invest...
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“It’s tough to make predictions, especially about the future.” Yogi Berra A Yogi Berra quote may seem a bit too lighthearted as an opening thought regarding the momentous “Brexit Leave” voting result and the immediate reactions, financially and politically, around the world. Though the quote is humorous, the point is an important one for investors to consider. Reliably predicting future events has been hard to impossible in the past, and there...
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One of the biggest risks facing retirees in the medical profession is sequence of returns risk. This is the risk that, early in retirement, returns of an invested portfolio are very low or negative, even if long-term returns meet initial expectations. Generally, during those first few years of retirement, retirees have the most dollars they’ll ever have working for them and they are likely spending at relatively high levels since...
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In mid-May, a quick review of the Wall Street Journal revealed the average yield on a five-year CD was 1.26% and the ten-year US Treasury note was yielding 1.85%. These low rates can lead investors to seek higher returns in other places. Two especially popular ones are longer-term bonds and high-yield bonds. While there may be a place for these in your portfolio, the age old warning, “caveat emptor” or buyer...
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BANG!! That is the simple four-letter word Jay Wright, head coach of the Villanova Wildcats, spoke when the final shot left Kris Jenkins’ hand, arced through the air in Houston, Texas, and splashed through the net. Millions of people saw the greatest Final game in NCAA Tournament history, but few really know the story behind that final play and legendary shot. I’ve seen hundreds, if not thousands, of football, basketball, and...
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The investment returns of the past 15 years have been disappointing, at least by historical standards. Through year-end 2015, the S&P 500 Index only grew at an annualized rate of 5.00%. That’s less than half of the 10.71% average return for rolling fifteen-year periods going back to 1926. Especially in these lower-return environments, we want to minimize the amount of investment profits lost to the income tax bite. The tax law...
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I am currently teaching my two youngest daughters how to drive. So, yes, if you see me, I may have a few more gray hairs than before! Though my older two daughters have graduated and are fine drivers, it’s an understatement to declare that, “every child is different!” One of the hard things to learn in driving is how to “see” one’s blind spots. Learning to use one’s mirrors, leaning forward...
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