We seek certainty in all facets of our lives. But financial planning and life don’t have “laws” like physics. Financial planning is a game of probabilities. When we use financial planning software or any kind of software assistance in projecting anything, almost all outputs are measured in some sort of probability. But our monkey minds turn these probabilities into certainties and financial advisors don’t often help this confusion. But if… Read More
The Single Best Piece of Advice for Young Investors
It’s unusual for me to write an article for young investors, but over the past couple of weeks, I’ve had the pleasure of speaking with a few young folks. As such, I wanted to share what I think the single best piece of advice for young investors is as they get started in their careers. What is the one thing that is entirely in their control that can most positively… Read More
Time to Review Your Risk Management Plan
This fall, I conducted reviews of client risk management plans and found some interesting things I’d like to share with you in hopes that you might review your own situation to ensure you are prepared for the “what ifs” in your life. To save you some time, here are a few issues I came across on multiple occasions: Out-of-date beneficiary designations. (Most popular.) Too little liability coverage on auto &… Read More
IRA Mistakes Retirees Make
According to the Investment Company Institute as of March 31, 2020, there were approximately $9.5 trillion in IRA assets. Given the sheer volume of Americans that own an IRA combined with the complicated IRS tax code that accompanies them, there are plenty of ways to trip yourself up when it comes to IRA planning throughout your life. In this article, we focus on the IRA mistakes I see most from… Read More
10 Charts About Retirement Every Retiree Should See (2020)
As a Retirement Planner, each year I eagerly await the release of J.P. Morgan’s Guide to Retirement. It is essentially a booklet of retirement charts filled with great information impacting retirees. Making it even better, it often highlights things that are regularly overlooked by just about anyone (including professionals) planning for retirement today. With that in mind, I have selected 10 charts that I think everyone transitioning into retirement should… Read More
5 Actions You Can Take During a Bear Market
Right about now, investors and advisors are kicking themselves for not having sold about two weeks ago. Some are still considering selling. Investors who say the thought hasn’t crossed their mind are probably lying to themselves. It’s easy to say to ourselves, “I KNEW I SHOULD HAVE SOLD!” because hindsight is always 20/20. But the truth is, we didn’t know because we can’t know. That’s truly the toughest part of… Read More
Spending in Retirement - An Observation
Most of the people I am surrounded by are first-generation wealthy and I bet very few would even describe themselves as wealthy. One of the reasons they wouldn’t describe themselves as wealthy is because, in most cases, they came from meager backgrounds so the idea of being considered wealthy in any sense of the word is almost a foreign concept. Recently, I think I stumbled across an observation I have… Read More
When It’s Smart to Pay Capital Gains Taxes
Imagine for a moment that you are the coach of a Major League Baseball team and you’ve successfully coached your team to the World Series. You’re about to start the 9th inning of Game 7 and your team is up 3-1. You are just three outs away from being crowned World Champions. A life-changing opportunity for players and coaches alike. But before the 9th inning begins, you visit the opposing… Read More
Life’s Curveballs
Over the weekend, I went for a run as I often do. I time myself for every single run and I generally run the same route each time. Some might consider that boring, but I do it because it gives me a number to shoot for. If I run different routes, I can’t compete with myself to try to beat my best time. If you think that’s silly, I totally… Read More
The Only Benchmark That Matters
Each day, investors everywhere compare their portfolio’s return to a benchmark. Many times, at least for investors in the U.S., the benchmark of choice is the S&P 500. I find it endlessly fascinating because a benchmark is simply the average of all investor returns before costs. This is not opinion, but fact. John Bogle, the late founder of Vanguard, said it this way in his book “Common Sense on Mutual… Read More
