Putting the Correction into Perspective

On February 2, 2018, the S&P 500 Index fell more than 10% from the recent high for the first correction since early 2016. This is actually quite normal, as 19 years out of the previous 38 have had a 10% correction. In fact, the average intra-year correction since 1980 is 13.7%.

Using a Straight Line to Plan for Retirement

When viewing retirement the easiest way to perceive it is as a straight line. The big challenge that people have is figuring out “how long their line is”. If we knew how long we were going to be around during retirement the planning would be easy. But because we do not know how long we are going Read more about Using a Straight Line to Plan for Retirement[…]

How Do Your Financial Ripples Look?

We all make many different financial decisions throughout our lives. You make retirement planning decisions, insurance decisions, college planning decisions, mortgage decisions, tax decisions, debt reduction decisions, charitable decisions and the list goes on. And you will continue to make these decisions as you progress throughout the phases of wealth accumulation, distribution, and preservation. The problem is not Read more about How Do Your Financial Ripples Look?[…]

Doctor, it hurts when I do this!

Doctor, it hurts when I do this. Do what? Pay Taxes! There is lots of talk today about the government’s new tax plan proposal. Current speculation ranges from tax breaks across the board to taxes that hurt the middle class to tax breaks just for the rich. I am here to tell you that whatever Read more about Doctor, it hurts when I do this![…]

Jeopardy, Double Jeopardy and Double Taxation!

Bear with me while I tie a few things together… The game show “Jeopardy” has been around since the 1960’s. It wasn’t until I was much older that I began to appreciate the show for what it is and what it isn’t. I am amazed at the amount of obscure trivia that the contestants knew Read more about Jeopardy, Double Jeopardy and Double Taxation![…]

Mutual Funds Exposed! (Part 6 of 6) Cash in a Mutual Fund is NOT King!

On average fund managers have between 3% and 7% of cash on hand for buying opportunities and redemptions. Let me ask you – what is the ROR of the cash in your bank account? 0%. This is dead money, because cash earns no return. Essentially, buy and hold investors are subsidizing other investors’ liquidity needs. Hence mutual Read more about Mutual Funds Exposed! (Part 6 of 6) Cash in a Mutual Fund is NOT King![…]

Mutual Funds Exposed! (Reason 3 of 6 – Most Mutual Funds Under Perform the Market)

One would think that because mutual funds are managed money, that they might outperform their benchmark. Or, just by chance you’d think that half the funds will outperform and half will under perform. For the 12-month period ending December 31, 2016: -60 percent of large-cap mutual fund managers underperformed their benchmarks. -58 percent of mid-cap mutual Read more about Mutual Funds Exposed! (Reason 3 of 6 – Most Mutual Funds Under Perform the Market)[…]

Mutual Funds Exposed! (Part 2 of 6 – Undisclosed & Hidden Costs)

The mutual fund industry sells performance but does not talk about cost. If you are invested in a mutual fund it may be up – but how much were you up? There are fees and transaction costs that you never see. In many cases that 8% ROR is cut to 5% or less! What counts is Read more about Mutual Funds Exposed! (Part 2 of 6 – Undisclosed & Hidden Costs)[…]

It is difficult to get the Right Solution when you start with the Wrong Premise!

Every step of our education has been centered on what to think, rather than how to think. We have been dumbed down as a society. When it comes to finances, the less we know, the more we are exposed to misinformation. All of the financial information that is available to us today has been created Read more about It is difficult to get the Right Solution when you start with the Wrong Premise![…]

Buy and Hold… Your Breath

If you are an investor, then most likely you have heard of “Buy and Hold” investing.  It has been around for decades and 1.88 million articles have been written on the subject.  Buy and Hold looks great on paper, but it only works as long as the stock market is flat or going up.  If it is Read more about Buy and Hold… Your Breath[…]