As stocks have a bit of a meltdown today, there have been frenzied calls about what to do and what will happen next. Here are some thoughts on what to do when the sky is falling. Will the markets go up? Will they go down? Short answer: Yes. What should you do? Not panic. What to Do When the Sky is Falling This is not the first time that the market has given us pause. And it won't be ... Read More
Risk Profile
Smart Investing Rules to Live By: KISS
Looking for a fool-proof system for investing success? I'm not sure there really is one but you can't really go wrong following this advice: Smart investors keep it simple. Keep It Simple, Stupid ... KISS. This is the view of many Bogleheads and behavioral finance experts like Meir Statman, author of What Investors Really Want. Too often we try to out-think and over-analyze things. We are ... Read More
3 Investment Tips to Improve Your Performance
Often I am asked "How Can I Improve My Portfolio's Performance?" Investing can be as much art as it is science. In my opinion it may actually be more art than science. I really think investing is all about emotion and all the statistics, charts, graphs and academic white papers provide a rational cloak to mask this simple fact. This is true when we buy anything or make a decision about a ... Read More
Ask the Adviser: When Can I Retire?
Will working longer and deferring retirement allow me to have more money when I finally retire? Question: I'm 54 now and was originally planning on retiring at 65. My 401K took quite a hit a few years ago and now I'm wondering if I should be postponing my retirement. Boston Money Coach Answer: They say that time heals all wounds and sometimes it even helps salvage a 401(k) as well. You may ... Read More
Ask the Adviser: What’s Next Beyond My 401(k)?
I'm trying to decide where to invest next. Client Question: I'm maxing out my employer matched 401k, maxing out a traditional IRA, and will soon have an emergency fund in a savings account that I'll continue to add to every paycheck. This is where I am now: Moderate risk 401k, Vanguard target retirement fund, and low risk savings account. Looking for something slightly riskier. Boston Money ... Read More
Ask the Adviser: How Can I Take Advantage of a Recession?
Girish asks, "I have heard people talk about 'taking advantage of' or 'minting money from' a recession. How does one do it?" If you have cash you can find great bargains in almost any market or asset class - whether it is a stock, bond, mutual fund, buying tax liens or judgments or even real estate. This is the classic sort of value investing espoused by Benjamin Graham and practiced ... Read More
Ask the Adviser: What’s a Market Linked CD and Are There Risks?
It's natural for investors who are still skittish after a decade-long roller coaster ride with the stock market and plummeting real estate values to be risk averse and seek out investment alternatives for protecting their nest eggs for retirement, college funding or simply their emergency cash. And where there is demand, there will be supply. So naturally, financial firms will design products ... Read More
Ask the Adviser: Paying for College by Shifting Assets – Worth the Trouble?
As noted in previous articles and posts, whether or not your student qualifies for federal financial aid for college will depend on the Expected Family Contribution (EFC) calculation. Typically, almost all assets and income are included in this calculation by financial aid officers. There are exceptions to all rules and in this case, federal aid formulas (under the "Federal Methodology") exclude ... Read More
Beat the Holiday Rush: 7 Financial Planning Tips Before Year End
The holiday season is almost upon us. Before we all get caught up in the spirit of the season (or mayhem, depending on your perspective), consider taking time to get your fiscal house in order with these tips. The Year of the RMD Last year, required minimum distributions (RMDs) were not required as Congress granted a reprieve to not force clients to take distributions from severely depressed ... Read More
Secrets for a Richer Retirement – Controlling Your Emotions
"The safest way to double your money is to fold it over once and put it in your pocket." Kin Hubbard Investing takes time. As humans our brains are more wired toward the flight-or-flight survival responses that got us to the top of the food chain. So we are more prone to panic moves in one direction or another and this is not always in our best long-term interests. So to retire richer ... Read More
