Concerned About Longevity? Three Mistakes to Avoid
Longevity is often cheered as an achievement, but the downside of living well beyond one’s average life expectancy is that it can strain (or worse, completely deplete) an individual’s financial resources. The first step in addressing longevity risk is to evaluate just how great the odds are that either you or your spouse will have […]
Your Money & the Markets in August
The U.S. market declined in July after accumulating some very healthy gains over the past 18 months. A lot of earnings reports from around the world (and especially from Europe) were soft, which didn’t help matters. Other worrying news included the Argentinean bond default, new Russian sanctions, and an escalating situation in the Middle East. […]
Why Baby Boomers Need Taxable Accounts
Imagine grabbing a cookie from the cookie jar and finding a shockingly large tax bill attached. That, in a nutshell, is what’s happening to far too many wealthy retirees today. These retirees aren’t reaching for cookies, of course—they’re tapping their IRAs to pay for somewhat spontaneous expenses such as new cars or family vacations. In […]
How to Widow-Proof (or Widower-Proof) Your Portfolio
Plenty of people who pass away or become debilitated leave their spouses with overly complicated financial plans, too little information, and no clear instructions about where to turn for help. Below are some of the key ways to make sure that doesn’t happen to your family. 1) Start the Conversation. Even if your spouse is […]
When Tax Deferral Backfires
For decades, we investors have been encouraged to defer the taxes we pay: By investment companies, by our employers, by financial advisors, and even by the government that’s supposed to be collecting those taxes. Every baby boomer has learned that deferring taxes as long as legally possible in 401(k)’s, IRAs, deferred compensation plans and similar […]
Your Money & the Markets in July
Economic data from the past month revealed some positive trends, with upbeat employment numbers for June being the biggest headline. In addition, weekly shopping center data have now broken out to new highs; auto sales exceeded all expectations in June despite some strong headwinds, and pending home sales made one of their biggest jumps in […]
Your Money & the Markets in June
Recent economic news was mixed, with strong U.S. auto sales and decent employment growth, but also with negative first-quarter GDP growth. The European Central Bank made headlines by lowering its key interest rates and announcing measures designed to ensure price stability and to support lending. GDP: The U.S. economy contracted in the first quarter, after […]
A Survival Guide for Retiring Boomers
Most people approaching retirement understand that life is about to change a whole lot: More freedom, more time, less day-to-day structure. But what many new retirees don’t grasp is that their financial mindset needs to undergo a major change as well. Simply put, without that consistent stream of work income, your financial margin of error […]
Financial Aid for College
Key to understanding financial aid eligibility is learning how financial aid formulas work. They’re rather complex and vary from school to school, but they basically use answers to questions about family income, assets, and size to help arrive at a special number known as the expected family contribution, or EFC. The EFC represents the amount […]
Charitable Giving, the Smart Way
I’ve always felt that donor-advised funds (DAFs) were a smart way for families to manage their charitable donations. After the recent death of my father, I’ve gained firsthand perspective on just how valuable they are. DAFs are charitable giving accounts offered by a sponsoring organization. Donors contribute cash, appreciated securities or even tangible assets such […]