Scott Russell |
The New Year is off to an inauspicious start with the stock markets around the world selling off 4% since the end of 2014, and to add insult to injury (no pun intended), I suffered a severely torn ligament in my left ankle from a minor skiing accident on New Year’s. As I'm confident my ankle will heal, so too will the markets. 2014 Review Last year the stock markets experienced sharp & quick selloffs...
By Michael Santoli 20 hours ago Yahoo Finance Light a couple of candles and sing for the relentless rally, the tireless gain-without-much-pain phase of this bull market, which has added $8 trillion worth of U.S. stock-market value since it began two years ago. Sure, this bull market dates back five and a half years to the March 2009 climax of the financial crisis. But it was in mid-November of 2012, just after the election, when...
By Laura Saunders The Wall Street Journal June 23, 2010 It is a burning question for thousands of taxpayers now deciding whether to pay taxes to convert their regular individual retiremen to Roth accounts. All taxpayers are eligible to make the switch, because this year the income limit of $100,000 was repealed. Many have done so already: Fidelity Investments says that as of May 31, the firm had handled 87,000 Roth this year, about four...
Investors are prone to many behavioral mistakes that can cost them dearly. Trying to time the market, trying to pick the winners, chasing returns, trying to go it alone are among the most common. But the one that can inflict the most damage over a period of time is when we succumb to investing inertia. What is “investing inertia?” In physics, inertia refers to an object’s “amount of resistance to change in velocity.” Without some...
If you come from a typical family, finances were rarely discussed in detail even as you matured into adulthood, which was fine as long as your parents were fully capable of running their own lives. But, as your parents age, and with today’s life expectancies that could span another 20 to 30 years at age 60, there is a strong likelihood that they might lose their cognitive function over time. Not only will your parents...
When financial planners first began to calculate retirement income needs back in the 1970s and 1980s, many of them latched on to the “70 percent” rule, which says that retirees should plan on needing just 70 percent of their pre-retirement income to live comfortably in retirement. It’s a straightforward rule with assumptions that probably worked well back then, but are dangerously flawed in today’s “new normal” retirement. The fact is that the “cost” of retirement...
Scott Russell |
For most people, buying life insurance is difficult enough even when it’s done right. But when it is done with only one eye open, or haphazardly just to get it over with, mistakes are very common, and they can be very expensive. Without question life insurance is one of the most important purchases people make in their lifetimes, yet many people are ill-equipped to make the critical decisions in the process that will produce a...
Scott Russell |
Anyone with a family to protect understands the critical role life insurance plays in their financial plan However, in determining the actual amount of coverage to provide essential protection needs, many people tend to adhere to simplistic rules-of-thumb, such as a “multiple of income,” which may leave them wondering if they own too much or too little coverage. That’s not exactly the “peace-of-mind” we hope for when buying life insurance. With your family’s financial future...
It wasn’t long ago that financial planning was thought of as a discipline that only applied to the very wealthy. Most people didn’t feel the need to plan, and, frankly, most financial advisors felt the same way. If you consider the fact that, just a few decades ago, the average life expectancy was just 70 years, few people were concerned with making their retirement income last a lifetime. And, back then, the majority of retirees...
With the long financial nightmare of the recession and financial crisis shrinking in the memories of those who endured it, Americans are, once again, setting their sights on a shorter retirement time horizon. What didn’t seem possible following the steep market decline and ensuing economic turmoil, is becoming more than just a pipe dream for those intent on fleeing the rat race early. Although it’s a much steeper hill to climb these days, with the...
As the stock market resurgence continues, investors are reawakening to the performance benchmarks of their mutual funds to see if their fund choices are drawing every ounce of gains that have been produced over the last couple of years. As investors pour more of their funds back into surging stock funds, they are, once again, feverishly comparing their funds’ performance against the indices as the a gauge of the quality of advice they are receiving...
Young families with an eye to the future are faced with a daunting choice – to save earnestly for a secure retirement or to save for their children’s education. Can you do both? Certainly it is possible; however, with the cost of a college education and retirement (thanks to health care costs) rising faster than the rate of inflation, just targeting one of those goals with savings is no sure thing. And, with the increasing...