Did the S&P 500 bottom on October 12th of last year? Only hindsight will bestow that
knowledge. Stubborn inflation and higher interest rates were the big drivers behind the selloff that took us to that October low, but recent data indicates inflation is retreating, comments from Federal Reserve members suggest they may be close to ending…
Diversify. Diversify. Diversify.
It’s one of the key concepts for investors to understand.
Most are familiar with the adage “don’t put all your eggs in one basket”, and diversification is essentially the same concept.
We’re not dogmatic about investors needing to own certain asset classes. Some of those asset classes have been dogs for years in terms…
BUY AT THE HIGHS?
Investors often ask if it’s time to dial down stock market exposure when the broad market hits new high prices. If market appreciation has pushed stocks to an outsized portion of overall holdings, then doing a bit of pruning could make a lot of sense. Disciplined investors execute such moves regularly,…
Companies paying higher dividends do tend to be more mature. The mature companies investors want to own are still growing earnings, but that growth is probably more moderate than it is for a younger company whose total accessible market (TAM) isn’t yet defined. Apple is a fairly mature company, but they keep coming up with…
This is the most elegant explanation of prudent investment management I’ve ever heard, and it came from Steve Adell. It’s called “The Bucket List”.
The idea is to categorize your investment money into three simple buckets which are based on intended use: Cash, Fixed Income, and Growth. You fill the buckets in order.
Bucket #1: Cash and…
Let me quickly make my case. Yes, real estate, by definition, is a real asset. Over time, real assets should appreciate. Therefore, your home should be considered part of your investment portfolio, right? I will first say it “depends”, but almost certainly not.
Example: Let’s say you save for a 20% down payment for a $500,000…
I have to admit this is a growing point of contention for me in the financial services industry. I came across a 401(k) plan the other day for a person in her late sixties who has had a very successful career. She asked our advice about rolling over her 401(k) to an IRA. As we…
Before we begin, let’s start with the general understanding that money itself has a cost. It sounds strange to those who are not in the financial world, but a dollar borrowed from one source may be more expensive than a dollar borrowed from another source.
If you borrow a dollar from a friend (pay them back-…
Congratulations on admitting you have a problem. That’s step one. The journey to financial health may now begin.
Admit you have a problem-you don’t yet have a grip on your finances.
Take a financial assessment of yourself just like you would a business. Begin with the good old fashioned “Assets – Liabilities = Owner’s…