Retiring successfully is a common goal, and although the definition of retiring successfully varies from person to person, having financial well being does seem to be a common term and ultimate target. Since “Financial Well Being” can be subjective, we are going to use Running out of money as an indication that a person's Financial Well Being is not Well. With this in mind, RightCapital has built a financial planning software tool that helps investors identify six areas of risk a retiree might have. The program provides a baseline using these six areas of risk, and gives the investor a [...]
As I was doing the Quarterly reviews I came across a performance report that I think helps to tell part of a new diversification story. Most of you know what diversification is. Don’t put all your eggs in one basket. Have some in stocks, and bonds, and cash. Invest in the U.S. and Internationally. This list goes on and on.... and although these different baskets are a good idea, in many cases, it's not the whole story...or at least the new story using today’s technology. There is another level of diversification some investors do not consider. Diversification by Style and by [...]
I know most of us, like the companies we do business with, are careful with our personal information. This is not enough, though! Sometimes it is not data we shared recently that is to blame for a breach in our identity. It could have been from something we shared 15 or more years ago with a company or organization or even a friend. All it takes, in most cases, is a Social Security number and Date of Birth. Think about how many people and companies you might have given this information to over the last 20 years!Succeeding financially is usually [...]
When it comes your investments, consider having at least a portion of them in an H2H service model. I know, some of you are saying, what's H2H? It's a term used to describe how a business serves clients. In other words, they help clients human to human — versus computer to human. Just the fact that there is a term for this gives you a sense of how fast computers have become the frontline service provider for many service companies. If you go into most Panera Bread stores, you now have the option to order via a computer terminal versus [...]
DIY...Do-It-Yourself is the rage. Home Depot, E-Trade, TurboTax, LegalZoom, all have DIY business models, and the list goes on. In this age of do-it-yourself, I caution you not to fall into the potential trap of doing the following 3 things yourself: Do not do your own taxes. Do not invest your own money. And do not do your own legal work. One way to learn something from other people is to model a specific behavior they are exhibiting to achieve success in a specific area. My suggestion is, if you are striving to either be rich or stay rich, then [...]
Investment advice can be one of the larger expenses when it comes to investing your money. In this article, we’re going to break down the investment landscape as it relates to fees. My goal is to help you, the investor, better understand how investment fees work, what the Average Advisory Fee is and lastly, why it is worth paying for investment advice.Difference between a Broker and an Investment AdvisorTo start with, it is important to understand the two primary ways a financial advisor or financial firm charges for their services. At the core of how they charge is whether they [...]
Peter Mallouk does a great job highlighting the common mistakes many investors encounter in his book entitled “5 Mistakes Every Investor Makes And How to Avoid Them”. It is a very well written and informative book. If you haven’t yet read it, I highly recommend you do so. One of the 5 mistakes he identifies is Working with the Wrong Advisor. He outlines seven questions he thinks investors should ask, and I've taken the liberty of providing the answers you might consider. I also added one question that I think you should consider asking as well.My goal is to provide [...]
Social Security will go away before you do. The federal government has announced that Social Security may become insolvent between 2033 and 2037 if no action is taken – but it is practically a given that Congress will act on the program's behalf.
The end of a year makes us think about last-minute things we need to address and good habits we want to start keeping. To that end, here are seven aspects of your financial life to think about as this year leads into the next...
A good investment strategy starts and ends with the ability to easily analyze an investor's investments. Can you tell how a specific portfolio has done year to date? How it has performed versus the S&P 500 based on multiple/different time frames? How it has performed versus other portfolios you might have? I find most investors cannot answer these simplest of questions, and questions like these are just a start to analyzing a person's investments.Why are so many investors still using 20-year old technology to manage their investments today? Are you one of them? In my opinion, logging onto your employer's [...]