One question that we often get from people who have a little bit of extra money to save is whether or not they should invest that money, or should they use it to pay down (or pay off) their mortgage?
You may have noticed that 2018 is quickly coming to an end. When it comes to retirement and tax planning, right now can be a really good time to take care of some things that need to be done before the year is out. Unfortunately, this is also a time where people tend to make some not-so-good decisions about RMDs, Roth conversions, asset appreciation – things like that.
If you’re thinking about buying or selling your home, you probably have some questions. The process can be long and stressful, and many of the rules have changed over the past couple of decades. So whether you’re a buyer or a seller (or both), here are 3 tips to help you play it smart.
If you were to ask people what their personal definition of “wealth” is, you’d probably get a different answer from just about everyone. You might think that “having lots of money” would be the standard definition, but according to a survey for the Modern Wealth Index from Charles Schwab, only 11% gave that answer.
Simply put, stock market volatility is the movement in price, or the upward and downward movement of price.
You don’t have one allocation. You have different allocations for different time sets. When you have money that you need to withdraw in the next 5 or 10 years that may be one allocation.
As you get get closer to retirement, you’ll want your portfolio to be less volatile and diversified to protect against the big downswings that may happen.
With Hurricane Harvey, we saw a real-world example of how things can change in an instant. One moment everything’s fine, the next, there’s total devastation in some areas. With natural disasters like these, Mother Nature will often have the final word, regardless of how you’re prepared. But with investing, you may find that the better you’re prepared for market swings, the less of a negative impact there might be.
The old days, where people needed brokers to access investment offerings and when clients may have had little information and little choice, are pretty much gone. We went from an age of brokers and investments, then through an era of strictly financial planning and asset allocation models, and now we’ve entered an age of collaborative guidance.
If you’re a bond holder, a change in interest rates means that the value of those bonds you’re holding could also change. And right now, though interest rates are still at historically low levels, we could be seeing higher rates in the near future. Which scenario makes more sense for you: keeping your bonds, or potentially improve your risk-adjusted performance with some fixed-income alternatives?
You may have heard one of the more popular sayings in the financial planning world: “It’s not what you earn, it’s what you keep.” For many people, this past tax season was a painful reminder of that pearl of wisdom.