Blog

Playing a Sport and Investing in the Capital Markets Decision making. It is a life skill. Most sane people desire to make better decisions as life goes on. How does one go about doing so?

When do I implement a Roth Conversion? As a previous blog outlined in the description, a Roth conversion can be a valuable strategy to further solidify a long-term financial plan.   The next question would be when to implement such.

The “Lost Decade”:  2000-2009 In the investment world, many investors refer to the first decade of the 2000’s as the Lost Decade.  Is this a true statement?   In the United States, the capital markets were coming off of some very profitable years in the 1990’s with significant capital appreciation in the NASDAQ and S&P 500.   For the 10 years starting 2000, the returns were muted or negative.  To the extent an investor was inves

What is Sequence of Return Risk?In sports, if the center fielder for your favorite team starts the season with zero hits in the first 100 at-bats, he is likely to not play again.  The hitter may have had 60 hits out of the next 100 at-bats, but because of the first sequence of zero for 100, he never got the chance.  It was a poor sequence.  The baseball manager desires a consistent sequence, about 30 hits per 100 at-bats.  The same holds true for investment returns for retire

5 Ways Young Adults Can Honor Their ParentsMany of us in America assume our parents are going to pay, indefinitely.   As an advisor, I have noticed that many pre-retirees and retirees spend significant financial resources on others, particularly their direct family.   This often damages the integrity and viability of their retirement plan.Young people can show honor and respect, a general spirit of gratitude, toward their parents in many ways.  By doing so, they will be

What is a Roth Conversion?A Roth conversion is simply moving funds from an IRA to a Roth IRA.   All the account owner needs to do is complete a form, sign and submit it, and pay the tax.   A traditional or rollover IRA is a taxable account, providing the owner making the contribution a tax deduction to defer taxation.  A Roth IRA is an untaxed account, but funded with after tax dollars, thus not offering tax deductibility. As an example, let’s say Linda has $1

Passive & Active:  Difference between Investors & InvestmentsTypes of Investors: Passive Investor:  Construct a portfolio with intend to “buy & hold”, with scheduled periodic rebalances to move portfolio back to original allocations.To the extent the investor is in a non-retirement account, more tax efficient when compared to “active”.No risk management.No analysis of market and/or economic conditions. Active Investor:  Construct an initia

Is Budget a Four-Letter Word!Is budget a four letter word?  In many households, it is stronger than a four-letter word.In reality, it is misunderstood and over complicated.  The better terminology is naming it a Spending Plan.  A budget makes one feel constrained, restricted, and controlled.  A Spending Plan should elicit freedom.  A Spending Plan should give people flexibility.  And a Spending Plan gives one control over their finances.  One should not be cont