May 15, 2019

Many investors aren’t aware of the concept of fee-only financial planning, so we’re sending along the article below from Financial Planning Magazine¹ because it’s the best one we’ve seen written on the subject in years.

Written by Bob Veres, a well-respected industry observer for decades, it’s clearly sarcastic in tone. It’s intent, however, is to point out the players in the personal finance marketplace and the incentives behind their compensation.

May 15, 2019

If you’re in your late 30’s or 40’s, you might find it nonsensical to think about where you might live in retirement. After reading about Beth and Chuck, you may want to rethink your position.

At first glance, one might find a 15-year journey to find the perfect place to retire a bit excessive. But is it?

Source: Direxion Funds

May 15, 2019

• FUTURE PLANS - 48% of households in America headed by individuals at least age 55 have no retirement savings, 26% have a defined contribution (DC) plan (e.g., 401(k) or IRA) but no defined benefit (DB) pension plan, and the remaining 26% have both a DC and a DB plan (source: Government Accountability Office).

• PREPARE FOR IT - A 65-year old American couple has a 48% chance that at least one of them will live to age 90, i.e., at least a 25-year life expectancy (source: Social Security Administration).

• END OF LIFE - 1 out of 3 Americans at least age 85 has Alzheimer’s (source: The Atlantic).

March 31, 2019

A recent phone call with an old friend led to a lengthy discussion on where to live in retirement. We touched all the bases: aging in place, independent living within a senior community, assisted living, and nursing care. The conversation paused, however, when I was asked the question: “How do you know when it’s time to go?”

March 31, 2019

By: John Zeltmann

Stan and I will both tell you we have one of the greatest jobs in the world. Helping people plan for their retirement while making financially sound decisions during their working years is an incredibly rewarding vocation. Daily, we get to help people figure out how to reduce tax bills, determine appropriate levels of life insurance, plan for college, and prudently grow their portfolios over time. Those are just some of the highlights.

When we have those types of conversations with the children of our clients, the rewards can be just as profound. 

March 31, 2019

JP Morgan’s 2019 Guide to Retirement includes a chart (see below) depicting levels of happiness and stress by age. For married Americans, happiness is lowest at age 46 and then continues to rise on an upward sloping curve all through the ‘golden’ years. (I wonder if it has anything to do with the kids’ finally going off to college.)

March 31, 2019

It’s difficult to pass on reading an article with that title, but The Parent Trap is the title of a special report found in Barron’s. Not only was the title catchy, but the contents are very worthy of sharing.  It’s difficult to summarize an article with this type of importance, so we’ll try to capture your attention by reviewing some of the highlights.

Source: Direxion Funds

March 31, 2019

• ALMOST ALWAYS - Since 1950, there have been 60 different 10-year periods (i.e., the 10-years from 1950-59, 1951-60, 1952-61, . . . 2009-18). The S&P 500 has produced a positive total return result in 58 of the 60 decade-long periods, i.e., 97% of the time. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock's weight in the index proportionate to its market value (source: BTN Research).

• ECONOMIC DOWNTURN - 9 of the last 10 recessions in the United States began under a Republican president going back 66 years to 1953. The only recession over this time span that began with a Democratic president in the White House was a 6-month recession that began in January 1980 during Jimmy Carter’s last year as president (source: National Bureau of Economic Research).

February 15, 2019

Financial planning is part art and part science. The science portion relates to the use of academic studies to construct portfolios with various levels of risk that can be used to provide retirees a certain level of income for their lifetime. The art element is equally important because we deal with individuals, and each individual has unique needs, disciplines, and tolerances.

February 15, 2019

By: John Zeltmann

While it might be logical to assume that most parents (and grandparents) would like to pay for their children’s (or grandchildren’s) college education by funding 529 plans, it’s probably even more likely that most haven’t calculated how much money they’ll need to save each year in order to do so. (The exercise is frightening, so avert your eyes if you’re an individual who scares easily.)