The time value of money is a topic that should be understood by every serious about financial planning. We usually understand the time value of money in two contexts: the growth rate of an investment, and the inflation rate. To conceptualize this, sketch out a timeline of your life. At the leftmost point is your […]
Archives for August 2017
The Ins and Outs of Traditional IRAs
In this blog post I want to go just a little bit beyond the basics of traditional IRAs and how they work. I’ve also done a video on the topic, which you can find below. What are Traditional IRAs? An IRA is an individual retirement account by definition, with the emphasis on individual. One IRA […]
Your Portfolio: Good Servant; Poor Master
Having great investment portfolio returns may not get you to your retirement goals. You could have (in theory) spectacular returns every year for 20 years and still not realize the retirement you want. Do we like strong investment performance? Sure. Should stellar performance be your goal? Not necessarily. Goals-based investing should be the approach. The investor […]
Retire to What?
Picture the scene: My wife has a group of friends visiting. I come home from work, greet everyone, and have a glass of wine to be sociable. At some point I announce that I’ll retire to my study for the evening. What does that verb mean – to retire? It means to go away or […]
A Day at the Homestead Air Force Base
It was a rainy, early Sunday morning. I was at the entrance to the Homestead Air Force Base, approximately 30 miles south of Miami, FL. “I’m meeting with Sergeant L_________” I tell the armed guard at the gate. He motions me to pull over to the side. I get in contact with the Sergeant. She […]
What Do Your Mattress and a Roulette Table Have in Common? (HINT: more than you think.)
With this blog post we’d like to share some thoughts with our readers about investment risk tolerance. Generally, we think about risk as a bad thing – something we want to avoid. “I won’t drive faster and risk a speeding ticket”, and, “No, baby, that dress doesn’t make you look fat,” are two examples of […]
The Surgeon Who Lost His Fingers
Nobody plans for a disability. In our experience, people are more willing to incorporate life insurance into their financial plan than disability insurance. Why is this? Let’s first get into the differences between disability and life insurance. Disability insurance vs. life insurance Here are a few key differences between these two types of insurance: With […]
Top Five Mistakes People Make With Their Money
Thinking about David Letterman retiring and all those Top Ten lists. I thought it might be fun to compile one of my own. To wit: The Top Five Mistakes People Make With Their Money This is a list compiled after about 20 years of experience. You’ll find a video version just below. Mistake #5 You eat […]
Student Loan Forgiveness
By early 2015, the amount of outstanding student loan debt in the U.S. exceeded $1.2 trillion. What a staggering number! Tens of millions of young professionals carry significant student debt balances. The payments may be stiff. It can take years to pay off many of these loans. Consequently, other financial priorities get postponed. Commonly we […]
You Are Generous. Give Creatively.
Charitable Giving As a financial adviser I am privileged to work with many wonderful and generous people who give generously. These are people who want to leave a legacy. These are clients who want to leave money behind which will continue to accomplish the good works the donor did during his or her lifetime. You […]