Let’s imagine you own two pots of money: The money that has already been taxed (let's call it "regular money") and the money that has not been taxed (let's call this "retirement money" such as IRA, 401k, 403b, etc.). ...(more)
Planning to take a company rollover? Here are three ways NOT to do it.
1. Get a check from the company
Of course, this is just foolish. The company must withhold 20% from the payment, so that a person with a ...(more)
The turnover rate in a fund is not necessarily a bad thing, but it does increase your tax bill if the fund is selling stocks with lots of short-term gains and turnover means additional hidden costs… and that comes out ...(more)
So, you received your pension statement stating that you can expect $50,000 a year for life when you retire in twenty years. Is that good?
It depends. You knew I was going to say that, didn’t you?
Count ...(more)
UMA is short for `unified managed accounts’ and they’re becoming increasingly popular with both advisors as well as their clients.
Scattered Assets
I can’t even begin to tell you how many times over the years I’ve ...(more)
Many investment entities (banks, money managers, consultants, etc.) make the mistake of treating all investors alike. But, corporate investors are far different from individual investors. While a pool of money make ...(more)
When I was young, my father told me, “Jim, if you just save 10% of everything you ever make – and start NOW – you’ll never have to worry about money the rest of your life.” Parents. What do they know?
The fact ...(more)
Cambridge Associates, a consultant for institutional investors, studied the impact of chasing past performance and the outcome of firing “underperforming funds” - these are funds with below-benchmark returns but not ...(more)
In the economic marketplace, people love it when they find out something they want has been 'marked down'. Discounts make all of us feel happy!
But, the financial marketplace doesn't seem so rational. If 'the ...(more)
This is a question people often ask. If you’re one of them, I hope this will help simplify your decision making.
First, it’s important to understand just how leasing differs from buying – Now, I’m going to ‘make ...(more)
Here’s a short little tip you might find helpful.
The other day I was talking with someone when the conversation finally turned to the familiar, ‘what do I do now’ question.
I told him what he intuitively ...(more)
In a study titled “Risk Aversion or Myopia? Choices in Repeated Gambles and Retirement Investments,” Shlomo Benartzi and Richard Thaler, professors at the Anderson School at UCLA and the University of Chicago, ...(more)
Retirement plan fiduciaries are subject to standards governing their conduct in exercising their responsibilities acting on behalf of retirement plan participants. While many understand they must act solely in the best ...(more)
According to a Morningstar study conducted in 2010, the odds for those trying to `time the market’ don’t look too good. The study analyzed the cost of market timing using the S&P Index over the 10-year period of ...(more)
Have you heard? All the children in Lake Woebegone are above average. And, everyone you know who returned from vacation in Las Vegas told you they ‘broke even’.
It's no different when it comes to investing. Everyone ...(more)
Selecting the right money managers for your serious assets isn’t something to take lightly. Unfortunately, too many people take far too many shortcuts, going straight to ‘star ratings’ and other `easy answer’ vehicles, ...(more)
Every family probably has at least one `real world’ economist – the one that does the family purchasing. Anyone who buys food, whether at the supermarket or at Walmart, knows that the packages have been getting smaller ...(more)
We’ve all heard it. We’ve all read it. Most managers fail to match, let alone beat, the market.
Actually, it makes sense! And, there are two reasons for this:
First, if you believe – probably rightly so – ...(more)
Believe it or not, 85% of retirement industry revenue is never billed directly or even disclosed. This is because most 401(k) plan distribution and record-keeping costs are subsidized by the funds themselves in the ...(more)
The most common reason for a vendor search is because of a service problems (surprise, surprise). The question is whether the problem is a short-term issue or a long-term issue that requires a change.
What are the ...(more)
