Combining a 401(k) with the benefits of a ROTH can be very powerful, especially for those in the top tax brackets. In addition to the many benefits of a ROTH 401(k), the recently enacted American Taxpayer Relief Act ...(more)
Divorce can be a traumatic experience for many, but by avoiding some common financial mistakes, divorce can be made a little easier. Whether you are using the collaborative process, mediation, or litigation, ...(more)
One of the biggest fears about divorce is facing the rest of life alone. That fear is compounded when the cost of that future is uncertain. Fear is overcome through education and understanding.
You first need to ...(more)
The “fear gauge” is often discussed, widely followed, but rarely understood. Along with the acronym, VIX (volatility index), other words like spot price, futures, contango and backwardation are thrown in to add to the ...(more)
Investing – an Art or a Science? For more than forty years investing was thought to be predominately a science. The adoption of the “efficient-market” theory meant that investors and investment markets were rational. ...(more)
“Don’t let the tax tail wag the investment dog”! Normally this is true. Tax decisions should be made in conjunction, but secondary to investment decisions. Keep reading to find out why, right now, the dog should, in ...(more)
What is sector rotation? Sector rotation has been used by professional investors for years. It involves moving or rotating from sector to sector within the S&P 500. A sector is a particular industry segment of the ...(more)
I do not know of one money manager who over the longer-term outperformed the market using sector rotation. Over the shorter-term, yes. Sector rotation is a maarket timing approach. John Bogel, who ran Vanguard Funds for over 50 years stated he never know of anyone, nor did he know of anyone who knew anyone, who beat the market over ther longer-term using market timing. While it sounds like a good strategy, it depends on predicting which sectors will perform better than the market. Even that is diffciult. The government generates 45,000 monthly economic statistics; add to that the more than 4 million economic statistics private enterprise generates, and the difficulty is just following the aspects fo the economy. Even then, according to Nate Silver in "The Noise and The Signal: Why Do Many Predictions Fail But Some Don't" - estimates of GDP have been plus or minus 3.2% with 90% accuracy. What that means is when GDP is forecast at 2.8%, the actual could be as low as -.4% to a high of 6.0% 90% of the time. 10% of the time the actual will fall outside that range! That is just GDP, when you compound that with all the factors within the sector, the prediction of which sectors will perfrom best is a best guess at best.
The following provides a brief comparison of three types of retirement plans: SEPs, SIMPLE IRAs, and 401(k)s. Ultimately, a business owner should consult his or her tax counsel before embarking on a particular ...(more)
Taxes going up? Time to Roth!
Milton Friedman (famous economist) once said humorously, “Congress can raise taxes because it can persuade a sizable fraction of the populace that somebody else will pay”. Guess what? ...(more)
The following is meant to provide a list of documents that will help you and your loved ones in the event you are unable take care of your own affairs. While not a comprehensive list, providing the following information ...(more)
If you are a business owner that has a company sponsored retirement plan like a 401(k), you may be putting yourself at risk. As a business owner with a 401(k) plan, you are deemed to be an ERISA (Employee Retirement ...(more)
The ETF concept originated in 1993 with the introduction of the SPDR (or “spider”) ETF that contained a portfolio of stocks designed to mimic the performance of the S&P 500. Soon after there was the QQQ or (triple ...(more)
The good news is interest rates are at historic lows; the bad news is that interest rates are at historic lows! Maybe it’s time for you to consider turning a negative into a positive for your financial situation. Given ...(more)
