Understanding the Investment Time Horizon

Investing isn’t just about how much money you have to invest or where to invest it. A good investment strategy takes in another important component: Time. What is the investment time horizon? The time horizon for an investment refers to how long you will have the money held in the investment before you need the funds, whether for retirement or some other purpose, like a child’s college tuition. The length of time you’ll be invested will vary depending on the ultimate financial goal. Where risk tolerance comes into the picture Generally speaking, the longer the time horizon, the more Read More

Understanding the Investment Time Horizon2021-06-07T17:32:53-07:00

How Do You Know When to Rebalance Your Portfolio

Rebalancing your portfolio can help you stay on track to meet your financial goals. But when is the right time to rebalance? Learn more about this key investing tactic. First, what is a balanced portfolio? To understand the how and when of rebalancing, it makes sense to first understand what a balanced portfolio is. In a nutshell, it means a portfolio with an asset allocation that is in line with your financial plan, which includes your financial goals, your individual risk tolerance, your time horizon, and so on. What does it mean to rebalance your portfolio? A portfolio doesn’t Read More

How Do You Know When to Rebalance Your Portfolio2021-05-06T13:02:09-07:00

Equity vs. Fixed Income Investing: Understanding the Differences

Wondering what the difference is between the equity and fixed income markets, and how to decide where to invest your hard-earned dollars? Here’s our primer on these two types of investments. When it comes to equity vs. fixed income investing, there are some major differences, including the types of securities that are traded, the level of risk involved, and the expected returns. Even the profile of the average investor for each type of investment tends to be somewhat different. Here’s a quick look at some of the top things differentiating the two: EQUITY INVESTMENTS FIXED INCOME SECURITIES Trading Read More

Equity vs. Fixed Income Investing: Understanding the Differences2021-03-25T09:08:00-07:00

What’s a Monte Carlo Simulation?

It sounds like something from a James Bond movie, but it actually has to do with your investments. Here we’ll take a high level look at what it is and how it might be applied to your portfolio. Games of chance — think dice, roulette, or craps — are known for producing random outcomes. But can these outcomes be determined in advance? That was the question posed by a mathematician named Stanislaw Ulam. He would play game after game of solitaire, plotting the outcome of each game in order to observe outcome distribution, trying to determine how probable it was Read More

What’s a Monte Carlo Simulation?2021-03-16T19:45:52-07:00

What You Should — and Should Not — Do About Market Volatility

Turbulence in the markets and a lot of noise around so-called opportunities can create a heady environment for investing. With so much noise, how can you know what to do? Here we take a closer look at market volatility, and offer some “dos” and “don’ts” for the investor preparing for retirement.Global and national economic factors, tax and other government policy, interest rates, and influences from a variety of industry sectors can all have a say in how the market behaves. And when that behavior is more erratic or fluctuates more than “normal,” it’s referred to as volatility. What is market volatility, Read More

What You Should — and Should Not — Do About Market Volatility2021-02-25T17:01:21-07:00

The Medicare Surtax: What High Income Earners Should Know

Like all taxes, Medicare taxes can be clear as mud. Here, we spell out what every high income earner needs to know about which Medicare-related taxes you may be required to pay. First, here are the basics of the three types of so-called Medicare tax that might affect you: Medicare Contribution Tax There’s a 2.9% Medicare tax applied to wages and net self-employment income. If you are an employee with wage earnings, then you pay 1.45% of that employment tax. Employers pay the other half of the full tax. Net Investment Income Tax There’s a 3.8% net investment income Read More

The Medicare Surtax: What High Income Earners Should Know2021-02-18T14:26:07-07:00

What is Inflation Risk & Does It Threaten Your Portfolio?

We heard a lot about inflation in 2020, partly out of the concern of some in the financial world who predicted inflation might increase sharply following the COVID-19-related government stimulus. But is it really a risk, and how might impact your investments? For many, inflation is a dirty word. For some, it conjures images of long lines of drivers waiting to fill their cars with gas in the 1970s. For others, it spikes fear that the prices of goods and services will increase faster than wages. Why Does Inflation Matter? Inflation has been lower than the Federal Reserve targets Read More

What is Inflation Risk & Does It Threaten Your Portfolio?2021-02-09T12:33:48-07:00

What To Do During An Election Cycle?

A couple of common questions we get during election years are: "What do you think the markets will do if <Candidate X> is voted in?" Or: "How are you positioning the portfolio, because if <Candidate Y> is elected, I’m convinced the economy will struggle?” We’ve even had this occasional request: "Move my portfolio to all cash, because if <Candidate Z> is elected, I don’t want to lose money when the market crashes.” We spent the better part of the years between 2008 and 2016 (when Obama was president) convincing Republicans that it was okay to invest and that the world Read More

What To Do During An Election Cycle?2020-10-22T12:40:10-07:00

Traditional, SEP, and Roth IRA: Benefits & Drawbacks of Each

Roth, SEP, or traditional? When it comes to IRAs (individual retirement accounts), do you have a tough time keeping the differences straight? Don’t worry: You’re not the only one.  The three types of IRAs serve different purposes, and each come with their own set of benefits and potential drawbacks. While all offer the ability of helping you save for retirement, there are fundamental characteristics of each that impact your retirement planning. What’s more, your eligibility to use certain IRAs will be based on your income level and access to employer-sponsored retirement plans.  Here, we’ll provide a high level look Read More

Traditional, SEP, and Roth IRA: Benefits & Drawbacks of Each2020-10-02T17:39:31-07:00

Wealth Manager vs. Financial Advisor: Is There a Difference?

When  you’re looking for the right professional to help you manage your money, you come across quite a few different titles. Because we believe that it’s  important to know what you’re getting when you hire someone to provide guidance on your financial life, we’re here to help you sort out the differences as we see them between two commonly used titles: wealth manager and financial advisor.  It’s important to understand that these terms are subjective and can be used to describe those who serve any variety of functions in the financial planning industries.  First, what defines a financial advisor?  The Read More

Wealth Manager vs. Financial Advisor: Is There a Difference?2020-06-09T17:32:43-07:00
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