Should You Rebalance Your Portfolio?

A term you have likely heard tossed around in the financial services world is ‘rebalancing’. Economist John Maynard Keynes said, “The market can remain irrational longer than you can remain solvent.” With this major concern in the background, let’s define rebalancing as the action which brings something back into balance. What is Rebalancing? To keep the concept simple, let’s assume we have a portfolio consisting of 2 assets. We will call them ‘Stocks’ & ‘Bonds.’ To further simplify the concept, we will assume an equal investment into these two positions. I would often describe this portfolio as a 50/50 portfolio. Over time, one position of the portfolio could become greater… Read More

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Are You Investing for Yourself, or Are You Investing for Your Legacy?

Traditionally, financial advisors tell their clients, “Don’t take any more risk than is necessary to achieve your goals.” Following that advice, when you turn 70, 80, or 90-years-old, you should move your money into conservative investments with guaranteed low returns rather than keep your money in riskier investments that could potentially provide higher returns. Essentially, advisors say that it’s more important to protect your money at that age than to double it. Yet, is that always true? Is this conventional wisdom ever flawed?  Should you stop making any potentially risky investments when you reach a certain age? Well, you will find the answer to that question by asking another: Are… Read More

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5 Steps to Take When Your Financial Advisor Retires

If you’ve received a letter or phone call about your financial advisor retiring, you may be scratching your head, thinking, “What do I do next?” For the last several years, the number of financial advisors has steadily been decreasing. In 2008, there were roughly 325,000 financial advisors. By 2014, that number decreased to roughly 285,000. Financial Advisors are Retiring With one-third of advisors falling between the ages of 55 and 64, the mass exodus is understandable. Not only are they nearing retirement age, but their departure could also be attributed to the new rules handed down by the Department of Labor and FINRA. It’s possible they just don’t want to take the time and… Read More

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Which Should I Have: ROTH IRA or Traditional IRA?

It’s an age-old question when it comes to retirement accounts. Should I use a ROTH or a Traditional IRA? Both are great vehicles to prepare for retirement. However, neither are ALWAYS a perfect fit for everyone. Let me break them down a little further to help you understand the differences and when you might want to choose one over the other. What is the difference in a ROTH IRA and a Traditional IRA? First, you need to know what each account does and how it shelters your money. ROTH IRA’s are the accounts that you place after-tax dollars in. So for example, if you put $5,000 in a ROTH, you’ll… Read More

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Understanding How Personal Risk Tolerance Affects Investing Strategy

If you enjoy roller coasters, then perhaps you’ve enjoyed the last twelve months of the stock market. On the other hand, if you’re like many others, then watching the seesaw of events affect your portfolio could be causing you some sleepless nights. With the 2018 Christmas Eve drop and the after Christmas rebound of the market, now may be a great time to check your risk tolerance. What exactly is risk tolerance? I know you’ve heard that term. In fact, you may have even taken an online assessment to help you determine your own risk tolerance. Simply put, risk tolerance for most people boils down to this: “How much should… Read More

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Will I Outlive My Retirement Money if I Retire at the Stock Market Peak?

If retiring early is a goal you hope to achieve, you are not alone. The FIRE (financial independence/retire early) movement is growing at a rapid pace; and why not with markets hitting all-time highs? However, have you really examined whether retiring at or near the peak of a bull market is the wisest decision? What will it mean for your portfolio if the market crashes? Maybe not as much as you would think with some expert planning. Let’s take John Doe and his family for example. John is a frugal guy and has been actively planning to retire by age 45. With the markets hitting all-time highs, he knows a… Read More

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Five Essential Money Moves for First Time Parents

One of the most joyful life-changing game and event for a couple’s financial plan is the birth of their very first child. However, you will learn quickly that “kids ain’t cheap!” In this article, we will give you my suggestions for great money moves for first-time parents like yourselves.  Saving and Budgeting First, when starting to prepare for your baby expenses which certainly are inevitable, you’ll need to evaluate what your monthly budget looks like as at now. You need to perform what we call cash flow analysis which helps you break down your monthly income, your fixed and variable expenses and your monthly savings. You need to identify some… Read More

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Why Timing the Market a Terrible Idea

Recently, one particular client was looking for someone to help them reach their goals before retirement. With a seven-figure portfolio, he has done quite well for himself. But he was now interviewing for help, and a few brokers in town and us. They decided to go with another firm. Now, let’s fast forward about eight months.  I receive a phone call early January of this year, and now the person said, “Hey Justin, I need to sit down and talk with you because I made a mistake”. Well, that’s not something you hear from a prospect. I said, “In what way did you make a mistake?” He said, “Well I went… Read More

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When Should I Start Drawing Social Security?

You may be eligible to start drawing Social Security as soon as you turn 62, but this doesn’t mean you necessarily should. By waiting a few years, you will get a higher monthly payment and potentially more total income. So how do you decide? If you need Social Security to get by, then the decision is easy: take it when you can. If you’re in the much happier situation where your family is earning good money without Social Security benefits (say your spouse is working a well-compensated job), then the decision is also fairly easy. Your Social Security, in this case, is going to be pretty heavily taxed, so don’t take… Read More

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You Are Not a Financial Stereotype – Are You Treated Like One?

Who do you suppose you are to your financial advisor? Chances are you are less a person than a “type”. Maybe you’re the corporate manager who takes risks. Maybe you’re the single parent struggling to build a college fund. Maybe you’re the middle-aged couple who must take care of ailing parents. Whatever the details, what you are not is a unique individual. It has been my experience, that many financial advisors rely on a handful of investment models to cover the life circumstances their clients find themselves in. They have created six, or eight, or ten portfolios intended to encompass a broad range of circumstances and personality types, and their job… Read More

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