Understanding your emotions, and learning to manage them, is a great advantage when investing. Much of portfolio theory and investment research is based on what a rational person would do. But people are not rational, particularly when it comes to their money. Nobel prize winner Daniel Kahneman and Amos Tversky studied risk behavior and applied it to the economics of … Read More
The Rational Side of Investing
Clients often come to us not knowing exactly how they are invested. They have some knowledge of investing, but don’t have the time or inclination to dive into how markets work or the details of an exchange traded fund. This is where we help. We are here to help clients understand how their portfolios work, and educate them on markets … Read More
Build Your Financial Planning Tower
Building a Financial Planning Tower may seem like a lot of work. Any time you are building something, you want it to be strong so it will last. The top layers need to stand on a sturdy foundation so it won’t topple or break. This is equally true for financial planning. Let’s explore how to build a financial planning tower … Read More
How to Get the Most out of Your 401(k) or 403(b) Plan
Your 401(k) or 403(b) accounts are a smart place to store your retirement money — there’s no disputing that. However, simply directing a percentage of your paycheck into it every month and expecting the culmination of funds to support you through your golden years is not enough. You need to understand how your investments, the plan’s fees, and any employer … Read More
7 Tips for Making the Most of Your 401(k)/403(b) Account
Saving for retirement is the most boring thing you can imagine. You set aside money, don’t look at it, and hope it grows. Employers know this, which is why 401(k) and 403(b) accounts are so popular. 401(k) plans are sponsored by corporations and other employers, while 403(b) plans are offered by non-profits, medical facilities and educational institutions. Though they do … Read More
Should You Pay Down Debt or Save for Retirement
Pay down debt or save for retirement? Many of my clients have a lot of competing priorities, and the most common one is whether to pay down debt, or save for retirement. It’s probably a question we have all asked ourselves at one time or another. While there’s no one-size-fits-all answer, there are certainly some pros and cons to both … Read More
The Tools in Your Swiss Army Knife Retirement Plan
As Boy Scouts, my kids love their Swiss Army knives. They use them for everything and always take them camping. These all-purpose tools have a knife, file, screwdriver, scissors, tweezers, bottle opener, and more. As you are planning for retirement, you may find you have a Swiss Army knife full of accounts, each with different functions. They all hold a … Read More
Make Your Money Stretch Without Robbing Peter to Pay Paul
My dad was the best cash flow expert I knew. He would have money put into his retirement fund, get the company match, remove his contribution and make extra loan payments to get them paid early. There was not enough money at the end of the month, so this was how he made things work for our family of six. … Read More
Do Your Homework: Understanding How 401k Plans Work
When I first started working, my employer offered a 401(k) retirement plan. I didn’t know too much about it other than I could save for retirement, just as the name implied. So, I signed up. Although many workers have access to some type of retirement savings plan through their employer, like me when I started, few truly understand the inner … Read More