Portfolio Diversification-Part 2:Benefits

In the first post on this topic, we defined diversification as spreading your investments among assets with differing return and risk potential.  In this post, we’re going to discuss the benefits of diversification. To keep a portfolio spread among different asset classes, you will need to rebalance it regularly. Otherwise, some investments will get out … Read more

Greed & Fear Investing

With all the noise around Bitcoin, GameStop and market tops, I like this illustration to remind investors of the twin towers all investors go between. Successful investing is the sweet spot between the two extremes.

A Farmer’s Tale

Two farmers, John and Paul, were sitting at John’s kitchen table one cold winter day. John has been a farmer for a long time and Paul is new. Paul says, “Our is mostly a dairy farm and we’re thinking about planting more than just corn and hay to feed the cows. How do you mix … Read more

Time to Rebalance?

Because the stock market has been on an upward trend in the second half of 2020 and the first month of 2021, it’s time to check your asset allocation. We’ve noticed the stock portion of many client portfolios are now 5% or more over their target asset allocation and therein lies risk. That is, if … Read more

Mortgage Or Not in Retirement

This is a question we receive frequently from clients who are about to retire. There are pros and cons to paying off your mortgage before you retire. First, the plus side. Reduces the cost of housing and increases your positive cash flow. Guaranteed risk-free rate of return. Psychologically, it’s satisfying. The negatives: Reduced liquidity. You … Read more

Looking Ahead

I’m happy to see 2020 in the rear-view mirror. How about you? Let’s call it like it is: 2020 was a disaster from a human suffering and death perspective. And on top of that, there was a contentious, divisive national election, an economic swoon that has not ended yet and civil un-rest over long-simmering racial … Read more

Biggest Worries BEFORE and AFTER Retirement

The biggest worries for people BEFORE they retire are financial. AFTER someone retires, the biggest worries are health related. These findings are consistently reported in polls and surveys done by Gallup, AARP, Wells Fargo, and others. The reason for this difference is common sense. Before someone retires, they worry about having enough money to live … Read more

Four “L’s” of Retirement Income Planning

Dr. Wade Pfau, a well-known retirement researcher, invented this simple outline for those thinking about retirement. He states retirement income planning needs to address these four factors: Longevity — a 65-year old married couple has a 50% probability of at least one partner living beyond age 91 Lifestyle — how you want to live your … Read more