Archive - December 15, 2010

1
What If We Invested In Our Future Instead?
2
The False Perceptions Of The Wealth Effect
3
Social Security Dramatically Changes Withdrawal of Benefits Option
4
Why Work with a Fee-Only Financial Advisor?
5
What Type of Investments Are Best For An IRA?

What If We Invested In Our Future Instead?

Spend yourself rich, consume rather than create, borrow your way out of debt. These concepts have rightly been ridiculed for years, but the Federal Reserve and the politicians in Washington continue to push them. Between the $600 Billion the Federal Reserve is printing and the $860 billion the Obama’s tax cut is expected to cost, we are spending nearly $1.5 trillion that we don’t have to stimulate consumer demand.

$1.5 trillion is a lot of money, especially if you spend it on encouraging people to by a new car, the latest fashions, and eat out. What if we used it …

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The False Perceptions Of The Wealth Effect

The next Financial Psych-out is not as pervasive as the “proxy money” effect, but still impacts most of us at some point in our lives. (I have met folks that have gone through this process several times.) It is called the “Wealth Effect”.

The Wealth Effect
“Asset Bubbles” form when the short-term demand for a given asset outstrips the supply. Eventually the market for nay given asset will stabilize, either by a drop in demand, an increase in supply, or some combination of the two. The problem is that the sudden increase in some asset’s value creates the impression that …

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Social Security Dramatically Changes Withdrawal of Benefits Option

Last week the Social Security Administration issued a change to the infamous ” interest free loan loop hole” that allowed folks to payback benefits received get a higher monthly Social Security payout.

This option was called “Voluntary Withdrawal of Benefits Form SSA-521”, which you may have heard about with various teasers on the internet about the secret loophole that allowed you to get a higher SS benefit each month.  This strategy wasn’t a loophole at all but in actuality a seldom used technique that was completely legitimate with the SSA.  The scenario worked like this:  You claim SS benefits early …

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Why Work with a Fee-Only Financial Advisor?

When you accept professional advice on how to invest, save, and grow your hard-earned money, you have certain expectations from your financial advisor: expertise, professionalism, ethics, and independent, sound financial advice. If you’re not working with a Fee-Only Financial Advisor, you may not be getting what you bargained for. Why?

According to the Bureau of Labor Statistics, in 2008 there were over 208,000 financial advisors in the United States, with that number expected to rise to 300,000 by 2018. However, of those, only 2,000 are Fee-Only financial advisors and members of the National Association of Personal Financial Advisors (NAPFA). Unlike …

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What Type of Investments Are Best For An IRA?

The question often comes up – what types of investments are best for my IRA?

Of course, any investment that you make in a tax-deferred fashion is a good one, at least in theory.  But there are other investments that make the most sense for your IRA versus other vehicles… and some investments that make more sense in other kinds of investment accounts, where possible.

Listed below are a couple of considerations to take into account when considering taxation of your IRA and non-IRA investments.

Bonds and other interest-bearing vehicles

Given the nature of the IRA – deferring taxation on …

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