Fee-Only Financial Planning Advice

Time-Honored Investing Advice Applies During a Pandemic

Jun 23 2020

In calmer, more predictable times some people find it difficult not to panic based on headlines. During a pandemic, the temptation to panic and make impulsive money moves may be even greater. Kiplinger.com offers advice to nervous investors in “How to Save Yourself from…Yourself.”

The article says “It is only a loss if you sell it. Markets go up and they go down, but over the long run, they have always gone up.” So, before you panic and decide to sell investments that could still grow over time, consider the long-term consequences to your portfolio.

And instead of …

Should I Change My Strategy During the Presidential Election Cycle?

Jun 23 2020

A Richmond investment management company mentioned at a dinner hosted for prospective clients that they were going to be getting out of stocks entirely and going to cash in October in anticipation of the presidential general election. Recommendations to get out of the markets and go to cash are frequently made by investment managers. Every study suggests trying to time jumping out of the markets is a losing venture and yet predictions of dire market crashes perennially attract more media attention than they deserve. Let me start by suggesting that there is insufficient data to find any trends regarding election… Read More

Non-Parent Owned 529 Plans

Jun 19 2020

Photo credit: jb

Grandparents often find themselves looking for a way to help their children or grandchildren with education expenses. There are a few strategies grandparents may consider depending on their preferences. The following are a few strategies grandparents may consider to help with higher education expenses.

Grandparent-owned 529 plan. In this strategy the grandparent owns the 529 plan in their name and makes contributions to the plan. The benefit of this is that the grandparent can reduce their estate, take a potential state tax deduction (if their state allows), control the investments, take tax-free qualified distributions, and name/change …

Supporting Fathers During a Pandemic

Jun 16 2020

We recently overheard a radio offering a promotion that allowed the winning caller a chance to treat their father to dinner on Father’s Day (this coming Sunday). One lucky family will be able to get a meal at no cost and the restaurant offering this meal got airtime and publicity. So, while the pandemic had changed many things, people are still looking for ways to celebrate. Parents in general have weathered a lot of change these past few months with fathers and mothers adapting to losing jobs or having to work from home with children at hand because schools were… Read More

Should I Take Everything Out Because the Markets are Recovering?

Jun 12 2020

As I write this, we are in the second week of June and many sectors look like they might set new peak closings soon, recovering to or beyond their pre-COVID values. However, the journey to recovery is a bumpy one, as many investors are selling as their funds approach their prior values. This is likely a foolish attempt to save themselves from a so-called second drop they believe will come. Little do they know, that selling is the only way a second drop could come.

Some investors complain, “This time is different,” because life has been very different. However, …

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