Author - Richard T. Feight, CFP®

1
Should You Be Chasing Dividends?
2
How To Defer Investment Taxes
3
Why Index Funds Beat Actively Managed Mutual Funds
4
4 Investing Fees You Need to Be Aware Of
5
The Best Free Online Budgeting Tools

Should You Be Chasing Dividends?

Dividend investing is all the rage. See my response to a client’s question on whether to consider switching to a dividend income philosophy below.

Hi Rich – I have been listening to the talking heads on CNBC the last few weeks during the market volatility and most seem to think that the smart move is to buy stocks that have a history of paying good dividends….. The ETF SPDR S&P Dividend, (SPY) seems like a good move…. I would like to hear your opinion on this and any other moves we might consider taking…..the current yield on this ETF is

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How To Defer Investment Taxes

Tax deferral means postponing the payment of tax on income, interest, dividends, and capital gains until the investor takes possession of them. The simplest form of tax deferral is by putting money in your 401k or IRA. You put a portion of your income away before taxes so that you can use that income later in retirement. That’s the basic form of tax deferral. But did you know that there are advanced forms of tax deferral?

How it works

Advance Tax Deferral involves placing highly taxable investments in your tax deferral accounts and placing your less taxable investments in your …

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Why Index Funds Beat Actively Managed Mutual Funds

There has been a lot of research that explains why index funds outperform actively managed mutual fund. I thought I’d share a distilled version:

An index fund has low turnover because it knows what stocks it will invest in; whatever stocks are in that index. Furthermore, because it knows the stocks it is going to invest in, it doesn’t have to pay a manager big bucks to beat the stock market. That means low fund expense ratios.

Actively Managed Funds

On the flip side, an actively managed fund has to try to beat the stock market by constantly buying and …

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4 Investing Fees You Need to Be Aware Of

Investing fees are not always easy to spot. Wall Street has done a good job burying these fees in the small print of hundreds of pages of prospectus. If they fully disclosed their compensation, investors might balk. This post will explain some of the hidden fees that investors don’t always see.

There are many types of hidden fees, many of which I haven’t even found yet. But some of the typical hidden fees include transaction fees (commissions), internal expense ratios, trading costs, and believe it or not, taxes.

Transaction Fees

Transaction fees are different depending on where they are placed. …

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The Best Free Online Budgeting Tools

A few years ago I started tracking my personal expenses closely. I did this because I was starting my business, and wanted to make sure that I had the cash flow available to make it work. For most people, budgeting can be done in one of two ways:

  1. You save first, and spend until your money is gone and your next paycheck arrives, or
  2. You plan how much you can spend based on your income and expenses and put the savings aside at the end of the month.

For people with large incomes, the save first option works well. For …

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