I’m a huge believer in holding cash – in bank accounts and investment accounts. It’s rare when my investment accounts don’t hold at least 10% cash and I like to hold at least 6 months worth of cash expenses in…
Do You Have Retirement Plan?
CNBC has an article out this morning discussing the dire situation many Americans face when it comes to retirement planning. Astonishingly, “more than half of employees age 55 to 64 say they have not even run a retirement-plan estimate.” Given…
More Trouble in the Municipal Bond Market
The Wall Street Journal had a great article this weekend on the problem with pension funding for government employees at the state and local level. As people live longer and financial promises made years ago come due, cities and states…
Why You Should Never Buy a Front-End Loaded Mutual Fund
Mutual funds that contain front-end loads are one of the worst investments for individual investors. In a typical front-end load fund, the investor pays a 5.75% commission just for the privilege of buying into the mutual fund. What most people…
Is your Advisor Working for You?
If you use an investment advisor who simply puts you in mutual funds, you need to find out how he/she is getting paid. Did you know that front-end loads charged by some mutual funds are essentially sales commissions paid to…
Are IRA Maximum’s a Good Idea?
President Obama recently proposed a cap on individual retirement accounts at $3 million, saying that amount is sufficient to fund a reasonable retirement while raising revenue for the Treasury. Many people were upset by this proposal, and while I think…
The Importance of Non-Retirement Savings
Saving is a critical part of any financial plan. Spending less than you make and putting away the difference for the future is the first step to financial freedom. Since we know saving is necessary, the question becomes what is…
Tracking Your Net Worth
The best way to reach a goal is to have a goal. To have a goal though, you need to know where you are today and where you want to go. Measuring and tracking your net worth is an important…
Five Dumb Financial Moves
The Wall Street Journal had a very interesting and appropriate article this week about five really dumb financial moves people are currently making. You might need a subscription to read the whole article, but here’s the five specific moves and…
How Much Life Insurance do you Need?
Life insurance is a critical aspect of any sound financial plan. Yesterday we discussed how Term Life Insurance is the most appropriate and cost effective option for 99% of the people out there. Today, we are going to address the…