AdviceIQ Articles

  • Should You Invest in Startups?

    Are you looking to get into an exciting startup? Despite all the success stories – Facebook, Twitter, etc. – you should know that rarely does a startup make it and reward you with a lot of money. Investing in pre-initial public offering companies involves too great a risk for individual investors.

  • Investing: Head Vs. Heart

    What’s life without joy, sadness, happiness and sorrow? Emotions enliven and enrich your existence – and, if you let them sway your financial judgment, they can drive your portfolio onto the rocks. How do you avoid letting your feelings determine your investing?

    “Emotions do matter,” said Hugh Massie, chief executive officer of behavioral management advisory firm DNA Behavior in Atlanta. “They get in the way of investors’ success.”

  • Understanding Your 401(k)

    The 401(k), launched almost 30 years ago as a retirement savings alternative for federal civilian employees, now constitutes most working investors’ main nest egg, if not an entire household’s primary asset. Still, investors risk their future with confusion about details of these accounts.

    These vehicles are typically “the place to start with savings,” said Ken Weingarten, president of Weingarten Associates in Lawrenceville, N.J., and speaker at an advisory panel.

  • Talking Money With Honey

    One of the most ticklish situations in a marriage is dealing with money – often because couples don’t talk about it, or if they do, not well. Advisors explored this fraught subject at National Financial Advisor Week.

    “Being compatible romantically does not mean being compatible financially,” said Hilary Hendershott, on a panel of advisors that dug into the issue.

  • Save ‘Enough’ for Retirement

    Your looming retirement can change your idea of just how much money you need to save for your later years. Most important: be realistic and avoid common planning pitfalls.

    “‘What’s money mean to you?’ gives most people pause,” said Eric Hutchinson, president of Hutchinson Financial in Little Rock and Bentonville, Ark., and in Texarkana, Texas, speaking at a recent advisory panel. “Most people [say] they don’t want a whole bunch of money; they want ‘enough.’ They begin to use words like ‘comfort’ and ‘peace of mind.’”

  • College Savings: Before You Go

    Saving for the ever-rising college tuition is tough for most parents. While you focus on funding a 529 savings account, you may forget the most important piece of the planning puzzle: your children.

  • Couples Merging Finances

    When a couple weds, each in the new pair often feels pressure to marry individual finances together as well. Smart financial planning actually dictates that you don’t have to – and in many cases shouldn’t – put all your money into a single, joint account. You can enjoy both cooperation and autonomy in your financial marriage.

  • The Long Bond Rally Lives On

    For the past five years, prognosticators, legendary fund managers and other savants have predicted the end of the incredible 30-year bull market in U.S. Treasury bonds. Odds are, though, that it won’t stop soon, thanks to Treasuries’ status as a refuge in a turbulent world and the Federal Reserve’s ongoing interest in avoiding an economy-jolting rate shock.

    Whether that’s a good thing is another question. What’s for sure is that reversing the momentum of a longstanding trend of lower bond yields is not easy.

  • Divorce and Elder-Care Bills

    A confluence of circumstances can conspire against marriage amongst older couples: longevity, soaring elder-care costs and a lack of long-term care (LTC) insurance. Divorce, even if painful, may hurt less than living in near poverty until Medicaid finally kicks in to cover an ill spouse.

    Medicare insurance only covers up to 100 days of nursing care. If you or your spouse need nursing or LTC, you either pay out of pocket until your assets fall below a low threshold or tap your LTC insurance.

  • The Feel-Good Shopper

    While shopping can make you happy for a while, it has the potential to hurt your financial future in the long run. What is ominous is that half of Americans shop to feel better.

    “It’s not just shopping, it’s retail therapy.” As a bumper sticker or a joke between friends, this may be amusing. But if shopping is a significant way to relieve stress, the expression isn’t so funny.

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