AdviceIQ Articles

  • What To Do If Bonds Slump?

    The death of the 30-year bond bull market, often predicted, may finally be here. How do you prepare for that? Since bailing out of bonds altogether is unwise – they are good ballast for any portfolio – you can buy floating-rate notes, focus on short-term bonds or structure your bond holdings using a technique called a ladder.

  • You Can’t Spend to Save

    Americans have a huge problem with saving money, and our efforts at penny pinching sometimes result in more overspending. Some apparently good habits are not so wise.

    The national savings rate was only 2.5% in April. This is far below the level that allows for a fruitful retirement. In the event of an emergency, over half of Americans struggle to come up with $2,000, according to a 2011 study by the National Bureau of Economic Research.

  • Mental Retirement Prep

    Getting ready for retirement involves more than just calculating how much you will need and the rate you can draw down your savings. The year before you retire is a crucial time to prepare both financially and psychologically.

    Often, I feel that many retirees underestimate their expenses, get bored without a daily grind and panic over market corrections.

    Here are a few exercises that you can take during that last year of working life to get ready for the reality of retirement.

  • Why Malone Is Buffett’s Equal

    Hardly anyone can be Warren Buffett. If you owned Buffett’s stock, you did pretty well. But too few investors know that following another finance genius brought great gains, too – and is likely to keep delivering in the future. That’s John Malone, the cable and media pioneer.

  • Why Hire an Advisor Anyway?

    If you want to do plan your financial life well, you can’t just start investing on your own without taking a step back and looking at the big picture. You need to hire the right professional to guide you.

  • Surviving Rising Bond Rates

    The bond market is swiftly declining on expectations of higher rates, but you can still manage risk in your fixed-income investments by selling longer-term bonds and buying short-term ones.

    Recently, rising interest rates are signaling a decline for fixed-income investments. Bonds generally make up a significant portion of a diversified portfolio, so if the bond rally that began with the financial crisis is over, it pays to have bonds that maintain their value amid rising interest rates.

  • When Insurance Isn’t Needed

    Insurance is vital for your family’s well-being. But sometimes it isn’t, such as when you have enough wealth to no longer need it, or your kids are grown. You should know when you no longer need to shell out for a policy.

    You buy life insurance to protect yourself and your family with coverage that you won't outlive. This is one of the common selling points for whole life or universal life, rather than term life insurance.

  • Ethical Wills and What Matters

    If you fly high above the earth in a jetliner, you can get a perspective that is at once spiritual and practical. It can inspire you to write an ethical will, a document that sets down what is important to you, far beyond financial matters.

  • Certificates of Deposit: Why?

    Certificates of deposit, historically a pillar of retirement income, now pay rock-bottom rates and have for five years. Surprisingly, many people still keep a lot of their money in them. That is unwise: CDs pay too little and inflation can outpace their paltry yields.

    At best, use them as a safe place to park money temporarily. These bank-issued instruments pay you a fixed interest rate for maturities generally ranging from one month to five years. But even the five-year CD yields little more than 1%.

  • Even Boring Stocks Can Win

    It’s easy to get caught up on the hot new exciting companies that always make headlines. But sometimes, the staid, boring blue chips are smart assets to keep for the long term.

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