AdviceIQ Articles

  • Contributions vs. Growth

    The two ways to grow your portfolio are through contributing your own savings and market returns. In the latter stages of life, your own contributions have a much larger impact on your overall savings.

    Obviously, saving $6,000 every year is better than saving just $6,000 once. But the contributions that you make earliest in life matter the most. The longer these funds stay in the market, the more you benefit from the magic of compounding returns.

  • Predicting the Ups and Downs

    Much of our financial future hinges on the stock market, yet most people can’t tell a put option from a call. On a recent day the Dow Jones rose .01%. Two days later it rose .02%, rebounding from a drop one day the week before of .03%. Why does the stock market go up and down every business day?

  • Conquering Student Debt

    If you just finished college or grad school, it’s time to find the best program to pay back your student loans. Thankfully, there are options for those of us who don’t have the high income to pay off debt quickly. Some have similar names but very different benefits, so it’s important to know the differences.

  • Relatives as Business Partners?

    Every now and then I get a call from a client wanting my opinion about starting a business with a friend, investing money in a family member’s venture or co-signing a loan to help a relative buy an enterprise. Dealing with these propositions can be very tricky.

    Being in business with family is something I know a little bit about, having been in partnership with my father and brother for 40 years. Business partnerships with family members or close friends can carry a high degree of risk, both financially and emotionally.

  • No Great Rotation – Yet

    Recent movements of investor money out of bond funds does not mean a major asset allocation shift has ignited. While a big realignment – known as the Great Rotation – is likely at some point, it’s too early to tell if the change is permanent, and the re-channeling may reverse itself.

  • Do Something About a Will

    Despite years of warning from everybody including the major media and close relatives, people still resist formally arranging for financial and other affairs after death – often eventually leaving the ones they loved in a legalistic tangle right when they’re most vulnerable. Surveys show that more than two-thirds of American adults lack a will.

  • Stock Picking vs. Diversification

    At the beginning of every season, sportscasters often forecast who will triumph. They usually are wrong. Stock pickers are no better. With stocks, though, you can back a whole bunch of teams at once. That’s called diversification, and it has a pretty good record.

    The professional talking heads on radio and television base their team predictions on evidence, but they are ultimately just guesses.  Their often-misguided guesses do not cost them anything. Rarely is a sportscaster fired for a false World Series prophecy.

  • Confusion About Social Security

    Why are Social Security retirement benefits so confusing? Consider the rules on claiming Social Security benefits based on your ex-spouse’s entitlement. They are daunting.

  • Save More Tomorrow, Not Today

    Should younger investors start saving right away, in hopes of building a decent nest egg for their retirement, decades hence? Not necessarily. Planning to save their future raises instead may be a viable choice for them, but only if they seriously commit themselves to putting money away in the future.

  • Is College Worth It? Yes

    A four-year degree at a decent school is extremely expensive, and some influential people doubt that it’s worthwhile. However, education still improves your earning potential and, yes, improves you as a person.

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