Our feelings and finances are often intertwined. As advisors, when we meet with clients, most of the time we spend more time discussing the personal side of finance than the dollars and cents.
Topics: Financial Planning
The Economist magazine has declared the 21st century the new millennium of growing female economic empowerment. And it’s true that in recent decades, women have made incredible strides, both professionally and personally. However, there is still a financial literacy gap for women.
Let's look at some facts:
Topics: Financial Planning
Growing up on the bond side of the business wasn’t always easy. There was never any snappy cocktail party conversation about what’s going on in the bond market like I often overheard on stocks…go figure.
With the high level of the stock market and an aging population demographic, my how times have changed. The bond market looks mighty interesting to a lot of folks. As a $38 trillion global bond market (vs. the S & P market cap at $18 trillion), I’m glad to see it’s not being totally ignored, but I am concerned as well. A lot of people these days view bond funds as a placeholder to park cash, like a money market vehicle with return, unaware of the downside risks. Bond funds are especially susceptible to volatility and erosion when rates rise (and, oh by the way, rates will rise at some point).
It’s tax time--don’t lose sight of your financial planning goals. It’s not too late to make your IRA contribution for 2014. You can make 2014 IRA contributions until April 15, 2015. Be sure you are taking full advantage of the opportunity to save for retirement.
From clients looking at home repair and remodeling projects, from a new roof or windows to a new kitchen, I'm frequently asked which is the best way to withdraw money to pay for these “upgrades.” Should you use your investment account or retirement account, such as an IRA?
Why do I need to think about my collection in terms of wealth management?
Numerous studies, including one operated by BMO Private Bank, have suggested that 10% to 25% of a family’s net worth can be comprised of art, jewelry or collectibles. This can be the result of a passionate hobby that is enjoyed throughout the course of one’s life or the result of an inheritance. Given the demand for rare artifacts of legitimate value, the price of these items can be astoundingly high.
Usually, change is a good thing. But, when it comes to investing, there’s nothing better than steady markets and boring economies. In the marketplace, boring has a completely different connotation than in other realms. Boring means little volatility and constant, predictable gains year after year which is a critical component of our client investment strategy.