Vanguard has an interactive tool on their website that allows visitors to compare the results when attempting to time the market based on certain investment rules.  For example, if you exit the market after a 10% decline and re-enter the market after it appreciates by 5%, how would your results compare to simply owning the market (S&P 500 index) for the entire period?  The tool can provide outcomes that span over the last 22 years.

I sampled this tool for quite a while, attempting to effectively “time” the market.  I have to admit that I was very surprised by the results.  Here is the link to the tool if you would like to give it a try for yourself – The truth about emotion.

A key component of our one-time financial planning engagements involve assessing how much insurance coverage our clients need while also reviewing the insurance policies that clients have in order to determine if they are adequate or necessary.  In doing so, we often find that people have purchased insurance products that are either not necessary or entirely too costly.

» Continue reading “Is that type of insurance necessary?”

With more than $80 billion invested in exchange traded funds (ETFs), they have become a very popular investment for both retail and institutional investors. While ETFs can be an integral component of a sound investment strategy, investors should understand the tax treatment of these investments in order to avoid unexpected tax consequences.

» Continue reading “Taxation of Exchange Traded Funds Can Be Tricky”