Let’s face it, seniors today are healthier, more active and are likely to have longer lives.  So what are the financial implications for retirees who will likely live well into their 80s and possibly their 90s?

We believe that from a financial standpoint, retirees need to make financial planning decisions that reflect the high probability that they will live longer.

» Continue reading “Planning for Retirement and Increasing Life Expectancies”

Bonds are fixed income securities which pay investors a set interest rate for a pre-determined period of time and then return the original principal at their maturity.  There are many different types of bonds.  Corporations often raise money by issuing bonds in addition to selling stock. Governments often use bonds to pay for their ongoing operations or specific projects, such as highways or new construction.

» Continue reading “Considerations When Investing in Bonds”

During the third quarter, equity markets recouped much of the losses incurred in the second quarter.  In fact, the Dow and the S&P 500 indexes advanced by more than 11% between July and September!

» Continue reading “Third Quarter 2010 Market Review”

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.

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”

The financial markets have experienced continued volatility since the end of April. In fact, with stocks declining in excess of 10%, the markets have officially entered a period of “correction.”   Although corrections are normal (and actually healthy for the markets), many investors may be a bit uneasy, especially with the wounds of the “Great Recession” still fresh in everyone’s mind.

» Continue reading “Market Corrections are not Unusual”

Given the turbulence in the financial markets during the week of May 3rd, we would like to provide followers of our blog with a few thoughts and insights.

» Continue reading “Thoughts on Recent Market Turbulence”

Where are the jobs?  That’s the question that many people are asking.  After enduring the worst recession since the 1930s, recent employment numbers are finally starting to indicate modest job growth.

» Continue reading “First Quarter 2010 Market Review”

I have to say that I get a little excited every year with the release of the annual Berkshire Hathaway shareholder letter.  I don’t know why it’s so exciting to me, but I guess I just enjoy Warren Buffett’s writing style.  He has an incredible ability to, not only make things seem so simple and straightforward, but to also make observations that help me drown out the “noise” of the markets and focus on what is really important when it comes to investing successfully.

» Continue reading “Time for the Berkshire Hathaway Shareholder Letter…Yes!”

A recent USA Today article titled “Finding the All Stars:  How we whittle down the funds” scanned the universe of mutual funds in an attempt to identify a number of “all star” mutual funds.  The list of funds that were selected for the article all have impressive track records and are certainly worthy of consideration in any portfolio. » Continue reading “All Star Portfolio?”