Tag Archives | advanced planning

Think You Can’t Contribute to a Roth? Think again: Advantages of a 401(k) Roth Option

Key Takeaways The Roth option in 401(k) retirement plans eliminate IRS income limits applied to Roth IRAs. Participants in plans offering the Roth 401(k) option can split their contributions between both traditional and Roth accounts–thus, building two buckets of money to fund their nest egg. There are no income limits for Roth 401(k) accounts, and […]

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Expected Sources of Premium Stock Returns Part III: Capturing Return Premiums Requires Resolve

In our last post, we described how small-company and value stocks have served as a source for premium returns in the past. Today, we’ll explain how capturing these returns has rarely been as easy or obvious as 20/20 hindsight might lead us to believe. Figure 2 Consider Figure 2, from 1928–2014. It illustrates three critical […]

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The Safe Savings Rate

Key Takeaways • Where it all started–the safe withdrawal rate. • My transition to the safe savings rate—the amount of income you need to sock away for retirement. • A comprehensive financial plan is best, but off-the-shelf tools and two popular “rules of thumb” can help. The Safe Withdrawal Rate About 20 years ago, a […]

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File and Suspend No More: A Guide to the Recent Changes in Social Security

Key Takeaways: The recent budget deal eliminated the “File and Suspend” Social Security benefit strategy. File and Suspend allowed married couples to maximize their benefits by deferring collection of individual benefits until age 70 while still receiving a spousal benefit. If you will turn age 66 by May 1, 2016, or 62 by December 31, […]

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Take This First Step to a Better Investment Experience: Give Up

What is one of the best first steps you can take to becoming a better investor? Embrace the power of market pricing. Me and You Against the World If you look at all the stock trades placed by all of the world’s traders in 2014, the daily average trading volume exceeded $300 billion. That’s a […]

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My Daughter’s Surprise 18th Birthday Present: Not what she expected, but it will keep on giving

Key Takeaways Once your child turns 18, the law prevents you from making certain important financial decisions on his or her behalf. Purchase basic estate documents for your child: will, durable POA, healthcare POA. Help your child select a credit card (with reasonable limits and rates) to establish a credit history. For further reading on […]

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Rainy-weather Investing: A Lesson From a Fishing Adventure

The weather promised to be unpleasant: cold winds with occasional rain. Such conditions are bad news for just about every activity you might want to do during a Yellowstone Park adventure … with the exception of fly fishing. When we arrived at Yellowstone’s Soda Butte Creek parking area, we were the only fishermen there. This […]

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