Naming A Trust As An IRA Beneficiary
Sometimes there are good reasons to name a trust rather than an individual as a beneficiary of your IRA. Maybe you have a child who you fear will spend the money they inherit wastefully, or maybe you have a special needs heir and a direct inheritance would affect their qualifications for aid, maybe there is […]
How Much Does a Variable Annuity Cost?
Variable annuities are often confusing and hard to understand. In addition to the fees charged for managing the sub- accounts (read mutual funds) within the policy consumers also pay for the insurance portion of the policy (mortality expense) and various riders and options offered with the policy. If you want to compare the expenses of […]
The Sad Math of Losing Money
With the recent turmoil in the stock, bond, and real estate markets it is a good time to review one of the most important tenets of successful investing; minimizing your losses. The math of losses works in a funny way. If you lose 10% on your investment, a 10% gain does not make you even. […]
Kitchen Table Planning – The ‘Secret’ Formulas of Financial Planning
If you are like me math class was not the highlight of your day when you were in school. There are many formulas that melted from my brain like snow from a roof just as soon as I completed the test. But there are some math formulas that were worth relearning. I use them every […]
What Will You Do With Your $2,000,000
In 2013 the Census Bureau reported that the median household income in the United States was $51,939. Assuming you start working at age 25 and retire at 65, that means your lifetime household earnings would be $2,077,560. So the big question is what will you do with your $2,000,000?
Minimizing Loss
With the recent turmoil in the stock, bond, and real estate markets it is a good time to review one of the most important tenets of successful investing; minimizing your losses. The math of losses works in a funny way. If you lose 10% on your investment, a 10% gain does not make you even. […]
Kitchen Table Planning – Safe Withdrawal Rates
How much money you can take out of your investments without running out of money is a critical question when building any financial plan. As a member of the Financial Planning Association I hear from other members and read in the financial press many theories on how to calculate a safe withdrawal rate. Some of […]
Kitchen Table Planning -Estimating Your Rate of Return
Many people do ‘kitchen table’ financial planning from time to time. They have a goal and make a guess about how much money they will need to pay for it. Next they will assume some rate of return on their capital and off they go, pounding on the calculator keys until they arrive at an […]
How to Grade Your 401k
Sixty five million Americans now invest for retirement through 401(k)s and similar plans. Defined contribution plans have become the centerpiece of many American’s retirement savings. How can you determine if your plan makes the grade? Here are some of the components to look at when judging your company’s 401k. Fees Low fees and expenses are important to getting […]
How Much Income Will You Need When You Retire?
If you were planning a vacation you would start with a desired destination, select the dates you can go, determine your budget, and then tweak your plans to fit your budget. It is the same with financial planning. You have to determine where you want to go (how much income or how big a nest […]
