Here is a chart that I found (SEE BELOW) that I found pretty interesting. It shows the S&P 500 returns over the last 35 years. 27 of those 35 years were positive. But the average intra-year drop in value was -14.2%. In other words, even though most years have gains, the average loss within those years was in double-digits. Of course, some years had bigger drops and some had smaller drops within the calendar year. But to me, the most interesting thing that the chart … Continue reading
An interesting stock market chart
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Is a 529 Plan the best college savings option?
The 529 Plan has long been one of the most popular vehicles to save for your children’s (or grandchildren’s) education. For many families, it is clearly the best choice – especially for those funding it with less than a few hundred dollars a month. However, there are many little-known disadvantages of a 529 plan and these are the reasons many of my clients use a smart alternative. 529 College Savings Plans have: 1) Financial Aid: A 529 plan counts as an important asset in determining the level of … Continue reading
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Don’t Blindly Trust Your Target Date Funds
One of the topics of discussion during the retirement planning conference I attended last month was: Target Date Funds. In fact, it deserved a lunch presentation to the full conference. Target Date Funds have taken the retirement accumulation market by storm over the last 10 years. In many cases, they have become the 401(k) and 403(b) “default” investments inside these work-site retirement plans at work. Nearly $1 TRILLION is now invested in them through brand-name firms such as Fidelity, Vanguard, TRowe Price, American Funds and … Continue reading
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Another Social Security tax trap!
At this time of year everyone is thinking about taxes! But what most people don’t understand is, if or how Social Security retirement income is taxed. But once they get their first tax returns done during retirement they find out. But they are probably also unaware of the next tax-trap that will eventually come. I lost my Mom in 2013, but the IRS allows a couple to file jointly for that years tax return. In 2014, since my Mom was no longer alive, my Dad … Continue reading
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1st Qtr – Stock Market Volatility
This market (and attached chart) is not exactly for the faint of heart. Although no major drops, it’s been just up and down… ending up just a hair above where 2015 started. The chart shows that in just the first 3 months of this year, we’ve had a roller coaster ride. The white line is the S&P 500 and the blue one marks the interim peaks and troughs drops and gains. Check out these 9 market moves within the year’s first 90 days: Down -2.73% Up +2.97% Down -3.37% Up +3.54% Down -3.30% Up … Continue reading
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