If you pay attention to financial pundits and money blogs, you have probably heard at least a handful of “experts” praise dividend investing. Simply put, “dividend investing” involves investing in companies that offer cash distributions. Most dividend investors roll their distributions back into their investment to accumulate even more wealth over time. [Read more…] about Dividend Investing: What’s Wrong With It
Among my friends and family, it seems that everyone is having kids. This includes:
- My brother
- My cousin
- My cousin-in-law
- Fellow professionals in the Financial Planning Association
- Friends from college
- My wife’s friends from high school
Everyone is having kids! And, as the fee-only financial planner in my community, I’ve been getting the following question a lot:
How do I set up a 529 college savings account?
Today’s post is inspired by a client, who asks:
I just looked at my 401k account and I have the option to do a Roth 401K. What are your thoughts between traditional and Roth?
I’m a strong believer in the Roth option. I’ve got a few reasons why: [Read more…] about Roth vs. Traditional 401(k)
A few nights before the election, my wife and I were out for a walk with our Jack-a-Bee. The topic of the presidency came up. Our conversation went something like this:
Lien, my wife: Hilary is going to win the election.
Me: I wouldn’t be so sure.
Lien: All the polls show Hilary is in the lead.
Me: One thing I’ve learned from studying the stock market is that predictions are notoriously wrong.
Sure enough, Election Day has come and gone – with all the pollsters and forecasters left scratching their heads. For all their analysis, they could not accurately predict what was to come. Predictors of the stock market usually fare no better. [Read more…] about What a Trump Presidency Means for Your 401(k)
Investing is not rocket science. In fact, in the world of investing less is more.
less = MORE
You don’t need to do a lot of work to earn solid investment returns. You just need to stay disciplined, following these four very simple rules:
• Keep Your Costs Low
• Buy & Hold
• Pick the investment that’s right for your risk tolerance [Read more…] about Four Simple Rules of Investing
Using Your 401(k) to Invest
You’re fortunate that your 401(k) is offered through the investment company Vanguard. That’s because Vanguard has some very low-cost investments. That’s good news for you, the investor. Unfortunately, Even Vanguard’s 401(k) can list some high-cost products on their investment menu. Picking the low-cost funds off of the investment menu – those with the name “Vanguard” – means paying less money to investment managers. Avoiding the higher cost funds – such as those with the names “T. Rowe Price” and “Dreyfus” can mean keeping more money in your account. [Read more…] about Your 401(k)