If you’ve been around the financial planning business any length of time, you’ve likely run into the saying “The biggest risk is not taking one.” It is endemic to all financial instruments, indeed, all investments, that return is the reward for risk. It is axiomatic that the entity that takes risks gets the rewards. Generic …
Category Archives: Financial Accounts
Variable Annuities: Debunking the Ignorant Press
Found an annuity article in the local paper with an error so glaring that I had to debunk it. Here’s the article:Income for Life And here’s the critical error, conveniently in the first two paragraphs: Interested in annuities? The type known as an immediate annuity may pique the interest of some investors. But the first …
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Flexible College Plan – The State Run 529
Of all the investments out there available to be made, the 529 is neither best or second-best, but it is right up there near the top. Back when I was actively working in the financial planning business, it was one of the easiest to sell, as well. It holds one of the best sets of …
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The Prerequisites of Investing
It shouldn’t surprise anyone that there are things you should do before you make your first investment. The SEC, NASD and all of the various other financial planning organizations all explicitly list three things that should be in place in most cases prior to making your first investment in anything. The first of these is …
What is the Best Way To Save For A Down Payment?
I just moved into a rental house with an option to buy. I figure I can probably save up around $40-45k for a down payment in three years. how should i save? The Roth IRA tax loophole for first time home buyers maxes out at $10k and takes 5 years anyway. It sounds dumb, but …
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Relying Upon Reputation: There Are No Silver Bullets
On a regular basis, I get emails that ask me what I think of a particular company. When I check out public forums, I see questions about particular companies every time. “What do you think of X Realty, or Y Mortgage?” Reputation has a certain value of course, but in my experience, these people are …
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Annuities, Fixed and Variable
One of the most discounted investments available is the annuity. An annuity can be thought of as the opposite of a life insurance policy. Instead of creating an lump sum of money, an annuity liquidates one by providing you instead with a stream of income. The original idea is simple. Suppose you get a lump …
Mutual Funds: What They Are And How They Work
For being the most popular investments in the country, many people have a “black box” picture of mutual funds. Money goes in one end and more money (usually) comes out the other. Mutual companies in general are a very old concept. The Egyptians had them in ancient times, mostly for insurance purposes. For one time …
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What I Look For In a Mutual Fund Family
Reading the papers, I see all kinds of garbage about mutual funds. Probably the biggest single piece of garbage is that only the so-called “no load” funds are any good. They focus only on the cost of the “loaded” fund, as if there is no benefit to be had from the fact that the “load” …
My Favorite Investing Books
A while back, I got an e-mail asking me what my favorite books for investors and real estate folks were. My response? Unless you’re going to practice professionally and undertake the study necessary to do a good job of it, personal financial advice books are largely a waste of money. The only reason I read …