How New Online Tools Will Save One Woman Tens of Thousands of Dollars Per Year

April 30, 2015

Last week, I wrote about my three favorite online investment services. This week, I’ll show you an example of how a couple of those tools saved a friend’s mother tens of thousands of dollars. When I spoke to my friend, his mother had just retired with a $1 million portfolio and he wanted to know how she should invest it for retirement. Since we can’t provide specific investment advice at Financial Finesse, this was a rare opportunity for me to be more hands-on. Here’s what we did: Continue reading “How New Online Tools Will Save One Woman Tens of Thousands of Dollars Per Year”

3 Investment Myths Busted

February 26, 2015

Think you know everything you need to know about investing? I recently read three articles that dispel some conventional wisdom when it comes to your investments. Here are the busted myths along with the implications of what they could mean for you: Continue reading “3 Investment Myths Busted”

Be an Owner Rather Than a Loaner in Retirement

June 26, 2014

One of the most common pieces of investment wisdom is that you should invest more in conservative “loan” investments like cash and bonds and less in more aggressive “own” investments like stocks and real estate as you get closer to retirement. This may have made sense when bonds were paying 6% or more but with long term bonds rates now closer to 3%, this could actually make it harder to retire comfortably or more likely you could run out of money in retirement. Cash is paying less than inflation. Rather than to low-interest bonds and cash, why not shift towards high-yielding dividend stocks and real estate? Here are some advantages of this approach: Continue reading “Be an Owner Rather Than a Loaner in Retirement”

What’s All the Fuss About Bonds Being a Lousy Investment?

March 07, 2014

Every time I’ve talked with someone about their investment portfolio recently, the subject of owning bonds or bond funds has inevitably come up.  Most of the time, the conversations about the fixed income (bond) portion of their accounts has been less than hopeful. And the cynicism/pessimism hasn’t been coming from me… Continue reading “What’s All the Fuss About Bonds Being a Lousy Investment?”

Investment Options For the Soon-to-Be-Retired

August 21, 2013

As the early and late baby boomers get closer and closer to retirement (and in some cases are already there), we receive more and more inquiries about retirement planning, and in particular, distribution planning.  Just recently, I spoke with a gentleman who is within a few years of his retirement date, and he’s done a pretty good job of saving for retirement, but what he is most concerned with now is how to make sure he invests properly throughout retirement so that he generates the cash flow he is expecting to get from his nest egg. There are a number of investment options that may achieve the goal, and each one comes with its own pros and cons.  Here is a look at several different investment options that may be suitable for a retirement investment portfolio: Continue reading “Investment Options For the Soon-to-Be-Retired”

Where to Invest Short Term Money

April 17, 2013

We recently got this question on our Facebook page: “I am looking for short term investment strategies, 4 to 7 year span for some inheritance money that would then be liquidated to pay for college.” It’s a common question. After all, with interest rates near record lows and the stock market as volatile as ever, it can be tough to figure out what to do with money you need in just a few years.

First, let’s look at what NOT to do. Continue reading “Where to Invest Short Term Money”

Have You Outgrown Your Mutual Funds?

September 27, 2012

When it comes to investing, many of us stick to mutual funds. After all, they’re generally the only option in employer retirement plans (except perhaps for company stock) and financial advisers like to sell funds because they’re relatively easy for them to manage. They also make a lot of sense when you’re just starting out with investing and don’t have enough to purchase in individual securities. However, as your portfolio grows, you may want to consider purchasing individual securities, especially if your portfolio is taxable. Here are some reasons why: Continue reading “Have You Outgrown Your Mutual Funds?”

When Enough is Enough

March 07, 2012

After my stepfather passed away, my mom started working with a local bank to manage her investments.  At the time, I was living in California and it was difficult for me to help her with investment decisions.  Plus, I had always warned my clients that allowing family members to get involved in your investments was a bad idea because you could always fire a stranger but you can never fire a member of the family.  It was with this in mind that I allowed her to continue this relationship despite my occupation as a financial planner. Continue reading “When Enough is Enough”

Back to Basics: What Exactly is a Bond?

January 12, 2012

Last week, we discussed how to invest by buying a stock and becoming an owner of a company. This week, we’ll take a look at becoming a loaner instead. The first experience most people have as a loaner is with a bank. You loan the bank money by making a deposit, your money earns some interest, and you can withdraw it. You can also go to the bank to borrow money for something like a car or a home. Continue reading “Back to Basics: What Exactly is a Bond?”

Dividends Matter

April 11, 2011

I thought about the power of dividends when I worked on my mother-in-law’s taxes.  She has been selling off an investment to help pay for her care and as the one who helps her with her taxes, I had to find her basis (what she originally paid for it) to report it on her tax return.  She’d owned this mutual fund as long as I’ve known her and that means she has been taking a dividend from it for almost 20 years.  When I dug into it, what I found was that she had a loss – her initial investment not only hadn’t grown but was less than she put in.  What a disappointment! Continue reading “Dividends Matter”