Yogi Berra once said, “It’s tough to make predictions, especially about the future.” Financial forecasters often cite a return of 8% to 10% as a likely outcome for stock market performance in the year ahead. As reasonable as this may sound, the S&P 500 Index, over the past 89 years, has never delivered a total return between 8% and 10% in any single calendar year. Not once. Rather, in most...
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Filling your car with gas hasn’t been this much fun in quite some time. Even if it requires standing in below-zero temps, just seeing a full tank equate to half its cost a mere 12 months ago is a euphoric feeling of new-found wealth. But is this a good thing in the long-term? Many pundits theorize low oil prices will negatively impact our economy, and their voices are loudest on...
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Mistakes happen in the personal financial world. We can learn from our own mistakes, and others’, to improve our results. Consider this assortment of common investor gaffes, and do a status check of your own plan to ensure these do not inhibit progress toward your long-term goals! 1. Ignorance is not bliss “Stay the course,” is a common phrase to describe remaining invested and...
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As another calendar year comes to a close, we have opportunity to reflect on what has been an interesting, trying, exciting and tumultuous twelve months. The list is long and the emotions are high. Elections, Ebola, World Cup, ISIS, Ukraine, Economy, Immigration, and on it goes…as it does every year. On a more personal level, most investors have probably experienced changes in their family, career, health, goals, and/or finances. All things...
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Most of the world has morning routines. Being a CPA, I suppose I may be a little more captive to mine. So, when I got to work this morning, I did what I always do; started my computer, brought up my e-mail, grabbed a cup of coffee and pulled up Yahoo Finance. Not unlike most mornings, the top headline was negative, only this morning it was a bit alarming, “Total Global...
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College Savings Iowa: 2014 Tax Year Contribution Deadline Many Foster Group clients use Iowa’s 529 Plan, College Savings Iowa (CSI), to save for their children’s and grandchildren’s future college education expenses. CSI remains an excellent option for Iowa residents to utilize as it provides both immediate tax deductions for certain contributions and virtually tax-free accumulation for future qualified higher education expenses. In addition, Vanguard as the investment provider, creates high-quality, low-cost...
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Read. This. Now. Well written, Mr. Ritholtz. Knowing how this applies to your advisory relationship can be critical to your investment success and pursuit of life goals. Don’t assume you have a fiduciary representing you. The majority of the investment industry does not fall under this standard. Be careful, and stay diversified.
https://www.washingtonpost.com/business/get-there/find-a-financial-adviser-who-will-put-your-interests-first/2014/10/23/21f3a898-596f-11e4-bd61-346aee66ba29_story.html
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I ran across two interesting stats; well, two numbers, really, as reported in Bloomberg Businessweek: $25,000 & $13,000. $25,000…that represents the amount of money you would have on December 2013 had you invested $10,000 in the Dow Jones Industrial Average in December 1998 and stayed fully invested for that 15 year time period. $13,000…that represents the amount of money you would have on December 2013 had you invested $10,000 in the Dow...
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Author’s note and warning: Heavy, heavy sports analogy follows. I am an avid baseball fan and die-hard Kansas City Royals supporter. Even if you don’t follow sports, you probably were aware that the Royals made it all the way to the World Series. The epic seven-game series against the San Francisco Giants ended in a heart-breaking 3-2 defeat in the final, and deciding, game seven. The Royals’ storyline was accentuated...
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Despite some international uncertainty the U.S. economy still appears well-positioned heading into 2015. In an October 9th Wall Street Journal article, “Conditions Ripe for Stronger Growth, WSJ Survey Says”, the results of the Wall Street Journal’s monthly survey of 46 economists were summarized. Some of the positives mentioned in the article were: