Last week was a reminder of the value of diversification. A bank that focused on a niche portion of the economy succumbed to “unexpected” events. The fallout took down the investors, but not the depositors. This is a serious issue for those directly impacted and a...
Success in retirement requires maintaining the standard of living you are accustomed to living as long as you are alive. Granted, that standard will change as you age, but the trick is maintaining the opportunity for making financial decisions at retirement age with...
Relationships exist between two or more people, but we also develop relationships with things. My wife would suggest I have a tumultuous relationship with my golf game. Others may find themselves in relationships with investments statements. How we mentally frame and...
Starting over and beginning again contain similarities in nature, but they are different. Starting over is when we recognize we could have done things differently in previous years and are looking to improve our focus in the upcoming year. Beginning again is...
In 2004, a Harvard Business Review article argued that ambidextrous leadership was crucial to long-term business success. Ambidextrous was defined as a business that exploited existing market opportunities, displayed operational excellence, and mandated executional...
Is it just me or does “crypto” anything remind you of a funeral? Cryptocurrency derives its name because it uses encryption to verify transactions. Per Wikipedia: “A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of...
My body weight varies daily by small percentages, but over time the change can be substantial. Because, as a human, I am fixated on the reason why something happened, I blame or credit the result on nutrition, exercise, and various other conditions. The only thing I...
Confidence comes from a belief in understanding a situation, even if the conclusion or “reason why” is inaccurate. Placing a name to the culprit or the potential cause of a condition generates more ease internally. It’s inflation, consumer debt, student loans, energy...
When would you want to know if you were heading on a road trip and something ahead created a challenge? Your answer likely depends upon the severity of the issue and the potential alternatives. What about significant issues at the moment that will be resolved by the...
Getting understanding and clarification from the deceased is somewhat tricky. For more than 25 years, I have been involved in many estate planning situations with varying outcomes. Inevitably, “peaceful and easy” situations shared two common denominators:...
The US legislature is required to raise revenue for bridges, armies, and social safety nets. The budget changes and the need for more income seem obvious. The tax code creates a rule book attempting to uncover the necessary revenue to run our country. Bear in mind...
“Everyone pays the price. Either you pay the price of discipline today or the price of regret later on.” That was one of the first business quotations I took to heart years ago and came from the legendary Zig Ziglar. The concept is true in saving money today versus...
Investments have varying characteristics. The most essential issues are volatility, taxation, and liquidity. Occasionally, assets have to be divided amongst children and spouses in the case of divorce. Picking and choosing assets to be exchanged or delivered to a...
The stock exchanges report the price that a willing buyer and willing seller agree upon for a share of a publicly traded stock. In most cases, the buyer and the seller are unaware of each other's identities, and the desire to buy or sell can stem from many scenarios....
Character trust and competency trust are separate issues. Character trust is derived from believing a person has your best interest at heart and liking them. Competency trust exists when you believe they can do the task expected and required to meet stated objectives....
Separating from the workforce and living off your accumulated savings requires an organized and dedicated strategy. The new life of distributing your assets generates natural emotional responses. You have diligently saved and accumulated savings for the last 30-40...
The bell rings, and the excitement begins at 9:00 EST Monday through Friday most weeks. Wall Street opens up for trading, and thousands of companies are available for purchase as stock shares. Willing buyers and sellers reach a price for each of those stocks second by...
Who doesn’t want to retire? More people than you may think, including myself. The rationale for continuing to work comes from the obvious “I love what I do” to “What would I do?” Our experience would suggest there is also a large contingency that is simply unwilling...
My first airplane ride was in 1988. I remember the anxiety, but it was thrilling! My new bride and I went through security and boarding, got on the plane, popped the Dramamine, and held hands during takeoff. The crew efficiently served beverages, and 40 minutes later,...
King Solomon famously wrote, "It is the little foxes that spoil the vine." In a secular moment, he might have written: "it is the little assets that spoil the estate plan." We uncover forgotten assets in a family's financial situation more often than not with...
Overpaying fees and expenses is an area of investing that require dedicated focus. Twice last year, our firm changed ETF providers due to cost versus benefit. The reduction of fees does not guarantee outstanding performance, but unwarranted or necessary fees and...
Change happens all the time - different routines affect people emotionally, financially, and often relationally. Retirement is one of those times. Whether leaving the workforce was your own choice or a result of outside circumstances, it can cause stress with your...
The discussion of inflation is on the rise after being dormant for the last decade. Having Social Security rise by 5.9% this coming year highlights the conversation. Inflation lives a tormented existence. We want our homes to appreciate, yet we want our food cheaper...
Looking at values can be exciting or depressing. Simply throwing more in the proverbial kitty is not the answer. You need to focus on the four areas that will impact your disciplined effort results. This article is the first installment of the four. Never forget that...
Fall is on its way and brings about many changes. Autumn’s beautiful foliage arrives. Thanksgiving and Christmas approach. Another year begins to wind down. During this season of transition, the average family does not think much about taxes. Of course, you are not...
Many investors regard risk and volatility as “one-and-the-same”, but they represent very different conditions. You may hire an individual to serve as your fiduciary, or you may function as your own fiduciary if you work with a broker or manage your own retirement....
If you are like me, odds are you have at least one or two tools in a kitchen drawer. And because this drawer is more accessible than my toolbox in the garage, I often attempt to use a screwdriver as a hammer. Or a pair of pliers as a screwdriver. Generally, the...
The initial motivation for accumulating assets was to provide future opportunities during an elusive and vague future known as retirement. Creating future choices was the name of the game. Everyone loves options, but few love making decisions. When saving for...
Tax season ended this year on Monday, May 17, marking the second year in a row where the deadline was extended. Our office, as well as our CPA affiliates, found themselves working until the last possible moment. An unwritten rule says the longer you give yourself to...
The most common way for people to save for retirement is through their 401(k) or 403(b) plan. Most of you reading this know the drill – you meet with the plan advisor one or two times a year. The advisor tells you how your mutual funds have performed and uses software...
As children, many of us feared the monsters that hide in the shadows or under our beds. And while such fears are usually relegated to humorous memories by adulthood, new anxieties often arise–like planning for retirement. The nagging worry about “what’s missing” in...
Any journey begins with a single step. Those words are particularly applicable to the retirement planning process. Unless we inherit wealth, most of us begin the retirement savings journey with a very modest sum. Although the terms “saving” and “investing” are often...
Many Americans believe that there are two U.S has two tax codes – one for the rich and one for the poor. Actually, there are two U.S. tax codes, but for the informed and the uninformed. Our team at FEG regularly meets mistakes – or at the very least missed...
Turbulence is a potential part of any flight. The passengers and the pilots may not appreciate the plane's unmanaged movement, but everyone is aware that, though uncomforting, the aircraft and the passengers will likely survive. The same is true for a portfolio that...
Finally, it's springtime, and we can soon begin opening the windows and enjoying the sunshine. So often, we spend the winter months tucked away indoors, trying to stay warm by the fire and hoping it doesn't snow enough to require the shovel to be taken from the...
Trust discussions are robust in meaningful relationships, and they should be. A "trust" of any nature is a document that expresses your wants, hopes, and desires while you are alive and after your passing. Just as you have trust in a relationship, trusting your...
This year begins as the worst start to a bond year in nearly a decade. According to Adam Harter, CFA and Chief Investment Officer at the Financial Enhancement Group, “2013 was a doozy for bond owners, and this year is so far on pace to well outdo the Taper Tantrum’s...
Growing up, we all can remember either a parent or coach repeating the famous words, "Practice makes perfect." Or, "Better to be prepared." And although these words were easy to mock in our youth, they have aged well. They have aged so well we now pass the same...
You are on a financial journey. That trip will consist of complex decisions. One of the most challenging issues is determining whether to pay taxes today or defer taxation to a later day. No one wants to pay more taxes today, so the default is to delay the tax...
Ask yourself this question: when was the last time you asked for an answer, heard something you wanted to hear, and then choose to get a second opinion? It’s not natural to question answers we hope to hear. This is critical in retirement planning whether you are...
Investor behavior is fascinating, and this week the markets have produced a series of occurrences that will go down in history. A small handful of companies unveiled what can happen when things didn't go as planned. A great deal of wealth was created for some and lost...
Tax reporting is a statutorily compelled obligation. Saving for retirement occurs every week as we withhold money from our paychecks today to place money in our retirement accounts for a better tomorrow. The first is compulsory, and the second is a decision. Sound tax...
Estate planning documents address three distinctive periods in your life: average days while you are mentally equipped to make decisions, days when you are mentally or physically incapacitated, and when you are deceased. The key participants in the planning are the...
The recent increase in suicides and drug overdoses has the CDC concerned with several years of declining lifespan expectations. Hopefully, this isn't impacting you or your family. Your life projection increases as you age. Understand, if you are 65 today, your life...
There are four critical days concerning your taxes every calendar year. April 15th is the typical day your taxes are due – 2020 was the exception, thanks to Covid. October 15th is when your final tax filing is due. The two other dates are apparent but often...
The annual goal-setting has begun! Just about everyone seems to make a New Year’s resolution. To not have one is an acceptable answer especially knowing most fail in the first 20 days of January. Health clubs thrive on sales of people who never attend and countless...
Undoubtedly, there will be a point where we will exit. We will depart from the workforce, our tax-deferred retirement accounts, and ultimately from life. This five-week series will provide you insight into leaving behind your legacy. Legacy includes our assets, but it...
The world changed with the advent of defined contribution plans where individuals save for their retirements. Dissimilar to a defined benefit plan or pension, where the stream of income stopped at your demise, defined contribution plans leave assets behind to...
The average 401(k) balance is $92,148, according to a 2019 Vanguard analysis of over 5 million 401(k) plans issued by the company. But most people don't have that amount of retirement savings. The median 401(k) balance is $22,217, a better indicator of what most...
Tis the season to give generously, gratefully, and wisely. And when it comes to giving wisely, it’s important to understand some basic IRS rules governing gifts and tax deductions. First, there are no deductions for gifts of time or talent. If I provide free financial...
Tis the season to give generously, gratefully, and wisely. And when it comes to giving wisely, it’s important to understand some basic IRS rules governing gifts and tax deductions. First, there are no deductions for gifts of time or talent. If I provide free financial...
Overpaying fees and expenses an area of investing that requires dedicated focus. Twice last year, our firm changed ETF providers due to cost versus benefit. The reduction of fees does not guarantee outstanding performance, but unwarranted or necessary fees and...
Change happens all the time. Different routines affect people emotionally, financially, and often relationally. Retirement is one of those times. Whether leaving the workforce was your own choice or a result of outside circumstances, it can cause stress with your...
Change happens all the time. Different routines affect people emotionally, financially, and often relationally. Retirement is one of those times. Whether leaving the workforce was your own choice or a result of outside circumstances, it can cause stress with your...
Volatile markets and elections can lead to ulcers but can also provide a good dose of excitement. Fear and greed drive all markets and when things getting exciting, emotions can take over causing people to forget their long-term plan and jump into or out of the...
The job description for your trustee should be meticulously outlined in your estate planning documents. Clear direction needs to be provided and contingency issues should be examined and discussed before changes in health occur. Like many, you may have your...
Death is a natural consequence of life. Most of us will have assets of one nature or another left behind for others at our passing. How does that transfer work? What are the tax implications? What do you need to consider? Assuming the asset is titled jointly with...
If you took the time to read the overly complex US tax code, you would find a phrase used, but nowhere in the tax code: The Stretch IRA. Like the back-door Roth IRA conversion, the stretch IRA was a strategy rather than actual tax code. Just as the 2017 TCJA changes...
That is not always true in life, nor in investing. Driving while intoxicated is a huge risk with very little reward. Diversifying your portfolio decreases risk and arguably increases reward overtime. There are periods of time driven by events or behaviors where the...
The year of the Pandemic has created chaos for most businesses and many families. Uncertainty remains over elections, vaccines and more federal relief for both business and states. Regardless of the need and your best of intentions, you cannot print your way to...