Smart investors understand all types of risk -- and use that knowledge to their advantage. When it comes to investing, many people associate risk with losing money. But investing entails different types of risk. Understanding each type -- and the potential return associated with your retirement portfolio -- can help you determine whether your investments [...]
The Social Security Administration has stopped mailing out most yearly statements, but you can estimate your retirement benefit online. With growing uncertainty about the future of Social Security funding, the Social Security Administration (SSA) suspended most mailings of its annual statements. Previously, the SSA had sent all working Americans an annual statement about three months before [...]
One of the oldest market sayings is: “markets climb a wall of worry”—needless to say, it is sometimes good to be cautious. We listed some of our worries recently in What Might Scare Markets, but the action in the S&P 500 Index over the past year—and so far in November—has that list growing. [...]
Travel Insurance is offered by many providers and readily available but do you need it? Whether you need travel insurance is likely to depend on your level of coverage from existing homeowner's, medical, automobile, and life insurance policies. In many instances, travel insurance may duplicate coverage that you already have. Travel insurance is likely to include [...]
When investing, don't put all of your eggs in one basket. Use diversification to manage risk and potentially enhance performance. In today's market environment, diversification is more important than ever.(1) But what is the thinking behind this big word? The process of diversifying -- or dividing your money among different types of investments -- is [...]
The Roth 401(k) incorporates features of both Roth IRAs and traditional 401(k) plans. This article looks at rules governing distributions and rollovers that are unique to Roth plans. The Roth 401(k) resembles the Roth IRA, in that contributions are made with after-tax dollars and qualified withdrawals can be made tax free. But, as the name [...]
Sticking to a sensible strategy potentially beats market timing. When the markets drop, sometimes investors panic, selling at or near a market bottom. Then they wait too long to get back in once the market recovers. More often than not, these investors make “market timing” decisions based more on emotion than logic. Much [...]
Understanding the difference between Disability Insurance and Long-Term Care Insurance and how it impacts your financial plan is critical to your success. Disability insurance addresses lost wages that stem from an inability to work. Long-term care insurance, in contrast, addresses expenses associated with medical care provided to you in your home, a nursing home, a [...]
Having a personal plan is the critical first step to organizing your finances and financial planning. Financial planning may seem daunting, if all you've ever done is pay bills and manage a checkbook. But personal planning is really, the first step to organizing your financial affairs and depends more on common sense than [...]
Choosing between these values is all about your perspective. Some people view having $1 million in the bank as more valuable than having an income of $5,000 per month. However, both values are roughly equivalent. This example illustrates what behavioral researchers call the illusion of wealth and the illusion of poverty.1 It [...]
