Most Americans fail to plan adequately for retirement and consequently miss out on opportunities to enjoy the last third of life. The best and most rewarding financial planning is not just about the numbers but rather takes place in the context of personal goals. Retirement used to mean not only a complete withdrawal from...
Last year was the year of the Roth conversion. Now it’s time to consider how much of the conversion to keep. Although that decision depends on a hundred different factors, here is a simple rule of thumb to use as a starting point for discussions with your CPA. Up until December 2010, it looked...
Since the end of last year the markets are up about 13%. Putting the last two years together the markets are up about 44%. Those are huge gains for two years. You may not have been on track for your goals two years ago, but now you should reevaluate again. The wave has propelled...
Most investors are not aware of a critical division of professionals in the world of financial services. This distinction lies between fee-only fiduciaries who are free to act in your best interests and commission-based agents and brokers who are required to act in the best interest of the companies that employ them. Even when...
Last May I wrote a column asking if you should “sell in May and stay away.” I suggested it would be better simply to “rebalance in May and call it a day.” Looking backward it wasn’t bad advice. Looking forward, I suggest saving and investing significantly between now and next May. The original saying...
According to a poll published last month by Fidelity Investments, Americans are likely to give the same amount or less to charity in 2010. But Virginians are fortunate to have a reason to donate 23 times more to charity this year. Virginia offers tax credits in exchange for donations to nonprofit organizations serving the...
For many people, tomorrow’s midterm elections feel like a political struggle over which they have very little control. It seems as though the outcome will determine the economics of the country for many years to come. Many feel similarly helpless to direct their own success. Nothing, however, could be further from the truth. Even...
If you have a personal umbrella insurance policy, congratulations. If you don’t, you must not have a lot to lose. This important insurance can extend your liability coverage beyond your home and auto insurance by millions of dollars. We live in a litigious society. Anyone can sue you for any reason. Those with money...
Because of Obamacare and the failure of Congress to extend current tax rates, capital gains taxes will soon rise from 15% to 23.8%. Take note, take heed, and take action. The tax increases will come in two stages, starting with a hike in 2011 from 15% to 20%. The 15% rate, established in the...
According to the Heritage Foundation’s 2010 Index of Economic Freedom, Hong Kong has the most economic freedom. Freedom does matter. Hong Kong is the poster child for superior investment returns following free markets. Investments there have appreciated 71% more than the S&P 500 over the past decade. Hong Kong has an incredibly low tax...
A tax tsunami is coming at the end of this year. The higher your adjusted gross income (AGI), the closer you live to the coast where the tsunami will hit. This will be your last opportunity to safeguard your assets in a lifeboat and avoid getting swamped with taxes. At the end of 2010,...
I’m turning 50 this week, probably the most significant milestone after birth. It’s a good time to assess progress on all fronts–physical, emotional, spiritual–and of course financial. If you are close to either side of 50, I’d like to outline the ideal scenario to help you make your own financial assessment. We should have...
Gold recently hit a high of over $1,250 an ounce. Gold advertisers and gold investment newsletters continue touting their wares as though gold only goes up in value. Commercials are promising cash for gold, and people who normally don’t concern themselves with investments are asking if they should buy gold. But now may not...
Congress recently passed the Dodd-Frank bill. At the signing, President Obama claimed, “Because of this law, the American people will never again be asked to foot the bill for Wall Street’s mistakes. There will be no more tax-funded bailouts . . . period.” Washington excels at blame shifting. The financial crisis began and ended...
Everything in wealth management begins with savings. All wealth comes from producing more than you consume. Unfortunately, most Americans are better at consuming than producing. Have you ever met people who always have enough money to do what they want? Their peace of mind and confidence is no accident. Nor is it luck. It...
The economy in the first half of 2010 has been disappointing, especially to investors and job seekers. High unemployment, market drops and less-than-stellar hopes for the future regarding taxes and regulation have all added to the general displeasure with our market environment. Now economists are generally predicting “more of the same” for the rest...
Investors are challenged these days to know where to put their money. Everyone wants to know which asset class will perform the best and help them meet their retirement goals. We use six different asset classes: three for stability and three for appreciation. In the stable asset classes, you loan a company money to...
Life planning peels back the layers of our soul, seeking the best and highest calling for our existence. Seek out a financial advisor who understands what you truly value and structures your finances accordingly to best support your life’s mission. The idea is simple yet ingenious. Begin with the end in mind. Let’s take...
George Kinder, a member of the National Association of Personal Financial Advisors and a fee-only financial planner, founded the Kinder Institute of Life Planning. He helped popularize the concept of financial life planning, which begins with the idea that financial advisors should understand their clients’ life purpose and structure their finances accordingly. In other...
Thoughtful wealth management is more than just maximizing net worth. It also gives us the best chance of meeting our life goals. Wealth is only valuable because it helps us make a significant impact on our world. It doesn’t give us meaning. Life planning takes a holistic look at what you truly value. And...
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Amy Alkon
