August 27, 2016

About David John Marotta

David John Marotta+ is the Founder and President of Marotta Wealth Management, Inc. He played for the State Department chess team at age 11, graduated from Stanford, taught Computer and Information Science, and still loves math and strategy games. Favorite number: e (2.7182818...)

Economic Indicators: Gross Domestic Product (GDP)

basket of food

Under one theory, changes in GDP or the rate of GDP growth precede and could cause stock markets to react and move in response. This is usually not the case.

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Beware of Dire Market Crash Predictions

questioning chick

I receive dire predictions with such frequency that were I to act on even a fraction of them I would never be invested in the markets.

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Where Should I Invest Money Which I Will Need in a Year or Two?

house money

Return comes with an element of risk. There is no safe investment which also pays a good rate of return.

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The Golden Bear: The Bear Market of 1973

GoldenBear_w

This Bear market is considered one of the greatest challenges to retirement planning.

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Wealth Management Is In Your Control

latte

Many feel helpless to direct their own success, but nothing could be further from the truth.

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Planning for a Funeral

Planning for a Funeral

Funeral expenses are often a family’s fourth largest expense.

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Do Children Need To File A Tax Return To Fund Their Roth IRA?

Do Children Need To File A Tax Return To Fund Their Roth IRA?

The IRS does not require dependents whose gross income is only earned income to file a tax return if the amount is less than a certain amount.

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Recouping Losses Is Not As Hard As You Think

Deceptive Posts About The Difficulty Of Recouping Losses

Many advisors and most investors don’t really understand the math on how to compute investment returns.

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Radio: The Importance of Real Estate

rainbow row

David John Marotta was interviewed on radio’s Schilling Show discussing real estate and its importance in your total net worth.

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Changing Your Financial Behavior Is Difficult

Financial Behavior Modification Is A Difficult Process

Our minds are wired to quickly generalize on perceived trends and react to them.

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Double Bottom Bear: The Bear Market of 1970

Double Bottom Bear: The Bear Market of 1970

Bear Markets are unpredictable, but there is no reason that they should be a cause of distress.

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How Much Can I Withdraw in Retirement?

Seaside Golf

We have calculated safe withdrawal rates for ages 0 to 100 based on age-appropriate asset allocation mixes.

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5 Reasons to Have Some Cash Equivalents

5 Reasons to Have Some Cash Equivalents

There are at least five reasons to hold cash. Without a good reason to hold cash, you may be holding too much.

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TD Ameritrade Trust Company President Gets “Fee-Only” Wrong

TD Ameritrade Trust Company President Gets "Fee-Only" Wrong

It should be clear that “fee-only” means “fee-only,” not “fees and third-party manager revenue-sharing and trailing mutual fund fees.”

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Family Financial Lifecycle

squirrel eating

Before the children arrive, squirrel away some money. When the children go out on their own you get one last chance to save for retirement.

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BREXIT: Britain’s Independence Day

BREXIT: Britain's Independence Day

The future may be uncertain, but the markets are quite reliable in the long run.

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Narrowly Framed Questions Fail to Meet Life Goals

Narrowly Framed Questions Fail to Meet Life Goals

Purchasing investment products in isolation from the larger context of your specific situation is like pushing random buttons on a vending machine in order to provide a Thanksgiving dinner for your family.

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Radio: Nine Ways to Secure Your Finances

teal door and lock

Here are nine steps you should take to make it more difficult for criminals and identity thieves to steal your personal information.

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Bloomberg Article Gets Asset Allocation Exactly Wrong

Bloomberg Article Gets Asset Allocation Exactly Wrong

Investors should not have to deal with financial reporters that misunderstand the field they write about.

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A Guide to Investing in REITs

A Guide to Investing in REITs

REITs are one way to get some of the benefit of investing in real estate without as much of the risk.

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Language Matters: Robo-Advisor vs. Robo-Investing

Language Matters: Robo-Advisor vs. Robo-Investing

Robo-advisors do not provide personalized investment advice nor are their recommendations free from conflicts of interest.

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Language Matters: Fee-Based vs. Fee-And-Commission Based

Language Matters: Fee-Only vs. Fee-And-Commission Based

The term “fee-based” was created specifically to confuse consumers.

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Slow and Steady Wins the Race

Slow and Steady Wins the Race

You can learn a lot about financial management from snapping turtles.

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Where to Find the Hidden Fees of Commission-Based Firms

Where to Find the Hidden Fees of Commission-Based Firms

Very few consumers actually read the SEC filings for the firms they have engaged.

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What Are The Problems With Illiquid Alternative Investments?

What Are The Problems With Illiquid Alternative Investments?

If you happen to hold alternative investments and can find a fair price for them, we recommend that you liquidate them.

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The Happy Habits of Appreciation and Gratitude

The Happy Habits of Appreciation and Gratitude

Life planning begins as thoughts and ultimately shapes our entire destiny.

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One Powerful Method To Achieve Higher Investment Returns

One Powerful Method To Achieve Higher Investment Returns

Long-term investing does not require making quick emotional responses.

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You Want An Advisor Who Keeps You From “The Big Mistake”

You Want An Advisor Who Keeps You From "The Big Mistake"

Real financial advisors stand between you and the Big Mistake of buying high and selling low.

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Write Down Your Investment Plan

Write Down Your Investment Plan

To protect yourself from behavioral errors, write down your investment plan.

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Radio: Budgeting Benefits

moody hills

Having a budget as a boundary for your spending gives you the freedom to work within that boundary, and keeps you on track to save for your goals.

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How Cookie-Cutter Powers of Attorney Fail

How Cookie-Cutter Power of Attorneys Fail

This style of Power of Attorney certainly gets the job done, but there are a few ways that the cookie-cutter POA most frequently fails to meet people’s wishes.

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Ten Principles for Teaching Children about Money

Ten Principles for Teaching Children about Money

Here are ten principles for teaching children about money.

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What Is Settlement Date And Why Does It Matter?

What Is Settlement Date And Why Does It Matter?

Most investors think that whenever you buy or sell a security the money is immediately deducted or deposited into your account. This is not true.

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Family Budgeting

Family Budgeting

If a budget isn’t a team effort, one member of the family will hold the purse strings and everyone else will be resentful.

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Guidelines for Using Margin

Guidelines for Using Margin

Too much leverage is risky because it endangers meeting your goals.

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Fund Analyzer Shows Value Of Lower Fees

Fund Analyzer Shows Value Of Lower Fees

Continually curating a list of low cost funds is valuable for long term investors.

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Government Requires 2.5 Hours of Daily Work

Government Requires 2.5 Hours of Daily Work

Without the burden of federal, state, and local taxes, you could leave your job at 2:27pm every day and earn the same salary.

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What is Margin?

What is Margin?

We don’t normally recommend being on margin, but we recommend having the option in case it is needed.

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Radio Interview: The Burden of Government Taxation

Radio Interview: The Burden of Government Taxation

David John Marotta was recently interviewed on radio 1070 WINA’s Schilling Show, discussing taxation and the burden of government.

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Investing Strategies for an Irrational Brain

Investing Strategies for an Irrational Brain

Recency bias is perhaps the most difficult natural bias to overcome.

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Department of Labor’s New Fiduciary Ruling

Department of Labor's New Fiduciary Ruling

Any legislation which can include FINRA’s commission-based advisors will dilute what it means to be a fiduciary.

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Dimensional On: Staying in the Market

Dimensional On: Why Should We Invest Internationally?

“It is always a difficult experience for investors to stay in markets.”

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Tax Loss Harvesting and Wash Sales

Tax Loss Harvesting and Wash Sales

Wash sale rules need to be followed when realizing capital losses for taxes but can be burdensome to track and monitor.

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Financial Planning Beyond Your Wedding Day

hearthands

In addition to registering for a blender and picking floral arrangements, make sure that your marriage has the financial accounts and monetary habits necessary to meet your shared financial goals.

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How To Instill Good Financial Habits In Your Children

How To Instill Good Financial Habits In Your Children

Give your children experience spending their own money.

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Dimensional On: Why Should We Invest Internationally?

Dimensional On: Why Should We Invest Internationally?

“Historically there has been a wide variety of returns from US and International stocks, and when one does poorly often another does well.”

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How Long Should I Give An Investment Plan?

How Long Should I Give An Investment Plan?

Even the most brilliantly crafted investment plan has to be given time to work.

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Fund Your 401(k) If You Believe In Free Markets

Fund Your 401(k) If You Believe In Free Markets

I recently read a foolish article entitled “Call for a National Savings Plan” that assumed we haven’t tried a national savings plan already.

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Streamline Your Finances with Schwab Checking

Streamline Your Finances with Schwab Checking

This Schwab checking account provides six impressive services not true for most local banks.

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Can’t All Advisors Make Trades On My Behalf?

Can't All Advisors Make Trades On My Behalf?

Only give someone who is required to honor your best interest the ability to trade in your account without talking to you.

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