David John Marotta and Megan Russell co-author a syndicated financial column featured in several newspapers across the country.
Rebalancing your investments can help boost your returns and minimize risk. This simple contrarian move can help you compound your investment gains over time. With the markets at an all-time high, this may be a good time to rebalance your portfolio.
Investors have been told, “Invest in what you know.” While this may have been a good adage for avoiding investing in companies with no business models, it is a poor rule of thumb to use when building diversified portfolios.
Portfolio construction begins with the most basic allocation between investments that offer a greater chance of appreciation (stocks) and those that provide portfolio stability (bonds).
Unlike the trusts which helped John D. Rockefeller and J.P. Morgan keep their wealth in the family, this new breed of dynasty trust is not just for the mega-wealthy.
Without a financial plan, your investments are controlling your dreams, not the other way around. You need a blueprint for your financial dreams to come true. That blueprint in sound financial planning is called an Investment Policy Statement (IPS).
Financial planning is the process of aligning your financial choices with your life passions. Values transcend the cash and the numbers.
To meet your goals you don’t need to beat the investment returns of everyone else. Instead, you want a decent return in order to retire comfortably and to ensure a cash flow which will support your standard of living.
Every six years you delay saving and investing you cut in half the lifestyle you will have in retirement.
Market timing is the attempt to switch a significant portion of your assets between different types of investments in an effort to maximize profits. If this is your investment strategy, good luck, because you’ll need it.
Good portfolios have low expense ratios and minimal trading costs.
“You’re fired!” can be an opportunity to work for yourself. But the best two words you might hear are yourself saying, “I quit.” Working for yourself is risky and frightening, but the financial freedom and opportunities you gain are significant.
We can have our benefits and lower taxes if we are willing to admit that socializing retirement benefits was a mistake and we return to trusting once again, the in power of free markets.