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.
When you give to charity, you make an investment. By doing a little homework, you can be sure your gift makes the best possible return on investment. While giving is its own reward, giving wisely seems to double that reward.
Donor Advised Funds offer the charitably inclined new flexibility for managing gifts to charity. By funding an account, donors receive an immediate tax deduction for their contribution and gain the flexibility to direct payouts to charity on their own timetable.
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).
My grandfather Donald Mortlock worked on Wall Street during and after the 1929 crash. The firm he worked for was a “market maker,” a company which helped to literally “make a market” in several stocks.
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.