Investing

11 12, 2023

The Generic 60/40 Portfolio May Need an Examination

2023-12-11T13:21:29-08:00December 11, 2023|Investing|

As the holidays approach, you may be rounding up your finances for the end of the year. If so, one thing you may want to keep an eye on is the design of your financial portfolio. Your portfolio may not be set up with the best possible spread of investments and assets. If you’re using a generic 60/40 portfolio (60% stocks, 40% bonds), you may have noticed that the returns from this design have been lower than they were in the past. Over the past 10 years, a 60/40 portfolio was the go-to for many [...]

9 10, 2023

Reexamining the Retirement Investment Portfolio

2023-10-09T10:52:29-07:00October 9, 2023|Investing, Retirement Planning|

When talking about retirement financial planning, we often take investment strategy at face value. But what does an investment strategy really consist of? An investment strategy is utilized to help your wealth not only retain its value against inflation but hopefully grow as well. When it comes to retirement, there’s another aspect of income generation that is introduced. But no matter if you’re considering wealth growth or income generation, your investment decisions will involve calculations around your risk tolerance and unique goals as well. Let’s cover these concepts briefly to better understand what an investment [...]

27 08, 2023

Should I Convert My 401(k) To A Roth IRA?

2023-08-27T22:00:40-07:00August 27, 2023|Investing, Retirement Income|

Let’s say you’ve just changed jobs. What are you going to do with your 401(k)? You may be able to convert your 401(k) to a Roth IRA, but is that a good option for you? In this article, we’ll talk about what happens when you make this conversion and give you some examples of different financial situations for when this could be the right move for you. Making the Calculation One of the most important things to consider if you’re making the conversion to a Roth IRA is this: If you have a traditional 401(k), [...]

22 05, 2023

Target-Date Funds: The Backbone of Many Retirement Accounts

2023-06-08T22:13:31-07:00May 22, 2023|Investing, Retirement Planning|

A target-date fund is an investing tool, often in the form of an ETF or mutual fund, that adjusts its investment strategy based on how much time there is until the target date. The investments are strategized for long-term growth when you are further away from the target date and strategized for wealth preservation the closer you get to it. Another name for these kinds of funds is age-based funds and life-cycle funds, and they are structured around the financial needs of someone aiming to save for retirement.[1] The major benefit of target-date funds is [...]

15 05, 2023

How Long Can I Keep My Money in My Retirement Account?

2023-06-08T22:17:59-07:00May 15, 2023|Investing|

In most cases, you can’t actually keep your money in your retirement accounts forever. Even if you don’t need the money from your retirement accounts, many of them will require you to begin withdrawing from them when you are 73 years old.[1] This is called a required minimum distribution (often shortened to RMD). More specifically, you must start taking RMDs by April 1st following the year you turn 73.[2] The amount you are required to withdraw is calculated by dividing the value of the account on December 31st of the previous year by a factor [...]

10 05, 2023

What Happens to Inherited Retirement Accounts?

2023-06-08T22:19:10-07:00May 10, 2023|Investing, Retirement Income, Retirement Planning|

You may know plenty about the differences between traditional IRAs and Roth IRAs, as well as the risks to your IRAs in this market, but what happens to an IRA (or other retirement account) that still has money in it when its owner passes away? You may think that the beneficiary just gets all the money in the account, but unfortunately, it’s not that simple. Retirement account funds will be transferred to a beneficiary, but their relationship to the owner is what determines how they can access the money and what they can do with [...]

1 02, 2023

Don’t Forget the Tried-and-True Value of Compounding Interest

2023-02-01T08:30:47-08:00February 1, 2023|Financial Planning, Investing|

If you forgot what compounding interest was, let’s refresh. Compounding interest is the process by which the interest earned on an investment is reinvested so that the initial investment grows over time. It may not seem like it, but compounding returns is a powerful tool that can significantly increase the value of an investment over the long term, making it an important concept to understand when planning for retirement. One of the key benefits of compounding interest is that it can help your investments grow significantly over time. For example, consider an initial investment of [...]

12 12, 2022

3 Factors to Know for Rising Interest Rate Conditions

2023-02-09T01:44:59-08:00December 12, 2022|Economy, Federal Reserve, Financial Planning, Investing|

The 2022 economy has broken multiple records, first, with the highest inflation rate in 40 years, and now, the highest federal reserve interest rates since 2008.[1] In efforts to curb raging inflation, the US Federal Reserve has raised interest rates six times in 2022, reaching a target of 3.75% in November.[2] This rise in the cost of borrowing not only affects inflation but trickles into the decisions you make before and in retirement. Understand how this change affects you as a retiree: Dips in Investment Accounts Borrowing costs and stock market prices move in opposite [...]

6 12, 2022

What You Need to Know about Index Funds and Mutual Funds

2023-02-09T01:47:00-08:00December 6, 2022|Financial Planning, Investing|

On their surfaces, index funds and mutual funds may seem interchangeable. Both offer diversification of assets and are commonly invested in a basket of stocks that aim to meet a certain investment goal. However, there are many key distinctions that separate an index fund from a mutual fund – distinctions that may be crucial to your portfolio of retirement investments. The Breakdown of Index Funds Index funds invest in a specific list of securities, such as a Dow Jones Industrial Average or S&P 500 index, that track stocks based on certain factors. The Dow Jones [...]

29 11, 2022

The Value of Opening a Roth IRA at the End of the Year

2023-02-09T01:55:25-08:00November 29, 2022|Financial Planning, Investing, Retirement Income, Retirement Planning|

These days, retirement planning will likely involve Individual Retirement Accounts in one way or another. Whether you’re looking to roll over a 401(k), optimize your withdrawal timing, or take advantage of catch-up contributions, your IRA strategy may be one of the main components of your income strategy. So, let’s talk about the Roth IRA and its unique value at the end of the calendar year. What is the Roth IRA, and When is it Useful? The Roth IRA is a type of retirement account that you may withdraw from tax-free after a certain age and [...]

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