Giving Tuesday might officially be behind us, but let’s face it—we’re just getting started. The giving season is underway, with the holidays and year-end bearing down on us. So how can we transform one of the more stressful, and sometimes guilt-ridden, elements of the season into something more life-giving? Whether you’re giving to a family member,…
“What fuels widespread fears at this moment isn’t aging. It’s retirement….Never before have so many people had so much experience and the time and the capacity to do something significant with it.” So states Chris Farrell in his thought-provoking new book, Unretirement. He goes on, writing that “the last third of life is being both…
Q:What are municipal bonds? A:Municipal bonds are debt instruments issued by municipalities in any of the 50 states by the following entities: 1) territories, subdivisions, counties, cities, towns and villages of the state, 2) school districts, 3) agencies such as authorities and special districts created by a state and 4) certain federally sponsored agencies, such…
By Brian Zdrowak I am 35 years old, and the world is in front of me. I have a wonderful and supportive wife, three fun and energetic kids under the age of 5 and a dog. My wife and I are trying to balance it all: being good parents, finding time for each other, playing…
By C.J. Baxter Many investors are feeling a little jittery these days, and rightfully so. We have had to deal with fears of Ebola, constant tension in the Middle East and a sluggish overseas economy. And that short list fails to mention we recently went through one of the biggest market pullbacks since The Great…
At the start of 2014, predictions of a market correction were rampant. So what has happened? The market has gone up on some days and down on others, and the volatility that was absent in 2013 has returned. This has led to even more talk about market corrections and projections about what lies ahead. But…
It seems like investors have had plenty to worry about recently, even without considering the last few weeks of stock market volatility. After all, we’ve seen: Slowing growth in most of the developed world, including the possibility that European economies will enter their third recession since 2007. Growth in China’s economy decelerating faster than expected….
Q: What are TIPS and how do they work? A: Similar to nominal (non-inflation-adjusted) U.S. Treasury fixed income investments, TIPS are issued with fixed coupon rates and fixed maturity dates (such as five, 10 or 20 years). The key difference between TIPS and nominal bonds is that the coupon rate for TIPS is a guaranteed…
Q: What is a bond ladder? A:A bond ladder is a portfolio of individual bonds that have different maturities. For example, a bond ladder could be constructed with equal numbers of bonds with maturities across 1–10 years, or it could consist of bonds that mature in 2–7 years. Since buying small lots of individual bonds…
So far, we have seen how “practice makes perfect” in Talent is Overrated and discovered the importance of developing right-brain capabilities in A Whole New Mind. In my final installment of articles on the subject of guiding our youth into financial and professional adulthood, I will take a look at another important question: “What motivates…
Q: Should you stay invested in the short term while waiting for interest rates to rise? A: First, other than very short-term interest rates that are heavily influenced by the Federal Reserve, it’s difficult to predict changes in interest rates. Second, to determine whether a short-term fixed income approach will be superior to an intermediate-term…
You might think that the most important work a financial advisor can do is related to allocating a client’s investment portfolio, or perhaps helping secure a timely insurance policy or drafting the optimal estate plan. In fact, the most important work is done when clients are in the midst of navigating life’s major transitions. I…
Q: What are callable bonds? And what are the risk and return of callable bonds? A: Callable bonds are fixed income securities that give the issuer the right, but not the obligation, to call in, or prepay, the bond prior to maturity. Issuers can be expected to exercise this right if they are able to…
Q: Should you stay invested in the short term while waiting for interest rates to rise? A: First, other than very short-term interest rates that are heavily influenced by the Federal Reserve, it’s difficult to predict changes in interest rates. Second, to determine whether a short-term fixed income approach will be superior to an intermediate-term…
Earlier this summer, I was on a hike with a friend and mentioned that while we’d started at about 9,000 feet, we’d reach an elevation of 12,000 feet by the end of the trail. My friend replied, “That’s a fact I just don’t believe.” Yes, it sounds silly, and of course, we laughed about it….