Fees. It just sounds like a dirty word, doesn't it? No one likes paying fees. I certainly do not. But is it crazy to think we pay fees all of the time? They go by different names – service charge, bills, expense, etc. – but, at the end of the day, they are fees. We [...]
I recently finished reading a book called ‘The Checklist Manifesto.’ It’s a fascinating book written by a surgeon who was struck by the idea that something as simple as a checklist can be the linchpin of a successful outcome versus a complete disaster in some of the most critical situations. The author spoke about how [...]
I frequently ask clients during our first conversation, “what is the average return of the market?” Usually, without fail, they answer, “7% - 8%.” My next question is, “when has it averaged that return?” Usually, without fail, they answer, “historically,” or something to that nature. My response to this answer is, “do you think it’s [...]
In 1994, William Bengen published an article in the Journal of Financial Planning. He aimed to present his research from the Monte-Carlo Simulations he created and what an acceptable withdraw rate would be for someone with a retirement horizon of 30 years. Bengen knew that it was dangerous for retirees to assume a withdrawal rate [...]
Conjecture: the formation or expression of an opinion or theory without sufficient evidence or proof I want you to absorb that definition because “financial conjecture” is a dangerous thing. Not only is it a dangerous thing when you accept financial conjecture from family or friends, but what about when it’s from a nationally recognized “financial [...]
Which animal is smarter? It all depends. Let me explain: In Isaiah Berlin’s famous essay, he divided the world into hedgehogs and foxes, based upon an ancient Greek parable. “The fox knows many things, but the hedgehog knows one big thing.” The fox is a cunning creature, able to devise a myriad of complex strategies [...]
Unfortunately, there may be a time when you feel as though you have no other recourse but to tap into your retirement fund. Unforeseen circumstances like the death of a spouse or family member, large medical bills, and similar situations can leave you, and your bank account, feeling drained. In these situations, it might be possible to borrow from your 401k without incurring penalties, but before you decide, keep in mind the following.