What does risk mean when it is concerning your retirement accounts? How do you determine your risk exposure? When considering risk decisions regarding retirement accounts the two most important factors are your current age and the number of years before you retire because as you age, you have fewer years to recoup market losses. Moving to more stable and safe options as we age can help remove the risk factor on a portion of your accounts.
Are municipal bonds tax-free? Might want to make sure. Municipal securities, also known as "munis," are bonds issued by governmental entities such as states, cities, counties, and other organizations. The bonds are sold to raise money for public interest projects such as schools, bridges, roads, and other municipal construction needs to benefit the public. Like [...]
If an investor is thinking of investing in bonds, the first rule to learn is: a bond is nothing more than a debt instrument, a loan. Think of buying a bond like making a loan to a corporation, government, federal agency or other organization. Bond issuers understand that investors are not going to invest without [...]
In the world of insurance, guarantees matter Consider the state of the insurance industry, what is guaranteed anymore? Care insurance premiums are not guaranteed, have a ticket or an accident and see what happens to your future premiums — the same with Liability policies, fire insurance and almost any other category of third-party [...]
What if I told you I was going to give you $100,000 if you can drive from here to the next town in 30 minutes and $80,000 if you can make it in 40 minutes? The only condition is that you have to drive one of the two cars that I choose. One car is a Chevrolet sedan and the other is a Ferrari. The Chevrolet is dependable and powerful enough to get you there in just under 35 minutes. The Ferrari will get you to the same destination in about 20 minutes.
Planning for retirement requires understanding of your present situation and a focus on your goals. Mistakes are easily made and corrections are always necessary in order to meet the needed requirements for retirement. Below are 10 tips that could help you stay on track and to meet your goals. [...]
Every decision you make today, and action you take today, carries an element of risk and offers a potential benefit. It’s such an inherent part of life, and we don’t even think about it. The only time we think much about risk is when the risk makes us uncomfortable. We tend to measure risk with [...]
Ben Franklin said it (reportedly); “The Eighth Wonder of the world is compound interest.” And it’s true! Take $100,000, at 3% compounded for just five years; that amounts to $ 115,927. That’s a 15.9% gain. Now take $100,000 at 3% simple interest for five years; that amounts to a flat $115,000. A flat 15% gain. [...]
Is guaranteed lifetime income important to you? From time to time clients ask me for an analogy about what Fixed Indexed Annuities are and how insurance carriers can provide upside potential and growth while insulating the annuity owner from downside market risks. An analogy from the world of real estate investing may help understand [...]