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Happy New Year! A new year provides us with an opportunity to reflect on our accomplishments (and any missteps) and resolve to start afresh. Whether you make New Year’s resolutions or not, here is one resolution worth keeping: Never chase returns. This article from Morningstar shows how investors who chase performance as the market moves up and down often end up underperforming for the long term. Your comfort with risk is an important consideration in your plan, and the “Rebalancing Matters” chart will show you how rebalancing your portfolio — which we regularly do for you — can help keep your investments at your desired risk level.
We have all probably experienced the frustration of home internet connections not working properly. Instead of waiting for sub-par solutions from your provider, take matters into your own hands with these smart tips to speed up your service. And in case you’re all out of inspirational New Year’s resolutions for 2017, I’ve included a link to 12 poignant and motivating videos that I hope will spur you to accomplish great things this year. ..
After a long election season, the holidays are officially here, a reminder of what matters most in life: gratitude and family and friends. I hope you are enjoying twinkling lights and festive cheer and not worrying about organizing your tax information for this year. But just in case, here are eight handy year-end tax tips to help optimize your finances (and I’d be happy to talk about any of these further with you). Stock picking and chasing returns may soon be out of fashion, according to this Wall Street Journal article. Committing to staying invested and focusing on long-term goals seem to be the new trends. This is good news, since you don’t want to rely on things like the Santa Claus Rally or the Boston Snow Indicator (or polling by cable news networks as we saw recently) to predict the direction of the markets. Our advice? Better to believe in Santa than unreliable prognostications.
Finally, here’s a great way to share good cheer and good will with your children or grandchildren this season. Encouraging them to make another person’s day brighter through volunteering and other charitable activities will help the entire family enjoy the true spirit of the season.
I wish you and your loved ones a happy and joyous holiday season! ..
Fall is in full swing-changing leaves, crisp air, and thoughts of Thanksgiving Dinner. As life moves into the slower pace of Fall, I find time to be appreciative of so many things. Topping the list is my family, friends and clients. This venue gives me the opportunity to express my thanks to you, my clients, for allowing me to work with you. I am so fortunate to love my line of work, but without you I would not be able to make it my career. Thank you! I am also thankful that you, my clients, understand that taking care of your finances so that they can take care of you is valuable to your health and happiness.
You may be thankful that you have adopted a long-term investing perspective when you see the chart below. It shows how missing out even on a few days in the market, while you wait on the sidelines for a “safer” time to invest, can potentially derail your most important goals. Even the best financial plans can be compromised by illogical investor behavior. By recognizing potentially detrimental patterns and correcting them before they impact your portfolio, you enjoy a better chance of achieving your goals. Trying to understand all the requirements and choices for Medicare can be daunting at best. The article below will help shed some light on an important topic. And speaking of being thankful, I’ve included a great how-to guide to creating the perfect thank-you note for any occasion. ..
October is here and that means it’s time for jack-o’-lanterns, ghosts and goblins. But what might really scare you is the chart below, illustrating how very few active managers actually outperform their indexes. (This is precisely why we use an Asset Class investing approach instead of active management.) If you’re a football fan you’ll love this analogy: Passive investing is like owning the entire NFL, while active investing tries to predict which team will win the Super Bowl. Next, we look at how you can increase the chances that your children and grandchildren can have better financial futures by teaching them these five vital money management lessons. And if you’re looking for something thrilling and fun this Halloween, try one of these 10 hauntingly humorous movies for a good scare and some laughs. ..
As young people head back to the classroom, teachers everywhere will be encouraging them to “pay attention!” (I’m sure some of us heard that phrase more often than others.) But for those of us who are not going back to school, there is a time when NOT paying attention may pay off, and that’s when it comes to our 401(k) statements. Although it tends to go against our nature, sometimes not doing anything is the better decision. At any age, focusing on how much we save can make a big difference, and the chart below is a powerful reminder of how delaying saving for the future can cause you to miss out on a robust retirement. If you love to learn or are curious about how things work, you will enjoy these websites that can help satisfy your curiosity. Finally, be sure to share this infographic with tips for a productive and healthy school year. ..
The end of summer may be creeping up, but there’s still time to book a nice vacation, enjoy the great outdoors or throw a big neighborhood barbeque. In the same spirit, there’s always another chance to keep the emotions of investing in check and recommit to your long-term plans. Patience can really pay off as the power of long-term investing is illustrated in the “Long-Term Power of Markets (Growth of $1)” chart below. A new study by Fidelity suggests there may be a big disconnect between what Millennials understand their role to be in their parents’ future care and what parents may ultimately need or expect. The article “10 Headscratchers” outlines how we are all irrational sometimes when it comes to our finances. And while it may be tempting to buy your four-legged friend every chew toy in the store, here are some good ways to determine when it’s worth spending money on Fluffy or Fido and when it just doesn’t add up. ..
Most of us have experienced (sometimes daily) the frustration of being stuck in traffic…are you one of those drivers who stays calm, or are you constantly changing lanes without ever actually getting ahead? The picture below illustrates what happens to many investors who “change lanes” by trying to “time” the market. In fact, many investors may be tempted to “change lanes” right now with the markets experiencing volatility over “Brexit.” Remember, this is just a normal market reaction. In fact, as the author below states, “This is what markets do.”
Here’s something you can do this summer: take a road trip to discover some of the most patriotic places in the USA. And while you’re enjoying the sights, use these great tips for optimizing your phone’s camera features for the best vacation or fireworks pictures. Let freedom ring! ..
Most people don’t simply “become” doctors, physicists or Olympic runners. To reach these goals and be successful, it takes discipline, commitment, practice and a lot of patience. The same can be said of being a successful investor. This first article discusses how panicking when faced with investing or life challenges can prove detrimental. The chart below is a great reminder of why it is wise to include non-U.S. stocks in your portfolio. The last article includes what we can learn from the late musician Prince’s lack of estate planning. ..