Denouement Financial Planning
One of the largest disconnects between financial experts and typical investors centers around the question of bond duration. Duration is one of the most important characteristics of a bond or a bond fund because it describes how sensitive a bond’s price is to changes in yields. Bond yields and bond prices move in opposite directions: …
Financial planning is a process for dealing with financial risks. Although investors mostly have access to the same investment assets, every investor faces different combinations of risks. And every investor encounters those risks differently. As a result, we need a risk framework which facilitates useful discussion. This is because I find that portfolio risk is …
A 529 college savings plan is a program sponsored by your state, or another state, in which you save money for a beneficiary and pay for education expenses. The Maryland 529 college savings plans are the only 529 plans that offer an annual Maryland State income deduction, and any earnings and contributions can be used …
The complete guide to bond index funds for retirement in just 30 words: Age <50: Treasury bonds for diversification [e.g. SPDR Portfolio Long Term Treasury ETF (SPTL)] Age 50 to 70: add TIPS for inflation risk [e.g. DFA LTIP Portfolio (DRXIX)] Age > 70: add short-term bonds to lower volatility [e.g. iShares Core 1-5 Year …
When it comes to investing, it pays to keep your mutual fund costs low. We’ve built our firm around a big idea: you shouldn’t have to pay high fees in order to get good financial advice. And when it comes to the investments we recommend to clients, one of the most important numbers we look …
Right now, the US has a highly concentrated stock market. The top 10 stocks in the S&P 500 index account for nearly 28% of the total market cap of that index. That’s a little down from last fall, but it’s still near a 40-year record high level. Why might this be a problem? Well, historically …
Behavioral psychologists have long understood that the happiness of individuals is not much related whether things are going going objectively well. Instead, it’s much more important that things go surprisingly well. In short, lower expectations are the key to happiness. As Robb B. Rutledge wrote in a 2014 research article published at PNAS : …momentary …
Are you expecting a bonus or raise this year? Here are some tips on how to spend your bonus wisely. Plus, we’re standing by to chat if you want to get a quick “second opinion” on any money matters.
