Every investor wants to earn money on their investments. FINRA explains:“Investment return is the money you make or lose on an investment. Ideally, your return will be positive: your initial investment or principal will remain intact, and you’ll end up with more money than you invested.”“Total return is a measure of your profit or capital…
Month: January 2017
Social Security is NOT going bankrupt!
Despite the scare tactics of some journalists, Social Security is not going bankrupt and benefits do not need to be cut in order to make the system viable for the next 75 years. “Benefits cuts are unnecessary to preserve Social Security, even though the program’s trust fund is on track to be drained by 2034,…
Should you retire with a mortgage?
More and more Americans are retiring with a mortgage. With low interest rates many financial advisers suggest it is better to have a mortgage and keep other funds invested. Some people delight in getting a tax deduction for mortgage interest. However, too many taxpayers who do not prepare their own taxes do not understand how…
How long will this bull market in stocks last?
The “bull market for stocks is 94 months old, making it the second-longest in modern history” according to Jason Zweig, writing in The Wall Street Journal, Jan. 21, 2017. In his weekly “Intelligent Investor” column Zweig explains the results of recent research showing that investors are affected by the optimism of other investors, often resulting…
What to do BEFORE you get hit by an uninsured motorist
My assistant blogger had the unfortunate experience of being hit by an uninsured motorist. Learn from her experience. It’s not unusual to get in a fender bender in the winter, and most motorists know what to do if this happens. Exchange insurance information, document it, etc. But, what happens if you’re hit by an uninsured…
Financial planning for special needs children
“Parents face many challenges when they must balance long-term planning for a special-needs child with their own retirement savings, experts say. Certified financial planner Mary Anne Ehlert says crucial factors for special-needs families include investment allocations, government benefits and estate plans.” (Retirement Security Smartbrief). Morningstar contributor Mark Miller explains government assistance available to special-needs family…
How safe is Social Security in a Republican-dominated Congress?
“There’s no way to predict with certainty what might happen to Social Security, but here’s what we know now,” by Matthew Frankel. “If you watch or read the news on a regular basis, chances are you’ve seen a headline or two to the effect of “Social Security is going broke.” If you’re a retiree collecting…
Medical Bills Are the Biggest Cause of US Bankruptcies
With Republicans vowing to repeal (and replace?) the Affordable Care Act, the headline that “Medical Bills Are the Biggest Cause of US Bankruptcies” was no surprise to this researcher who devoted many years to the study of consumer bankruptcy. Dan Mangan wrote in 2013: “Bankruptcies resulting from unpaid medical bills will affect nearly 2 million…
Where unwanted gifts end up
Long an advocate of less consumption and more investment, with advice like contributing to charity or 529 college savings funds instead of gift cards or buying gifts that are often unwanted, I was intrigued with the growth in on-line “consignment shops.” According to Patrick McGroarty, writing for The Wall Street Journal, “unwanted holiday gifts and…
Long Term Care: Rely on Saving Rather Than Insurance
Teresa Miller, the Pennsylvania insurance commissioner, and the head of the Long Term Care Innovation Subgroup says Americans must save more for potential long-term care costs and rely less on insurance. (See related posts about problems with the LTC insurance industry.) More savings may be the best option for the well-off but most Americans suffer from far…