The Myth of "Safe" Money
I would like to argue against the perception that bonds are "safer" than stocks, especially when considering long-term financial goals like retirement which can last 20-30 plus years.
The Importance of Rebalancing Your Portfolio
One of the most underused, overlooked and unappreciated practices in investing is rebalancing your portfolio on a yearly basis. There's an old saying that there is no such thing as a free lunch. Disciplined rebalancing, however, is as close as you can get to a free lunch. Let's explore why.
Retiring From Your Cooperative This Year? Lump Sum or Monthly Pension?
A 30 year retirement means more than likely facing many surprises with which a flat monthly payment isn't going to help. The lump sum option, invested properly, offers flexibility to meet those surprises, can be strategically invested to provide regular income, and most importantly could possibly change the lives of the loved ones you leave behind.
Three Types Of Financial Advisors And How They Get Paid
The three most common business structures that use the terms are Insurance Companies, Broker Dealers and Registered Investment Advisers. All three are very different in how they run their business and each will specialize in different areas.
Why I Don't Care For Target Date Funds
Approximately 30% of all the money in 401ks in Target Date Portfolios. Basically you figure out what year you turn 62 and you pick the Target Date Portfolio that corresponds to that year. Sounds easy enough, so why don't I like them?
Should You Pay A Financial Advisor?
Typically, you pay an advisor the same reason you pay a mechanic to repair your car. If you wanted to repair it yourself, you probably could, but what's your time worth? Is that really what you want to do? Can you do it right? What is your strategy for doubling your income in retirement? What is your strategy for tax planning in retirement? What is your strategy for claiming Social Security in retirement? If you aren't sure of those answers, it would be wise to sit down and talk to an advisor about your retirement planning needs.
Should You Take Social Security At Age 62?
The timing of your Social Security benefits can be important. It could make a difference of thousands of dollars in your retirement income. Although there are many factors to consider when making a decision about Social Security (more about that later), it’s fairly simple to calculate your break-even age. Let’s use an example to illustrate the calculation:
Investing For And During Retirement
Successful investing for retirement and in retirement is not that complicated. The planning process can be complicated, such as when to liquidate certain investments, how much cash to keep on hand, and sticking to your plan, but the investing process isn’t hard at all.
The Rollover Mistake That Costs Cooperative Retirees Significant Money
Everyday cooperative employees retire. Some of these retirees take the lump sum option and "rollover" that money to an Individual Retirement Account (IRA) or they "rollover" that money into their NRECA 401k. They may be working with a financial advisor or they may have decided that they don't want to pay an advisor and they want to do it themselves. This blog is speaking to the do it yourselfers.
How To Retire Early?
What if you're age 55 or older and you just don't want to wait until age 62 to retire? Many of you are stuck in that 50-58 age range where the thought of retirement can be a little scary. Let's look at some options.
Retirement Planning Specifically For Electric Cooperative Employees
I started this firm to help people, specifically electric cooperative employees, with retirement planning. I worked for an electric cooperative for over 11 years and during that time I saw a need for retirement planning above and beyond what NRECA is capable of providing you.
Can You Manage Your Cooperative 401k Plan Correctly?
Did you know that the S&P 500 Index Mutual Fund available to you through your NRECA 401k options has historically averaged a return of approximately 10 percent? Did you know over that same period of time the average cooperative employee in the 401k plan has averaged a return of only 3.9 percent?
Is Gold Actually A Hedge Against Inflation?
Well according to my television and the financial "news" media the economy was on the verge of collapse this past April. The financial "news" media seemed excited about that and also excited to mention that gold had broken through to new all-time highs! And while that is sort of true because gold recorded a new nominal high price, that's not the whole truth. Nominal in this context means unadjusted as it pertains to inflation which, in the end, is all that really matters. They tend to leave the adjusted for inflation part out because it's not as sexy and doesn't excite people as much.
Your NRECA 401k Options Explained In Plain English
Today I want to discuss, what I feel, is the single most important benefit the co-op offers you. And that is your NRECA 401k plan. It’s important because it’s the fastest and simplest way for you to grow your wealth over time.
11 Questions You Should Ask Any Financial Advisor You Interview
I created this list as an education piece for any electric cooperative employee to use as they interview different financial advisors. My goal isn't that everyone who visits my site decides to work with me. My goal is to help you make an educated decision as you work through this process. If you are retiring soon or just exploring a relationship with a financial advisor, be sure to ask these 11 questions during the interview process. And interview at least three advisors. That should give you a good idea of whom you want to work with and why.
The Three Main Stock Market Indexes Explained
Everyday the financial “news” tells us the status of the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite because these are the three most followed indexes by media and investors. I’ve found through the years that many people have no idea what an index is or specifically what these three indexes represent. Today I’m going to give you a Cliffs Notes version of what an index is as it relates to the stock market, a brief explanation of the three major indexes
