How should you select which bond funds to include in your portfolio once you have decided upon the overall asset allocation (e.g., the percentage of bonds and stocks in your portfolio)? Remember bonds are used as ballast for your portfolio. They often zig when stocks zag. They complement your stock holdings. Despite paying interest on […]
One of the dreaded costs in buying a new home is the prospect of paying private mortgage insurance. Generally if your down payment is less than 20 percent of the sale price, your lender will require you to get mortgage insurance. A mortgage insurance policy protects the lender in case you default on the payments. […]
I’ve had several clients want to put more money away for retirement but have been discouraged that they can’t buy a Roth IRA because their income exceeds the IRS limits. These are high salary folks who are interested in the benefits of a Roth IRA. As you know, Roth IRA contributions are not tax deductible, […]
Several clients have asked me to help them identify social responsible investing alternatives. They wanted to live their beliefs. I thought there had to be publicly available resources to help screen mutual funds focused on socially responsible investing. I also wanted to make sure that under the guise of social responsibility, my clients didn’t choose […]
It is time to construct a diversified portfolio once you have decided the percentage of your portfolio that will be invested in stocks. But what is the best way to decide which funds to choose among the myriad of stock mutual funds and exchange traded funds available? The approach I outline below can be used […]
On February 24, 2015, the Supreme Court heard oral arguments in a case that could alter the selection of mutual funds in your employer’s 401k plan for the better. At issue is whether a claim is barred by ERISA’s statute of limitations against an employer plan sponsor that allegedly breached its fiduciary duty of prudence […]
A young couple came to me recently because they received a parental gift of $40,000 and wanted to know how to maximize their college savings. They are DC residents so they were naturally curious about the DC 529 College Savings Plan. If you don’t know already, 529 plans are a great way to save for […]
You may be asking yourself whether there a good way to save for graduate school? You just moved to the Washington DC area and you have a good job that pays pretty well. But you are thinking of going back to school for a graduate degree (or another grad degree – this is DC of […]
I often ask my clients two questions to help them obtain a low-cost stock investment strategy: What level of return are you seeking and how much should you pay to buy that asset? Of course, these two questions come after you have decided on your investment horizon (https://www.financialadvisorforyou.com/how-should-i-invest-my-money/) and risk tolerance (https://www.financialadvisorforyou.com/2-reference-points-can-help-you-assess-your-risk-tolerance/). The short answer […]
It is time to examine your risk tolerance or risk aversion once you’ve decided upon your investment horizon – short, medium, or long-term. Where do you start? As a rule of thumb, the longer your investment horizon, the greater volatility (ups and downs) you can weather in your portfolio. Conversely, if the horizon is short, […]
