A Breach of Trust....Either You Are a Fiduciary, or You Are Not. A fiduciary is a person or organization that acts on behalf of another person or persons, putting their client’s interest above their own in all instances. Being a fiduciary requires being bound, both legally and ethically, to act in their client’s best interest. In essence, they are the guardians of their client’s money. Commissioned salespeople are not considered fiduciaries because they are representing...
Bob and Patricia are 60 years old and would love to retire as soon as possible. It's not uncommon to meet people like Bob and Patricia who have been saving diligently, setting money aside into their 401(k)s, making wise investments, and living below their means with a desire to transition into retirement as early as possible. Unfortunately, health insurance for them to retire before age 65 can now cost as much as $2,000 per month...
Scott Peterson |
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Anytime the blended price of America’s 500 largest companies (S&P 500) drops by 34%, you know that there is something significantly wrong going on. This is the fourth time we have experienced this magnitude of decline in my thirty four year career and every time such an event comes around, we tend to surmise that, “this time it is different”. We conclude this because the details each crisis are fundamentally different from anything we have...
Scott Peterson |
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We are all on information overload these days, so I am trying to only share information with you that is pertinent and that directly impacts your situation. Our government sprang into action this past week to create an unprecedented stimulus package to combat the financial effects of the Coronavirus. The new law resulting from this stimulus is called the Coronavirus Aid, Relief, & Economic Security Act or the CARES Act. The CARES Act covers a...
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” Winston Churchill As I watch the emotional reaction of investors during market turbulence, I concur with Churchill as I see individual investors categorize themselves into two separate camps. They are either victims or they are opportunists. Beyond reminding the self-prescribed investment victim of the overwhelming historical evidence of the resiliency of the stock market, there is little that can...
As 2019 came to a close, the President signed into law a sweeping series of changes that will affect how we save for retirement as well as the distribution of IRA proceeds. The new law is officially entitled the Setting Every Community Up for Retirement Enhancement Act, but it is more commonly known as the SECURE Act. This new law includes both welcome changes as well as some controversial elements. As I said, the changes...
Scott Peterson |
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For the new retiree, it’s a huge challenge to create a plan to transition a career’s worth of accumulations into a retirement full of income, that needs to last until the end of life. There are so many factors to consider and every retiree’s situation is unique. So copying your retired neighbor’s plan won’t work. It all comes down to the question: How am I going to create an inflation-adjusted stream of income from my...
Some retirees have paid hundreds, sometimes thousands, of dollars unnecessarily to the IRS in the past year because they didn’t know the tax exclusion I am about to introduce to you. If you are over age 70.5, have an IRA, and donate to charities, you are likely overpaying taxes if you aren’t aware of the changes that occurred at the beginning of 2018 and how those changes impact your tax liability. The information I’m sharing...
Jeffrey Lindsay |
The stock market recently went through another correction. During the last quarter of 2018, media outlets were happily giving bad news day in and day out. At its worst, the market fell almost 3% on Christmas Eve alone. From all-time highs in September to the Christmas Day low, the market had taken a nearly 20% tumble. As usual, many investors agreed that it was finally a good time to panic. During Christmas break, I heard...
An old friend of mine works for a technology company in Utah. The company was recently acquired, and he will receive $1,000,000 from the company’s Restricted Stock Unit Plan. He is already in a high tax bracket from his regular income and his RSU payout will only compound his tax problems. He stands to lose between 40-45% of his RSU payment to taxes! So how does one deal with the RSU payment tax bomb? A...
The other day I saw a headline “Cancer overtaking heart disease as leading cause of death in many states”. The headline grabbed my attention and I continued to read to see if my state was one of the states where cancer was on the rise. Upon further investigation I found that cancer deaths per capita are lower now than at any time in recorded history. What is really happening is that with fewer smokers and...
Scott Peterson |
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Since 2009 investors have been well rewarded for owning equities. One surprising characteristic of this bull market has been the low volatility many investors have experienced. We really haven’t seen much of a pull back until the end of September of this year. With this return of volatility to the market, a discussion of what volatility means to you as an investor seems warranted. The price investors pay to achieve inflation beating returns is volatility...