As your advisor we are a walking talking insurance plan hired to protect one of the largest assets you own, your retirement nest egg. The difference being that unlike most insurance plans we protect you before a disaster strikes, not after the damage has been done.
Today I want to discuss why you should actually embrace temporary market declines rather than fear them. I said temporary because they all are temporary and always have been temporary and will always be temporary.
It seems there are many people who can't distinguish between risk and volatility. Volatility isn't risk. They aren't the same thing at all.
If you follow financial "journalism" at all you will inevitably hear how volatile the market is and how you should take action to protect yourself from the volatility. However, when we turn off the "news" and look at things rationally, we can see a completely different story. One that is actually true. It's not the market that is volatile. It's the investors that are volatile.
The picture associated with this blog shows what the average investor not working with an advisor often does.
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.
Retirement has two doors. One leads to a chance of success. One leads to certain failure. Which door will you choose?
Yearly portfolio returns are literally meaningless in retirement and conversations about them put me into a deep REM type sleep. The only thing that matters in retirement is that you don't run out of money (also known as purchasing power). That's it! It turns out that "beating the market" or an imaginary benchmark in retirement doesn't really matter if you don't have two nickels to rub together and you're looking for a job when you could be hanging out with your grandkids.
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.
Our strategy is long term and not affected by day-to-day fluctuations of the stock market. Our retirement plans are designed with one thing in mind and that is to keep you as worry free as possible so you can enjoy this time in your life that you have earned and deserve.
In a society that has basically turned outperformance into a religion, the average investor is not only underperforming the markets, he is consistently underperforming his own investments!
If you are eligible for the NRECA R&S Plan, you MUST consider the tax scenarios when deciding whether to take the lump sum option or the annuity option. You essentially have a winning lottery ticket and just like a real lottery ticket, the IRS is waiting for their piece of the action.
If I claim SS at 62 and decide I want to work will SS lower my monthly benefit? Will I get that money back? Am I losing that money?
If someone you love passes and leaves you as the beneficiary to an Individual Retirement Account (IRA), what should you do? Like the answer to most personal finance questions, it depends.
When reviewing the key differences between Roth accounts and Traditional accounts, it’s important to ask yourself: “When is the most advantageous time to pay tax on my income?”
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.
