Category Archives: Money

The Value of Diversification

 

It’s not always easy to grasp the value of diversification—why, in other words, it’s better to own many stocks inside a mutual fund than one or two stocks on their own.  But recent research conducted by Arizona State U. finance professor Hendrik Bessembinder offers some insight.

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Inflation Impact

We all know that inflation gradually erodes the value of our dollars, and you’re probably aware that this is one of the main reasons for investing in the stock market.  If you hide your money safely under your mattress, it becomes incrementally less valuable each year depending on the inflation rate.  To keep pace, you have to find ways to make it grow at least as fast as the value of a dollar is falling.

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What NOT To Skimp On

Save and invest.  Save and invest.  Isn’t that all you hear when it comes to planning your financial life?

An online article by an individual who refers to himself as “the Financial Samurai” makes a more balanced case regarding how you deploy your money.  Yes, you should be capable of deferring gratification and have a healthy savings rate during your accumulation years.  But there are a few items that are well worth investing in: your comfort, well-being and certain aspects of your lifestyle.  Some of these items might be considered luxuries by people who are perhaps overly frugal.

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Gender differences—In Retirement

 

You may have read that women are far more likely to face poverty in retirement than their male counterparts—but you may not realize just how big the disparity is.  In fact, women are 80% more likely to fall into poverty toward the end of their lives, compared to men, according to a 2016 study by the National Institute on Retirement Security.

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What the Tax Bill Means to You

The new tax law hasn’t been formally ratified by the U.S. House and Senate, but all indications are that the Tax Cuts and Jobs Act of 2017 will be sent to the President’s desk in the next few days.  As you probably know, the House and Senate versions were somewhat different.  What does the new bill look like?

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Bitcoin Bubble?

It is probably not a good sign for an investment when its largest clearing firm takes out an advertisement in the Wall Street Journal asking for more regulatory oversight and warning investors that its investment category is so volatile that futures contracts could create devastating losses.  Yet this is exactly what has happened recently when Interactive Brokers, the clearing firm for the bitcoin cryptocurrency, responded to the Chicago Mercantile Exchange’s plans to start listing bitcoin futures.

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’Tis the Season

The period between Thanksgiving and the end-of-year holiday season would seen like a sleepy time for financial planners, but in fact it is anything but.  You might be surprised at how much activity takes place on behalf of you and your investments in the final month of the year.

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