Should Stock Investors Worry About Rising Interest Rates?
We have been in a low interest rate environment for quite a few years now, but the Federal Reserve has signaled its intention to raise interest rates throughout 2017. In recent months, several clients have asked the question of how rising interest rates would affect stock prices in the coming
Passive Investing Beats Active Investing Over 15 Year Timeframe
“Just wait until next year” was the lament of faithful Chicago Cubs’ fans for over 100 years before last season. From 1908 until their victory over the Cleveland Indians in the 2016 World Series, fans of “the Lovable Losers” would lick their wounds from the previous season while optimistically looking
Are Americans Facing a Retirement Crisis?
Are Americans facing a retirement savings crisis? The answer to that question depends on who you ask, and perhaps that individual’s prospects for retirement. The Wall Street Journal recently asked two prominent economists if Americans were facing a retirement savings crisis. Alicia Munnell, director of Boston College’s Center for Retirement Research
What Lessons Can Investors Learn from Farmers?
Spring is my favorite season of the year. I suspect many of you feel the same way based on the amount of outdoor activity I have observed in recent days. For me, spring means the start of the Major League Baseball season, hours of therapeutic and relaxing lawn care and
Warren Buffett Declares Himself the Winner of the “Million-Dollar Bet”
They do not call him the “Oracle of Omaha” for nothing; Warren Buffett knows a good bet when he sees one. Nine years into a ten-year wager, now referred to as the “Million Dollar Bet,” Buffett has declared himself the winner. What exactly is the “Million-Dollar Bet?” In 2007, Buffett
Department of Labor Fiduciary Rule Likely Delayed
The Trump administration has hit the ground running since taking office in late January, moving at a tempo more reminiscent of a nimble business rather than the plodding pace of past administrations. One of the results of this swift action is that the Department of Labor Fiduciary Rule will likely
Dow 20,000: What’s in a Number?
The Dow Jones Industrial Average (DJIA) reached a major milestone earlier this year when it finally surpassed the 20,000 hurdle. The event was widely ballyhooed by investors and media outlets alike. Almost immediately, articles and news stories questioning how much higher the index could go began to appear. Our local
Will the Stretch IRA be Extinct Soon?
A popular estate planning strategy utilized by affluent investors may soon be disappearing. This past September, the Retirement Enhancement and Savings Act of 2016 passed in the Senate Finance Committee. If signed into law in the future, this bill would kill the popular stretch IRA strategy that allows investors to
How Did the Average Investor Do in 2016?
Openfolio, a company dedicated to providing information and transparency to investors, recently released some data about how investors performed in 2016. Openfolio aggregates the performance data from over 70,000 subscribers who voluntarily and anonymously share their investment portfolio information with Openfolio. The idea is that sharing data among its users
Financial Considerations for a Trump Presidency
Donald Trump’s improbable victory in early November’s presidential election caught many people by surprise. A Hillary Clinton victory looked almost certain if you believed most election polls and media outlets in the days leading up to the election, but as Tuesday night progressed a different story emerged. As a Donald
Social Security Benefits Update
It is the classic case of “I have some good news and I have some bad news. Which would you like to receive first?” The good news for Social Security recipients is that there will be a cost-of-living adjustment (COLA) for the first time since 2015. The bad news is
Why You Should Care About Real Rates of Return
Nominal interest rates are currently below zero in many countries, including Germany, Denmark, Switzerland, Sweden, and Japan. These levels have shattered the belief that zero is the lowest that interest rates can go. While negative nominal rates are a relatively new phenomenon, historically speaking periods of widespread negative real returns