“Given the uncertainty in the stock market, should I stop contributing to my 401K?” It’s a question we hear all too often as nervous investors follow the news of the stock market’s ‘wild ride’. Many clients think about stepping off the wild ride, thinking they can sit out the market’s fluctuations to avoid losing money. But very often, when you have the strongest emotional urge to step out of the market, you will create the very outcome you fear.
The question of should you convert your IRA into a Roth IRA and when is, of course, dependent upon your personal situation and financial position. Your financial advisor can help you look at where you are in your life right now – your age and financial outlook – to help determine if making the switch from IRA/401K to a Roth IRA makes sense for you.
When you hear the term ‘portfolio diversification’ with regard to your investments, you might believe you’ve got a clear concept of it: don’t put all your eggs in one basket. Sounds simple enough. But there are many categories and degrees of risk that each of your ‘eggs’ can encompass, making this simple concept much more complex. So, while you correctly understand that portfolio diversification is not having all of your funds allocated to a single type of investment, there’s far more detail to delve into.
There are many common investing myths that can be very costly, leading you to be too conservative, too risky or avoid investing completely. We’d like to steer you away from some of the most common investing misconceptions – better known as traps – that can significantly injure your investment power and financial strength.
If you’re thinking about getting into the real estate market, or expanding your real estate portfolio, you’ve likely heard the term REIT. A REIT, or Real Estate Investment Trust, is a company that owns or finances real estate properties. You invest in the company that owns multiple income-producing properties, and you are not the landlord getting 3 AM calls about broken heating or dripping faucets. Someone else handles that. You own, and you collect your dividends without bailing water out of a flooded basement or changing light bulbs on a 20-foot ceiling.
President Obama took a shot across the bow of Wall Street recently by suggesting that big brokerage houses and insurance companies be held to the Fiduciary Standard when it comes to dealing with 401k and other types of retirement plans.
We are all familiar with the old adage that to be a successful investor you must buy low and sell high. I’m not sure anyone would argue this fact but unfortunately for most people this is a rather elusive concept. Why?
A 401(k) retirement plan is an employer-sponsored retirement savings program that enables employees to save for retirement by making pre-tax contributions. A 401(k) is the dominant retirement plan scheme that most people in the U.S. will use to provide a decent income once they retire.