President Ronald Reagan stated in 1983, “The full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate.” On Aug. 2, the U.S. Treasury will no longer be able to pay our nation’s obligations. Congress is at an impasse, essentially faced with two immediate choices: …
Retirement Regrets
I was reading an article on Yahoo! a few weeks ago and author Mark Patterson closed his piece by saying, “The pain of financial discipline will be far less than the pain of retirement regrets.” The statement really struck me, and I started thinking about how many retirees look back on what they could have – or should have – …
The Investor’s Curse Part II
As an investor, you need to be aware of the underlying biases and human tendencies that can influence your behavior and cause you to act irrationally. In the most recent blog post, we discussed how emotions and psychology often have a negative impact on our investment decisions. We took a closer look at recency bias and herd mentality, two common …
The Investor’s Curse
When it comes to investing, emotions and human nature often influence our decisions, causing us to behave imprudently or illogically. Why does this happen? Behavioral finance is the study of psychology as it relates to the fields of economics and finance to explain why and how people make irrational financial decisions. For years, it was assumed that “conventional” economic theories …
Three Simple Steps to Make Your Retirement a Reality
STEP 1 – Make a Plan If you wanted to build a house, you wouldn’t start with a pile of bricks and tools and then try to figure out how to build your home based on the materials lying in front of you. You would first have a blueprint that offered exact dimensions and specifications about how your house should …
10 Things You Should Know about Medicare Part D
1. What is Medicare Part D? Medicare Part D is optional, prescription drug coverage. It helps pay for out-patient prescribed medications. Part D is sold by private companies that are approved by Medicare. 2. Am I eligible for Part D Coverage? If you have Medicare Part A and Medicare Part B, you are eligible to get prescription drug coverage through …
Ten Retirement Lessons From the Smartest People I Know
I recently happened on a thought-provoking article by, Paul Merriman, in Advisor Perspectives. He called it “Ten Retirement Lessons from the Smartest People I Know”. From my unique vantage point as a financial advisor, financial radio talk show host and financial mentor to thousands, I too have the good fortune of knowing and watching a lot of really smart people. …
Why Buy Term Life Insurance and Invest the Difference
If you were to die tomorrow, who would suffer financially? This is the planning question you use to decide whether or not you need life insurance. If the answer is no one, it’s simple. You don’t need life insurance. If the answer is someone – your spouse, children, parents or business partners – you do. When the answer changes from …
Is running out of retirement money a fate worse than death?
Imagine this – the year is 2040. You are 80 years old, in reasonably good health, and you have just spent your last penny of retirement savings. You have no other sources of income. For the rest of your life, you will rely on government handouts and the charity of others. Sit with that image for a moment and then …
What to do with your 401(k) or 403(b) if you leave your job
A while back, I had the radio on in the car, listening to an investment show on the radio: “Hi. My name is Ron. I am a first time caller.” “Hi, Ron. What can I help you with?” “I was laid off from my employer due to downsizing. I was wondering whether to leave my 401(k) where it is or …
