Investment Frequently Asked Questions

In what should I be invested?

We make no recommendations before completing our due diligence. Only after we have a clear picture of your risk tolerance, income needs, tax situation, time horizon, and cash flow position do we make any investment recommendation.
There’s no such thing as a perfect investment. Each investment product on the market was designed to accomplish a specific purpose and has its own risk and reward characteristics. Whether it is a managed account with mutual funds, ETFs, individual securities, bonds, annuities and insurance products, our job is to match you with the appropriate vehicle.

Will you do socially responsible investing for me?

Yes of course. There are several mutual fund companies that screen their underlying investments for various social and/or religious criteria. by various

How much do I need to retire?

We can do a projection for you. For example, say you want to retire 10 years from now; you want to have an income of $100,000 in today’s...

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A Guide to 403b Retirement Accounts

 

A retirement plan sponsored by a non-profit
Most people are familiar with the 401k, but what’s a 403b? Basically a 403b is a retirement plan that is sponsored by a 501c3 organization, meaning a not-for-profit employer. A local school board or hospital are good examples. The employee invests in mutual funds or annuity contracts – the only choices available. If annuity contracts are the only investment choice, the plan is likely administered by an insurance company, and can also be known as a TSA, or tax-sheltered annuity.

Money can go into your account from two sources: deferrals from your paycheck (money that you could have taken in cash) and your employer can also make contributions. The employer’s contributions can be discretionary or according to a match formula. Say the employer will offer you 50 cents on the dollar of whatever you contribute, up to 6% of your earnings. That’s a fairly typical formula. We’ve seen some out there more generous, and...

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What Do Your Mattress and a Roulette Table Have in Common? (HINT: more than you think.)

With this blog post we’d like to share some thoughts with our readers about investment risk tolerance.

Generally, we think about risk as a bad thing – something we want to avoid. “I won’t drive faster and risk a speeding ticket”, and, “No, baby, that dress doesn’t make you look fat,” are two examples of conscious choices made to avoid unpleasant consequences.

The context for risk in this post is investment risk – I put money out there in some type of vehicle, and expect it to be returned to me, and then some. And then some can be interest, dividends, capital gains, and lottery winnings.

The risk return spectrum looks something like this:

  • If I keep money under the mattress, what is my expected return? Zero. It is not invested.
  • If I want safety, and put my money in the bank, what is my risk? Next to nothing. But the return is also small.
  • I can make a little more money in bonds with some risk to my invested principal –...
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