BWFA has been underweighting allocations to bonds and other interest-rate-sensitive investments, given that many of these choices pay very little, and there is a risk to principle eroding, if interest rates go up. Bonds may not be as glamorous as stocks or commodities, but they could be a component of some investment portfolios. Bonds are […]
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Understanding IRAs
An individual retirement arrangement (IRA) is a personal savings plan that offers specific tax benefits. IRAs are one of the most powerful retirement savings tools available to you. Even if you’re contributing to a 401(k) or other plan at work, you may want to consider investing in an IRA. WHAT TYPES OF IRAs ARE AVAILABLE? […]
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Do You Have Too Much Cash, Earning Too Little?
Determining the right amount of cash to hold is a much more complicated decision than most people think. You want to have enough cash on hand for monthly expenses, for unexpected large expenditures, and for an emergency fund in case of job loss or similar event. However, too much cash can negatively impact your overall […]
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What About 1968?
In the most recent June 2020 BWFA Advisor magazine, I wrote, “What a Difference 100 Years Makes…or Does It?”. In the article, I drew comparison to today’s pandemic with the Spanish Flu pandemic of 1918. What we saw is, despite the unimaginable human suffering and death, the stock market found its bottom and subsequently moved […]
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Net Unrealized Appreciation: The Untold Story
If you participate in a 401(k), ESOP, or other qualified retirement plan that lets you invest in your employer’s stock, you need to know about net unrealized appreciation — a simple tax deferral opportunity with an unfortunately complicated name. When you receive a distribution from your employer’s retirement plan, the distribution is generally taxable to […]
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The Power of Perseverance
THE CASE FOR STAYING INVESTED Although short-term volatility swings can be difficult to stomach, it’s important for long-term investors to persevere. While it may be tempting to pull out of the stock market, investors may miss out on a potential market rebound and opportunity for gains while they are on the sidelines. In the chart […]