Why has the market recovered even while the economy has grown worse? The answer is that the stock market is not the economy.

One of the interesting things I’ve noticed during my chats with clients is how often folks approach their finances with no clear outline of where they are going. A good financial plan includes goals, savings, budgeting, taxes, and an investment plan for the future.

The economic consequences of the global Covid-19 outbreak and the associated decline in economic activity from quarantines, business closures, and social distancing have been staggering.

Many people have the perception that their tax bill each year is chiseled into stone and an unchangeable result of their financial situation. But the reality is that there is many things you can do each year to optimize your taxes,

Many people keep putting off things they need to do until the “start of the year”.  Following a budget, saving for retirement, opening an IRA, refinancing the house, and a host of other things fall into this category. 

That is, compound interest has massive benefits to your investments over time, particularly if your dividends and interest are being reinvested to buy additional shares, and you’re receiving a free match through your employer retirement plan like a 401k.

A Health Savings Account (HSA) is an investment account that allows savers to invest capital into traditional assets (stocks, bonds, etc.), and then later use that money to help pay for medical expenses. 

The average person is going to need somewhere between 60-80% of their current income to maintain their standard of living during retirement. Why is the estimate for retirement lower than current income?

The insurance industry sows confusion by calling their salespeople “financial advisors”, when in reality they are annuity or life insurance salesmen. Once you wade through the sea of insurance salespeople, it is then possible to find a Certified Financial Planner CFP.

One of the most popular budgeting plans is the 50/30/20 plan. This means that 50% of your after-tax income should go towards necessities, 30% towards “wants” and 20% towards debt and saving for retirement.

However, there are some minor differences that in our opinion make ETF’s superior for retail investors. Both ETF’s and mutual funds are containers that hold many different types of stocks within them, but those containers are different from each other.

The concept of a “fiduciary” can be applied to a lot of situations, as it generally means a person who acts on behalf of another person to manage assets. Essentially, a fiduciary is a person or organization that owes to another the duties of good faith and trust. They can be board members, the trustee of a trust or estate, or even an attorney to a client.