Tag Archives | contributions


Why may a person’s return calculation be wrong?

People often get the calculation for their investment rate of returns wrong. Most people use the average rate of return which completely ignores the time value of money. The average rate of return may over, or under, state actual returns and are not suitable for comparisons with other investments. Most investments people have receive money at various […]

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Waiting to Invest: Costly Later @AdviceIQ

You may have seen a general discussion like the below before. However, have you actually gone to online calculators and looked at YOUR SPECIFICS? Have you looked at how time makes it more expensive later for YOU to reach any financial goal you have? It’s easy. You have more time on your side NOW! Will you have the […]

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Will investors ever stop underperforming their own investments?

Will investors ever stop underperforming their own investments? The theme in both of these articles by Jason Zweig is what happens when investors (or their advisers) chase trends and lose sight of what they really ought to be doing. How Investors Leave Billions on the Table – MoneyBeat – WSJ. “So find a financial adviser […]

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Which is better? Contributions or investment growth?

Most people rely on growth of their investments to reach their savings goal. But … it depends on how old you are to make that work. Why? Because, compounding doesn’t really kick in until the later years. When you are older (than 45), you don’t have those “later” years anymore. True, what you have saved […]

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cake and eat it

Pre-pay your Mortgage Now; Save for Retirement Later?

We all have competing goals with our money. One of the most common questions is whether to pay off the mortgage OR to save for retirement. Here’s an interesting argument on Kitces blog that accelerating your mortgage payment to pay if off earlier is less risky than keeping the mortgage in today’s interest and market […]

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How do you track how you are doing?

Returns. This is what investors have “learned” to be important so they can judge how they are doing. Returns may be a method to evaluate how your investments are doing relative to other investments. But that is a poor way to check how you are doing relative to your goal! The above nuance is important so you understand […]

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ends meet

Live within your means – what does that mean?

Most people think of living within their means as being without debt. Well, that’s part of it. But, my experience working with people it that they are still over spending. How can that be if they’re debt free? Doesn’t this mean that they are making ends meet? That they’re not spending more than they make? […]

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Retirement – Simplified!

Confused how to determine what to do for retirement? You know you’d like to support today’s standard of living … but how do you translate that easily into a retirement number? When can you retire? Investing … what’s more important – contributions (pre-), draw downs (post-), or returns (both pre- and post-retirement)?   These short articles put things […]

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The slippery slope of chasing returns!

How soon people forget about the flip side of returns.* “The markets have been up for a while now.” “My accounts are up.” And many other similar statements are heard about markets and accounts. A sigh of relief (emotion). And the the insidious happens! You start comparing what has gone up the most (emotion – […]

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roller coaster

Wait for a better market?

One of the most common questions I get … Should I wait until the market goes up before I make another contribution to my fill in the blank  … my IRA, 401k, 403b, individual account, joint account? This is really a market timing question. And it ignores a truth about markets … they go up and they […]

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