A variable annuity is a deposit with an insurance company like a regular annuity. The big difference is that you decide how to invest the money and you have many choices (including growth mutual funds). As long as you keep your money with the insurance company, you don’t have to pay tax on any growth. […]
How Investments Returns Jeopardize Your Financial Future
If you give in to the urge to focus too narrowly on your investment returns, you are looking for trouble. This point was brought home to me yesterday when I spoke to Caroline. Caroline is 37 and Jim is 35. They have 3 kids and after speaking with them for a few minutes, it seemed […]
What To Do With Money You Might Not Need Immediately
You already know how to invest your very short-term money. Stick in the bank and don’t worry about the low return – the liquidity and safety are what you need. And you know what to do with long-term money too. Use a long-term growth strategy that matches your goals and comfort level. But what do […]
Who Is Going To Spend Your Beneficiaries’ Money?
Please explain to me why most people work so hard to accumulate wealth and spend so little time protecting it for their family? It makes no sense. I mean think about it. By the time you leave this world either you’ll be broke or you’ll leave assets – one or the other. If you die […]
Creating a Financial Plan for Free
You will have a far better life if you have a financial plan, stick to it and revisit that plan every couple of years. You will feel more in control and you’ll achieve your goals far easier and much sooner. I have no doubt about that. And based on the last 30 years of my […]
How Do Bonds Work?
Interest rates are going to move up. Of course I don’t know how quickly that’s going to happen but it will happen sooner or later. If you own bonds that’s really important to understand. Bond buyers are attracted to safety and attractive yields but sometimes that strategy can backfire. That’s because as interest rates rise, most […]