Independent Investment Management and Financial Planning
Below you’ll find a summary of 3rd quarter and year-to-date returns for a handful of market indexes covering the globe.
Stocks continued to perform extremely well in the third quarter boosting year-to-date returns well into the double-digits. The top performing assets were foreign stocks with emerging market stocks more than doubling the returns of the U.S. stock market. Broad commodities have been the poorest performer for the year so far.
“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.”
– Norm Franz, Money & Wealth in the New Millennium
“The consequences arising from the continual accumulation of public debts in other countries ought to admonish us to be careful to prevent their growth in our own.”
– John Adams, First Annual Address to Congress
Executive Summary
I’ve often discussed the differences between the commissioned model embraced by brokers, banks, and insurance companies and the fee-only model of independent registered investment advisors (RIAs).
Besides obvious differences in compensation structure, independent, fee-only RIAs are also held to the fiduciary standard. If you want perhaps a more helpful and colorful explanation of the fiduciary standard, I suggest you check out entertainer John Oliver’s segment on the topic.
I’ve experienced weddings from a few different perspectives: as a guest, as the co-star, in a supporting role and as the bartender. Bartending is a great gig for a college-age kid by the way.
Bartenders are notoriously observant…especially once the guests are loosened up and start filling the dance floor because this is the time when things start to slow down for the bartenders giving them a chance to really observe the festivities.
Not long after this point (sometimes it feels far too soon when you’re a guest) the party begins winding down, and the cleanup begins, but you don’t need to be a bartender to make the following observations. In fact, I’m sure you’ve already made these observations:
Continue reading “What Does Free Beer Teach Us About Economics?”
If you have a large retirement account balance (e.g. IRA, 401k, 403b) a Roth conversion may make a lot of sense in retirement. For some people, a Roth conversion can drastically reduce income taxes over their lifetime (and their children’s lifetimes).
Many people, upon retirement, suddenly find themselves in a low tax bracket. For example, assume you retire at age 65. You no longer have any earned income. Additionally, you have over five years before you’re required to begin withdrawing money from your pre-tax retirement accounts like IRAs, 401ks, and 403bs, etc…
This creates a great planning opportunity!