Hot Topics

Are You Adequately Planning for Heathcare Costs in Retirement ?

Posted by on Apr 19, 2015 in Healthcare, Plan Retirement | Comments Off

Health of your WealthAccording to the 2015 Healthview Services Health care Cost Data Report, average healthcare premium costs for a 65 year old couple retiring this year will be over $266,000 during their lifetime.  When you include dental, vision, copays and other out of pocket health expenses that number rises to over $463,000. (more…)

How to invest like the best –Simple lessons to match the investment performance of the pros

Posted by on Apr 10, 2015 in Behavioral Finance, Cash Flow, Fee-Only Financial Planning, Financial Management, Financial Plan, Investment, Life Plan, Passive Investing | Comments Off

I just finished reading Mebane Faber’s Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies.  This book reviews the historical performance of major investment asset classes as well as several asset allocation strategies from popular investment professionals.  His findings show that despite significant differences in the proportions of the various asset classes used to build the pros portfolios, their long term performance was fairly comparable. (more…)

How Organizing Your Closet Helps Organize Your Financial Life

Posted by on Apr 7, 2015 in Budgeting, Financial Plan, Life Plan | Comments Off

Clothing messI decided to read Marie Kondo’s book, The Life-Changing Magic of Tidying Up: The Japanese Art of Decluttering and Organizing after reading an article about the popularity of the book  in the Wall Street Journal.  I am pretty type A, and didn’t want to pass up an opportunity to improve my organization skills.  The book did provide a few valuable specific tips. For example, your closet is the best place to start the organization process; and, try to store your folded clothing vertically (wow did that free up space in my drawers).  More importantly, I felt that Ms. Kondo’s core philosophy could help people improve their finances.  In fact, she noted that many of her clients remarked that after they had organized their homes, their finances improved.   (more…)

Your Greatest Risk to a Secure Retirement—Living Longer

Posted by on Apr 1, 2015 in Financial Plan, Life Plan, Plan Retirement, Social Security | Comments Off

Retirement Road Sign with blue sky and clouds.

Increasing longevity has significant consequences regarding a retiree’s ability to spend throughout retirement. (more…)

Maximize your college education tax breaks

Posted by on Mar 24, 2015 in Plan for College | Comments Off

CollegeWhen it comes to paying for college, most parents want to maximize their tax credits and deductions.  What many don’t realize is that there is a right and a wrong way to distribute funds in order to get these tax breaks.  Here are a few guidelines to help you save more on college education costs. (more…)

Implications of an Expensive Stock Market

Posted by on Mar 17, 2015 in Economy, Investment | Comments Off

PE10-percentilesThe stock market is currently not cheap.  How overvalued is it?  This blog by Doug Short analyzes current US stock market valuations based on several popular metrics.  His analysis shows that except for the years prior to and following the tech implosion of 2000, stocks are at their most expensive level in history, even exceeding valuations of 1929.  In fact the PE10 ratio, a popular method for determining whether the stock market is expensive or cheap, is approximately 64% above its average (arithmetic mean) of 16.6.