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Don’t Miss Out, You’ll Regret It (Part 2)

Key Points

  • Solid financial plannings means taking care of any tax advantage you can.
  • However, it’s important to understand that most tax breaks have deadlines, meaning: you snooze, you lose.
  • The HSA could potentially be the best plan you never heard about.
  • This program allows you to potentially invest with pre-tax savings, and spend without taxes as well.

Continue reading → Don’t Miss Out, You’ll Regret It (Part 2)

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Don’t Miss Out, You’ll Regret It (Part 1)

Key Points

  • Tax planning is not just about figuring out how much to pay the government, it’s also about ensuring that your investment plan is tax efficient based upon your short-term and long-term goals.
  • Investments typically generate income from three different sources: interest, dividends, and capital gains; and each source is taxed differently.
  • These differences should be taken into consideration when forming an investment plan, as federal taxes can range from 0% to upwards of 37%. Continue reading → Don’t Miss Out, You’ll Regret It (Part 1)
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Classic Cars: Classic Mistake?

The World’s Most Expensive Hobby (Part 3)

Key Points

  • To invest wisely, you need to define a benchmark before you actually make any investment decisions.
  • Even if you have a benchmark in mind, an active investment philosophy brings a whole host of issues when it comes to tracking investment performance.
  • These issues ultimately obscure the true performance of active investors, which makes it very difficult to figure out if one is investing prudently or not.
  • This obscurity is what likely perpetuates an active investing philosophy; however, over time, this can lead sub-optimal investment performance for the average investor.

Continue reading → Classic Cars: Classic Mistake?

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Beware: This Strategy Could Cause You To Lose Your Shirt.

The World’s Most Expensive Hobby (Part 2)

Key Points

  • Investing is all about finding a balance that works for the long run.
  • Loss aversion can lead to underinvestment, but overconfidence can lead to concentrated bets, and as we’ll explore in this post, overtrading.
  • According to the research of Barber and Odean, overtrading can cost investors about 7% a year in returns on average. Yikes!

Continue reading → Beware: This Strategy Could Cause You To Lose Your Shirt.