FINANCIaL
FIELd NOTES
Long-Term Investors Playing Short-Term Games
Last month Elon Musk tweeted two words – “Use Signal.” He was referring to an encrypted messaging app you can get on your phone. Signal is a private company meaning most of us can’t buy the stock. However, there is a company called “Signal Advance,” a completely unrelated biotech company that happens to share the same “Signal” name as the messaging app Elon mentioned.
Is There A Margin Of Safety In Your Financial Plan?
Have you ever gotten onto a overcrowded elevator and stared anxiously at the “Maximum Capacity” sign wondering how close you really are to the limit? The good news is that when engineers design elevators, they include a margin of safety above and beyond the limit suggested for standard operation. The same is true for airplanes, cars, and just about anything else with strict regulation. Your financial plan should have a margin of safety, and you’re the one to regulate it.
A Special 2021 Tax Deduction
If you give to charity but take the standard deduction, you typically do not get a tax benefit for your charitable giving. Because of this, many individuals stopped recording their charitable gifts on their tax return because it was simply a waste of time. However, your 2020 taxes are a bit different. Congressed authorized a special charitable giving deduction last year to help increase donations, as many charities suffered through the pandemic.
The Real Magic Behind Warren Buffett’s Success
Many investors, including myself, admire Warren Buffet for his calm demeanor, timeless wisdom, and incredible investment success. However, the secret ingredient to his enormous net worth, which is north of $80 billion, is not his ability to time the market or pick winners – it’s simply time IN the market. Warren Buffet started investing as a young boy at the age of 11…
Fiduciary vs. Suitability and Why it Matters
In 2016, the DOL released the Fiduciary Rule, which for the first time brought to light two different types of financial advisors; Fiduciaries and Non-Fiduciaries. Before this, investors had very little knowledge of the differences. Studies have shown that nearly 50% of Americans believe ALL financial advisors are required to act in the best interest of their clients. However, this is sadly not true.
The REAL Cost of Poorly Timing the Market
I hate the term “learning experience” when it comes to investing mistakes. The cost is too high. This term was thrown around a lot this past summer and fall as the market rebounded from the March lows and started to make all-time highs again.