FINANCIaL
FIELd NOTES
10-Year Market Outlook
Because of the variability of stock market returns in the short run, I steer clients away from short-term tactical changes to their portfolio and prefer to rely on the weighty evidence of history, along with long-term thematic trends in the market.
While no one has consistently and accurately predicted what the stock market is going to do, several well-respected firms provide long-term outlooks that have proven to be more accurate than short-term predictions…
Is Hyperinflation Coming?
A few weeks ago, on the heels of the highest inflation reading in 30 years (5.9%), Jack Dorsey, the founder of Twitter and Square, tweeted the following -
“Hyperinflation is going to change everything. It’s happening.”
It instantly sparked a lot of concern, and then debate. Exactly what is “hyperinflation” and are we heading toward it?
Do Lenders Really Know How Much Home You Can Afford?
“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain” - Mark Twain
Individuals in the process of buying a home with financing usually get a “maximum loan amount” from the bank. Some assume this is a reasonable estimate for what they can actually afford…
Why Average Returns Are Misleading
I often write about financial planning strategies that assume a rate of return. I try my best to use reasonable assumptions but even these assumptions can be misleading.
For example, the average return was 10% for the S&P 500 (or similar index) over the past 90+ years. Investing would be a whole lot easier if we could have the assurance that the 10% would come every year. Unfortunately, it doesn’t work that way…
Should You Keep Your Old Whole Life Policy?
Last week I wrote about the differences between term and whole life insurance. In general, I am an advocate for putting cheaper term policies in place and investing outside your insurance.
With that said, I talk to many individuals with whole life policies they put in place years ago. In some cases, their parents bought it for them and they still own it 60 years later!
The Math Behind Term vs. Whole Life Insurance
When deciding on life insurance, you have a lot of options to choose from. I am often asked about my opinion between whole life and term insurance. Whole-life policies are designed to last your whole life, while term insurance only lasts for a certain amount of time.
In general, I am an advocate for term insurance but there are some benefits to whole life…