FINANCIaL
FIELd NOTES
How the Media Creates “Experts”
I was recently listening to a podcast hosted by a few advisors who are also popular in financial media. One of them had recently been brought on by several media outlets to talk about one of their predictions for 2023.
As a way of establishing credibility, the media outlets cited one of his 2022 predictions that he got right – the S&P will have its worst year since 2008. Financial news outlets had subject lines that read something to extent of “this analyst who forecasted market downturn in 2022, now says...”
What is the Best Way To Save for Your Grandchildren?
I recently had a client tell me that they had been thinking about saving some money for each of their grandchildren but were unsure about the best way to do that. I’ve seen families over the years put off saving because they weren’t sure exactly how to go about that.
Start by asking yourself what you want the money to accomplish. Is it something specific like college or a first home, or is it more general like setting them up for success early in life?
Here are a few different ideas to consider…
Three Timeless Lessons from Warren Buffett’s Annual Letter
Last month Warren Buffett published his annual letter, which as usual had timeless pieces of wisdom in it. Below are a few of my favorites.
#1 - Focus on dividends and earnings during market downturns. In 1994 they bought $1.4M of Coca-Cola. Last year that stock paid them dividends of over $700M…
Why “Full Retirement Age” Is Not a Magic Date
For years when you would open your Social Security estimate, there would be a big number in the top right corner – the amount per month you were estimated to get at “full retirement age” (FRA).
There was a tremendous focus on this specific age, which resulted in many people assuming that was the ideal date to claim benefits…
The New 529 to Roth IRA Strategy Under SECURE Act 2.0
I recently wrote about some of the key changes under the new SECURE Act 2.0, which includes a provision to transfer unused 529 funds to a Roth IRA.
Beginning in 2024, some owners of a 529 will be able to make limited transfers tax-free to the beneficiary’s Roth IRA. There are many rules around who is eligible and how much of the funds can be transferred…
Why I Finally Decided to Freeze My Credit
I was recently talking with an advisor who had his identity stolen. An attempt had been made to take out a $100,000 loan in his name from his very own bank! Because the bank had sent him numerous emails offering loans that he had sent to junk, the email notifications for this loan had been lost in a spam folder.
This experience pushed him to do a lot of research and he came to this conclusion that he shared with me. You should assume that your personal information is out there…