FINANCIaL
FIELd NOTES
The Risks of High-Dividend Investing
A few years ago I was asked by a client if we should consider moving a significant portion of their stock investments into dividend-paying stocks. I can understand their perspective – the promise of regular, consistent dividends can be tempting, especially for retirees on a mostly fixed budget. For example, a retiree who owns $1,000,000 of ABC high-dividend stock fund that pays them $50,000/year in dividends can provide a sense of security.
However, investing in companies solely for their high dividend can introduce a number of risks that investors should be aware of…
What I'm Teaching My 6-Year-Old About Money
Zeke, my oldest child, just turned 6! This has been a special year as I watch him take an interest in some of my earliest childhood activities – climbing trees and making forts, building slingshots from broken branches, and turning any simple activity like taking the trash out into a race.
One of the things we have been working on in the past few years is that it’s okay to wait. Delaying gratification makes whatever you are enjoying all the better because of the wait…
Making Sense of Medicare, Part 2 – The Cost
Last week, in Part 1, I reviewed the 5 pieces to Medicare and the two main ways to get Medicare coverage. This week, in Part 2, I will outline the cost for the two routes to get Medicare. With Medicare open enrollment around the corner (starting October 15th), now is a good time to review your coverage and consider any changes…
Making Sense of Medicare, Part 1 – The 5 Pieces
Medicare is a confusing topic to navigate, in part because there are so many choices. In the first part of this series, I will discuss the various parts of Medicare. Next week I will discuss the cost of putting these pieces together.
There are 5 pieces to Medicare…
How Being Present Increases Happiness in Retirement
I love the game of soccer. I played it growing up for many years and still try to catch as many games as I can. Those who share my love of the game certainly know who Lionel Messi is – arguably the best player to ever play the game. He was recently offered a historic $1.6 billion to sign with a Saudi club. He declined it and surprised the world by signing with a US soccer club owned in part by another great of the game, David Beckham.
Beckham was trying to land Messi for years but knew it was a long shot. Earlier this year he woke up one morning to a shocking text informing him that he had landed Messi. Just recently Messi moved to Miami and had his debut game. As Messi got ready to take the field, thousands of fans and celebrities whipped out their phone to record the moment. As I watched Messi come onto the field, the camera panned to Beckham who was sitting down, patiently watching Messi and fully taking in the moment…
My Thoughts on $1 Trillion of Credit Card Debt
Last week financial news outlets raised alarm bells on consumer credit card debt as it passed the $1 Trillion level.
Let me start by saying that any and all credit card debt should be eliminated first in most situations. It is nearly impossible to get ahead financially while paying 15-25% interest on that debt. Credit card debt is no joke.
But many have used this moment to suggest that the US consumer is overspending on an unsustainable path. “This can’t go on forever.” It may come as a surprise to some that it actually can go on forever…