A little perspective on market volatility

A little perspective on market volatility

The recent drop in the stock market has made some people nervous. They hear about rising volatility and see the market falling and they wonder what it all means. While we still do not have the complete picture, the following explanation should help provide a little perspective on recent events.

Before we get into what’s been happening in the market, we need to establish a little background. There are two main kinds of volatility.

5 Ways the New Tax Law Affects your IRA

5 Ways the New Tax Law Affects your IRA

The Tax Cuts and Jobs Act of 2017 (TCJA) made significant changes to the way you and I pay taxes. It also makes more subtle changes that affect your IRA. Here are five ideas to consider as you think about your IRA under the new tax regime.

1.  Pay investment advisory fees with your traditional IRA. Although TCJA eliminates the tax deduction for investment expenses, you can still get a tax benefit for your advisory fees if you instruct your custodian to pay them directly from your IRA.

Supercharge your Career

Supercharge your Career

As we discussed in last week’s column, few things will have greater impact on your financial future than the decisions you make about how you save and spend money. However, sound financial planning also entails carefully developing your capacity to produce income. If you want to build your wealth, you need to give careful attention to nurturing your career.

So, You Want to be a Millionaire

So, You Want to be a Millionaire

In 1996, Thomas Stanley and William Danko published a revealing little book called “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy.” Though Stanley and Danko could scarcely have imagined it at the time, the book has become a personal finance classic, selling more than three million copies.

The book is a compilation of research the authors made into the financial habits of Americans with net worth greater than $1 million. One of the most interesting surprises, and the basis of the book’s title, was that millionaires were not typically ostentatious snobs living in upscale neighborhoods. In fact,

Feeling Nervous about the Market ?

Feeling Nervous about the Market ?

Q: The market just finished a very strong year and I’m feeling a little nervous that the bottom might fall out. Should I take my profits and move to the sidelines?

A: I understand why you might feel nervous. Even casual investors know that market rallies don’t last forever. However, if you want to be a successful long-term investor, you need to settle your mind on one very important principle: time in the market is more important than timing the market.

Most of us remember the market meltdown in 2008. Some of us remember other market debacles. Since my first job as a government bond trader in 1986, I have experienced the dot com bust in 2000, the Russian crisis in 1998, the Asian crisis in 1997, the Mexican peso crisis in 1994 and Black Monday in 1987.