Financial Planning Blog

Recently, a client asked me this question: “How do you decide how much of my account to put into foreign stocks?” As usual, a short question results in a longwinded answer. Here goes: Equities can be classified as belonging to the: 1) Domestic Market, 2) International Market, and 3) Emerging Market. We find it useful […]

The diagram below outlines the scope of our financial planning services. The core of it is the Wealth Management Plan – the majority of our research and servicing time is spent managing your investments. Many financial advisors confine themselves to this area to the exclusion of all else. We choose to also address four other […]

To convert, or not to convert: that is the question: Whether ‘tis nobler in the mind to suffer The slings and arrows of tax increases, Or to take action against a sea of future required minimum distributions, And by converting end them? OK, now that Shakespeare is spinning in his grave, let’s tackle the tax […]

Zimbabwe is the first country in the 21st century to hyper-inflate their currency. The country recently had an annual inflation rate of 80 billion percent, which means that prices there are doubling every 12 hours. Needless to say, the economy is now on a barter system. “I’ll give you my pet crocodile and this Game […]

In the 18th century, it was assumed that all swans were white. No one in the civilized world had ever seen a swan of any other color. The statement: “Swans are white” was as self evident and obvious as any other fact taken for granted, such as the fact that the sun rises in the […]

In recent weeks you may have heard the “R” word bandied about. When discussing the economy, it is a dirty word! The mere mention of recession is enough to put fear into the hearts of investors, and the expectation of recession can become a self—fulfilling prophecy: If enough investors and consumers become pessimists, they can […]

The cheerleaders for recession were about a year early, but it appears that they finally have their way, partly due to their own efforts. Perception can become the reality, and with confidence at very low levels, spending, business activity, and investing decrease, and this can lead to recession. In my opinion we will see contracting […]

There are different opinions as to the proper use of insurance. Here is my view: Insurance should be used to buy protection from unlikely, catastrophic events. Good examples of risks that are suitable to insure include: A house fire A catastrophic injury or illness A lawsuit due to an automobile accident A death or disability […]