December 2018 Monthly Insight – Diversification
“You have to understand what market history looks like. What market history tells you is that the very, very best investments are made when things look the worst.” —William J. Bernstein Diversification of an investment portfolio is a best practice for long-term investors. You may think of it as “not putting all your eggs in one basket,” although it involves a bit more than that. Diversification is a risk management practice that mixes a wide variety of non-correlated investments within a portfolio. Correlation, as it relates to your...
read moreNovember 2018 Monthly Insight: The October Effect
“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” —Mark Twain Finally, the month of October is over. What is it about the month of October? The stock market crash in October 1929 ushered in the Great Depression. On Black Monday, October 19, 1987, the S&P 500 Index lost 20.5%, although an economic calamity did not ensue. During October 2008, the S&P 500 Index lost nearly 17%, the...
read moreThoughts on October 2018 Market Volatility
After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From September 30–October 10, the US market (as measured by the Russell 3000 Index) fell 4.8%, resulting in many investors wondering what the future holds and if they should make changes to their portfolios.1 While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. Additionally, for...
read moreDo You Need to Sign Up for Medicare at 65 if You’re Still Working?
For the past four decades, age 65 marked the time when you would leave your job, start your pension, file for Social Security, and enroll in Medicare. Not anymore. Since then, the retirement landscape has changed. Full retirement age for Social Security is 66 or 67. The traditional corporate pension has given way to the 401(k) plan, which is generally taken as a lump sum upon leaving employment at any age, rather than monthly payments beginning at age 65. Even more significant is the fact that many baby boomers are continuing to work well...
read moreOctober 2018 Monthly Insight: Becoming a Lifelong Student of Investing
“Tell me and I forget. Teach me and I remember. Involve me and I learn.” —Benjamin Franklin Have you ever embarked on a home improvement project? You are confident you can complete the task, but you are unfamiliar with the details. You need guidance from an expert. That is where your local home improvement store comes into play. The employees not only know their craft exceedingly well but are excited to share their ideas. You can see it in their body language and the sparkle in their eyes when they explain the nuances of a project. Plus, they...
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