What is the role of fixed income in a balanced portfolio?
Balanced portfolios combine various asset classes and investment strategies to balance an appropriate level of risk with an acceptable level of return. These portfolios are typically comprised of a mix of equities (i.e. stocks) and fixed income (i.e. bonds). Historically, bonds have served three major purposes in balanced portfolios: diversification, capital preservation, and income generation.
What steps should you take if you’re concerned about cognitive impairment for yourself or a loved one?
Cognitive impairment is a growing reality as we age and can be difficult to either experience firsthand or watch a loved one suffer from, even if they only have mild cognitive impairment. Unfortunately, according to the Alzheimer’s Association website, approximately 12-18% of people age 60 or older are living with mild cognitive impairment, and more than 6 million Americans are affected by Alzheimer’s. Any form of cognitive impairment can put you or your loved one at risk for a financial mishap and undo years of careful planning.
What is my risk tolerance, and why is it important?
Risk tolerance refers to the amount of loss an investor is prepared to take on when making an investment decision. Everyone has a different level of risk tolerance based on their personal financial situation and stage of life, and this level of tolerance plays a critical role in determining the allocation of your portfolio.
Why didn’t you include XYZ stock in my portfolio?
We get this question on a regular basis, usually when the stock in question has recently been in the news and has seen a meaningful move higher in price. When building portfolios, we choose high-quality companies with consistent and predictable earnings through a detailed evaluation process.
Is now the right time to revisit my investment strategy or asset allocation?
It is always the right time to revisit your investment strategy or asset allocation. In fact, we recommend that our clients meet with their advisor on a yearly basis, or following a lifechanging event, to revisit their risk tolerance, update their financial plan, and ensure they are still on track to achieve their goals.
Should I keep my life insurance after I retire?
Life insurance serves an essential purpose during your peak earning years. Providing financial support for your loved ones in the event of a premature demise is incredibly valuable. Later in life, the question becomes, “should I keep my life insurance policy?” The answer, like most financial advice, is “It depends.” This article provides general guidance when considering your policy.
What are 529 College Savings Plans and their tax advantages?
As college costs continue to rise (the estimated cost per each year of college at a 4-year public university for today’s newborns is over $50,000 per the College Board, College Cost Calculator), it is important to evaluate different opportunities to save for college and invest sooner than later.
Why do I need a financial plan?
A “good” financial plan is one that is custom to your needs and will create a road map to help you achieve your goals. Depending on your situation, your plan can focus on a few life goals or provide a more comprehensive plan addressing your entire financial situation.
Our team of wealth management advisors, financial planning advisors, and tax advisors regularly write articles to answer frequently asked questions (FAQs). These articles cover topics spanning our comprehensive service offering. We often include the Q&As with our monthly client newsletter covering the current “State of the Economy” and firm updates. In addition, each service page features relevant Q&As to offer additional insight. You can view these articles by scrolling to the bottom of each page and toggling right or left.
Examples of topics our articles cover include: definitions for the different types of power of attorney, the roles of both dividend-paying stocks and fixed income stocks in a portfolio, information on 529 college savings plans, etc. Contact our team if you have any questions regarding our articles and how they relate to your investments.
Furthermore, our goal is to shed light on complicated topics related to wealth management. We hope that by doing so, you can spend less time worrying about your finances and more time making memories. Please send us a note through our contact form if you have suggestions for future articles. We hope you find these articles insightful and educational. Your feedback is always appreciated.
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