Stages of the financial life cycle

In my last blog I introduced the economic theory and field of study of life cycle finance, a principal goal of which is to construct a useable framework to help individuals improve their financial decision making to produce better monetary outcomes and maintain the smoothest and highest possible standard of living throughout their lives. Read more

Should you convert to a Roth?

A Roth IRA conversion is the process of transferring funds from an existing traditional IRA to a Roth IRA. The decision to convert presents an interesting quandary for investors. When you convert to a Roth IRA you’ll be accelerating income taxes on the conversion amount in exchange for tax-free growth and the opportunity to avoid required minimum distributions upon reaching age 70½. This permits more of an investor’s wealth to grow tax-free and for a longer period of time. It’s not an easy decision and clearly the Roth conversion is not for everyone. To make a smart choice investors need to Read more

Beware of high-yield investments

Today’s low-yield environment has left investors frustrated and searching for a reasonable return on their money. Seniors who rely on their portfolio income to help fund spending needs are especially vulnerable. Conventional sources of income such as Certificates of deposits (CDs) and money market funds yield almost nothing. Bond yields, while slightly higher, come with increased interest rate risk which threatens to drive down the value of the underlying investments once rates begin to rise.

In an attempt to generate more income many are turning to Read more