Retirement

Spotting the Warning Signs of the Next Correction.

Spotting the Warning Signs of the Next Correction.

On a hot summer day, I was flying my single-engine Piper Comanche from Schaumburg, IL to Indianapolis, IN. I decided to fly higher than ever before (9000 feet). With the tailwind, I touched 200 mph. The sky was crystal clear; I could see across Lake Michigan. I felt like I was in the stratosphere and […]

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Are Annuities Worth the Risk?

A decade ago I believed annuities were for rich people, the average person probably doesn’t need them. Investing through an insurance company is generally expensive. What do retirees need from their retirement plan? Whether you have a pension, 401k, IRA or a combination, most people say they want “guaranteed income” for the rest of their […]

Where to Invest For the Next Correction.

Where to Invest For the Next Correction.

My grandfather, William Paul Smith was an ordinary dairy farmer with a degree in common sense. One of his favorite sayings was, “It’s the same thing, only different.” 70 years ago, he warned me not to throw rocks at a wasps’ nest. As I cried and put ice on the sting, he explained what happened always happens […]

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How Do You Know When You Have Good Debt or Bad Debt?

Remember when pundits suggested the way to get rich quick was to use “Other People’s Money” (OPM)? They pointed to real estate empires and stock market success resulting from investors leveraging debt to accumulate wealth. It’s not as easy as it sounds. I moved to Atlanta during the cable TV boom. Several friends worked for […]

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Should You Pay Off The Mortgage?

I’m frequently asked about paying off a home mortgage. I tell everyone, “It depends!”. I asked that same question. A friend said his CPA was emphatic that one should not pay off their mortgage. He arranged a meeting where the three of us could talk. The CPA asked about the interest rate; 6% at the […]

Safety, Income, Growth… And a Compelling Comeback Story

Safety, Income, Growth… And a Compelling Comeback Story

With 2018 just over a week old, many investors will have set about rebalancing their portfolios for the year. Don’t worry… this isn’t another asset allocation article that you can find anywhere. Everyone knows you should have a mix of stocks, bonds, precious metals, and cash. The weighting of each class is largely determined by […]

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Dollar Cost Averaging versus Stop Losses

Subscriber Rick G. recently asked a great question. “What do you think about the theory of ‘buying on dips’ and ‘dollar cost averaging’? If the price of a dividend paying stock goes down, buying more will increase your yield; however, that seems to be at odds with the idea of why an investor should have […]