Ogden Nash once said, “Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.” As the year comes to a close, the graduating class of 2011 will experience the not so fun part of debt as they begin the repayment period of their student loans. The six month grace period that they received after graduating will end this November, and they will be forced to begin making payments on the debt that they acquired over the last four or more years of school. Many graduates are worried about their ability to repay the balance of their loans.
The 5 Players Who Should be on Every Caregiver’s Team
It‘s been estimated that nearly 66 million people in the United States provide care to a family member. Yet many people feel unprepared and unqualified when they are thrust into the role of a caregiver. Luckily, there are experts who can help you with the myriad of responsibilities, decisions, and feelings involved with taking care of a loved one.
This Year’s Resolutions
What is going to be on your New Year’s Resolution list this year? As 2011 comes to a close, you are probably beginning to work on a list of goals that you want to accomplish next year. If you’re like most, you probably will resolve to become healthier in 2012, but have you considered bettering your financial health this coming year?
Your Awful Annuity Investment
Are you considering making an investment in an annuity? Do you truly understand the product and all the guarantees, fees, and expenses? In discussions with prospective clients looking to change their investment strategies many have been comparing our strategy with annuities. Even after our conversations, many investors still do not understand the disadvantages of these investments.
The Hazards of Market Timing
For as long as markets have been around there has been a subset of participants that believe they can outsmart the market. These investors are frequent traders that believe they can consistently time the market to buy low and sell high. Over the years investors have developed many techniques from the fundamental analysis of companies’ financial statements to drawing lines across charts of a stock’s historical price movement. Do these techniques work in the long term? The data suggest they do not.
Caution: Retirement Approaching
It’s an understatement to say that times have changed since the financial crisis in 2008-2009. People have in no way forgotten the crisis and the uncertainty surrounding current political and fiscal policies have undoubtedly had an influence on our behaviors over the past several months. It’s perfectly natural to adjust to the environment surrounding you; however, there is one area I’ve seen change that will have a negative impact on many peoples’ lives in the future. People have significantly reduced the amount they are saving for their retirement.
Time to start Year-End Planning
The last few months of the year are always busy – holidays, travel, time with friends and family. My recommendation: knock out your Family CFO year-end tasks before you get caught up in all the rush. If you start now, you will have one less thing to worry about. Here is a list to help you get started:
Think Income While Saving for Retirement
Have you ever asked yourself “Am I saving enough for retirement?”, if so you are not alone. There are many calculators and software programs readily available online to help project what your portfolio may be worth at retirement. The problem I see with many of these tools is that they put far too much emphasis on the total dollar amount accumulated at retirement. Instead of worrying about a total amount to save for retirement, investors should start focusing on how much monthly income their portfolio will be capable of generating in retirement.
It’s that time of year…
As the holiday season quickly approaches, it’s important to prepare yourself for all the costly expenses that come with spreading Christmas cheer. Here are a few helpful tips that may keep you from going overboard this season.
Winter: The Season Before Spring
Winter. The word alone brings images of kids playing in snow (unless you’re from Texas), Santa Claus, and a plethora of religious holidays such as Christmas, Hanukah, and Kwanzaa. However, to Snider Method investors, the word “winter” causes people to cringe and have premonitions of the Apocalypse. Winter is a term used in the Snider Method to describe a position that is not able to generate any option premium. Winter positions are never fun and I get many calls from clients asking how to get their positions out of winter, if there is some way to strategize their way out, or simply sell the position and move on. However, the question you should be asking isn’t “How do I escape winter?” but rather “What are the alternatives and is it better than waiting?” There are three main alternatives: selling the position and starting over, buying more stock to reduce the cost basis, and Transmogrification.
