The golden rule of withdrawal rates is of course the 4% rule. You simply withdraw 4% of the portfolio in year 1 of retirement and adjust that amount with inflation in subsequent years. That should safely fund a 30 year retirement. While the 4% withdrawal rate is a good rule of thumb, here are 3…

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You have probably been reading about inflation concerns lately. I recently read a great article outlining where inflation is and isn’t according to the Bureau of Labor Statistics. Here is the article In summary, here are the top 4 categories that have seen the highest and lowest price increases Highest Rental cars Gas Used cars…

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In order to help offset the $3.5 trillion domestic investment plan, House Democrats are proposing tax hikes in several areas. See below for some of the highlights: Increase the top corporate tax rate to 26.5% Increase the top individual tax rate to 39.6% 3% additional tax surcharge on individual income above $5 million Increase capital…

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Raise your hand if you have ever felt being pulled in a thousand different directions? (I am raising my hand right now.) Sometimes, I wonder when it will slow down. I often tell myself, “just get to next month and things will settle down.” While this may hold true, if we aren’t intentional with how…

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I recently caught up with one of my clients that recently retired. She loves the outdoors and water. She wants to put in a pool in her backyard but exclaimed, “It’s so much money!” Backstory is that she is financially sound, house is paid for, has multiple streams of retirement income, and is well positioned…

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ESG investing is gaining traction, and it’s no wonder. Research increasingly shows that this investing method can reduce portfolio risk, generate competitive investment returns, and help investors feel good about the stocks that they own. But first, what is it? In short, ESG investing is the consideration of Environmental, Social and Governance factors alongside financial factors…

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With US stocks outperforming non-US stocks in recent years, some investors have again turned their attention towards the role that global diversification plays in their portfolios. While non-US equities have recently delivered disappointing results, it is important to remember that investing globally provides valuable diversification benefits. Have a look at the chart below. We see…

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I’ll be the first to tell you that cryptocurrencies are exciting. While it is exciting to see its sharp rise in popularity, it is important to understand whether it has a role in a diversified portfolio. Putting aside squabbles over the future value of bitcoin or other cryptocurrencies, here are a few issues you should…

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Investors often think of gold as a hedge against inflation. As Exhibit 1 shows, however, gold has been about 15 times more volatile than inflation. Over the period from January 1970 – December 2019, the annualized compound return for gold was 7.81% with a volatility of 19.24%. For comparison, the annual inflation rate has been 3.91% with…

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