Creating and Following a Real Financial Plan


The Right Type of Life Insurance for Your Estate Planning NeedsThe Right Type of Life Insurance for Your Estate Planning Needs

Life insurance has been associated with estate planning for decades. Life insurance works for estate taxes because they are due when death occurs, the same trigger that pays life insurance death benefits. But one life insurance size doesn’t fit all estate planning situations. This article examines common situations.

Creating and Following a Real Financial Plan

Carl Richards

Understanding why money is important can create a framework for making better financial decisions in the future. Carl Richards, a certified financial planner, director of investor education for the BAM Alliance and creator of the Sketch Guy column at The New York Times, talks with AAII Journal editor Charles Rotblut about the benefits of having an easy-to-follow financial plan.


Social Security and Medicare Can Raise Retirees’ Tax RatesSocial Security and Medicare Can Raise Retirees’ Tax Rates

This article explains how the taxation of Social Security benefits and income-based Medicare premiums can cause a retiree’s effective marginal tax rate (the tax rate on the next dollar of income adjusted for the impact of Social Security benefits and Medicare premiums) to substantially exceed their tax bracket.


Reassessing Your Risk Tolerance? Don’t Overlook Estate Planning

Important not only for protecting your assets, estate planning also assures that your assets will pass according to your wishes at the least cost and administrative burden. It can be a relatively easy, six-step process.

Our Member Question for this week is:

In investing, the value premium refers to the greater risk-adjusted return of value stocks over growth stocks. Eugene Fama and Kenneth French first identified the premium in 1992 to measure equity returns based on valuation.

After a prolonged period of underperformance relative to growth-related factors, do you think the value premium still exists?


Vote to answer this week’s Special Question: How would you describe your investment philosophy?
Growth, value, momentum, income/dividend, etc.

Last Week’s Results:

AAII Survey: Most Investors Believe Future Retirees Will Be Worse Off Than Those Already Retired

Will future generations of retirees be better off than those already in retirement? We asked our readers their thoughts. We also asked what piece of investing advice they wish they could give their 21-year-old selves.

A Lifetime Investment Strategy

Authored by the founder of AAII, James B. Cloonan, this valuable publication shows you how you can outperform professional money managers and the market over the long run. In addition, it will help you understand risk and its relationship to return. It’s not available in bookstores but is one of the many benefits of being an AAII member.




The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a 30-day Trial AAII Membership to start becoming an effective manager of your own assets.


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