Beyond the Index Card – Implementing the Advice of the Financial Experts

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: The Individual Investor’s Guide to Personal Tax Planning 2018 AAII’s annual tax and financial planning guide is designed to help you assess your current tax situation given the new tax law and plan for any changes that may improve your tax liability both this year…

 

Financial Planning: The Substance Beneath the Froth

What Is a Financial Plan? Financial planning itself is not new, or even very exciting. Well-run businesses have been practicing this common-sense activity since the dawn of the capitalist era. What is new is the application of sound financial management techniques to personal as well as business affairs. Systematic personal financial planning involves considering one’s…

 

AAII Survey: Premarital Financial Discussions

My housemate loves watching reality television, which means I get to watch a lot of reality programming. Her favorites include, and please don’t judge, The Bachelor, The Bachelorette and Married at First Sight. As a finance guy, some of the more interesting conversations that happen on these shows are usually the most awkward: the financial…

 

19 Year-End Financial and Investing Moves

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   19 Year-End Financial and Investing Moves Actionable steps covering personal finance, estate planning, investing, retirement and taxes that investors should consider taking now before the new year. The Individual Investor’s Guide to Personal Tax Planning 2018 AAII’s annual tax and financial planning guide is…

 

AAII Survey: Year-End Tax Planning

The end of the year is a busy time for many of us what with the holidays, year-end work projects, etc. However, even before the ball drops on 2018, many investors are making portfolio decisions specifically intended to mitigate their tax liability for the year. The total you earn from your investments in 2018 will depend…

 

Analyzing Your Financial Health Using Personal Financial Ratios

Investors commonly use stock ratios such as price to earnings, price to book and dividend yield to assess the financial health of a company. The reasons the ratios are so widely used are because they convey a great deal of information in a concise format and allow investors to benchmark a company’s financial status. When…

 

Delaying Retirement, But Not Your Retirement Dreams

Many investors today who had planned to retire early at 62 when they became eligible for Social Security benefits—albeit at a reduced rate compared with retiring at full retirement age—are discovering that those benefits, combined with their retirement savings, cannot support the lifestyle they expected or provide the financial cushion in retirement they desire. Often,…

 

A Primer on How to Plan for a Future Sum

Whether you are planning for a major purchase, financing an education or planning for retirement, an analysis structure that explicitly considers investment returns, cash flows and horizon is crucial to your eventual success. Expected inflation and variability of investment return present difficulties in any planning environment, and the longer the investment horizon, the more important…

 

Creating and Following a Real Financial Plan

The 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…