This week’s AAII Weekly Digest highlights these “must-read” AAII articles:
The approach to building your nest egg should be process-driven. You should document the process you will follow in a written plan, an “investment policy statement” (IPS), that incorporates your short-, mid- and long-term financial goals. However, your goals must be realistic, measurable and attainable. Ultimately, you have to make sure the plan—your recipe for success—will work for you as a unique individual.
If you’ve come to the realization that you haven’t saved enough for retirement, then this article is for you. It details various strategies for increasing your odds of being able to afford retirement. The strategies fall into three primary categories: saving, investment and additional options for retirement income.
The death of a husband affects many areas of the widow’s life. If the deceased spouse was also the one who handled the family’s finances, the challenges and the potential pitfalls increase. The article offers guidelines for widows to follow after the death of a spouse as well as suggestions for husbands and a list of a few helpful resources. While this article is oriented toward widows, the same guidance applies to widowers, including those who were in households where the late spouse handled the finances.
Selecting the people to carry out the provisions of an estate plan is one of the most important and difficult tasks involved in the estate planning process. It is impossible to make a proper selection of any member of the estate planning team without understanding, in general terms, what it is the individual should be doing and how that person interacts with others who have important roles to fulfill. This article offers some issues to consider when making this important decision.
Our Member Question for this week is:
Have you named a trustee to carry out the provisions of your estate plan?
Vote to answer this week’s Special Question:
If you have a trustee to carry out the provisions of your estate plan, how did you go about selecting them?
Last Week’s Results:
How many mutual funds or exchange-traded funds (ETFs) do you hold in your investment portfolio?
Poll results are as of 9 a.m. (Central) on Monday. 2,681 respondents.
As investors, we hear over and over that the more assets we hold, the more diversified we are. However, if you invest primarily in mutual funds or exchange-traded funds (ETFs), this may not be the case. Even though fund names suggest different investment styles, you could be loading up on funds that are invested in the same stocks, which in turn lessens the diversification benefits of holdings several funds. Our latest reader survey asked how many mutual funds and ETFs our readers hold. In addition, for those readers who own several funds or ETFs, we asked what their rationale was for doing so.
Most individuals interview potential financial advisers before making a final selection to help them determine whether they are making the right choice. But what questions should you ask? Here are two worksheets that may help you ask the right questions.