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Which Portfolio Accounting Method is Best?

In General Financial Planning, Investments, Personal Finance, Personal Financial Planning, Tax by Chip Hymiller

How do you track the cost basis on investments held in your taxable portfolio? What portfolio accounting method does your broker, custodian or advisor report to you or your CPA? This is a decision that, for some investors, can save thousands of dollars in taxes and ultimately make a significant difference in a portfolio’s after-tax rate of return.

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Beat Inflation With I Bonds

In Asset Allocation, Bonds, Cash Flow and Budgeting, General Financial Planning, Investments, Personal Financial Planning by Chip Hymiller

In a prior article, we discussed the importance of maintaining an emergency fund.  We offered our insight into how much is appropriate to keep in cash or savings, as well as emergency fund targets.  As a result of that article, we were asked the question:  “Where can I invest my emergency fund, such that it earns an interest rate that …

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Planning for Retirement and Increasing Life Expectancies

In General Financial Planning, Investments, Personal Finance, Retirement Planning by Chip Hymiller

Let’s face it, seniors today are healthier, more active and are likely to have longer lives. So what are the financial implications for retirees who will likely live well into their 80s and possibly their 90s? We believe that from a financial standpoint, retirees need to make financial planning decisions that reflect the high probability that they will live longer. Here are a few recommendations to consider.

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Considerations When Investing in Bonds

In Asset Allocation, Bonds, Investments by Chip Hymiller

One of the most important reasons why investors choose to invest in bonds is for their steady and predictable stream of income through interest payments.  Though they are not risk-free (e.g., a bond issuer could default on a payment or even fail to repay the principal), bonds as a whole are considered somewhat less risky than stocks.  

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Taxation of Exchange Traded Funds Can Be Tricky

In Asset Allocation, General Financial Planning, Investments, Personal Finance by Chip Hymiller

With more than $80 billion invested in exchange traded funds (ETFs), they have become a very popular investment for both retail and institutional investors. While ETFs can be an integral component of a sound investment strategy, investors should understand the tax treatment of these investments in order to avoid unexpected tax consequences.

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Market Corrections are not Unusual

In Asset Allocation, General Financial Planning, Investments, Personal Finance by Chip Hymiller

he financial markets have experienced continued volatility since the end of April. In fact, with stocks having declined in excess of 10%, the markets have officially entered a period of “correction.” Although corrections are normal (and actually healthy for the markets), many investors may be a bit uneasy, especially with the wounds of the “Great Recession” still fresh in everyone’s mind.

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All Star Portfolio?

In Asset Allocation, Investments, Personal Finance by Chip Hymiller

A recent USA Today article titled “Finding the All Stars:  How we whittle down the funds” scanned the universe of mutual funds in an attempt to identify a number of “all star” mutual funds.  The list of funds that were selected for the article all have impressive track records and are certainly worthy of consideration in any portfolio.