Category Uncategorized
RMDs – If you turned 70-1/2 in 2011…
RMDs – always a messy topic – are usually a year-end problem. RMDs are Required Minimum Distributions which have to be taken from various retirement accounts once you reach a certain age. If you were given the opportunity to make tax-deferred savings over your lifetime, it’s time to start paying the piper. And for most […]
Top 10 non-leveraged ETFs over the last year
I saw an article on a financial planning site pointing to the fact that 8 of the top 10 performing ETFs in 2011 were US Government Bond funds. So I just did a quick double check via Morningstar’s ETF screener, though the screener doesn’t let me pick a specific year – it lets me do […]
Morningstar: How Expense Ratios and Star Ratings Predict Success
Morningstar: How Expense Ratios and Star Ratings Predict Success
Essential reading for any mutual fund investor. Even Morningstar, whose star ratings are widely watched in the industry, finds and readily admits that *expenses* are a better indicator of future performance.
From the article:
The star rating is a measure of risk- and load-adjusted returns, so naturally I want to know whether the star rating is able to predict future risk- and load-adjusted returns.
and then:
If there’s anything in the whole world of mutual funds that you can take to the bank, it’s that expense ratios help you make a better decision. In every single time period and data point tested, low-cost funds beat high-cost funds.
and:
Expense ratios are strong predictors of performance. In every asset class over every time period, the cheapest quintile produced higher total returns than the most expensive quintile.
and finally:
Investors should make expense ratios a primary test in fund selection. They are still the most dependable predictor of performance. Start by focusing on funds in the cheapest or two cheapest quintiles, and you’ll be on the path to success.
How To Build Your Financial Dream Team
How To Build Your Financial Dream Team
A nice article in the WSJ’s “Weekend Investor” column about how to build a team of professionals to help you keep your financial house in order — starting with your financial advisor (with mentions of some orgs like the FPA, NAPFA, CFP Board to help find people, as well as some warnings about how advisors are paid).
How to Pay Your Financial Advisor
http://online.wsj.com/article/SB10001424052970204554204577024152103830414.html Discusses the pros and cons of various compensation schemes for advisors Asset-Based Fee Fee Plus Commissions Flat Fee Net Worth and Income Hourly Fee What’s missing, I think, is the cases where people don’t realize that they’re paying at all, which usually means commissions or back-end fees. Lots of folks who call themselves “financial […]
Interest Rates: Why Waiting for Rates to Rise May Cost You – CBS MoneyWatch.com
Link: Interest Rates: Why Waiting for Rates to Rise May Cost You – CBS MoneyWatch.com Will have to check the archives, but I may have posted this link before. Swedroe wrote this back in April and it’s probably still worth reading and considering. The costs of hugging the short end of the yield curve remain […]
10 Costs That Can Ruin Your Retirement Savings – SmartMoney.com
Link: 10 Costs That Can Ruin Your Retirement Savings – SmartMoney.com Great read. It isn’t always bad to pay for things. It is always bad to not know that you’re paying for things or how much you are paying, and what the long term impact of those costs is likely to be.
IRS: Ten Facts from the IRS about Amending Your Tax Return
Link: IRS: Ten Facts from the IRS about Amending Your Tax Return When to amend your return, when not to, what forms to use, etc.
Don’t let your ex-spouse inherit your 401(k)
Link: Don’t let your ex-spouse inherit your 401(k) Great article, with unfortunate example provided by Ed Slott. Mentions, but doesn’t say how to resolve, some community property state issues, too.
Starting an IRA for your kid
Link: Starting an IRA for your kid Worth reading. I recommend that if your kid has any qualified earned income, consider putting that much into your kid’s IRA, especially a Roth.
Meyers Wealth Management 