AdviceIQ Articles

  • Don’t Save in Student’s Name

    Many times parents save for their children’s education in the child’s name to save on taxes, but doing so could make it hard to get student aid. In many cases, the taxes they save pales in comparison to the aid they give up due to financial aid rules. There are better ways to pay for your children’s’ education.

    Many times parents save in the child’s name to save on taxes without realizing the taxes saved may be less than the aid they give up due to financial aid rules.

  • Investing vs. Speculating

    Many casual investors think that they can play the stock market like a craps table or a horse race. The misconception is that you buy stocks on a hunch or a good tip, and sell once your holding goes up. In truth, this is a hazardous and foolhardy way to invest, and it’s tantamount to gambling. We see too much of it.

    True investing entails a thorough analysis of companies from a top-down or bottom-up approach. If you really don’t know how the company makes money, who its competitors are or even what it does, you are actually just a speculator.  

  • What Advisors Taught 3 Writers

    Sometimes, you can be too close to a subject to draw lessons for your own life.

    Case in point: We journalists think we know a lot about the world. But then along come financial advisors to surprise us seeming smarties with what we don’t know.

    The truth is that we, like everyone else on the planet, could use outside help planning our finances – because we don’t know what we don’t know. Smart people, even those with a motherlode of financial acumen, from any walk of life, simply don’t know it all.

  • Add a Child to Bank Account?

    Parents sometimes add an adult child’s name to their bank accounts to let them tap funds as needed or write checks on behalf of mom or dad. While adding a child’s name seems like a harmless, familial gesture of love and trust, the financial consequences can be extremely negative to both parent and child.

  • Bridging Retirement Gaps

    Estimating the retirement income that you need is not easy. Very often, our assumptions about how much we must save or can safely withdraw are off. Even millionaires can have trouble retiring comfortably.

  • In Government We Trust?

    With distrust in government high and taxes rising for many, it makes sense to ask: Are we getting our money’s worth – and if not, what can we do about it? One answer is to legally keep the tax bite as low as possible. This is not a right-left political issue, but a practical one.

    Having witnessed the repressions of overreaching government in Europe, our founding fathers advocated for a healthy distrust of government. Our money proclaims, “In God We Trust.” It does not read, “In Government We Trust.”

  • Roth’s Less-Known Strengths

    The Roth individual retirement account gives savers tax-free retirement income and even provides a good place for emergency savings. But in ways a lot of people don’t know, it is even more versatile than that.

    Mr. Roth can also help with transferring gifts to your heirs, accessing other accounts and paying for a new house or college expenses, as well. It saves money on taxes and even makes it harder to squander an inheritance.

  • How Not to Compare Advisors

    Comparison-shopping is important before choosing a new refrigerator or lawn mower. It's even more essential before choosing an investment advisor. But don’t believe you can compare investment returns, because you can’t.

    At any retail store, you can spot comparison shoppers a few aisles away. They are the ones carrying articles from Consumer Reports, badgering the salesperson with a million and one questions. People who manage money well are usually big fans of comparison-shopping.

  • Fed Stimulus Ending? Big Deal

    When the Federal Reserve indicated in late May that it may ease off its economic stimulus program, stock and bond markets worldwide took a beating. But there are pundits and economists who regard less artificial manipulation of the economy as a good thing. The economy may no longer need to support, and the last time the Fed hiked rates, stocks did well.

  • 5 Investing Lessons

    The stock market, currently buffeted by fears that Federal Reserve stimulus will end, has had a four-year rally that led to all-time highs for major market benchmarks. Regardless of the market’s recent gyrations, it is just as crucial as ever to understand how risk, inflation, costs and human behavior can harm your wealth-building plan.

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