The New Health Savings Account Rules (Tax Matters: Personal Finance) | SmartMoney.com
Great story on the basics of Health Savings Accounts. It includes the latest tax updates.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
Tuesday, July 31, 2007
Time To Swap Piggybanks?
Time To Swap Piggybanks?
Very interesting article for those of you who have money in Custodial Accounts (UTMA/UGMA's). New tax laws are making them obsolete in many cases.
If you have a custodial account you must read this article.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
Very interesting article for those of you who have money in Custodial Accounts (UTMA/UGMA's). New tax laws are making them obsolete in many cases.
If you have a custodial account you must read this article.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
Recent Fluctuation - It's Normal
In February of this year the stock market, as measured by the Dow Jones Industrial Average went down over 400 points in one day. It was scary for people. A similar event happened last week when the Dow was down over 500 points for the week, after hitting an all time high and surpassing 14,000 for the first time.
You need to know that despite the panicked press, this is completely normal and in fact healthy. You should also know that it will happen again, we just don't know when - this is the nature of stock markets, if it wasn't they wouldn't be worth our time investing in. It is this fluctuation that creates risk that allows us patient investors the opportunity to earn superior returns over bonds.
I tell all my clients that the one thing I can guarantee is that at some point in time in the future we will lose money and it will hurt.
However, if we can overcome the short term fear and stay invested in a diversified portfolio that includes stocks, bonds, and real estate - we have the opportunity to earn a much better return than their panicky neighbors and hopefully beat the indexes we use as benchmarks.
The recent fluctuation is normal and to be expected, even welcomed.
You should know a few things about investing in the stock market, as follows:
On July 8, 1932 the Dow hit a low of 40. Last week the Dow hit 14,000, before pulling back. Nick Murray commented "The intervening period was the worst in human history: Depression, WWII, Cold War(and 9/11, Iraq War, added). There are always reasons Not to buy stocks, but time has shown us that even during the worst of times, stocks survive. You need to understand that ups are permanent, the downs are temporary.
I don't know if we are in a bear market or a bull market and to be honest it doesn't matter. In fact, I don't even believe in bear markets, they don't exist (famous last words, right). On average we suffer a major stock market set back every five years, sometimes as much as 30%. Between 2000 - 2002, the market from its top to bottom was down nearly 50%, but we survived and now the market is higher than it was nearly seven years ago.
My main point is that if you are in stocks and diversified, you will still have times of pain and loss, but if you do not panic, and if you stay diversified, you should be able to ride out these short term drops.
In other words, don't worry about what the market does day to day, keep a look at the big long term picture.
Also remember, if you are young, the market falling presents an amazing opportunity to buy more at lower prices, always a smart thing.
For those of you who are ready to turn to a market timing service, don't fall for them, timing is not possible - it is in fact hubris. Warren Buffet once remarked that he couldn't time the market, didn't know anyone who could time the market, and didn't know anyone who knew anyone who could time the market......if the greatest investor of all time can't do it - what makes you think the guy down the street can?
The future is impossible to predict, don't ever forget that.
Finally, relax, this is normal.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
You need to know that despite the panicked press, this is completely normal and in fact healthy. You should also know that it will happen again, we just don't know when - this is the nature of stock markets, if it wasn't they wouldn't be worth our time investing in. It is this fluctuation that creates risk that allows us patient investors the opportunity to earn superior returns over bonds.
I tell all my clients that the one thing I can guarantee is that at some point in time in the future we will lose money and it will hurt.
However, if we can overcome the short term fear and stay invested in a diversified portfolio that includes stocks, bonds, and real estate - we have the opportunity to earn a much better return than their panicky neighbors and hopefully beat the indexes we use as benchmarks.
The recent fluctuation is normal and to be expected, even welcomed.
You should know a few things about investing in the stock market, as follows:
On July 8, 1932 the Dow hit a low of 40. Last week the Dow hit 14,000, before pulling back. Nick Murray commented "The intervening period was the worst in human history: Depression, WWII, Cold War(and 9/11, Iraq War, added). There are always reasons Not to buy stocks, but time has shown us that even during the worst of times, stocks survive. You need to understand that ups are permanent, the downs are temporary.
I don't know if we are in a bear market or a bull market and to be honest it doesn't matter. In fact, I don't even believe in bear markets, they don't exist (famous last words, right). On average we suffer a major stock market set back every five years, sometimes as much as 30%. Between 2000 - 2002, the market from its top to bottom was down nearly 50%, but we survived and now the market is higher than it was nearly seven years ago.
My main point is that if you are in stocks and diversified, you will still have times of pain and loss, but if you do not panic, and if you stay diversified, you should be able to ride out these short term drops.
In other words, don't worry about what the market does day to day, keep a look at the big long term picture.
Also remember, if you are young, the market falling presents an amazing opportunity to buy more at lower prices, always a smart thing.
For those of you who are ready to turn to a market timing service, don't fall for them, timing is not possible - it is in fact hubris. Warren Buffet once remarked that he couldn't time the market, didn't know anyone who could time the market, and didn't know anyone who knew anyone who could time the market......if the greatest investor of all time can't do it - what makes you think the guy down the street can?
The future is impossible to predict, don't ever forget that.
Finally, relax, this is normal.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Monday, July 30, 2007
Market Correction Makes Stocks More Attractive (Ahead of the Curve) | SmartMoney.com
Market Correction Makes Stocks More Attractive (Ahead of the Curve) | SmartMoney.com
A great article by Donald Luskin on why buying stocks makes sense in the long run and how you shouldn't be afraid of short term dips like last week.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
A great article by Donald Luskin on why buying stocks makes sense in the long run and how you shouldn't be afraid of short term dips like last week.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Thursday, July 26, 2007
Boomers' Retirement Won't Sink Stock Market
Boomers' Retirement Won't Sink Stock Market (SmartMoney Magazine) | SmartMoney.com
Roger Lowenstein makes another good arguement about the fallacy that Baby Boomer retirement will lead to a stock market crash, or a never ending downturn.
I encourage those of you who have bought into this ridiculous theory (as proposed by Harry Dent) to read this article.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Roger Lowenstein makes another good arguement about the fallacy that Baby Boomer retirement will lead to a stock market crash, or a never ending downturn.
I encourage those of you who have bought into this ridiculous theory (as proposed by Harry Dent) to read this article.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Monday, July 23, 2007
NEA Valuebuilder Lawsuit
This is a link to the copy of the lawsuit against the NEA Valuebuilder product.
Scott Dauenhauer CFP, MSFP, AIF
Scott Dauenhauer CFP, MSFP, AIF
Sunday, July 22, 2007
Trading costs have predictive power
Trading costs have predictive power - InvestmentNews
It's the case of the dog that wasn't barking......mutual fund costs that are not fully disclosed but have a major impact on your long term return - Trading Costs.
This article is about a study showing that trading costs run higher than the expense ratio of most mutual funds and that the higher the trading costs the lower the return (on average).
Again, costs matter and knowing where the costs are is a major factor in determining your long term return.
The main problem with Trading costs is that they are hard to figure out given that they are not disclosed in a simple manner.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com
It's the case of the dog that wasn't barking......mutual fund costs that are not fully disclosed but have a major impact on your long term return - Trading Costs.
This article is about a study showing that trading costs run higher than the expense ratio of most mutual funds and that the higher the trading costs the lower the return (on average).
Again, costs matter and knowing where the costs are is a major factor in determining your long term return.
The main problem with Trading costs is that they are hard to figure out given that they are not disclosed in a simple manner.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com
Thursday, July 19, 2007
Morningstar.com - How Much Does Your Fund Really Cost?
Morningstar.com - How Much Does Your Fund Really Cost?
Good article on how fees should really be disclosed. I wholeheartedly support Morningstar's proposal and have been advocating it for years.
Scott
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Good article on how fees should really be disclosed. I wholeheartedly support Morningstar's proposal and have been advocating it for years.
Scott
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
How Should Borrowers Deal with Mortgage Brokers?
Jack Guttentag tells you how to deal with a mortgage broker and I guarantee you that you've never heard this before from anyone.
Jack started an association of mortgage brokers who disclose their fees upfront.....imagine that!
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
A Veiw of the Economy from Abroad
Ben Stein is bullish on the Global Economy and the US in general.
This article tackles the "threats" that we keep hearing about (Subprime, rising rates, Leveraged Buyouts) and whether they have the ability to take down the market.
This is an interesting, short article that I think you really need to read.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Profit From Higher Long-Term Rates
Jeremy Siegal's latest column talks about the rising interest rate environment and its affects on the global economy and markets.
What follows are a few excerpts:
"Since the middle of March, the world’s bond markets have witnessed a sharp increase in long-term interest rates.
The ten-year U.S. treasury bond has risen from 4.50% to 5.15% and reached as high as 5.30% on June 12. Rates in Europe have increased even more than the U.S., as the ten-year German bond has risen from 3.90% to 4.70% and the U.K. bond from 4.75% to 5.55%."
"I believe the real estate slowdown will not significantly damage the rest of our economy. The upward revision in growth has already brought about adjustments in the capital markets. These adjustments will actually help the Fed control the inflationary pressures and make it less likely, in my judgment, that it will raise rates in the future."
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
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