Financial Planning & Strategy
Does stock-picking work?
Does stock-picking work? Stock-picking, the practice of selecting individual stocks to outperform the market, is far easier said than done. It is mathematically impossible for the average stock picker to beat a buy-and-hold investor in the same stocks. Compared to their benchmarks, most stocks return less and are far more volatile. The empirical evidence is…
Read MoreWhat “The Sting” Can Teach Us About Scams
What “The Sting” Can Teach Us About Scams Key Points: Scams are being carried out in more sophisticated ways. Technology both protects us and makes scam artists more effective. Diligence, proper “digital hygiene,” adherence to processes and protocols, and skepticism remain the primary tools to protect ourselves from scams. Scams have been around a long…
Read MoreManaging risk
Managing risk Some of you may have been concerned about the recent failure of Silicon Valley Bank (SVB) and any ripple effects on the banking system and the stock market. Before we get into the risk management lessons of SVB, we want to make sure our clients understand that their assets with us are secure.…
Read MoreWhat you need to know about tax extensions and new tax rules
What you need to know about tax extensions and new tax rules Many taxpayers will not file their 2022 tax returns by the April 18, 2023 deadline. Done properly, such taxpayers can receive a six-month extension of time to file and avoid any interest charges or penalties from the IRS. What does “done properly” mean,…
Read MoreWas “Always be diversified” the most important lesson from 2022?
Was “always be diversified” the most important lesson from 2022? 2022 presented several useful investing lessons. The news was full of reports about high inflation, yet many assets that were supposed to be good hedges against inflation were down. This is an example of how it is wise to expect the unexpected. Nonetheless, while there…
Read MoreHow do I make charitable donations from my 401(k)?
How do I make charitable donations from my 401(k)? Direct donations from a 401(k) to charity on a tax favored basis are not possible. However, direct donations to charities from IRAs, called Qualified Charitable Distributions, are permitted. There are a few requirements to make those donations completely tax-free, chief among them is you must be…
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