By Patrick Doherty, CFP®, Updated November 30, 2018
With the holiday season in full swing, it's easy to overlook year-end financial planning items. If you haven't already, now is the time to take action and reduce your 2016 income taxes!
For the past 12 months, I’ve been studying at the American College of Financial Services to earn the designation of Chartered Special Needs Consultant™. I had done financial planning for families with special needs children and adults prior to my coursework, but I have to say, studying the subject beyond my personal experience really opened my eyes to the gap between families’ need for financial guidance on these issues and what they’re actually getting.
We heard great feedback from guests after our special post-election event on November 10th where Bob Reby, CFP®, and Terry Simpson, CFA®, of BlackRock Investment Institute, discussed how Trump's policies may impact the economy, financial markets, and your portfolio. After their talks, the speakers fielded questions from the audience.
Bob presented from a personal finance and investing perspective, revealing "The Most Critical Risk Investors Face Under the New President - and How to Profit from It." Specializing in capital market research, portfolio construction, and global macroeconomic trends, Simpson delivered his and Blackrock's perspective on "How Trump's Policies May Impact Markets and the Economy."
For most people the difficult decision is not “if” they need life insurance, but “how much” life coverage they need. It’s a much bigger decision, and one that can lead to consternation over the purchase decision if it is not made with the proper consideration. Buying too much life insurance has always been a concern for people who don’t like paying for what they don’t need, and buying too little insurance can lead to a lot of sleepless nights and disaster for the surviving family.
For as long as there has been stock markets, investors have intuitively known that expectations of returns come with commensurate expectations of risk; the higher return one expects the greater the risk one assumes in order to achieve it.
History has shown that when a long-term view is taken, financial markets – and the stock market in particular – yield a favorable return, regardless of the temporary fluctuations in markets caused by economic pressures or world events.
Two trends make retirement income planning more stressful and complex than ever before: life expectancy is rising, and retiring Baby Boomers want to sustain their lifestyles after they stop working, rather than making significant spending cuts. This means they'll need more income each year for a greater number of years than previous generations.
By Patrick Doherty, CFP®
Last week we covered 7 (of 15) topics that should be on everyone’s financial planning checklist. Here are the remaining 8 items on your checklist (including an easy way to save an extra $27,000):