Bitcoin has been all over the news lately, with its meteoric rise in 2017. The cryptocurrency started 2017 just under $1,000. As the year closes, it is approaching $20,000, an approximately 2,000% return. Bitcoin has certainly caught the attention of the mainstream population. Most have very little idea what it is or its purpose. For […]
General
The Rule of 72
Compound interest is the most powerful force in investing. By allowing our investments to grow through the magic of compounding, an investment of $50,000 can grow to $1,000,000 over a 40-year investment period at a rate of return of just under 8%. We see interest rates and rates of return, but it is not always […]
Hubris – The Danger of Overconfidence
Hubris is an ancient Greek word that describes a personal quality of extreme or foolish pride or dangerous overconfidence. In the Greek classics, such as the Odyssey and the Iliad, it described actions that defied the norms of behavior or challenged the gods, which in turn brought about the downfall of the perpetrator of hubris. While the […]
Invest for Future Healthcare Costs and Save on Taxes Now!
Open enrollment season for employee benefits is upon us. One thing worth checking out is a high deductible healthcare plan (HDHP) coupled with a Health Savings Account (HSA). HSAs offer a unique way to save for current and future medical expenses. The HSA is the only investment account in which contributions are tax-deductible and distributions […]
Does your account have so many investments, it makes your head spin?
Recently, I was reviewing a client’s account that is managed by a large retail brokerage company. The account had 31 mutual funds and a value of approximately $165,000. This equates to a little over $5,000 per fund. The funds were allocated to a diversified portfolio that was based on the client’s time horizon, investment goals, […]