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Best Asset Allocation Based On Age & Risk Tolerance

Best Asset Allocation Based On Age & Risk Tolerance

By in Advanced Investing, Asset Allocation, Investing, Reader Question | 14 comments

How To Figure Out the Best Asset Allocation For You Graham from Moneystepper asks; What metric (rule of thumb) would you recommend for asset allocation based on age and risk appetite? Choosing your best asset allocation is not as simple as it might seem. Let’s attack it from several investment angles and throw in a bit of research as well. What Is Asset Allocation?   The asset allocation decision divides total investable funds by percent into specific investment categories. An asset allocation represents the investor’s choice of broad asset classes and the percentages distributed across the categories. The two most...

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The Best Investment to Keep Pace With Inflation, Guaranteed -Part 1

The Best Investment to Keep Pace With Inflation, Guaranteed -Part 1

By in Bond, Inflation, Investing, Reader Question | 5 comments

Keep Pace With Inflation With Best Investment for Inflation Protection  “Inflation is the one form of taxation that can be imposed without legislation.” Milton Friedman In recent year’s we’ve avoided the inflation monster. As Milton Friedman, the famous economist mentioned, inflation is just like a tax and makes everything you buy more expensive!  It’s painful when the soda 12 pack you bought last year for $4.50 costs $5.50 this year. That’s the sting of inflation. But there is a safe way for your money to keep pace with inflation. I originally wrote this post several years ago, certain that...

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Roth or 401k, Which to Max Out First?

Roth or 401k, Which to Max Out First?

By in Investing, Reader Question, Retirement, Saving | 11 comments

Roth or 401k which should I max out first? asked Buck Inspire This is an excellent question, which to max out first, a 401k or Roth IRA? The easy answer, max out both the 401K and the Roth IRA! You can’t go wrong saving and investing as much as you possibly can now. What if I Can’t Max out Both My Roth IRA and 401K? In the real world we all need to make financial choices. Most investors can’t afford to max out their 401k and their IRA. So, how to allocate retirement funds is a common question. If you can...

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Are Stock Markets Efficient or Not?

Are Stock Markets Efficient or Not?

By in Advanced Investing, Asset Allocation, Investing, Reader Question, Stocks | 13 comments

Is the Stock Market Efficient or Not? Investing Question Answered Moneycone.com asked, “Are markets efficient or not?” After spending a few minutes thinking about how I would tackle this widely researched topic, I decided to do what any researcher would do, I went to google and typed in, “Are markets efficient or not?” 300 million responses later I am no less daunted. This question is one of the most widely debated investing questions. What is the Efficient Market Hypothesis? The efficient market hypothesis was created by Noble prize winner, Eugene Fama. According to Morningstar.com the efficient market hypothesis is:...

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Should I Invest in an Annuity? Simple Answers to All Your Annuity Questions

Should I Invest in an Annuity? Simple Answers to All Your Annuity Questions

By in Advanced Investing, Insurance, Money Management, Reader Question, Retirement | 0 comments

Understand the Annuity Product-In Plain Language Annie Logue of the Root of All, Chicago on the Cheap, and author of several Money and Investing Dummies books about asks; “When are annuity investment products a good idea?” Annuities are a hot button financial offering because they are a product that usually charges you high fees and nets the seller a high commission. Thus, they are frequently (inappropriately) promoted to individuals for the purpose of giving the seller a fat commission. This article delves into the nuts and bolts of the annuity product, when and when not to buy an annuity, and how not to...

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Should I Pay Off My Mortgage or Invest in the Stock Market?

Should I Pay Off My Mortgage or Invest in the Stock Market?

By in Debt, Investing, Reader Question, Real Estate | 24 comments

Paying Off Mortgage vs. Investing – Which is Better? A reader asked, “Am I better off making extra payments on my mortgage at 2.9% or investing the money in the stock market?”  Should I Pay Off My Mortgage or Invest in the Markets? This question is a favorite and a one I’ve pondered many times. Actually, I’m adding $250 to my mortgage payment every month, to get the mortgage paid off by the time I reach retirement.  Whether to pay off your mortgage or not, isn’t an easy question.  There are financial and psychological aspects when considering whether to...

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