Last Updated Jul 9, 2011 1:13 PM EDT Podcast Your browser does not support the audio element. Despite to the drumbeat of bad news, you might be forgiven if you didn't realize that US stocks are closing in on all-time highs. Assuming reinvested dividends, the S&P 500 is only 6.5 percent the October 2007 high and the broader Wilshire 5000 is within 2 percent of its all-time high. Perhaps that's why so many of the Jill on Money calls and e-mails concerned investments. Shai in PA has extra money available each month, but needed guidance as to where to put it; Sally in TN is confused by the endless choices of asset classes for the rollover of her 401 (k); and Alice in WA has owned the same mutual fund for more than 20 years and wondered whether it's time to throw in the towel! Both Mary in MI and David in KY wondered whether it makes financial sense to accelerate payments on their mortgages; and both Nick from KY and Joan from KY had questions about dividend reinvestment plans … [Read more...] about Jill on Money: Investments, Index Funds, Financial Advice
Stocks vs index funds
Jill on Money: Medicaid, tax deadline, stocks vs. funds
Download the podcast on iTunes Download the podcast on feedburner Download this week's show (MP3) Larry from California bolted from an insurance agent, only to find a commission-based broker that intends to charge him a stiff 3.5 percent to manage two IRA accounts, valued at $90,000 each. What are his alternatives? Plenty! I often talk about an excellent organization called the National Association of Personal Financial Advisors (NAPFA.org), which is a good resource to find qualified advice-givers. Tess may also want to check out NAPFA, since she asked about buying stocks to boost her retirement nest egg. I think she meant individual stocks, which I am dead-set against. The problem is individual stocks is that most people don't know what the heck they are doing! And if actively managed mutual funds, which are filled with lots of well-paid analysts, can't beat the indexes, why should we expect that mere mortals like us could? According to research, over the 23 years ending in 2009, … [Read more...] about Jill on Money: Medicaid, tax deadline, stocks vs. funds
Jill on Money: Investments, index funds, allocation
Download the podcast on iTunes Download the podcast on feedburner Download this week's show (MP3)With markets stuck in a range, "Jill on Money" concentrated on the easiest way to make money as an investor: by reducing fees! Brian from WA has a portfolio of approximately $2.5 million and has always used low cost managed mutual funds or index funds. Given the size of his assets, he has wondered whether this strategy is still valid. (Hint: YES!) Whether you have a large portfolio like Brian, or just getting started out, like Kori from FL, using low cost index funds are the easiest way to see 1-2 percent drop straight to your bottom line. Reducing fees is just about the only way to increase return with NO RISK!That's why Emily, Tyler, Bernard and Bruce should all stop spinning their wheels trying to find a "good stock" or a fund with "high return" and instead, head straight to one of my favorites: Vanguard, T. Rowe Price, Charles Schwab or Fidelity and build a diversified portfolio of … [Read more...] about Jill on Money: Investments, index funds, allocation
Jill on Money: Savings bonds, lump sum, target date funds
Download the podcast on iTunes Download the podcast on feedburner Download this week's show (MP3)Paul from Illinois started the show with a question about US savings bonds. The rules on these instruments are a bit thorny, so make sure that you check out this government web site for details about the taxation and transferability of savings bonds, as well as the ability to use proceeds of bonds for qualified education funding expenses. Speaking of tax planning, Robert wants to know how to keep his $5,120,000 estate tax exemption before the Fiscal Cliff reduces it to $1,000,000 (hint: you can't!) Jeff is seeking professional help, but doesn't know where to turn. A good place to start is NAPFA.ORG and don't forget to ask these . Jean, Marty, Ellen, Stu and Alex all had allocation questions, which opened up a great conversation about target date funds. Remember that not all of these funds are created equal, so be sure to check out how the manager invests and make sure that the allocation is … [Read more...] about Jill on Money: Savings bonds, lump sum, target date funds
Stocks party like its 1999 even as risks mount
U.S. equities kept their post-election party in full swing on Monday, pushing all three major stock market indexes to new record highs together for the first time since Dec. 31, 1999. Investors continue to view the incoming Trump administration and its plans for big tax cuts and spending increases as a huge tailwind for the economy. We’re also in a period of seasonal strength for the stock market (the oft-mentioned “Santa Claus” rally). Helping the latest bull run was some positive moves in the energy market as OPEC inches toward finalizing a deal to freeze production. But the risks of chasing the rally from here are growing amid fundamental headwinds, looming interest rate hikes and evidence of narrow buying demand. Energy has benefited from optimism surrounding OPEC’s ability to hammer out the details of the rough production agreement the cartel sketched out in Algiers in September. The Wall Street Journal cited comments from Iran’s oil minister … [Read more...] about Stocks party like its 1999 even as risks mount