WEALTH vs. INCOME: They are not the same thing.
Income is the money you earn. It can come from your job, a business, rental property, or even investments. It’s what comes in each week, month, or year — like your paycheck or dividends. Wealth is what you own. It’s the value of your assets — your home, savings, retirement accounts, investments, and any other things of value — minus what you owe (your debts). Why They’re Not the Same A family can have a high income and still not have wealth, especially if that family spends everything they earn or carries a lot of debt. On the flip side, [...]
Thoughts On: Managing your Portfolio in Uncertain Times
I’ve been paying attention to the stock market for over 30 years, and I can’t remember any times that weren’t uncertain. I checked with Ron, who has been paying attention since 1968, and he can’t remember any times of certainty either. When I think about managing your investment portfolio in uncertain times, I start with these questions: What is uncertain today? What has been uncertain in the past? Were these unprecedented at the time? How did you manage your portfolio then? What did you learn from that? For example, the 1970’s were unprecedented in having high inflation combined with high [...]
Five Tax-Smart Investing Strategies for 2025
Tax-smart investing is a dynamic and ongoing process. You can keep more of your hard-earned money by leveraging tax-advantaged accounts, prioritizing tax-efficient investments, and staying proactive about ever-changing tax laws. As 2025 unfolds, make it the year you take your tax strategy to the next level—because it’s not just about what you earn; it’s about what you keep after tax. Here are five strategies that help to maximize what you keep when it’s time to pay Uncle Sam. 1. Maximize Tax-Advantaged Accounts Tax-advantaged accounts remain a cornerstone of intelligent investing. These include: 401(k)s, IRAs, and Roth IRAs: Contribute the maximum [...]
Thoughts On: The 6 Ps of Financial Happiness
We all know that the job of a money manager is to make people money. As difficult as that can be, the job of the client service manager is even harder. Client service has to make people happy. You might think that if you make people money, then they will be happy; but, I have learned you have to make people happy first so they can stick around long enough for you to make them money. It is a classic “which comes first, the chicken or the egg” dilemma. If I don’t make them happy, then I can’t make them [...]