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Thursday, September 28, 2023

Home ownership is an elusive goal for many living on the Monterey Peninsula. Recent economic developments have made that goal even more difficult to achieve. At the risk of depressing readers working toward buying a home, here are some...

Thursday, September 21, 2023

Q: My wife and I have three children. Over the past 20 years, we put a lot of money into their 529 plan accounts. Our oldest child graduated from a private university and used all of her 529 plan money—and then some. Our second...

Thursday, September 14, 2023

Three years ago, I wrote two articles for college students and their parents. The first encouraged students to be careful as they made decisions about their major; the second warned about the perils of student loans. I received zero...

Thursday, September 7, 2023

Every year, from October 15 through December 7, Medicare beneficiaries face a period of consternation known as Medicare Open Enrollment, or the Annual Election Period. This seven-week period is the only time of the year in which...

Thursday, August 31, 2023

Not long ago, while digging through a box of old papers, I came across a stack of articles written by my former business partner Ken Petersen. One of his articles outlined “12 Rules for Financial Security.” Reading through...

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Thursday, August 24, 2023

Elite athletes know that superior balance is essential for strong performance. The role of balance is obvious in the gymnastic grace of Simone Biles on the balance beam. It is equally important, but perhaps less obvious, in the...

Thursday, August 17, 2023

Q: I’ve heard that having money in a Roth IRA for retirement is very beneficial and better than a Traditional IRA. Should I be converting my money from my Traditional IRA into a Roth account?   A: This question is very...

Thursday, August 10, 2023

Q: My husband passed away a few years ago and I am worried that my kids will have trouble handling my financial affairs if something were to happen to me. Do you have any recommendations on what I can do to make sure they have access...

Thursday, August 3, 2023

In last week’s column, we talked about the complexity and confusion around inherited IRA distributions. In response to that column, a number of people expressed concern about how inheriting an IRA would affect their beneficiaries...

Thursday, July 27, 2023

Q: A few years ago, I inherited an IRA from my deceased father. My accountant told me that I was subject to something called “the 10-year rule,” meaning I would need to deplete all the assets in the IRA within 10 years of...

Thursday, July 20, 2023

 Q: I keep hearing on the news that inflation is improving, but I don’t really see this meaningfully changing my day-to-day experience. When will prices come down and things get back to normal? A: Inflation is one of...

Thursday, July 13, 2023

Fraud continues to be a major problem in the United States. According to the Federal Trade Commission, American consumers lost nearly $8.8 billion to fraudsters in 2022, a 30 percent increase over the year before. Investment scams...

Thursday, July 6, 2023

In case you hadn’t heard, artificial intelligence (AI) is taking over the world. It is rapidly seeping into every aspect of our lives and the pace of adoption is accelerating at an increasing rate. Already, AI powers a number of...

Thursday, June 29, 2023

Next week will mark 247 years since 56 delegates to the Second Continental Congress unanimously adopted the Declaration of Independence and solemnly pledged “their lives, their fortunes, and their sacred honor” to the cause...

Friday, June 23, 2023

Q: I’m watching a friend’s parent deplete an alarming amount of money because of a prolonged medical issue. How do I know if I am prepared to face something like this financially? A: Most people don’t like to...

Friday, June 16, 2023

Q: I retired last year. I receive a pretty good pension and I would like to contribute some of that money into a Roth IRA. Is that possible?A: You can only contribute what the IRS deems to be “earned income” to a Roth IRA....

Thursday, June 8, 2023

A few years ago, I owned an Audi that seemed like it was built to cruise at 80 miles per hour. Its powerful engine delivered a huge amount of torque across a wide range of engine speeds. No matter how fast I was going, a slight nudge...

Thursday, June 1, 2023

In 2003, Michael Lewis wrote a best-selling book called Moneyball that tells the story of the sabermetric revolution that transformed the Oakland Athletics baseball team. Sabermetrics is a quantitative approach used to analyze baseball...

Friday, May 26, 2023

Q: I have been hearing more and more about ESG investing. Some people say it produces better returns. Do you think it makes sense? If so, how is the best way to get exposure to ESG?A: ESG investing is an investment selection process...

Friday, May 19, 2023

If you are serious about growing your wealth, you had better be just as serious about protecting it.

Saturday, May 13, 2023

Selecting a financial advisor is difficult. Doing it well requires that you wrestle with some difficult questions. What should you expect from your advisor? How can you accurately evaluate an advisor’s expertise when you...

Friday, May 5, 2023

Q: I switched advisors recently and he suggests I sell my muni bonds and buy corporate bonds instead. His advice confuses me because I feel like I already pay a lot of taxes and I don’t want to do anything that would add to my...

Friday, April 28, 2023

As I wrote in this column on March 16, the failure of Silicon Valley Bank (SVB)—the second-largest bank failure in US history—was significant. It was followed within days by the third-largest bank failure in US history...

Friday, April 21, 2023

Q: My supposedly safe bond portfolio was hit really hard last year. Can you please explain why something that was supposed to protect me got hit so hard and what I can do to keep from making that mistake again?A: 2022 was one of the...

Friday, April 14, 2023

The sudden collapse of Silicon Valley Bank highlights an important wealth management principle. Whether you manage your wealth on your own or hire an outside advisor to assist you, your first priority must be to understand the risks...

Friday, April 7, 2023

If you have ever seen a really bad traffic accident, you understand how it can affect your behavior—at least for a little while. Suddenly, you realize that small and simple changes would make you a much safer driver. You slow...

Friday, March 31, 2023

Sometimes life doesn’t turn out as we expect. A friend of mine lost her job last year after more than twenty years at the same company. She felt confident that her experience would allow her to find a job quickly. She soon...

Friday, March 24, 2023

Many people dream of early retirement, but unless that dream is matched with careful planning, it remains just that—a dream. Even with careful planning, things may not turn out the way you hope. As the old Yiddish proverb says:...

Friday, March 17, 2023

The demise of Silicon Valley Bank (SVB) last week was a significant development. SVB’s collapse is the second-largest bank failure in US history, trailing only that of Washington Mutual in the 2008 financial crisis. Its collapse...

Friday, March 10, 2023

Several years ago, I worked with a wealthy Silicon Valley family to help them untangle some challenging financial knots. The family consisted of

Saturday, March 4, 2023

Performance measurement and reporting was once considered one of the dark arts of portfolio management.

Saturday, February 25, 2023

Q: I do not understand why some of our political leaders are unable to compromise when it comes to raising the debt limit. Why are they making such a big deal about this?A: This column is about financial planning, not politics, so I am...

Friday, February 17, 2023

Q: The devastating earthquake in Turkey and Northern Syria have made me think about the need for earthquake insurance here in California. I know we live close to several major faults. Last year, I was going to buy earthquake insurance,...

Friday, February 10, 2023

The turbulence of modern life makes it easy to lose sight of things that matter most. Our attention is naturally drawn to the urgent, to the fire that is burning hottest at any particular moment.

Friday, February 3, 2023

Q: The inflation picture continues to puzzle and frustrate me. On one hand, I pay a lot less at the gas pump than I did six months ago. On the other hand, the price of eggs has gone through the roof. I know I buy a lot more gasoline...

Friday, January 27, 2023

 Q: I turn 66 this year which makes me eligible for my full Social Security retirement benefit. Some people tell me I should take my Social Security right away and others say I should wait until I’m 70. What are your...

Friday, January 20, 2023

On December 23, 2022, the House of Representatives passed a 4,000+ page bill called the Consolidated Appropriations Act of 2023. Deep inside the bowels of this beast was the much-anticipated bill known as SECURE Act 2.0. While the vote...

Saturday, January 14, 2023

Tax season can sometimes bring unpleasant surprises. One such surprise came to an individual who called me with concerns about his self-directed IRA.

Saturday, January 7, 2023

When I retired, I decided that managing my retirement portfolio was going to be my full-time job. After the bruising I took in the markets last year, I have changed my mind.

Saturday, December 31, 2022

I retired ten years ago after a successful career working for a large public company. Over the course of my career, I accumulated a large amount of company stock.

Friday, December 23, 2022

As we come into the final days of 2022, now is a good time to tie up some financial loose ends. Here are some questions you might want to ask yourself.

Friday, December 16, 2022

I love mutual funds for their simplicity and accessibility. Since the first mutual fund was launched in 1924, mutual funds have allowed millions of people to participate in the capital markets who would never have had the opportunity

Wednesday, December 7, 2022

If you are still looking for a gift for someone special this holiday season, may I suggest Nassim Taleb’s book Antifragile. I know it may seem a little nerdy, but reading this book would be a great way to start the New Year.

Friday, December 2, 2022

The crypto currency world continues to amaze me. Despite a year of high-profile crashes, bankruptcies and hacks

Thursday, November 24, 2022

If you own shares in a mutual fund, you may be in for a rude awakening come tax time.

Thursday, November 17, 2022

When my mother died, I discovered that she had two annuities. I am the beneficiary of one of them and a local charity is the beneficiary of the other. What are annuities,

Friday, November 11, 2022

Paying for health care in retirement can be a challenge, so most people over the age of 65 rely on Medicare. Like most federal programs, Medicare is complex and navigating its arcane rules can be daunting

Wednesday, November 2, 2022

Q: A couple of weeks ago, you wrote a column on the rules for charitable giving. I understand that I can give money to charities directly from my IRA, but you didn’t mention it in your column. Is it a good idea?A: If you...

Tuesday, October 25, 2022

When I retired last year, the market was doing fine and I felt confident my Social Security benefits and 401(k) savings would be enough to see me through.

Saturday, October 22, 2022

Q: My husband passed away last year. In the process of settling his estate, I contacted the custodian of his IRA to rollover his IRA into my account. I was completely surprised when they informed me that his IRA lists my mother-in-law...

Tuesday, October 11, 2022

Withdrawals from 529 plans are tax-free only if they pay for the qualified educational expenses of the beneficiary. Qualified educational expenses include tuition, books, living expenses, technology, adaptive equipment for any special needs

Tuesday, October 4, 2022

According to the Internal Revenue Service, more than 60 million Americans have individual retirement accounts with an estimated value exceeding $11 trillion. If you are an IRA owner, here are four things to do each year to make sure your

Thursday, September 29, 2022

In the part of the country where our offices are located, Monterey and Pleasanton, California, we have a high cost of living and a high tax rate.  Investors are continually trying to find new ways to save on taxes.  And...

Tuesday, September 27, 2022

Don’t forget how fortunate you are to have a mortgage at such a low rate. Given the tax deductibility of mortgage interest, your 3 percent mortgage rate is really more like 2.3 percent. Current mortgage rates are well above 6 percent.

Tuesday, September 20, 2022

The fixed income markets play a vital role in the global capital markets.

Friday, September 16, 2022

The Federal Reserve’s unfolding battle with inflation is shaping up to have all the drama of a Muhammad Ali fight. This could be like the 1974 “Rumble in the Jungle” where Ali, a 4-1 underdog going into the fight,...

Thursday, August 25, 2022

The end of summer and the start of the school year always seem to be a catalyst for conversations about college savings and where they fit into larger, long-term financial strategies. In particular, the 529 college savings plan, with...

Wednesday, August 17, 2022

With inflation at 40-year highs, the Fed is aggressively hiking interest rates; but it's a tricky proposition: raise rates too much and many fear the next recession is right around the corner. Markets have been reflecting that fear,...

Wednesday, August 17, 2022

People want freedom. It seems to be a natural part of our makeup. When I first meet clients and begin talking with them about their goals, they are sometimes fuzzy on the details, but they are almost always clear on the...

Wednesday, August 10, 2022

Is Now a Good Time for a Roth IRA Conversion?We know that taxes are one of life’s two inevitables. So, the question is not if you will pay taxes on your retirement accounts, but when and how much. That’s where Roth IRAs...

Friday, August 5, 2022

Q: My investment advisor contacted me last week to let me know he was going to be doing some “tax-loss harvesting.” He said the bear market had “opened up an opportunity to take losses” as if losses were a good...

Friday, August 5, 2022

Michael Hyatt, the personal productivity guru, once said, “Perfectionism is the mother of procrastination.” As a recovering perfectionist, I know exactly what he means. Sometimes we want to wait until everything is perfect...

Friday, July 22, 2022

Q: The bear market has been causing me some serious heartburn. Not only is my account losing money, but I am down more than the S&P 500, the NASDAQ and every other index I can think of. Given my losses, maybe I should just throw in the...

Friday, July 15, 2022

After the economic stress caused by the pandemic and 12 months of surging inflation, the debt burden carried by U.S households is rising. According to a recent survey by the New York Federal Reserve, U.S. households carry an average of...

Friday, July 15, 2022

Sound advice and a good financial plan can help any of us navigate our life’s journey with greater clarity and confidence. This includes planning for the end of the journey. I know this can be an uncomfortable topic for many, but...

Wednesday, July 6, 2022

Every once in a while, someone will ask me about lending money to a close personal friend or a family member. They usually bring it up because they are conflicted about it. Some ask hoping I'll give them an excuse to say no, as in "I'm...

Wednesday, June 29, 2022

Years ago, I had an epiphany as I read Stephen Covey's 7 Habits of Highly Effective People. I recognized that by consistently applying correct principles, I could be an agent, making intentional choices about how I lived my life as...

Tuesday, June 21, 2022

Q: I was planning to retire this year, but the stock market has me feeling nervous. Do you think it would be better for me to keep working until things settle down?A: Retirement is tricky business. Most people look forward to ditching...

Friday, June 10, 2022

Q: I want to learn about investing, but I always feel like financial people are trying to sell me something. Where can I get the information I need without having to worry that someone is trying to...

Friday, June 10, 2022

Summer is fast approaching and that means timeshare traps are being set. I am sure you have seen them—unbelievable vacation deals where all you have to do is sit through a short “informational presentation.” We all...

Friday, May 20, 2022

With the recent downturn in the markets, I have been getting a lot of questions about bear markets and how to best respond to them. Here are some frequently asked questions that might be helpful.Q: What is a bear market and how is it...

Friday, May 13, 2022

It can remember the past, plan for the future, and experience the present in ways that bring joy and meaning to our lives. But the human brain also has its limitations. Sometimes we simply do not think very well.Brain scientists tell...

Friday, May 6, 2022

There is a lot of wisdom in simplicity, especially when it comes to investing. You do not need advanced degrees and genius-level intelligence to be a successful investor. Mostly it requires common sense and a lot of discipline. Warren...

Friday, May 6, 2022

Cal-Fire’s outlook for the 2022 fire season is not encouraging. Low precipitation and higher-than-normal temperatures mean we are likely in for a challenging summer and fall. Now is the time to prepare. A little planning now can...

Wednesday, April 20, 2022

In 2009, Simon Sinek started a revolution. It wasn’t started with bombs or bullets, but with an idea, a TEDx talk, and a best-selling book titled, Start with Why. His idea was that good leaders inspire people to act by giving...

Monday, April 11, 2022

Last week, I wrote about Paul Volcker’s battle to curb inflation more than 40 years ago. It took three years of relentless effort, and many more years of ongoing vigilance, but the Volcker Fed finally beat inflation....

Monday, April 11, 2022

American consumers learned more than 40 years ago that inflation can be difficult to tame. You can’t fight it with words alone. (Remember Gerald Ford’s WIN buttons?) Fighting inflation takes action that is both decisive and...

Friday, April 8, 2022

The statistics on elder abuse are staggering. According to one estimate, 5 million elderly Americans are abused every year—often by someone they look to for care and protection. The National Council on Aging estimates that 1 in...

Friday, March 18, 2022

Q: I have a small side business that is really starting to take off. Someone told me that I should think about setting up a solo 401(k) plan in my side business to help boost my retirement savings. I already have a 401(k) through my...

Tuesday, March 15, 2022

When I was quite young, I remember my grandfather telling me that there are only two things certain in life: death and taxes. He meant it as a jest, but in a more serious vein, I would like to propose a third candidate for that group:...

Tuesday, March 15, 2022

If you are looking for another tax break for 2021, take a look at opening a Health Savings Account, or HSA. Next to getting employer matching funds in a 401k account, an HSA is the best retirement savings vehicle around.With an HSA you...

Tuesday, March 15, 2022

Q: Last year I purchased a variable annuity in my IRA. My insurance company recently sent me a statement reminding me that I need to take a required minimum distribution before year-end. I was shocked to discover that my RMD is higher...

Friday, February 18, 2022

Q: I am thinking of taking an early retirement package being offered by my employer. I am currently 57 years old, and I have built up a significant nest egg in my 401(k) plan. I have some money saved outside of my retirement accounts,...

Friday, February 18, 2022

A couple of years ago, Congress passed a law called the “Setting Every Community Up for Retirement Enhancement” Act. It is an awkward name, selected with some malice aforethought, to fit the acronym the bill sponsors really...

Saturday, February 5, 2022

Most people don’t give a lot of thought to Medicare until they get ready to retire. However, if you are working and you get paid for it, you and your employer pay Medicare taxes on every dollar you earn. Over time, those Medicare...

Friday, January 28, 2022

The Federal Reserve is the most powerful financial institution in the world. In one way or another, its actions and policies touch your life on a daily basis. Here are some things you should know about this powerful, but poorly...

Friday, January 21, 2022

Q: When I began my financial plan last year, my planner suggested that we assume I will live to be 95. My family isn't known for its longevity, so I told her that seemed a little ambitious. She also recommended that I purchase an...

Friday, January 14, 2022

A year ago, I wrote a column titled “Confessions of a Bull Market Genius” in response to the stunning stock market rally of 2020. As you may recall “bull market genius” refers to the fact that almost anyone can...

Friday, January 7, 2022

Few things bring greater meaning to my life than using my time and resources to further the work of charitable organizations that align with my values. Monterey County is blessed with a large number of excellent nonprofit organizations...

Friday, January 7, 2022

The past year was phenomenal for stock market investors. The S&P 500 index rallied nearly 30 percent, while technology stocks soared even higher. If you participated in the rally, you have reason to celebrate. However, it’s...

Tuesday, December 21, 2021

Q: After working from home for the past 20 months, my home office is out of control. I have piles of papers everywhere. Not only is it embarrassing, but it is also getting hard to keep everything straight. My main problem is that my...

Tuesday, December 14, 2021

Several years ago, I read Walter Isaacson’s excellent biography of Apple founder Steve Jobs. It was a fascinating book, full of interesting insights into the mind and character of one of the brightest consumer marketers of our...

Friday, December 3, 2021

If you want to successfully save for retirement, you need to learn how to properly manage your retirement accounts. An annual review of your IRAs, 401(k)s and other retirements accounts will help you stay on track. Here are three...

Friday, December 3, 2021

I am often surprised by how little attention some people give to their retirement accounts. They don’t look at statements. They don’t remember who their beneficiaries are. Sometimes they can’t even tell me if their...

Friday, November 19, 2021

Q: I recently heard that the U.S. Treasury is issuing savings bonds with an unusually high interest rate. Is that true? What’s the catch?A: No doubt you are referring to Series I U.S. Savings Bonds, otherwise known as “I...

Friday, November 19, 2021

Few things will have greater impact on your financial future than the decisions you make about how you save and spend money. However, sound financial planning also requires that you carefully develop your capacity to produce income. No...

Friday, November 5, 2021

Q: I’ve been reading more and more about the inflation in our economy. I’m trying to get ready to retire, but the growing rate of inflation has me worried. How can I protect my portfolio against inflation?A: Inflation is a...

Friday, November 5, 2021

Paying for health care is one of the biggest financial challenges many people face in retirement. Whether you are already enrolled in Medicare or anticipate one day being covered, here are some things you really need know, including...

Friday, October 22, 2021

Q: I have decided that I want to work with a financial advisor, but I am confused about how much I should expect to pay them. I looked at an online advisor and it looked pretty cheap. Then I looked at a fee-only advisor in town and...

Friday, October 8, 2021

Q: Your column on back-door Roth conversions made we wonder if I should use the Roth account in my 401(k) plan. My husband has been trying to get me to switch to the Roth for a long time, but I don’t know. He says we would be...

Friday, October 1, 2021

Congress is getting ready to slam the door on a popular retirement savings strategy—the so-called back-door Roth conversion. This is regrettable from a financial planning perspective because back-door Roth conversions are a...

Friday, September 24, 2021

Not long ago, my wife and I took advantage of a beautiful Saturday afternoon to visit art galleries in Carmel. As we walked past a fashionable men’s clothing store my wife suggested we pop inside to see if they had a pair of...

Friday, September 17, 2021

The ongoing saga of bitcoin continued this week as tiny El Salvador became the first country to officially recognize bitcoin as legal tender. Bitcoin celebrated its new official status by promptly plunging nearly 17 percent before...

Friday, September 17, 2021

Q: I don’t know if it’s just me, but my paycheck doesn’t seem to go as far as it used to. The government says inflation is low, but I’m feeling a real squeeze. It is really as low as they claim?A: Welcome to the...

Friday, September 3, 2021

Monterey Herald, 401(k)If you read the financial press, you have surely read that many Americans are woefully unprepared for retirement. Unfortunately, this is true. However, it is also true that retirement accounts hold a vast amount...

Friday, September 3, 2021

Q: I have been working and saving for retirement for the past 50 years. My goal was to retire once I had a million dollars in retirement savings and I am almost there. I thought a million dollars would surely be enough to support...

Friday, September 3, 2021

One of the best parts of being a financial planner is helping people find meaningful answers to important life questions. Sometimes the questions are straight-forward such as: do I have enough to retire; when should I take Social...