Tag: Retirement Planning

3 types of fees that bleed your retirement assets

Per the US Department of Labor, a 1 % higher 401k plan fees and expenses could reduce your balance at retirement by 28% over a 35-year career. That’s a big deal!  As not all employer’s match, people are looking to the financial advisors for answers (and ironically paying hefty fees to find ways to reduce fees).

Continue reading
Received your yearly bonus. Ready to move on?

An offer letter is in the mail. Now what?

At this time of the year, with bonuses from last year pocketed, I am sure a few of you are looking for greener pastures!  What you’re going to do with your 401k plan balance is definitely not one of the top things on your mind when switching jobs.  However, it is an important decision that needs to be made.

Continue reading

John Bogle: Father of Index Funds died at 89

Yesterday, January 16, 2019, will go down in history for the passing of John Bogle, fondly known as the father of index funds, who died at the age of 89.  He was the first to create a mutual fund tied to an index such as S&P 500 and made index investing a popular phenomenon.  He revealed to the world that active fund managers rarely beat the benchmark indexes on a consistent basis and are plagued by exorbitant advisory fees and high operating costs. 

Continue reading

Is protectionism the new world order?

The global world is now moving back to those times where the country’s domestic industries were protected from foreign competition by taxing imports. Maybe the globalization era is coming to a halt. “Protectionism is the ‘quick fix’ that is more common among the politicians for its short-term political benefits, while its longer-term costs are significantly high,” Deutsche Bank wrote in March.

Continue reading

Bonds as a choice of investment for your 401k/403b/457 plan?

Bonds are debt obligations of the issuer to return the principal amount with interest to the investor. Bonds are issued by both domestic and foreign entities such as a government or corporation.  So it can be differentiated based on geographies, just like equities. Refer to our previous blog on equity Equity Funds (right to ownership). But the more common differentiator for bonds is time horizon or duration.

Continue reading