PFA Ponderings

I’m willing to lend you 10 bucks, but I’ll expect some interest from the loan. Now, just how much interest I’m going to charge is going to be based upon a few things.  Obviously, if I know you well, and feel you aren’t going to stiff me, I’m going to…

Judging by the way the market rumbles every time the prospect of a trade war hits the headlines, it’s safe to say that stock markets don’t like trade wars.  But as is the case in most modern wars, justification for actually going to war is to battle some kind of…

The market was down yesterday, almost 300 points! Headlines and water cooler conversations are replete with references to what ‘the market’ did or where ‘the market’ is.  The White House touts the substantial implications of (and takes credit for) ‘the market’ passing 25,000.  The (non-financial) media reports on market movements…

Out of the main financial planning areas recognized by the CFP board, which include Cash Planning, Risk Management, Investment Planning, Tax Planning, Retirement Planning and Estate Planning, it’s Estate Planning that seems to be the most daunting.  I’ve sat with estate planning attorneys who don’t have their own will, and…

RISK is a fundamental component in investing – but what actually IS risk?  Most people identify it as the chance that they will lose money when they invest.  But really, in order to actually lose money, the investment must be either sold, or it must actually lose 100% of its…

Let’s end this week with a quick pop quiz. (True or False) Home equity interest is no longer deductible. Mortgage interest is still deductible. My home equity line of credit that was deductible in 2017 isn’t deductible in 2018. Unfortunately, if you answered “true” or “false” to any of the…

“Happy Birthday”, says the doting parent, sliding a small box, neatly wrapped in colorful paper and a bow across the table to her teenaged son.  He opens it, and his face brightens.  It just as he’d hoped – it’s his new iPhone!  And not one of those old-fashioned iPhone 6s,…

How and when to take Social Security benefits, especially for married couples, can be a confusing decision.  In a way, that’s a good thing – and not just because it helps to keep financial advisors employed!  In the 83 years since the Social Security Act was passed, changing demographics and…

Albert Einstein is credited, at least as far as folklore goes, with saying that compounding of interest is mankind’s most remarkable invention.  I would be inclined to agree, but with the following modification:  TAX-FREE compounding of interest is mankind’s most remarkable invention. Tax-free income is hard to come by, in…

One of my favorite Will Rogers quotes is: “Don’t gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.”  Seems like sage advice to me, and it’s about as helpful as the…