I’m proud to say that Acropolis was an early adopter of exchange-traded funds (ETFs). Although they had been around for almost ten years by the time we launched the firm, they were not actively used. In fact, five years before we launched Acropolis, I wanted to buy some in an account that I had with my dad’s broker at A.G. Edwards. I wanted to buy the S&P 500 ‘Spider’ fund… Read More
The question about when interest rates will rise has been a big question around here for several years, and we still don’t know. Most investors are worried about rising interest rates and most people, including me, have been very surprised this year to see the yield on the 10-year US Treasury note fall from 3.00 percent to 2.29 percent, as of yesterday. The direction of interest rates matters when you… Read More
The mantra coming out of the 2008 financial crisis was that banks that are ‘too big to fail’ are simply too big. Our government passed the Dodd-Frank Wall Street Reform and Protection Act and the countries from the G20 got together to create the Financial Stability Board (FSB) in an effort to create a safer banking system. One of the great ironies of the too big to fail problem is… Read More
There are many reasons to establish trusts including the efficient transfer of wealth, avoiding probate, philanthropic commitments, tax reduction, or protecting assets, among other things. Ten years ago, the tax reduction benefits were applicable to more people because the estate tax exemption (the threshold where estate taxes kick in) was $1.5 million. Today, the exemption is $5.34 million and, therefore, affects far fewer people. That doesn’t mean that you don’t… Read More
A little before my time, comedian George Carlin did a bit called ‘seven dirty words’ that were unsuitable for television. Although the words are fairly commonplace now, I’m glad that the networks and basic cable keep them off of the air until my kids are in bed. Finance has a few dirty words as well, but unlike Carlin’s list, I can use them here to describe how we mostly, but… Read More
In our retirement planning model, the Acropolis Financial Forecaster, there are essentially five key variables that affect the probability of meeting your goals. They are as follows: Saving Before Retirement When to Retire Spending in Retirement Market Returns & Inflation Rate Portfolio Risk The first three factors are entirely under your control and the second one is the most critical because the timing of your retirement stops contributions to your… Read More
With a lot of focus being put on the coming end to the Federal Reserve’s quantitative easing campaign, this article will delve into some of the other factors impacting interest rates in the US. The Federal Open Market Committee (FOMC) has maintained a steady course ever since Chairman Bernanke first hinted at the end of quantitative easing in the spring of 2013. The “Taper” which is scheduled to complete this… Read More
Any sensible person knows that you have to save money for the future. At the very least, you need to have money set aside for the so-called ‘rainy-day.’ If you don’t have a cushion, the consequence of a negative surprise can be a lot worse than if you have an emergency fund set aside. Do money and happiness go together? Can saving actually make you happier? I wouldn’t have thought… Read More
