Investors have multiple choices on how they can protect their accounts from major losses in a bear market. One of my favorites and most often used methods is a Trailing Stop Ladder. A trailing stop allows an investor to place a limit order that moves higher as the stock (or ETF) moves higher. The order [...]
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Should you participate in a 401(k) plan that doesn’t match?
Yes! Anyone who is not in dire straights with their finances should invest in their 401(k), even if their company does not match a single penny. The tax savings makes investing in a company’s 401(k) a smart investment decision for almost everyone. Not only do savers get to put money in their qualified retirement account [...]
Trading on Stock Tips
A few times per year, a client or friend calls me with a “stock tip” he or she heard from someone. I’ve never traded on these ideas for a few reasons. First of all, the tip is illegal if it comes from insider information. That alone is a showstopper. If the information is not from [...]
Understanding the Wash Sale Rule
The IRS wash sale rule prohibits traders/investors from deducting losses from sales or trades of stocks or securities in a wash sale unless the trader is a dealer in stocks or securities. A wash sale occurs when a trader sells a stock or security at a loss and within 30 days before or after the [...]
10 Ways to Save Money
Think about why you are saving money. If your reason for saving is so you can buy a lot of “stuff”, this information will not speak to you. If your goal is a financially secure future, these 10 steps are for you. The key to being able to retire without financial worries is building a [...]
What is Disposable Income?
The term “disposable income” has a wide variety of meanings to many people. Dictionaries generally define disposable income as the income left over for savings after taxes and required expenses are deducted. The trouble with this definition is that it considers savings a discretionary item. Anyone who plans to retire one day (and does not [...]
What Can You Afford?
Afford is a tricky word. Many people think of how much money they have available in their wallets or checking accounts and believe if they can pay for it at the time, then they can afford it. Purchasing something on a credit card with the mindset that you can meet the minimum payments each month [...]
