Most investors would readily admit that past experiences in the markets tend to influence their decision-making over time. At best, our mistakes can inform us what to avoid in the future. At worst, we allow certain experiences to create unproductive biases in our mindset. A good example of such a bias could be the tendency of Depression-era investors to avoid stocks altogether following that time period, given the scars left behind from such a difficult experience. The problem with such a bias, can be the creation of an even bigger opportunity cost in its wake—the opportunity cost of not participating in the gains that followed. [+] Read More

With the cost of education continuing to rise, and the requirements for minimum workforce entry showing no likelihood of decreasing the importance of a post-secondary education, it’s more important than ever that college costs are considered and incorporated into your budget as early as possible. For all the readers who have children, grandchildren, nieces and nephews who are a constant source of excitement and joy, making sure these children get a world-class education is of paramount importance. But paying for college is a completely different ballgame. [+] Read More

Dr. Meir Statman is a professor of finance (with a focus on behavioral finance) at Santa Clara University. You might say he is a foremost expert on how emotions can affect financial decision-making for managers and investors. His most recent book, “Finance for Normal People: How Investors and Markets Behave,” is pretty much a dead giveaway for where his life’s work is focused. So, when Dr. Statman pens an article in the Wall St. Journal titled, “How Emotions Get in the Way of Smart Investing,” it is probably worth a close look. Indeed, the relationship between human emotions and investing is a complicated one – and it’s one that many experts would agree is at odds. Few would disagree with this general idea: investors who can remove emotion from the investing equation have a better chance of doing well over time versus those who cannot. As Warren Buffet succinctly puts it, “it’s an easy game if you can control your emotions.” [+] Read More

Both a Roth IRA and Traditional IRA (Individual Retirement Account) can potentially help meet your retirement savings goals. The main difference between the two is: with a Roth IRA, taxes are paid upfront, whereas contributions to a Traditional IRA are made “pre-tax,” and reduce taxable income for the year. Age and income are two significant factors to consider when choosing a Roth or Traditional IRA. Couples or individuals in a low tax bracket as well as younger people may be better off with a Roth. Earnings grow tax-free, and contributions can be withdrawn at any time without penalty. Individuals or couples in a higher tax bracket may choose a Traditional IRA to reduce their taxable income, or because their income is too high to qualify for a Roth. A Traditional IRA is also a good choice for people who expect to be in a lower tax bracket during retirement. [+] Read More

Corporations in America are aware that public perception is important. That’s why many companies have made strides in recent years to emphasize their efforts in caring for the environment, providing equal opportunities to employees, and being active contributors to small communities. It’s PR 101 for building trust and goodwill towards a brand, which can ultimately help drive sales. [+] Read More

With retirement planning, there is always the need to plan for the “unexpected”: emergency needs, potential home repairs, major medical situations, and so on. But there are also several expected—and fairly predictable—expenses that many investors may not fully take into account. This is not necessarily because of lack of planning, but more so because these expenses can be somewhat academic and less easily understood. [+] Read More

Let’s start with the basics: what is a 529 Plan? Many investors may already be aware, but in layman’s terms, a 529 plan is a state or educational institution-sponsored college savings program (also applies to post-secondary education). 529 plans are not for everyone, but when utilized they can provide several advantageous benefits for those hoping to save for college. Here, we try to give you a comprehensive view of those benefits, as well as a few important considerations: [+] Read More

In a recent post on 529 plans titled, “Helping You Understand the Basics of 529 Plans,” we discussed some features of 529 plans work and whether they might make sense as part of your comprehensive financial plan. [+] Read More

With half the year over, BlackRock's commentary delivers an overview for the rest of the year. Read the excerpt here, or download the full BlackRock Midyear 2016 Golobal Investment Outlook report. Markets are torn between anxiety over the fallout from the UK’s vote to exit the European Union and the prospect of a strengthening U.S. economy. Downside risks to global growth point to a U.S. Federal Reserve on hold — and reinforce our view of low global interest rates for long. Our key views: Outlook Forum: At a mid-June gathering of some 90 BlackRock portfolio managers and executives, we had vigorous debates on the outlook for a rebound in U.S. inflation, the prospect of a turnaround in beaten-down emerging markets (EMs) and the woes afflicting the global financial sector. Themes: We updated our three themes for this year: 1) We are living in a low-return world; 2) Monetary policy has been a key driver of asset prices — but its effectiveness looks to be waning; 3) We see more volatility ahead as Brexit-related anxiety weighs on Europe’s economy and the business cycle matures. Risks: We see geopolitical uncertainties and a renewed rise in the U.S. dollar as near-term risks, and populism as a medium-term challenge for trade, growth and markets. A potential surprise: a rally in risk assets prompted by investors shifting out of cash and low-yielding assets in search of higher returns. Markets: We have turned more positive on most fixed income due to elevated geopolitical risks and easy monetary policy in a low-growth world. We like income, including investment-grade credit and EM debt. We are cautious on equities, particularly in Europe, given the turn in risk sentiment and poor profit growth. We prefer dividend growers and quality companies. We like gold as a portfolio diversifier. To learn more about BlackRock and other Money Managers, give us a call at 1-800-541-7774 or contact us here to speak with one of WrapManager's Wealth Managers. Download Full Commmentary Here Get Free Research Reports about Blackrock Inc [+] Read More