Saturday, December 13, 2014

Being smart with $$ -- Late October 2014 posts

October 31, 2014 (Halloween)
Scary day? Wanna hear something REALLY scary? Paying for a family of 4 to have iPhones from your early 40s until you retire, instead of putting that money in your IRA, can cost your retirement account a quarter million dollars. Two tin cans and a string anyone?
- Larry Pike, CFA, Client Priority Financial Advisors LLC
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www.clientpriority.com

October 29, 2014
Is the correct expression "penny wise, pound foolish" or "pound wise, penny foolish"? And then does it matter? You may bring your lunch to work every day to save money and then go by the top iPad. Or you may decide you can live without those expensive luxuries but then buy 2 cups of coffee a day at Dunkin. Whether the money spent is the big stuff or little, either example above each year from graduation to retirement is a lost chance at boosting your retirement fund by $300,000.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
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www.clientpriority.com

October 28, 2014
One of the great missed opportunities of the recent stock market nose dive and quick recovery was the chance to convert retirement assets from a pre-tax account to a Roth after-tax account at a discount. Converting during the recent market plunge could have saved you 5% on your tax bill versus doing it today and that's a permanent savings because Roth accounts will never generate a tax bill in the future if managed properly. People wondered whether to buy or sell stocks during the recent rout but a Roth conversion does neither. It changes the tax status but not your market exposure. And if the market kept falling, you could undo the conversion avoiding the opposite problem. Ask me if you'd like to know more and watch for the next plunge!
- Larry Pike, CFA, Client Priority Financial Advisors LLC
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www.clientpriority.com


October 23, 2014
Stocks are up about 5% from the recent low point of the selloff after having fallen about 10% from the high point. We are now up 5% year-to-date on the S&P 500 index and many people feel relieved they didn't sell all their stocks a week ago. So what comes next? I will repeat what I have been reminding everyone: We don't know what comes next. So stick with your prudently prepared long-term plan and try to ignore the short-term volatility.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
-
www.clientpriority.com

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