A chocolate cake. Pasta. A pancake. They’re all very different, but they generally involve flour, eggs, and perhaps a liquid. Depending on how much of each ingredient you use, you can get very different outcomes. The same is true of your investments. Balancing a portfolio means combining various types of investments using a recipe that’s
When investing, particularly for long-term goals, there are two concepts you will likely hear about over and over again — diversification and asset allocation. Diversification helps limit exposure to loss in any one investment or one type of investment, while asset allocation provides a blueprint to help guide your investment decisions. Understanding how the two
Answer: Finding a policy that meets your needs without costing too much requires some research. The decision of whether to buy term or cash value (also known as permanent) life insurance depends on your personal needs and how much you want to spend for life insurance coverage. To determine which type of insurance is best
Answer: Assuming that you have a traditional IRA or Roth IRA, you’ll want to consider the financial consequences before making a decision. You’ll want to evaluate any fund withdrawals based on several factors: How far away from retirement you are The size of your retirement fund The amount of money you intend to withdraw Whether
Your need for life insurance changes as your life changes. When you’re young, you typically have less need for life insurance, but that changes as you take on more responsibility and your family grows. Then, as your responsibilities once again begin to diminish, your need for life insurance may decrease. Let’s look at how your
What determines your life insurance need? Life stages and circumstances When determining your life insurance need, you should first consider your life stage and circumstances. Marital status, number of dependents, size and nature of financial obligations, your career stage, and your intentions to pass on your property are all factors to consider. Your need for
Throughout your career, retirement planning will likely be one of the most important components of your overall financial plan. Whether you have just graduated and taken your first job, are starting a family, are enjoying your peak earning years, or are preparing to retire, your employer-sponsored retirement plan can play a key role in your
Trimming college costs up front can help families avoid excessive college borrowing and the burdensome student loan payments that come with it. Here are some ideas. Pick a college with a lower net price. You can use a college’s net price calculator (available on every college’s website) to estimate what your net price (out-of-pocket cost)
Answer: Mutual funds offer many advantages that are particularly attractive if you have a small amount to invest (i.e., $25,000 or less), or if you don’t have the time, experience, or inclination to manage your own investment portfolio. If you invest in an actively managed mutual fund, you get the benefit of the fund manager’s
What is an insurance coverage review? Periodic reassessment of insurance need An insurance coverage review is a periodic reassessment of your insurance need. The main objectives are to confirm that the level of insurance coverage you have is still adequate, to alert you to shortages in coverage that can occur due to changes in your
