FVIM's Insights

We hear this one a lot: Preserve your principal and live off of the proceeds in retirement . When interest rates disappoint, this often translates into investing in dividend-paying stocks instead. Unfortunately, while a focus on dividend stocks may be a common denominator found in many retirees’ investment equations, the logic doesn’t quite add up. Let’s go over why this is so, and why there may be better ways to both preserve and enjoy your total wealth. Money = Money It’s true that the notion of “principal” versus “interest” versus “dividends” can make for convenient mental accounting when managing your money....

The can-do spirit dies hard in us Americans, and usually that’s a good thing. But when applied to investing, active energy is less advisable, especially if it involves trying to outsmart the market by chasing expert forecasts. Hopefully, you’ve already figured out that you’re best off ignoring the garden-variety talking heads like Jim Cramer and his ilk as more flash than substance. But what about those super-powered Federal Reserve chairmen and chairwomen? If anyone could see what’s coming in the market, shouldn’t it be they, who not only have their finger on the pulse but are actually responsible for regulating the...

Every April 15 when I write that painful check to the IRS, I console myself with the reminder that having tax-generating income is certainly better than not owing anything at all. Assuming I don't incur underpayment penalties, it's also better than having had the amount surreptitiously extracted from a paycheck; I've gotten to put that money to use for me and my family for as long as possible. Still, writing that obvious check hurts, every time. This year, I realized that transparent investment costs are like that too. Investors should significantly prefer fees and costs they can clearly see instead of...

In our last post, we covered the female elephant in the room : Given women's longer expected lifespans, it's vital for women to participate in the household's financial and estate planning interests. A newly published White House report, " The Effects of Conflicted Investment Advice on Retirement Savings ," sets the stage for another important discussion about your family's retirement planning and how the same longevity issues matter here as well. First, Let's Talk About Fiduciary Advice Let's talk about that White House report and its connection to women's retirement planning. This may seem like a digression, but bear with us....