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“A Bear, A Bear, A Bear!”

January 13, 2023

This article is original content written by Manchester, CT Financial Advisor Thomas Scanlon, CFP®, CPA Years ago we went for a bike ride on Christmas Day on the Farmington Canal Heritage Trail in Farmington, Connecticut. It really is quite a nice trail.  We have never been on a bike ride on Christmas Day as the… Continue Reading: “A Bear, A Bear, A Bear!”

Categories Financial Planning Tags Barrons, Bear Market, Beating the Street, Benjamin Graham, Berkshire Hathaway, Black Bear, Blue Light Special, Bull Market, CNBC, Connecticut, Dow, Dow Jones, Dow Jones Industrial Average, Energizer Bunny, Farmington Canal Heritage Trail, Farmington Connecticut, Gold, Great Depression 1929, Great Reccession 2008-2009, Hartford County, Investment Portfolio, Investments, Joe Friday, Money Market Account, NASDAQ, Oil, One Up On Wall Street, Peter Bernstein, Peter Lynch, S & P 500 Index, Standard & Poors 500 Index, Stock Market Correction, Technology Sector, The Intelligent Investor, Wall Street Journal, Warren Buffett

4 Easy Steps to Stay Retired

June 14, 2021August 19, 2020

This article is original content written by Manchester, CT Financial Advisor Thomas Scanlon, CFP®, CPA You have reached the holy grail (for some) and retired. Congratulations! You are in the Land of No Alarm Clocks. Now you can do (almost) whatever you want to do. You’ve worked your whole life to get here.  Now it’s… Continue Reading: 4 Easy Steps to Stay Retired

Categories Financial Planning Tags 401(K) Plan, 529 College Savings Plan, 529 Plan, Bank of Japan, Budget, Cash Reserve Fund, College, Connecticut, Connecticut Income Tax, CT, ECB, European Central Bank, Fed, Federal Reserve, Federal Reserve Board, Great Reccession 2008-2009, Income Tax, Individual Retirement Account, Interest Rates, Investment Portfolio, IRA, Living Expenses, Medical Bills, Medicare Tax, Money Market Account, Negative Interest Rates, New England, New Hampshire, Portfolio, Rainy Day Fund, Retire, Retirees, Retirement, Retirement Plan, Roth IRA, S & P 500 Index, Savers, Social Security, Social Security Tax, Starbucks, Swiss National Bank, The College Board

Why Cash is Not Trash

December 1, 2021January 27, 2020

This article is original content written by Manchester, CT Financial Advisor Thomas Scanlon, CFP®, CPA

Harvesting Interest Gain

 

 

 

The rates of return on cash (checking, savings, and money market) are very close to zero. This begs the question, “Why have any cash in the portfolio?” Some commentators have even suggested that “Cash is Trash.” I disagree.

 

Cash Reserve Fund

 

The first thing investors should do is fund their cash reserve fund. This fund can be accessed when an emergency arises. This emergency could be unexpected medical expenses or perhaps you lose your job. The popular media maintains that investors should have at least six months of living expenses. Our experience is that most investors have three months or less in their cash reserve fund. Although your cash reserve fund is an asset and part of your net-worth it’s not considered part of your investment portfolio as you are not investing it.

Depending on an investor’s timeline and objectives, a typical portfolio may have 5%-10% allocated to cash. This provides a buffer to the portfolio. Additionally this cash is liquid if funds were needed and provided dry powder if a buying opportunity presents itself. Before the Great Recession of 2008-2009 you might be able to get 3%-4% return on your cash. (1) Today it is essentially zero.

Continue Reading: Why Cash is Not Trash

Categories Financial Planning Tags Asset Allocation, Buying Opportunities, Cash, Cash Reserve Fund, Checking Account, DJIA, Dow Jones Indusstrial Average, Fed, Federal Reserve, Great Recession 208-2009, Interest Rates, Investment Objectives, Investment Portfolio, Investment Timeline, Investors, Medical Expenses, Money Market Account, Net-worth, Portfolio, Reuters, Savings Account, Short-term Interest Rates, Stock Market, Stock Market Correction

The Difference Between a 401(k) plan and a Roth 401(k) plan

October 24, 2019August 11, 2016

  401(k) plan The 401(k) plan has become one of the primary retirement vehicles many people will use to help fund their retirement.  It is one of the cornerstones in 5 Easy Steps to Retirement.  Pre-tax contributions and tax-deferred compounding are what makes the 401(k) plan so appealing.  In 2016 employees can contribute up to… Continue Reading: The Difference Between a 401(k) plan and a Roth 401(k) plan

Categories Financial Planning Tags 401 (k) Plan, 401(k) plan employer match, Auto Enrollment, Catch Up Contribution, Congress, Default Investment, Defined Benefit Plan, Earned Income, Enron, Field of Dreams, Great Recession 2008-2009, Income Tax, Inflaton, IRA, Money Market Account, Paycheck, Pension Plan, Pension Reform Act of 2006, Retirement, Retirement Planning, Risk, Roth 401(k) plan, Roth IRA, Stock Market, Tax Deferred Accounts, Tax-Free

5 Easy Steps to Retirement

April 14, 2016

  1) Plan For Your Retirement   Sorry for having to state the obvious.  You’re not going to get to retire if you don’t plan.  This is the price of admission. After all, it is your retirement we are talking about here. This plan can be as simple or elaborate as you like.  I prefer… Continue Reading: 5 Easy Steps to Retirement

Categories Financial Planning Tags 401(K) Plan, Cash Reserve Fund, Connecticut Drivers, Disability Insurance, Education Funding, Financial Advisor, Financial Plan, Homeowners Insurance, Income Tax, Income Tax-Free, Individual Retirement Account, Investing, IRA, Life Insurance, Money Market Account, Pension Plan, personal umbrella policy, Required Minimum Distribution, Retirement, Retirement Plan, RMD, Roth 401(k) plan, Roth IRA, Self-Employed, Social Security, Tax Deferred Accounts

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