Category : investing

6 Step Blueprint for your 401k (Part 2)

In our previous blog post we covered the first three tips you need to keep in mind when investing your 401k (for those of you that are dead-set on doing your 401k by yourself). In case you missed it, here they are: favor index funds, select the right stock to bond ratio, and diversify. And as promised, here are the final three tips:

4. Rebalance your 401k: In a nutshell, this wonderful tactic keeps your portfolio invested near the original percentages that you selected above in Step #3. Some folks do this manually, some custodians provide you with tools to help you set this up on a regular basis, and some folks hire professionals (like blooom) to do it for them. The beauty of rebalancing is that it trims from your funds that have done well and adds money to funds that haven’t. This may seem counter-intuitive but if you think about it for awhile is starts to make sense. Buy low, sell high. Buy low, sell high. Buy low, sell high…

Read More

6 Step Blueprint for your 401k (Part 1)

So you have one of these “401k thingys” through your employer. Hopefully you have been socking money into it just like your Mom or Dad taught you. The balance has been growing these past 5 years but you still wonder if you picked the right investments that day you sat down with the enrollment paperwork with no 401k advice.

But you have this nagging feeling that you are in over your head.

Your Human Resources person won’t give you advice on whether you still have the right funds and you would ask the guy in the cubicle next to you (since he is always bragging about his investing prowess) but he is too much of a know-it-all to flatter him with your questions. It is hard to find 401k advice.

You tried calling the 1-800 number to the company where your 401k is being held – no help there either, just some confusing suggestions. Maybe you have even ventured online and googled “401k help” or “401k advice” but when the search returned over 17 million web pages you opted to check your Facebook page instead. Perhaps, you were brave enough to login to your 401k account and see if there were any tools you could use to help with all this. If you were able to work your way past all of the complicated Wall Street jargon, you might have found a tool to help you with you investment choices but in all likelihood, if you made it to the point of actually making changes to your portfolio – you left frustrated by how intimidating and confusing the interface became once it was time to pick your investments.

Rest easy my friend, you are not alone.

Read More

One Million Cups Presentation – Kansas City

In the event that you set your alarm clock for PM instead of AM, and you missed our early morning presentation at One Million Cups, here it is!

Read More

As much stock as you can handle…then some more

We at blooom are occasionally asked why the recommended allocation from our proprietary glide-path includes (what seems to be) a rather heavy mix of stock funds over bond funds. Their question often stems from what I call the “Good Morning America” or “one-size-fits-all” allocation advice which carelessly recommends that you allocate the same percentage to bonds vs stocks as your current age. For example, if you are 33 years old – taking that advice for your 401k would mean you would allocate 33% to bonds within your portfolio. I am sorry, but when it comes to your 401k retirement savings – we think it is ludicrous for a 33 year-old (with possibly 25+ more years before retirement) to allocate 1/3 of their portfolio to an asset class that will most likely provide ZERO real return over the remainder of their working years.

Read More

Widen the gap between your last day of work and your last day on planet earth

Chris and I have successfully helped over 400 families enter retirement. Some of those folks continue to live a wonderful and fulfilling retirement. Unfortunately, some only had a brief time to enjoy their retirement.

You see, once in a while a client will have an unexpected illness fall upon them. Unfortunately it’s happened a number of times, and as recently as a few months ago to a great client. We’ll call him Joe. He retired at age 65. By age 67 he’d passed from lung cancer. Thirty-five years of working towards two years of retirement.

By now you might be asking what this could possibly have to do with blooom and 401k help…fair enough. Here is your answer:

I find myself asking the question, if blooom had been around for Joe 30 years ago, would he have been able to retire at age 55? If so, he would have had 12 years of retirement versus 2 years. What could Joe have done with those extra 3,650 days/87,600 hours/5,256,000 minutes of retirement? Would he have made it to more of the grandkids’ soccer games? Would he and his wife spent more quality time and moments together? How many more lives would he have touched at his church or in his community? Hauntingly and unfortunately, I think he might have accomplished more.

Read More
1 7 8 9 10