The lesson for those still in the accumulation phase is to build your wealth and retirement nest egg in accounts and vehicles that are not taxable in retirement.
As the dollar gains value, US goods and services become more expensive to world consumers – and sales decline. When sales decline, so do profits, and eventually, so do their stock prices.
…if we implemented the absolute best asset allocation strategy starting in 1972 – and paid just 1% in management fees and 1.25% in mutual fund fees, the best asset allocation strategy would instantly turn into the worst.
A remarkable thing happened in the week or two leading up to Christmas – and it’s worth noting for those of you with money exposed to the market.
I recently ran across an article written by Morgan Housel – a columnist for the Motley Fool and the Wall Street Journal. These are some great nuggets – and worth passing on – edited only for brevity.
As I speak with groups, I’m continually amazed by 401k plan participants who will argue – often vociferously – that they pay nothing to participate in the company plan.