Investing and Investments

Stock Market Jitters

As this is written on February 12th, the stock market, as measured by the Dow Jones Industrial Average, has tumbled 10% off of its late-January all-time high.  Then, within mere days, the market has rebounded and recovered close to half of its recent losses.  This appears to be a healthy correction.  The economy is doing […]

Is There a “Bubble” in Index Funds?

The fee-based investment advisor who has been underperforming the market may tell you that there is.  Individual investors are indeed becoming better educated about the long-term costs of investment management fees and choosing to invest passively in index funds.  The advisor will argue, however, that as they add money to, say, an S&P 500 stock […]

Bad Times for Bond Funds

Bond mutual funds are particularly vulnerable to rising interest.  Even though their interest is still being paid, the value of the fund’s shares drop as interest rates go up.  If you own bonds, the prices recover when the bonds mature.  But shares in bond mutual funds have no maturity date and there is no assurance […]

Charitable Giving Through Donor Advised Funds

Creating a Donor Advised Fund for Charitable Giving is an Intriguing Concept, but be Prepared for High Fees and Limited Investment Options:   Financial advisors are urging their doctor clients to set up donor advised funds before year-end.  The idea is that you will open a charitable account through a broker like Charles Schwab, Fidelity or […]

Qualified Charitable Distributions

The Up-To-$100,000 Qualified Charitable Distributions (QCDs) That Can be Taken From One’s Required Minimum Distributions Must Go Directly to the Final Operating Charity, Not a Donor Advised Fund:  There’s been some confusion on this.  But, the Pension Protection Act of 2006 is clear on this point.

Thoughts from the Just Completed C&A 2017 Chicago Advanced Investment Seminar

If you attended, you know it was a great meeting.  If not, hopefully you can attend one of our investment seminars next year.  Our guest speakers gave excellent well-reasoned stock and bond recommendations that better insulate our portfolios when the next correction or bear market hits the stock market and rising interest rates hit the […]

Children’s Education Funds

There can be other methods, but the four ways we typically see parents save for future education costs are in one or more of (A) an account in the parent’s name, (B) a custodial account for the child, (C) a Roth IRA for the child, or (D) a Section 529 plan for the child.  Here […]

We’re Not Selling Our Shares of Henry Schein

Newsletter readers and seminar attendees know that the dental supply company, Henry Schein, comprises a large portion of our family’s investment portfolio.  And we know that many of you own the stock too.  This has been a wonderful long-term investment.  Over the past 20 years, the stock is up almost 700% compared to 300% for […]

Low Inflation (and Therefore Interest Rates) Should Continue to Buoy the Economy and Financial Markets for the Foreseeable Future

The Federal Reserve is mildly frustrated that its efforts to boost economic growth and raise the inflation rate to its desired 2% level have been stymied by certain anti-inflationary forces. These include drops in gas prices, telecom rates and the growth of Amazon’s efficient distribution system, all things that hold down the cost of living. […]

Municipal Bonds From Natural Disaster Zones

We’ve gotten questions from doctors on the safety of municipal bonds from issuers located in natural disaster zones – hurricanes, earthquakes, etc. We believe these concerns are overblown. Prices have barely budged on bonds issued in the affected areas. The market knows that they will recover and the issuers will not miss principal or interest […]