Social media has democratized much of our society that was once the domain of experts. Anybody with a phone and a WiFi connection can be a pop star, movie producer, or celebrity chef – all of the content free of charge for the user. It seems everyone enjoys free advice when they are not familiar with the subject matter – just ask your doctor about that ChatGPT diagnosis you came up with (hint: it’s probably not a tumor). The experts in the field know that the “life hacks” and generic recommendations to seemingly every problem lack nuance and personalization.
You may or may not personally be interested in the much-hyped initial public offering (IPO) of Elon Musk’s SpaceX (SPCX), but you will likely own shares, regardless, at some point in the future. In this article, I’m going to attempt to show what impact this could have on your retirement balances. My intention is not just to pick on SPCX, but to reiterate that investors should be more fully aware of what they are (indirectly) investing in through mutual funds and indexes.
What can you do if you don’t want to get married for personal reasons, or can’t for legal reasons, but are in a committed relationship and want some of the advantages of a marriage? You may want to consider a domestic partnership. Though not available in all 50 states, some offer statewide benefits, where others, including Maryland and Virginia, have partial or local recognition. The advantages are defined state by state (and locality by locality), but in general, a domestic partnership normally provides:
Even though there is not much one can do to reduce taxes these days, I still enjoy reviewing client tax returns. There is a lot to learn about a client’s financial life through their tax return, and I usually come away from a review with at least one discussion point. With software driving so much related to tax preparation, taxpayers are not asked to be aware of specific rules regarding more transactional taxable events. TurboTax is the de facto expert that many defer to, without thinking of questioning any output that isn’t out of line with our expectations.
… a prenuptial agreement. Traditions are fun and meaningful, but a prenuptial could prove a great catalyst for a good marriage. Prenuptial agreements have often been labeled as an implication of distrust or premeditation of divorce. But consider this: Do you have homeowners’ insurance because you are planning to set fire to your home? I certainly hope not. Do you have auto insurance because you are planning on wrecking your car? Of course not.
You might have noticed that the Trump name is getting plastered on quite a few things lately. If you have young children, one that might be of interest is the Trump Account. Trump Accounts were established under the One Big Beautiful Bill Act (OBBBA) and are essentially starter retirement accounts for kids. While more details regarding logistics and funding of the Trump Accounts are anticipated, here’s what we know.
Too many people are fearful of retiring. Yes, there are many who are counting down the days and are excited about their list of things they want to do and see. Yet there are still others who aren’t sure about how they will spend their time, what their purpose is now that they are no longer working, and whether their money will last.
Many investors and pundits love dividends, but does this popular opinion hold up? First, let us review the pros and cons of dividends.
Pros:
- Provide a regular and growing (hopefully more than inflation) source of cash.
- Hold management to more disciplined capital allocation decisions.
- Provide psychological comfort helping investors stay invested during downturns.
- Research suggests dividend stocks exhibit lower shareholder turnover1 & volatility.
Cons:
For many, achieving millionaire status has been a widely accepted goal that once achieved, you can breathe a little more comfortably. Unfortunately, the reality is that having $1 million saved does not guarantee a feeling of security. My theories for this are trifold based on discussions with clients, family, and friends. First, as humans, we are programmed to detect a threat. That natural state is tested daily (think driving on the beltway) and exploited daily (think pharmaceutical commercials for instance – do I have dry skin or psoriasis???).
For many clients, especially those in their 50s that have college-aged children, the focus of their savings plan becomes a little less complicated once college costs are paid. For those that had been socking away funds each month for tuition, they may wonder how to redeploy those future savings dollars. You could ramp up retirements savings. However, you may already be maxing out 401(k) contributions at work, including the “catch-up” amount. As I’ve written about previously, one strategy to consider is combining different types of savings vehicles to meet those needs.
As the global economy implements artificial intelligence (AI) in the workplace, concerns arise regarding the potential for widespread job losses as a result. However, if true, will these human job losses be transitory or permanent? Or will the AI revolution give way to long-term human job growth given anticipated efficiency gains?
Every year marks a fresh start—a valuable opportunity to pause, reflect on past experiences, and set your sights on the future. As the times are always “a changing,” your approach to retirement planning should continue to evolve as well. Planning ahead and coordinating a tax-efficient account withdrawal strategy in retirement is important. The new catch-up rule under the Secure 2.0 Act could help with this now.