Dollar-Cost Averaging – What Is It?
Dollar cost averaging has many different names which include constant dollar plan, unit cost averaging, incremental trading, and cost average effect. But they all speak to the same strategy. Simply put, dollar-cost averaging is dividing up the total amount invested across periodic purchases. The act of dollar-cost averaging was first popularized by Benjamin Graham in his classic investing book, The […]
What Is The Best 529 Savings Plan For You?
When saving for educational expenses, one of the key decisions you must make is what savings and investment vehicle is best. We have previously written a blog “How Should I Save For College?,” which talks about which vehicle might be best for you. In many cases a 529 savings plan is the best option, but […]
What Does It Mean To Have A Diversified Portfolio?
There are many misconceptions about diversification and what it means to have a diversified portfolio. One of the questions I get a lot is: “I own XYZ stock. Is it a good time to sell it?”. Usually, my immediate follow up, even before looking into the stock, is how big of a position is the stock in your portfolio […]
When You Should Contribute to a Retirement Plan
Often the mantra you hear when it comes to contributing to retirement plans such as 401(k) or 403(b) plans is to “max out your plan”. And, if you have the annual income necessary to meet these thresholds, you should absolutely take that approach. But there are many people who cannot “max out” their plan and […]
4 Common Wealth Building Mistakes
Building wealth can be confusing and complex at times. To be successful, one must take a holistic approach, requiring an understanding of many different aspects of wealth management. Many of these components are intertwined. For example, ask yourself if you have a sound financial plan? If you answered yes, does the plan take into consideration […]
Target Date Funds: 401k’s Most Popular Investment Choice
The popularity of target date funds has grown substantially over the past 10 years. Currently more than 50% of 401(k) investors have all their assets in target date funds. Not all this popularity is investor driven. Instead, much of this growth is structural. Currently just over 50% of target date funds are with companies that have their own record keeping, but these companies control over 80% of the assets […]
Spending a 529 College Savings Account- Best Practices
After years of saving, your child is finally off to college and you wonder how 18 years have gone by so fast. Ideally, you’ve taken advantage of long-term, tax-free compounding discussed in our college savings strategies blog(http://www.thorinvestment.com/saving-for-college/) and have built up nice gains in the college accounts. Savings in a state-sponsored Qualified Tuition Program, or […]
President Trump’s Proposed Tax Plan
After much talk about tax reform during his Presidential campaign, the President’s proposed tax plan is out. Although the White House has not released many details – the proposed tax plan is less than 250 words – the law would change the way individuals and businesses pay taxes. The stated goals of the tax plan […]