Unbiased financial advice from fee-only financial planners

Brought to you by the National Association of Personal Financial Advisors

1
50 Shades of 529’s: What College Plan Dominates?
2
Very Weak Economy Implies Risk of A New Recession
3
Anniversary of 1987 Great Crash – How to Prepare for the Next One
4
Is the Dow Jones Industrial Average Still a Relevant Stock Market Index?
5
The Luck of the Lottery

50 Shades of 529’s: What College Plan Dominates?

Eric’s Note: Tax benefits are specific to Alabama. Originally published at www.mcclainlovejoy.com: http://wp.me/p31Bd2-w9

Does the thought of a $100,000 college bill for one kid leave you feeling out of control? You can use a 529 college savings plan to save and pay for college in a tax preferential way

529  is tax code section which enables states to setup and offer college savings accounts. They come in two flavors–Prepaid Tuition plans, which we generally suggest you  avoid.

Ccontributory plans or 529 college savings accounts which operate like a 401k/403b retirement plans with contributions dedicated to a single goal: paying …

Read More

Very Weak Economy Implies Risk of A New Recession

An economist who is more bearish than me has issued new concerns about the economy. Per Hoisington’s quarterly newsletter U.S. GDP five year growth at 2.2% annualized is 25% below normal because when debt gets to 250%-270% of GDP as of past decade then we lose 25% of the growth rate! Per capita growth was only 0.3% in the first half of 2014. Declining velocity of money caused by bad, unsustainable debt instead of productive debt. Japan not getting better; US, EU, Japan all have a problem of declining velocity of money, etc. In the US real median household income …

Read More

Anniversary of 1987 Great Crash – How to Prepare for the Next One

Yesterday was the anniversary of the 1987 crash where stocks went down 22% as of the closing price and even more intra-day. This was caused by a panic over remarks by government officials in regards to currency values with the implication that the dollar had gone up too much and needed to come down, thus provoking flight by foreign investors. Currently the dollar has gone up a lot and the Federal Reserve wants to change that so as to increase inflation and decrease unemployment.

The crash of 1987 was a statically improbable six standard deviation (SD) (represented by the Greek …

Read More

Is the Dow Jones Industrial Average Still a Relevant Stock Market Index?

Share
The Dow Jones Industrial Average (DJIA) of 30 large stocks has long been arguably the most watched index for those following the stock market.  As I write this IBM a long-time index component reported a major miss in its quarterly earnings. The stock was down some 7% for the day and due to this decline the DJIA was been down most of the day.  The index finished up some 19 points but without the drag of IBM the index would have been up around 100 points according to a commentator on CNBC.  This begs the question is the Dow Jones… Read More

The Luck of the Lottery

Snagged Another Lottery Participant

Most forms of gambling are illegal at the federal level. Others are illegal at the state level. The FBI frequently busts participants of cyber casinos and foreign lotteries. In most places, both privately run casinos and lotteries with an entrance fee are also illegal. However, counterparts of both of these operated by the state or Native Americans are just fine. In states with a lottery, over half of its citizens have played. Sadly, a large number of those participants are below the poverty line.

Government-run lotteries have a sordid and monopolistic past. In the 1800s, lotteries were …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login