Author - David John Marotta, CFP®, AIF®

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David John Marotta Interviewed by SuperMoney
2
Roth IRAs Make Great Estate Planning Tools
3
Hedge Funds and Long/Short Strategies
4
Where Should I Invest Money Which I Will Need in a Year or Two?
5
The Golden Bear: The Bear Market of 1973

David John Marotta Interviewed by SuperMoney

David John Marotta Interviewed by SuperMoney

David John Marotta was recently interviewed by SuperMoney as part of their Expert Interview Series.

Perhaps the most interesting question and answer was this:

What are some of the biggest mistakes that people are making when it comes to retirement savings?

One of the most common financial mistakes is to forget about inflation. My grandmother, Florence Mortlock, was born in 1904. At the time, you could buy a dozen eggs for a quarter and a week’s worth of groceries for a few dollars. Had you told her that she would need hundreds of thousands of dollars in order to fund

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Roth IRAs Make Great Estate Planning Tools

A Roth IRA will protect your investments from its worst enemies: taxes and required distributions. Unlike their traditional counterparts, Roths don’t require you to begin withdrawals from the account once you reach the age of 70 1/2. With time on your side and your investments sheltered from taxes, your Roth will begin to experience what Einstein called the “greatest discovery of all time” – compounding interest.

If the tax-free growth of a Roth IRA isn’t enough to whet your appetite, the estate planning benefits it offers should seal the deal. Bequeathing a Roth is much the same as setting up …

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Hedge Funds and Long/Short Strategies

Hedge Funds and Long/Short Strategies

We don’t recommend hedge funds, neither do we recommend long/short strategies.

Hedge funds are not an investment strategy. They are a compensation mechanism which provides a method to bypass the normal regulatory process governing registered investment advisors. Some, but not all, hedge funds actually hedge the market. Some mutual funds also employ a hedging strategy. The most common strategy for hedging the market is called a long/short strategy.

A long/short strategy consists of taking some portion of your investment and purchasing stocks hoping that they will go up. Generally managers presume that they have a methodology for selecting the stocks …

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Where Should I Invest Money Which I Will Need in a Year or Two?

Hello, We recently sold a home. We have about $200,000 to invest for a year or two until we remodel our new home and start our daughters in college. Any ideas where we should put the money? We have already funded our IRAs/401k as much as allowed. Thanks!

The chart in our article “How Long Should I Give An Investment Plan?” shows that you need to give the S&P 500 at least 7 years before the worst return within one-standard deviation is positive, and at least 19 years before the worst return within two standard deviations is positive.…

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The Golden Bear: The Bear Market of 1973

A Bear Market is defined as an index dropping at least 20% from some previous high. Smaller drops in the market between 10% and 20% are called “corrections.” Larger drops of at least 50% are called a “crash.”

Since 1950, there have been exactly nine Bear Markets in the S&P 500 Price Index (the most common representation of “the market”). Only one of these turned into a stock market crash. The other eight stopped dropping before the loss from peak to bottom was greater than 50%.

Although you might think that only eight Bear Markets over 65 …

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