Library

WHY YOU SHOULD READ YOUR 401(K) STATEMENT

When is the last time you took more than a few seconds to review your quarterly 401(k) statement?

WOULD YOU PASS THE CHALKBOARD TEST?

Could you explain your investment strategy if you were handed a piece of chalk and directed to a chalkboard? How did you choose the investments within your portfolio?

THE BUCKET APPROACH

According to various studies, the first of which was published in Financial Analysts Journal in May, 1991, stock selection accounts for only 4.6 percent of investment returns, while market timing is responsible for only 1.8 percent.

WHY IT IS IMPORTANT TO UNDERSTAND YOUR TOLERANCE FOR INVESTMENT RISK?

Risk tolerance is defined as an investor’s ability to handle declines in the value of his or her investment portfolio.

THE POWER OF COMPOUNDING

Remember all the time we spent as children dreaming about what it would be like to be a millionaire? Surprisingly, if we had spent that same amount of time running a candy store or a lemonade stand, we would all be on track.

WHAT’S THE GUARANTEED RATE ON YOUR VARIABLE ANNUITY REALLY WORTH?

Have you heard of an investment that will guarantee a 5, 6, or even 7 percent return, and can return more if the market performs well?