It is often said that percentage of stocks that one should own in their investment portfolio is 100-minus their age. Is this a good rule of thumb? I am not sure where this “rule” originated, but like most “rules of thumb,” it may or may not be the best application to your situation. Let’s start with what stocks are and how they impact our investment returns. Stocks are literally shares of ownership in a company. If you own Microsoft stock, you own a part of the company, just like Bill Gates does, but likely in a much, much smaller proportion. …
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Here’s How You Can Grow Your Wealth Through Stocks
The following is adapted from Inheriting Chaos with Compassion. If you inherit an investment portfolio from a loved one after they pass, unless you’re an investor, you might look at the mix of stocks, bonds, and other assets with total confusion. As a financial advisor, I’ve seen it happen before with clients. If you’re in that situation—or if you’re curious about stocks and how they can be used to grow your wealth—this article can help. To start, let’s answer an important question: What is a stock, anyway? Defining “Stock” When you own stock in a company, what you actually own…
How to Evaluate an Investment Portfolio You Inherit
The following is adapted from Inheriting Chaos with Compassion. Of all the things you can inherit after a loved one passes away, an investment portfolio is one of the trickiest, especially if you’re not an experienced investor. Understandably, an investment portfolio is designed to help someone achieve their financial goals, and when we inherit that portfolio, those assets may not support our goals. That’s what happened with a client of mine named Bethany, who inherited her aunt’s portfolio after she passed. Bethany’s aunt was like many older people who use a singular investment strategy; in Bethany’s case, her aunt held…
Jennifer Luzzatto as a Guest on Keep It Juicy Podcast!
How the Executor and Beneficiaries of a Will Should Handle Assets
The following is adapted from Inheriting Chaos with Compassion. When a loved one passes away, there are two major roles involved in the handling of their estate. There’s the executor, whose job is to make sure an estate is divided and distributed properly in accordance with how the will states things should be. Then there’s the beneficiaries: the recipients of assets from a will, trust, retirement account, or insurance policy. Upon a person’s death, beneficiaries named on their accounts become the automatic owners of those assets. In this article, we’ll look at how both roles play into the process of…
