I recently attended a financial planning conference, which offered several excellent sessions on the topic of behavioral finance.
Broadly defined, behavioral finance studies the science behind how people spend or invest their money.
I’ll admit that I don’t spend a lot of time thinking about the factors which most influence my own financial decisions. The thought that someone would take the time to study these behaviors in depth is quite a surprise to me.
You’ve probably heard the news that the Federal Reserve has been raising its benchmark federal funds rate. The Fed doesn’t directly control consumer interest rates, but changes to the federal funds rate, which is the rate banks use to lend funds to each other overnight within the Federal Reserve system, often affect consumer borrowing costs.
The long Memorial week-end and early days of summer often signify a shift to a slower, more casual time of year, free from school schedules and other activities. It can also be a time of renewal, a reminder to dust off the cobwebs and get rid of the dirt and grime that have built up through the winter season. And it’s the perfect time to evaluate and clean up your personal finances as well.
The health insurance landscape in the U.S. continues to present a significant challenge for most residents. Whether you have coverage provided through an employer-sponsored group plan or you purchase coverage individually, you’ve probably noticed a few constants in recent years – escalating premiums, higher deductibles and co-payments and more restrictive choices.
If you’re like many folks, each New Year brings new resolutions for really getting on top of their finances that year. You know, best intentions for increasing savings, to save for the kids’ college education, to save up for a down payment for a new house or vehicle, to save for vacation – in advance – and the like.
Clients sometimes mention their employer offers a ROTH arm in the 401(k) plan and ask if they should choose that over the pre-tax option.
The answer to this question depends upon each situation, but, yes, ROTH arms can be attractive. It’s almost like asking, “What’s the best ice cream flavor?” It depends upon your circumstances and preferences.