And here we are already, the last weekend of August. Hard to believe there’s only one more month in the third quarter of 2020. Before you know it, the holiday season will be upon us.
Just like last week, we have two guests for you this week, with some of your questions mixed in along the way.
First up we’re talking about bonds.
What’s a portfolio without a bond position? It’s incomplete and potentially riskier than necessary.
We rarely dive into bonds in great detail, what they are, how they work, and why you absolutely need them, which is why I thought it would be time for a little Bond Boot Camp.
Joining us in hour one is Kathy Jones, Senior VP and Chief Fixed Income Strategist at Schwab.
If the pandemic has acted as an accelerant to business trends, it has also become an accelerant to inequality.
Last year, before the onset of coronavirus, the Census Bureau found income inequality was at its highest level in 50 years, with two-thirds of the total wealth in the country owned by the richest 5-percent.
Meanwhile, 4 out of 10 American adults said they would have difficulty covering a $400 unexpected expense and more than 38 million Americans are living in poverty.
When discussing these facts and figures, it is important to remember that there are people behind the numbers.
To do a deeper dive with us on this topic, we're joined in hour two by Dane Holmes, co-founder and CEO at Eskalera, a diversely founded company, committed to providing employees and managers with the knowledge and skills to build a more inclusive culture and helping organizations drive systemic and sustainable change.
Have a money question? Email me here.
"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.
Making money in a low return world is tough. Last week, the yield on 10-year US government bonds touched an all-time low and stocks have been stuck in neutral for two years. Given the current environment, return caller Ryan asked whether one asset allocation fits all portfolios? In other words, should you put those investments which are likely to appreciate the most in a Roth IRA, where you will never have to pay taxes on the gains? It may take some some work, but the idea has merit.
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Heather Long, CNNMoney's senior markets and economy writer, joins the show to weigh in how you can make money in the current low return era. Heather notes that most forecasters now expect below average returns for the major asset classes over the next five years. She helps us decide what to do about it. Heather also discussed politics, diving into the question: Who’s better for your money: Trump or Clinton?
Thanks to everyone who participated this week, especially Mark, the Best Producer/Music Curator in the World. Here's how to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
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Investors spend a lot of time worrying about the market implications of the political season. Guest Taylor Tepper, who is a writer at Money, says that's a mistake. Despite all of the worries about a Trump presidency, Taylor says that the stock market will NOT crash if Donald Trump were elected president. That's just one of the topics we covered in a great conversation that ranged from market implications of elections to the national debt, to a lightning round on how to reform the U.S. tax code.
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I met Taylor through my work at Money, where we have shot some great videos, including this one on the Department of Labor Fiduciary rule, this one about working in retirement and the one about bonds can be riskier than you think, which is when I discovered that Taylor likes this money and investing stuff as much as I do!
Here are Taylor's two recent articles that we reference during our interview:
"No, the Stock Market Won’t Crash if Trump Is Elected President"
Thanks to everyone who participated this week, especially Mark, the Best Producer/Music Curator in the World. Here's how to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
We're cramming in a summer class on bonds, led by Bond Yoda, Marilyn Cohen. Marilyn founded Envision Capital Management 20 years ago after stints at William O’Neil & Company and Cantor Fitzgerald. Besides her impressive credentials, our favorite fact on her bio is: "In her spare time Marilyn raises service dogs for the disabled and regularly conducts pet therapy sessions at the VA Hospital."
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Marilyn covers the differences between bond funds and individual bonds; the costs involved in buying bonds directly and how you can learn more about the mark up and recent trading of bonds at http://www.investinginbonds.com/.
How should you invest your bond portfolio? Marilyn advises that investors keep it US-centric (though not treasuries) and make sure to focus on 3 to 10 year maturities. She also weighs in on whether or not you should consider so-called "bond alternatives", like REITs, dividend stocks, preferred stock.
You can check out Marilyn's e-book about bonds for free at Smashwords.com or for $0.99 at Amazon.com.
I also mentioned a CBS This Morning segment on saving, which you can find here and the New York Times 1% More Calculator.
Thanks to everyone who participated this week, especially Mark, the Best Producer in the World. Here's how to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
The roots of Memorial Day go back to the aftermath of the Civil War. It has since been expanded to honor those who have made the ultimate sacrifice for their country. It’s also an opportunity to consider those veterans who are trying to transition into a civilian life. While working on a story, I stumbled upon a great resource for military personnel who are entering the broader job market: GIJobs.com, so pass it on to someone who might need a break!
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The theme of this week's show is "How to Buy Bonds", because both Chris and Jay have big portfolios, allocated almost exclusively to stocks. Each voiced the same concern: Although they want to buy bonds, they find it hard to do so, just as interest rates are poised to rise. We provide both of them with some ideas to accomplish a more balanced portfolio.
Paul has a fixed annuity that will mature in November, but if he cashes it in, he will be on the hook for a big tax liability. He wonders what options are available to mitigate the tax hit.
Should Gary use the proceeds of his primary home sale to pay off the mortgage on his second home? While it might be great to feel unburdened without a mortgage, he might regret not having access to the money.
The existential question of the week comes from Jessica, who asks, "Is it financial suicide to consider taking 6 to 12 months off of work for both working parents mid-career?" Feel free to weigh on this conversation!
Mark and Caroline are busy juggling priorities. What should they do with an extra $1,000 per month? Pay down debt, save for a house or open a 529 college savings plan?
John asks whether all of the staff at the registered advisory firm with which he works, must be registered individually...the answer: Maybe, but maybe not!
Thanks to everyone who participated this week, especially Mark, the Best Producer in the World. Here's how to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
Regardless of whether you are rooting for Germany or Argentina, we have a world class show this weekend, featuring special guest Mitch Tuchman, founder of MarketRiders.com and Rebalance-IRA.com. Mitch foundedthese companies to help retail investors gain access to the same tools and philosophies that sophisticated investors have been using for decades
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As Mitch likes to say about financial services, "There's probably not an industry that is so overpaid for providing so little!" To learn more about creative companies like those Mitch has created, check out my article "Advice for Small Investors".
Lenny has rotten investment options inside of his 403 (b) Suzy wrote in about whether or not to rollover her old retirement account. (For more on whether or not to rollover old retirement plans, see "Rock and Rollover".)
Mark wanted to make sure that his intermediate financial goals seemed appropriate; Steve is wondering whether he and his wife have accumulated enough money to fund retirement; LeRoy wants to invest a $1 million inheritance to minimize risk and maximize return; and Jack asked, "Why would anyone buy bonds?" What followed was a quick "Bonds 101".
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
In between the beach, barbecues and long weekend festivities, we help you celebrate financial independence!
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People ahere are some resources for those who are seeking financial advice:
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
Have your New Year's resolutions gone astray? At mid-year, we get you back on track to help you achieve your financial goals! In between, I include some classic home buying mistakes and a sneak-preview of the book that I am writing...don't worry, I will keep everyone posted on my progress and ask for suggestions along the way!
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We started the show with Dave, who is working 15-hour days and needs to know when he can hang 'em up. As with most retirement plans, there are a lots of ways to achieve the goals--the key is to select the path that is right for you and your family.
I provided two very different answers to insurance questions this week. There was Johnny, whose wife is the beneficiary of a trust, but if she were to predecease him, the proceeds of the trust would skip him and go to her kids. What kind of protection should he have in place if that unlikely scenario were to play out? Then Jeff wondered whether his philosophy of buying term insurance and investing the difference was a sound one. Sometimes a Twinkie is just a Twinkie...you'll have to listen to get the reference!
Nancy has inherited $1,000,000 and is bewildered by the sales pitches that financial folks are presenting. For Nancy, e-mailer Michelle and everyone else, here are some resources for those who are seeking financial advice:
We also fielded questions about annuities, closing credit card accounts, 529plans and financial planning for elderly relatives.
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
The Summer Solstice occurs on Saturday June 21st at 6:51am EDT. The start of summer often means that people disconnect from their money issues -- not so fast! We have a great guest who discusses the current mortgage market and also field lots of great retirement questions.
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Michael Raimi, VP of PMAC Lending, has been in the mortgage business for a long time, so when he says that there are some positive developments in the market, we should listen! There's good news for jumbo borrowers, but Mike cautions that anyone starting the mortgage process will need to do three things: (1) check your credit to make sure that there are no errors on your record (2) Understand the real cost of owning, including property taxes and homeowners' insurance (3) Bring your patience and perseverance to the process!
Retirement planning was on the minds of Lenny and Pat, both of whom are wising considering how they will manage their assets after retirement. Joe is wondering whether he can tap some of his retirement funds to purchase a beach condo.
Jesse has extra money to invest and wants to know where to direct it; Robert is seeking higher returns for his emergency reserve funds; and Rick wondered about a charge in his retirement account.
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
This is my first Father's Day without Big Al. Last year, Dad joined the show to impart some of his unique wisdom. This year, I have just his memory and all of the great advice that he imparted. You can read Big Al's Financial Advice on this blog and also see a picture of my father in action on the floor of the American Stock Exchange.
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Hurricane season runs from June 1st through November 30th, so we thought it would be a good idea to invite Stephen Testa, President of Testa Brothers Insurance as our guest. Stephen provided great advice on how to prepare for any kind of disaster and what you need to know about your policy before and after the storm.
Listeners Dave and Kathleen needed help thinking about a traditional retirement vehicles vs. Roth IRAs; Vivek wants to save for college, but doesn't want to use a 529 plan; and John wants to know whether he is in a good position to retire.
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
As California Chrome attempts racing's ultimate trifecta at Belmont this weekend, the triple crown of your financial life is easier to achieve: (1) Pay down consumer debt (2) Establish emergency reserve fund (3) Maximize retirement contributions.
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In honor of the Belmont Stakes, Queens-born financial whiz Michael Goodman, President of Wealthstream Advisors was our guest. Michael provided great advice on how to approach the client-advisor relationship; ways to kick-start your financial life for the second half of the year; and discussed the difference between passive and active investing.
Listener questions included a great discussion about long term care with Kathy; buying versus renting (and reverse mortgages) with Sandy; and education saving for Rick and Aaron.
Marie wondered about contesting a will, while Eileen wants to start Roth IRAs for her favorite 18 year-olds and Carol followed up with more details so we could advise her about investing the proceeds of her house sale.
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
When aging parents ask you about estate planning or transferring a house into your name from their names, you should seek the advice of a good estate attorney before making any decisions.
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Mary Ellen and JP both had questions about the pros and cons of creating life estates. This can be an excellent way for your parents to remain in their homes; protecting them from nursing home liens; avoiding probate; and retaining the ability to receive a step-up in cost basis upon death. Of course, there are downsides too...
Along those lines, Dawn asked about creating a trust for her assets to protect them against being devoured in the event that she requires costly long-term healthcare.
We helped Linda determine whether $1.4 million is enough to retire at age 55 and discussed how Carol might handle a $300,000 inheritance.
If you hold a lot of your company stock in your 401 (k), pay attention to my conversation with Dan--you'll learn an easy way to extract company stock in a tax advantaged way!
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
So many of you ask how to navigate the head-scratching journey of selecting a financial professional. As caller Lou said, "I don't want buzz words, I want someone who will take care of me!" In addition to Lou, James and Theresa also asked about selecting financial pros.
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Of course you have to interview a number of advisors before you settle on the one that is right for you. To help with those meetings, print out my "10 Questions to Ask a Financial Advisor".
For those who have smaller accounts or want to invest on their own, there are a number of web-based alternatives, which guide you through a risk assessment process, recommend a portfolio and then either provide you with a nudge to rebalance (for do it yourselfers) or an automatic rebalancing tool that the company will employ on your behalf. Check out "Advice for Small Investors" for more information.
Rick and Doumo asked about home purchases, while Mike and his wife wanted a reality check on their retirement plans --everything seemed A-OK!
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
In honor of Mother's Day, I have to thank my tireless mother, who showed up at every soccer and basketball game, not to mention put up with all of my shenanigans throughout the years...Mom, you are the best and I love you!
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The Mother's Day show was filled with great questions, starting with Bob, who is faced with an interesting choice about his pension: should he take a larger annual amount based on his life only or a reduced amount that would pay for his and his wife's lifetimes.
Cliff is close to retirement and is considering a moving money out of CDs. The only problem is that he does not like the idea of risk. Casey has a similar problem, but in his situation, it might be advisable to contact a fee only advisor to walk him through the investment process. JD, who seems to be in great shape, should also consult an advisor to help with decisions about when to take Social Security and how to invest $1.5 million to generate adequate income during retirement.
Warren is ready to invest income from a rental property -- luckily, the best vehicle was right under his nose!
Joan wants to know the best way to finance a house, while an anonymous e-mailer inquired about borrowing against an estate to finance a house.
Bobby the accounting student asked about life insurance as an investment vehicle (boo-hiss!) while Sally asked about long term care insurance.
Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
One of the perennial questions that we field (this week from June and Jane) is how to select a financial advisor. The answer depends on each person's specific situation, but when in doubt, check out "How to Choose a Financial Advisor: 10 Questions to Ask".
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Mike and Robert want to know whether they are ready for retirement, while David and Myrna are seeking allocation advice. As a reminder, it's tough to provide allocations without knowing a lot about your personal circumstances, so if you are going to send us an e-mail, provide plenty of details.
Sheena is looking for alternative retirement vehicles to her Roth IRA; Pat and Beverly asked about Social Security; and Ruth is concerned about the five-year look back associated with gifting.
We did a quick review of how to repair credit scores for Sharon and provided Tameka with steps to help prioritize her financial life.
Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio
There is no doubt that the multi-year bull market in bonds has drawn to a close. But as interest rates begin to rise, what's a bond investor to do? We discuss how to manage your bond investments amid a rising interest rate environment.
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In addition to bonds, there other good sources of income for those in or near retirement. Rick will be relying on his pension and rental income and Rose may want to consider a reverse mortgage.
Although this has been a horrible winter, spring -- and the upcoming wedding season -- is just around the corner. We help Joe and Rachel prepare for their financial union and also guide Bob through his daughter's big day.
Bruce and Tim asked about Roth IRAs, which may provide great advantages beyond retirement.
Thanks to everyone who participated and to Mark, the BEST producer in the world. Let me know if you think we should provide Mark with a little space to vent his various grievances with you...we're considering calling it "Mark's Musings". If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet me: @jillonmoney
In between parades, fireworks and barbeques, check out this week's show, where we help callers declare Financial Independence Day!
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Thanks to everyone who participated and to Mark, the BEST producer in the world and Christina, who is vying for "Intern of the Year". If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet me: @jillonmoney
It’s half time! The Dow posted its strongest first half of the year since 1999 and the S&P 500 logged its best first half performance since 1998. It was perfect timing (but not market timing, of course!) for Mitch Tuchman from Rebalance IRA and MarketRiders to join us for a visit. Tuchman’s two websites offer a great deal for those investors who need guidance, but don’t want to pay through the nose for it!
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After Mitch's segments, we fielded a bunch of allocation/retirement questions from Tom from IL, Donna from MN, Howard from KY and Mark from NY. Tim from NY has ample assets and wants to make sure that he has the proper allocation, so that he can leave money to his 17 year-old grandson.
Steve from MN wanted advice about Vanguard funds, while Aurora is trying to select among various index funds.
Alexia from Buffalo is weighing the purchase of a single-family home versus a two-family home, which would provide income.
Finally, Nhu is about to enter college and wanted advice on credit vs. debit cards and general advice about how to handle money, as she enters a new phase of her life.
Thanks to everyone who participated and to Mark, the BEST producer in the world and Christina, who is vying for "Intern of the Year". If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet me: @jillonmoney