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Financial professionals often preach the importance of the “buy and hold” strategy— especially for long term investments such as small business 401(k) plans — a point I emphasized at the beginning of the COVID crisis. Investors should be disciplined to avoid selling stock investments selling equities during a trough in the market.
Read MoreThose two simple steps allow compound interest to work its powers and easily set you up for retirement. Unfortunately, it’s a lot easier said than done. Especially for Millennials, who have more debt than any other generation, according to the New York Federal Reserve. Millennials — anyone born between 1981 and 1996 — are experiencing student loan debt, car loan debt and worst of all, credit card debt. Simple math suggests it’s probably better to pay off debt before saving for retirement, but one could argue that you should always save for retirement while paying off debt. Let’s first discuss the importance of savings for your future.
Read MoreThe recent market sell-off may seem alarming but we can find comfort in the history of the markets. It shows us that all things are cyclical and we’ll likely see a return to good times before too long. Instead of making emotional investment decisions, now is a great time for retirement savers to revisit their long-term plans and make sure they’re still on track toward their retirement goals. Part of that could mean rolling over an old 401(k) or IRA into their current LT Trust 401(k). For the retirement saver who isn’t sure why a rollover makes sense, we discuss considerations in this post.
Read MoreHow many investors wish they could step back in time and implement a recurring rebalance for their portfolio that would have consistently sold a portion of their equity holdings and purchased more fixed income? To first understand the importance of rebalancing your portfolio I would like to begin by providing a definition of what rebalancing is. Then we will look at 26 years’ worth of portfolio returns and track the equity allocation during that period.
Read MoreInvestors in the United States today are able to enjoy the benefits of an open-architecture 401(k) plan that allows for proper diversification in an efficient marketplace. This was not the case in the 1630s, as speculators were purchasing tulip bulbs for the price of a house. Read more to see what history has to teach us about market fluctuation.
Read MoreThe CARES Act was passed by Congress to provide economic relief in response to the COVID-19 pandemic. The new legislation created changes to both 401(k) loans and withdrawals. To be eligible for the new loan and withdrawal provision, the individual participant, or his or her spouse or dependent, must have been diagnosed with COVID-19, or the individual has suffered adverse financial consequences du to COVID-19. We outline what that may mean for you.
Read MoreExpert answers to questions regarding the CARES Act and its effect on your 401(k) plan in 2020.
Read MoreSuccess in free markets can be simply summarized by “buying low and selling high”. The only way to fully optimize this investment strategy is to dust off the DeLorean and go to the future. For the people who do not have the ability to time travel, what should you be doing with your 401(k) plan during these turbulent times? Red more to find out.
Read MoreLT Trust discusses the CARES Act and its effect on 401(k) plans.
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