With this year's tax filing extension due date just behind us, tax season was an even more painful experience than usual for many mutual fund investors. Many mutual fund companies have been distributing much higher capital gains to shareholders in recent years, resulting in higher related tax bills.
With financial markets quietly grinding higher in recent months, I've been able to complete one of my major projects for the year, which was to investigate so-called "smart beta" mutual funds.
Families have a tendency to underestimate their eligibility for need-based financial aid for college. Many wealthy parents, in particular, wonder whether it's worthwhile to apply for financial aid.
Years ago, I was quoted in Newsweek as having said, "If you can't get by on the wise 4 percent withdrawal rate [from your retirement nest egg], you should have a serious talk with yourself and your spouse about your priorities, trade-offs and aspirations." While it's certainly nice being mentioned in a national publication, the material I contributed to the article had nothing to do with withdrawal rates from retirement portfolios. And financial planning rules of thumb are next to useless.
Some stocks are deemed to be "value" stocks, while others are labeled "growth" stocks. The "value" label is most commonly given to stocks with low prices relative to the company's earnings or sales revenue or cash flow or accounting book value.
The Free Application for Federal Student Aid (FAFSA) is the annual form that determines a family's eligibility for need-based grants, loans, and work-study funds. Starting with the current application for the 2017-18 college school year, the process for filing this form has changed.
It is revealing that Prof. Kent Smetters, a faculty member at Wharton, one of the country's best business schools for studying finance, is a strong proponent of "Fee-Only", fiduciary financial advisors. You can read his recommended criteria for choosing a financial advisor here.