When it comes to avoiding probate on your primary residence, a revocable trust isn’t always necessary.  In Oregon, Washington, and New Mexico you can avoid probate by retitling your home’s deed to “transfer on death.” You still retain full ownership, including the right to change your beneficiary later on. However, when you eventually pass on from this world, your property goes directly to your beneficiary and skips probate. To do this, you get a “transfer on death” deed fro

As the year comes to a close, I like to take time to reflect, give thanks, and prepare thoughtfully for the year ahead. These reflections are less about markets or forecasts and more about the substance beneath them. The real value of financial planning how well our resources support a life well-lived. Money, while important, is just a means to bigger ends. My planning practice continues to grow nicely, helped along by personal introduction from existing clients. It is a priv

As we approach the end of another year, many people are considering gifting some money or assets to the people and causes they care about. Depending on the situation and your goals, there are a few nuances worth considering which can make your gifts a lot more effective.  If you are giving money to a qualified, tax-exempt charitable organization, here are a couple strategies to maximize the impact of your gift.  First, if you are over 70 ½, and do not  itemize on your taxes,

How much of your net worth would you put into a house or a mutual fund that you knew was going to lose 70% of its value over the next 10 years. Not only that, but actually, you’ll have to pay money into it each year just to keep it. The right answer is, “as little as possible.”  Do houses or mutual funds generally do that? No. But cars almost always do.  My financial role models are not car people. The richest guy I’ve met in person drives a lexus, which is essentially an eve

On October 19th, 1987 the Dow Jones Industrial Average dropped 22.6% in a single trading session. A million dollar portfolio on Sunday finished Monday with $787,400.  Based solely on this datapoint, one might assume that 1987 was a horrible year to be invested in stocks. Yet the total return for the year was 5.81%, including dividends. Huh.  That’s partly because markets had a really strong, maybe excessively strong, year going into the crash. The Dow was up 44% from the begi

A catastrophe is always brewing. Or one is already happening. Sometimes more than one catastrophe is unfolding simultaneously. Such is life.  Stocks are risky in part because investors assume that the future will be more or less like the present. It never is. Occasionally, we are reminded what an unpredictable world we live in, and the illusion of smooth continuity is shattered. Chaos reigns. Hence, some people update their valuations models, find that their investments aren’

Let’s talk about the difference between a 10% expected return in stocks and a 3.8% return from TBills.  That extra 6.2% makes a big difference. Over 20 years, 10% turns $1 into $6.72. 1.038 grows it to just $2.11. That’s 3x the return, and the difference only expands with time.  Perhaps more startling is what happens when you factor in inflation. Even 3% takes that $2.11 down to just $1.17. So if you invest $1 in bonds and then wait 20 years, you end up with just $1.17 in ter

First off, for specific figures, I recommend this page on the Medicare.gov website. It explains what the key terms mean, like Part A, B, and D, how coinsurance works, etc. Importantly, it also mentions what those all cover, and how much you pay (or could pay) for them. And it does so in plain English. Super useful. Start here: https://www.medicare.gov/basics/costs/medicare-costs   Secondly, I recommend you work with a Medicare enrollment agent. It doesn’t increase your premi

For retirees I usually recommend a portfolio between 50% stocks and 80% stocks. In other words, the most conservative portfolio I...