Millions of people get tax refunds every year and, according to the IRS, the average refund this year is $1,949.  Much has been said about how a large tax refund is just an interest-free loan to the government and people should adjust their withholdings to keep more of their money in their pocket. That topic has been well covered and so I won’t beat it to death any further.  But for retirees, there is another interesting angle when it comes to tax refunds.  A big tax refund may actually be costing you real money. Let me explain; the tax code is built on a system of complex calculations for different types of income.  Long-term capital gains being taxed differently than wages is just one example.  For retirees, by far the most impactful is how your Social Security is taxed.  Basically, 50% of your total Social Security benefits, plus your other income, determines...

The stock market entered its own polar vortex in December 2018 and tested the discipline of even the most seasoned investors.  December was brutal in both how much the stock market went down, but also in how relentless the decline was.  There was basically no pause button in the three-week span from December 4th to December 24th.  Take a look at the data on the S&P 500 for yourself: [caption id="attachment_7720" align="alignnone" width="255"] *data from Yahoo Finance[/caption] On top of that, the pundits came out punching with claims of the economy entering a recession and how the stock market would continue to go down dramatically.  The S&P 500 ended up losing 9.18% for the month**.  It was a dark moment and people were at their wits’ end.  Some investors inevitably bailed on their investment plans and sold all of their stocks. **according to YCharts We have always maintained, and so has the evidence, that...

The investment world lost one of its most influential figures January 16th, as John Clifton Bogle, better known a Jack Bogle, passed away at his home in Pennsylvania.  Jack was 89 years old and responsible for introducing the first index mutual fund for individual investors in 1976.  He built Vanguard from scratch, which ultimately became the world’s largest mutual fund company, and now manages over $5 trillion dollars for investors. Jack has always been an advocate for the individual investor, refusing to market Vanguard funds through back-end payments to brokers, therefore passing the cost savings on to investors.  Jack has authored some of the most important investment books of my lifetime, including my personal favorite Enough. True Measures of Money, Business and Life (2008).  The book brings together both an outline for building wealth and a deeper meaning for using it to enhance your life and the lives of people around...

2019 is already upon us and with every new year comes the resolutions. If you’re on the verge of retirement it is even more important to have your financial house in order.  With that thought, I’ve created a list of new year’s resolutions specifically geared to those who plan to retire in 2019.  Those of you who are still a few years away from retirement can also use these tips to get a jump start on planning (reminder: the earlier you start planning the easier it will be). 1) TRACK YOUR EXPENSES TO DETERMINE WHAT YOU NEED TO LIVE ON How much money do you need per month to be comfortable? I prefer people calculate this on a monthly basis since many of us can do this with relative ease.  Of course, don’t forget any quarterly or yearly expenses.  This is the most important number when it comes to your retirement.  It is the...