As a result of the recent market turbulence in the U.S. and global stock markets, rumors of a possible recession, political rhetoric and the 24/7 media machine going into frenzy mode, we thought it best to address the most common questions we have been asked over the last two weeks. FREQUENTLY ASKED QUESTIONS: Q: Is this a repeat of the 2008 stock market problems? A: No, that’s extremely unlikely. There are few bubbles of concern today that rise to only a fraction of the housing bubble that began to unwind in 2008. The U.S. economy is solid - but not spectacular. The 8% decline in the S&P 500 so far this year has been cushioned in our … [Read more...]
Web-Only Banking – Advantages and Disadvantages
web-only bankingMost American banks offer online banking services, but now there are banks that exist only online, and you get a good many of the services offered by traditional brick-and-mortar banks. You can scan and deposit checks and transfer funds at any time, and on any day of the year. There are savings, checking, and money market accounts available, as well as CDs, retirement accounts, educational savings plans, loans and mortgages. These "online only" banks offer free transfers, online bill pay, mobile banking and telephone banking. The question is: Are they a good place to put your money? There are advantages, and disadvantages. In the busy 21st century-world we live in, one … [Read more...]
The Stock Market Correction of 2015
Keys to Surviving Market Turbulence Investors were in sell mode ahead of the weekend, and again on Monday, as the major US stock markets sold off substantial amounts and officially entered the technical definition of a market correction (which means dropping 10% from the stock market's previous high water mark). This was the first stock market correction in just over 1,450 trading days, and most of the investment community felt it was long overdue. What caused the recent sell off? Mostly, the reason has been continued poor domestic economic data around lower oil and other commodity prices, and the news that China's economy is most likely slowing faster than the Chinese government would … [Read more...]
Helping Grand-kids Pay for College – A Quick Course for Grandparents
helping grand-kids pay for collegeWith college tuition costs continuing to escalate, grandparents are taking a more active role in helping to fund a college education for their grandchildren via vehicles such as a tax-favored 529 savings plan. More than half (53%) of grandparents are saving or plan to start saving to help pay for college costs, Fidelity reports in its recent 2014 Grandparents and College Savings Study. All told, those grandparents indicated they expect to contribute a median of $25,000 in college education funds for all their grandchildren, with 35% anticipating contributing $50,000 or more. Given the financial ramifications of investing in a grandchild’s education, it’s … [Read more...]
Stretch Your Retirement Nest Egg So It Lasts as Long as You
During the month of May, Vermillion Financial Advisors work with their clients to review their retirement goals and work to make sure their retirement plans are on track. We would like to provide you, our readers, with an article to supplement your retirement planning process! Americans are living longer than ever before, with an average lifespan that, according to U.S. government figures, has increased from 73.7 years in 1980 to 78.3 in 2010 and a projected 79.5 by 2020. While that means more time to enjoy life, it also presents a dilemma: How are we going to make sure our money lasts a lifetime so we can keep living the lifestyle in which we're accustomed, whether we live until 70, 80, … [Read more...]
What to Expect from the Real Estate Market in 2014
real estate market 2014In January, Vermillion Financial Advisors prepare their clients for the New Year ahead. To supplement your preparation of the New Year, VFA would like to provide you, our readers, with an article of what to expect in the housing market in 2014! Seven years have passed since the worst housing market crash in United States history triggered a global financial crisis. Lehman Brothers declared bankruptcy, and a host of other banks came close to joining them before being rescued in a series of shotgun mergers and acquisitions, the largest of which included Bank of America -- Merrill Lynch, JP Chase Morgan -- Bear Stearns, and Wells Fargo -- Wachovia. Alongside bailouts … [Read more...]
Bad Choices Get Rewarded
It can be really hard to behave correctly if we see examples of people being successful while doing things we know have higher odds of a bad outcome (e.g., buying lottery tickets). But as you’ve probably learned by now, investing isn’t always fair. Bad choices get rewarded, while people who made prudent decisions sometimes appear to be punished—at least in the short run. So even though it’s tempting, I strongly encourage you to judge the investment advice you receive based on the validity of the principle (process) and not the outcome. Let me share a story about a friend who had stock in his grandmother’s mining company. Over time, the family had invested and lost millions trying to … [Read more...]
Three Keys to Surviving Market Turbulence
All too often, investors react to a sharp drop in prices by panic selling or digging in their heels despite deteriorating fundamentals. But more thoughtful investors see a correction or downturn as an opportunity to review the risks in their portfolios and make adjustments where necessary. Most stock market investors are looking for the same result: strong and steady gains of their investments. Dealing with a period of sustained falling stock prices is not easy. All too often, investors react to a sharp drop in prices by panic selling or digging in their heels despite deteriorating fundamentals. But more thoughtful investors see a correction or downturn as an opportunity to review the … [Read more...]
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