Get smart with your money
You can now manage most aspects of your money without ever consulting another human being. You can budget, borrow, save, invest, buy insurance, prepare your tax return and create a will — among many other tasks — by using apps, websites and software.
But technology still has limitations, especially when you’re facing a money situation that’s complex or involves judgment calls. In my latest for the Associated Press, when to consider consulting a human expert.
Saving and investing for retirement may actually be easier than deciding how to safely spend what you’ve accumulated.
Withdraw too much and you could run out of money. Withdraw too little and you might stint on some retirement pleasures you could actually afford. Taxes and Medicare premiums should be considered, too, since both could be inflated by the wrong withdrawal strategies.
Financial planners use powerful software to model various ways to tap retirement funds so they can recommend the best options for their clients. Recently, some companies introduced similar software that consumers can use to find the most tax-efficient, sustainable strategies.
In my latest for the Associated Press, a look at the pros and cons of these new programs.
Today’s top story: Even in a financial crisis, you have options. Also in the news: When will it make sense to travel again, robo-advisors bring access to a new crop of investors, and Apple Card will let you skip a payment this month.
Even in a Financial Crisis, You Have Options
Take a deep breath.
Ask a Points Nerd: When Will It Make Sense to Travel Again?
Uncertain times.
Robo-Advisors Bring Access to a New Crop of Investors
A good option for new investors.
Apple Card Will Let You Skip Your Payment This Month
But it’s not automatic.
Today’s top story: Why you should love
Why You Should Love Robo-Advisors
Keeping costs low and advice honest.
Taxes in Retirement: 7 Ways to Trim Your Bill
Ideas that can reduce financial stress in retirement.
How Roth IRA Taxes Work
A good investment at tax time.
How to save for the future when it’s uncertain
Preparing for a variety of outcomes.
Today’s top story: How to make saving for retirement easier. Also in the news: How to talk to a robo-advisor, switching from a debit card to a credit card, and why homebuyers with lower credit scores can pay thousands in extra mortgage costs.
Make Saving for Retirement Easier — Invest Some Fun
Taking the sting out of saving.
How to Talk to a Robo-Advisor
Getting the most from this innovative service.
How (and Why) I Persuaded My Husband to Switch to a Credit Card
Playing the rewards game.
Study: Homebuyers with lower credit scores pay extra $21,000 in mortgage costs
Work on your credit score before buying.
Today’s top story: 5 questions when shopping for a brokerage account. Also in the news: Is a robo-advisor right for you, why higher prices are squeezing both buyers and renters, and how a wife got her family out of $40,000 in debt.
5 Questions When Shopping for a Brokerage Account
What you need to know.
What Is a Robo-Advisor and Is One Right for You?
A different type of financial advisor.
Higher prices squeezing both renters and would-be homeowners
A housing shortage in parts of America is leading to higher prices.
A ‘good wife’ who secretly got her family $40,000 in debt shares how she climbed back to even
You can climb back, too.
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‘ve written a lot recently about digital advisors (including the piece I wrote for AARP, “Do-it-yourself made easy“). Wealthfront, one of the leaders in this space, now has $1.7 billion under management.
That seemed pretty impressive, until I saw a recent piece in InvestmentNews about Vanguard’s Personal Advisor Services. Although still basically a pilot program, the “human-augmented online advice platform,” as IN termed it, now has $4.2 billion under management.
For all that’s been written about the start-ups who use powerful algorithms to manage your portfolio while you sleep, it’s the the Vanguard offering that may be the game changer. Vanguard can offer everything the start-ups do–asset allocation, automatic rebalancing, ultra-low-cost investment choices–in the mantle of a trusted firm known for its integrity and thrift. The cost? Three-tenths of one percentage point, or $300 a year for a $100,000 portfolio. That’s only slightly more than the .25 percent the newcomers typically charge.
Advisors charging more certainly will argue they’re adding value. But if you’re paying much more for financial management, you might want to at least take a look at what you can get for less.