Diversification in Action

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Diversification is a great way to reduce the ups and downs in your portfolio.  This morning, the effects of the earthquake in Japan and related issues around their nuclear reactors are wrecking havoc on stock markets around the world.  The Japanese market was down about 10.6%, Germany’s market was down about 4.8% and the US market (as measured by the S&P500) opened down about 2.5%.

How does this prove that diversification works if the major stock markets are all down on ...

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Retirement plans and fiduciary responsibilities

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One of the “hot button” issues with retirement plans is the Department of Labor (DOL) plan to label people that provide services to an employee retirement plan as Fiduciaries.  In short, this means that the service providers must put the needs of the plan participants ahead of their own need.  Below is my comment letter sent to the DOL earlier today in full support of making those service providers subject to a very strong fiduciary standard.  The letter is not ...

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Social Security Changes

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On Wednesday December 8, 2010, two rule changes were made to Social Security that received very little media attention.  Both of the changes impact the ability beneficiaries to take advantage of loopholes in the system.  With these changes, effective immediately with the press release, beneficiaries only have 12 months to withdraw their application for benefits and pay back the amounts they received.  This is also now limited to 1 time per person in their lifetime.  The second change only allows ...

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