401(k) fees

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New rules by the Department of Labor took effect Sunday July 1 that require your employer to fully disclose all of the fees you pay in your401(k) retirement account.  These disclosures will be sent to you by the end of August, then annually thereafter.  This rule has been around for several years, but has been delayed multiple times because the 401(k) providers lobbied the DOL for more time because they could not decipher all the fees that you had to ...

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Buffett versus Gross – We have a winner!

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In August, 2010, I wrote about the opposite approaches that arguably two of the most successful investors of all time have taken related to bonds.   Bill Gross not only sold all of the US government debt in the PIMCO Total Return Fund, he was so convinced that the price of US Government debt would drop he went so far as to sell the debt short.  Warren Buffett, on the other hand, felt that US Treasury Bonds were a solid investment ...

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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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Bond funds versus individual bonds

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Individual bonds and bond funds have many similarities.  They are both major components of the fixed income portion of your portfolio, both pay interest to their investors on a regular basis and both carry similar risks (call or email me with questions on the risks).  Below are some of the major differences:

A)  The current value of an individual bond in your portfolio does not impact the payments you receive, so its value at any point in time is only of ...

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