What to Do With Your Emergency Reserve?

The Astute Angle tackles a question that we commonly receive in conversations with clients.  The question comes in many forms but often resembles the following:  I have an emergency reserve (or cash stored up for a future home/car/asset purchase) that I want to keep safe but I also want to make a little return on [...]

Scrabble, Monkeys, and a Better Way of Passive Investing

Oxyphenbutazone is a non-steroidal, anti-inflammatory drug used mostly in eye-drops that was pulled from markets worldwide in the mid-1980’s for its link to bone marrow depression.  More interestingly, but perhaps just as trivial, Oxyphenbutazone represents the highest possible scoring play in Scrabble.  Play it across three triple word score squares and eight already-played, perfectly positioned [...]

Good and Bad Reasons Why High Income Earners Miss the Opportunity With 529 Plans – Part I

Mid-career professionals with young children severely underutilize Section 529 College Savings Plans.  That is not to say that these parents are unaware of 529 Plans or not using them for college savings.  In fact, most mid-career professional parents who I meet already know about 529 Plans and are often funding these accounts for future college [...]

Georgia AMT Taxpayers Take Notice – The Rural Hospital Tax Credit

We wrote this article in 2015 about a simple tax credit (the QEE Tax Credit) that provided an opportunity for taxpayers in Georgia who face alternative minimum tax (AMT) to reduce their tax liability by $700.  The popularity of this tax credit subsequently expanded (which clearly was attributable to our publishing of a blog post highlighting the [...]

The Qualified Charitable Distribution Explained

The history of the qualified charitable distribution (QCD) feels a lot like the 'Friends' relationship of Rachel and Ross.  Off.  On.  Off.  On.  Off.  On.  There has been enough disruption in the availability of this tax-saving opportunity that it has been hard to remember if it is on or off.  Good news...it's on.  The brief history goes [...]

Q1 2017 Investment Commentary Part II: Forecasting the Future

Let’s start with a debatable, but widely held fundamental concept of investing: the best predictor of future returns for stocks is the current valuation.  This is generally true of a single stock, a sector, or an entire country’s stock market.  Academics and practitioners debate whether important factors like gross profitability, price momentum, earnings momentum, yield, [...]

Q1 2017 Investment Commentary Part I: The Value of a Crystal Ball

You probably do not know who Jim Simons is.  He likes it that way.  Simons is a quiet figure who is not interested in self-promotion and does not need to be told how great he is.  Despite undoubted countless interview requests over the past 35 years, Simons has largely declined the opportunity to tell his [...]

Why The Failure of the Fiduciary Rule Could Still Benefit Consumers and Fiduciary Advisors

Over the past two months, this blog has attacked guaranteed income annuities and the purported advantages of leasing a vehicle, assuredly triggering ill sentiment from annuity salespeople and auto dealerships.  Given the recent string of controversial opinions and analysis, what better time to address the Department of Labor’s “fiduciary rule”?  The fiduciary rule has been a [...]

Stocks at an All-Time High

“Congratulations.  I always thought that record would stand until it was broken.”  -Yogi Berra in a telegram to Johnny Bench after Bench broke Berra's record for most home runs as a catcher.   We recently explained why the Dow Jones Industrial Average is a terrible, no good, very bad index.  In spite of our best [...]

The Benefits of Leasing a Vehicle…Debunked

There are some can't miss ways to start an argument.  Talk politics in a diverse room.  Attend a Michigan home football game wearing an Ohio State jersey.  Suggest that The Rolling Stones were better than the Doors and that Highlander was the best movie ever made.  Or just decidedly state that buying a vehicle is better than leasing. The [...]