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Thursday, November 16, 2023

The 4% Rule of Thumb is Back. Low interest rates had put the oft quoted rule of thumb in jeopardy. Now he experts at Morningstar express the opinion that due to higher interest rates, the good old 4% rule appears to once again be valid.

Friday, October 27, 2023

Has Traditional Asset Allocation Finally Met its Match? If you have been self-managing your portfolios using simple allocation models – consider that the new world we are in might be getting a whole lot more complex.

Tuesday, October 17, 2023

The dramatic increase in interest rates is showing up in the dividends paid out by bond funds this year. For savers and conservative investors, those returns are welcome after years of near 0% yields. How will this affect taxes next year?

Monday, October 9, 2023

Until recently markets had assumed that as inflation cooled off, the Fed would lower rates, and we would go back to life as it was before. That assumption has been shifting – with a vengeance, with implications for investors and the economy

Monday, October 2, 2023

I haven’t posted any commentary in a while, what with the Schwab conversion and a long overdue vacation. So now I have to figure out what I think about this economy and markets.

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Tuesday, September 5, 2023

I was up at the crack of dawn today and, I must admit, just a bit breathless as I logged into the Schwab advisor platform.  But there were all my client accounts and investment holdings, as promised, on the new platform.  I...

Thursday, August 17, 2023

Until recently, it seemed most “experts” assumed that higher rates would tip the country into recession, and the Fed would be forced to cut rates to stimulate the economy. We are now starting to see that this view is wrong on two fronts.

Tuesday, July 25, 2023

Take easy steps now to make life easier on your executor and heirs while avoiding family money squabbles. In this article Jim elaborates on how to prepare your estate to make your executor's job as stress free as possible.

Thursday, July 6, 2023

If you could put money in a government insured product yielding over 5% some investors will start to wonder “Well why not put all my savings into CDs and eliminate risk from my portfolio?” Here are a few reasons to reconsider that approach.

Friday, June 9, 2023

People like to claim that the weather forecast isn’t very good – but meteorologists are oracles compared to economists. Investors can learn from this. Don’t trust economic or market forecasts.

Thursday, June 8, 2023

A tax torpedo is when additional income thrusts you over an income threshold where some other tax is incurred, or where a valuable credit or deduction is lost, having a well designed and crafted financial plan may be able to help avoid it.

Tuesday, May 30, 2023

Succumbing to fear is a poor substitue for a sound long term investment strategy based on diversification.

Monday, May 22, 2023

AI capabilities are both incredible and scary – but they can sure save time. I decided to utilize Chat GPT to educate myself (and you) further on how products such as annuities and life insurance policies are insured against insolvency.

Monday, May 1, 2023

Politicians who promise to not change Social Security are, in a way, promising a 20% cut in benefits. That is what happens in 2034 (or even sooner if inflation remains high) if no change is made to Social Security. Here are our thoughts.

Tuesday, March 21, 2023

Stocks are risky, why not go “all in” with short term bonds and ditch the uncertainty? The answer is that, while these returns seem attractive in the short run, these high yielding short run investments are subject to 3 major flaws...

Monday, March 13, 2023

Last Friday saw the first large bank failure since the financial crisis – and a second followed over the weekend. Silicon Valley Bank was the 16th largest bank in the US, and it imploded on Friday in dramatic fashion. How did it happen?

Friday, March 10, 2023

Put Your Cash Stash to Work! High yield savings accounts are available – but not at your retail bank. Recently, interest rates were so low everywhere that people forgot about the allure of high yield savings accounts. Now they're back.

Monday, March 6, 2023

Seniors fear their benefits will be drastically cut when the trust fund runs out. Polls suggest that 47% of millennials agreed that social security will not be available for them. Neither need be true, but we need to talk about it!

Wednesday, February 22, 2023

Ever since the financial crisis, in other words, for the entire working career of today’s 35 year olds, investment markets and the US economy have been dominated by falling, ultra-low interest rates. Now, that is no longer the case...

Friday, February 3, 2023

Markets seem to care more about future interest rate policy than a strong economy as the Fed tries to steer the economic ship through perilous waters with dual threats of inflation and recession

Friday, February 3, 2023

We are already paying the highest property taxes in the nation for the benefit of living in this fine state – but if you don’t take advantage of these state programs to reduce your tax liability, you may be paying more than you need to!

Tuesday, January 10, 2023

Financial Pathways advisor Jim Kinney will be seen on the air with CBS Evening News on January 12th 2023. The Episode featuring Jim can be seen at 6:30 PM live, and online at the CBS Evening News Website and Paramount+

Wednesday, December 21, 2022

We breakdown how we feel about the market and the economy as the year 2022 comes to a close. There's good news, bad news, and everything in-between. We may not be out of the woods yet, but there's plenty of silver linings to keep hope up.

Wednesday, December 14, 2022

Effective tax planning is not as easy as just automatically harvesting losses to minimize capital gains income. Many firms and even robo-advisors can do that. But for many clients, minimizing gains doesn’t make sense...

Tuesday, November 8, 2022

Here's a link to a well written article from Dimensional Funds that we here see as required reading on this election day. As the folks at Dimensional say: "Elect to Leave your Portfolio Alone"!

Monday, October 31, 2022

High standard deductions mean many charitable donations no longer get a tax deduction. For those who make large annual donations, lumping multiple years donations together can help preserve tax deductibility of (most of) your donations.

Tuesday, October 25, 2022

In this current market climate there are a lot of questions that we're all asking. From Inflation, Banking, to Recessions, here are a few of the most pressing questions and our answers to them.

Friday, October 14, 2022

The best advice for investors who are still several years away from retirement is to ignore recent losses in your investment accounts, and just keep on saving. In fact, for savers, down markets such as this one are an opportunity...

Wednesday, October 5, 2022

It's important to not overestimate the impact of state taxes when planning for retirement. There may be more to consider when weighing a move to Florida than the lack of state taxes. Ultimately, what really is the best state to retire to?

Wednesday, September 28, 2022

So far, the stock market (Dow Jones Total Stock Market Index) is down 24.7% this year. That is bad, but not unprecedented. There are a number of reasons for the pain we are all feeling in this bear market. Here is a brief summary.

Friday, September 16, 2022

In just this week, both stocks and bonds have given back most of the rather substantial gains they had enjoyed in July and August. Should investors be afraid of a recession? Is there any GOOD NEWS out there?

Tuesday, September 13, 2022

Since the end of June, markets have been relatively positive on the anticipation that inflation is coming down and the Federal Reserve will be able to pull back from its policy of raising interest rates. Such expectations may be premature.

Friday, August 26, 2022

Financial planners view on the student loan forgiveness program announced by the administration this week.

Thursday, August 25, 2022

Here is one of those somewhat touchy situations that I often get into the middle of with my financial planning clients.  Since it comes up often, I thought it might make an interesting topic for this blog space.  The...

Tuesday, August 23, 2022

New Jersey based Certified Financial Planner James Kinney provides an update on how upcoming merger of TD Ameritrade and Charles Scwab is progressing and what impacts it will have on investors

Friday, August 5, 2022

Todays jobs report indicated a huge increase in new jobs created last month, leading one to wonder - why do markets and most people assume the economy is awful? Inflation may provide a clue.

Friday, August 5, 2022

Financial planner Jim Kinney laments dearth of useful information and context available to employees selecting investments for their 401k plan

Wednesday, July 27, 2022

Financial Planner Jim Kinney notes a nice rally in the market today as early signs indicate a possible easing of inflation and a softening economy. Risks to markets abound but today's gain leaves the S&P 500 up nearly 8% from its lows

Thursday, July 14, 2022

Everywhere one turns, there is negative news regarding the economy and the markets. We are here to discuss what is happening and what we believe the outlook for the future might be, and perhaps a few reasons to stay hopeful and optimistic.

Wednesday, July 13, 2022

Financial Pathways Will Join Annuity Marketplace DPL with an eye to expanding our annuity advice capability. Low cost, commission-free annuity options have exploded in recent years, and are now an important tool for retirement planning.

Wednesday, June 15, 2022

The impact of inflation on stocks is complicated.  Are stocks a reliable hedge against inflation? Well, maybe, but life is not quite that simple. Let's take a look at the lessons market history has to offer.

Monday, June 13, 2022

If traditional investments seem a bit shaky lately, consider the pain being felt in the crypto markets. I compare events in crypto markets of today to the banking collapse of 1929.

Friday, May 20, 2022

Stocks officially entered a bear market today. The bond market however has ceased its selloff and has been quite stable over the past couple weeks. Given that both markets strive to predict future conditions - which is right?

Thursday, May 19, 2022

Bear markets are always scary, but the only way to get through them with your financial plan intact is to grit your teeth and plunge forward until you reach the exit.

Friday, May 6, 2022

Jim discusses the importance of investment discipline during chaotic markets

Friday, May 6, 2022

New Jersey Certified Financial Planner comments on complexity of current economic situation and complex nature of the inflation problem facing the country

Tuesday, April 26, 2022

Financial planner shares article detailing changes to Medicare being proposed by Center for Medicare and Medicaid Services

Wednesday, April 20, 2022

Financial Pathways has relocated its Flanders office location within the same building at 320 US Hwy 206. Our Flanders office provides fee only financial planning for New Jersey clients in western Morris, Sussex, and Warren counties.

Monday, April 11, 2022

Inflation can be a difficult challenge for retirees and financial planners alike. Jim Kinney discusses the importance of getting inflation policy right, along with some commonsense tips for adapting to an inflationary environment.

Monday, March 7, 2022

Choosing an appropriate asset allocation as part of a comprehensive financial planning process before a crisis hits makes it easier to weather the storm.

Friday, March 4, 2022

How investments and markets are responding to the Ukranian/Russian conflict

Thursday, February 24, 2022

I bonds are a great choice for some excess cash. Interest rates are tied to the rate of inflation, and reset every six months. These bonds currently yield 7.1% and can be purchased on the US Treasury website treasuydirect.gov

Wednesday, February 23, 2022

Geopolitical events are unsettling, but tend to be short term. Piling more uncertainty on top of pandemic risks, inflation, and rising interest rates has really spooked markets and investors.

Friday, February 11, 2022

Jim discusses why there is still a place for bond investments in your diversified portfolio and financial plan, even in an economy where rising interest rates are a virtual certainty.

Thursday, February 10, 2022

Inflation can do a number on your financial plan as higher prices crimp your ability to save. Where does inflation come from and how long will prices keep going up?

Monday, January 24, 2022

Financial planning for uncertain times CFP looks at recent volatility and importance of maintaining a steady hand in challenging markets

Thursday, December 30, 2021

Certified Financial Planner and investment manager James Kinney looks back on a prosperous year

Thursday, December 16, 2021

Jim explains how mutual funds distribute capital gains, and how that can distort daily price movements on certain days in December

Wednesday, December 15, 2021

Do recent losses in meme stocks and crypto currency, and the Fed's new inflation fighting stance, portend ill for the rest of the investment markets? A look at inflation and its impact on financial plans and investment strategies

Wednesday, December 8, 2021

Social Security 2100 Act will hopefully start a conversation about the financial future of Social Security, which is obviously a core element of most retirement and financial plans.

Thursday, December 2, 2021

What Santa? No Stock Market Rally for Chrstmas? There is always a lot for markets to worry about. Sometimes it seems that stocks go up even in the face of all kinds of worries. In fact, it is rare that the average investor can’t...

Wednesday, November 17, 2021

Backdoor Roth and Mega Backdoor Roth Strategies to Maximize Tax Free Potential You may be familiar with the many benefits of Roth IRAs. Unlike ordinary IRAs or 401ks, Roths are funded with money that has already been taxed, so there is...

Thursday, October 14, 2021

Higher Inflation Means Recipients To see Highest COLA in 40 years Social Security benefits are pegged to the Consumer Price Index and are adjusted annually based on the overall change in prices as measured by that statistic. This year...

Wednesday, October 13, 2021

If You Have After Tax Money in Your IRA or 401k Don't Miss This Opportunity It looks as if this will be the end of a loophole that has let owners of IRAs or 401ks with after tax money convert those funds to more attractive Roth IRAs....

Friday, September 24, 2021

Rather than the usual financial wisdom I try to dispense, this post is seeking support for one of our community's tireless servants as he tries to recover from damage wrought by Ida! Obviously many of our neighbors and many local...

Wednesday, September 22, 2021

Sorry about the poor sound quality...I need to upgrade my hardware if I am going to do more of these video posts. Thought I'd share my observations on the market for this month. US stocks have had a bad month...but diversification...

Tuesday, September 14, 2021

Big news from Financial Pathways this week! Our very own Alex was married on Sunday to Jenn Clift. Never one to be tied to convention, Alex donned full Scottish ceremonial regalia for the nuptials. Quite impressive. It was a wonderful...

Monday, August 30, 2021

Medicaid Planning is a Highly Complex and Specialized Field Nursing home costs run well into the six figures per year. Naturally, many of our clients wonder if there is a way to have the government pick up the tab. The answer...

Friday, August 20, 2021

What happens to your portfolio in the first few years of retirement has an outsized impact on your financial plan. Everyone worries about how market movements may impact their portfolio. But those who are very close to, or have just...

Friday, August 6, 2021

As a financial planner, my job is to help clients reach their goals, creating a path for a brighter future. Well, earlier this year, I made a huge step toward achieving my own goals in life by joining the Air Force Reserve. This new...

Friday, August 6, 2021

No, actually, your Smith and Wesson Isn't a Viable Long Term Care plan. I can't tell you how often I have hear the Smith and Wesson plan proposed by clients when we try to discuss long term care planning. But it is almost always...

Wednesday, July 21, 2021

There's been a lot of talk about the price of things going up, and we are all seeing it. Well, there is a silver lining for retirees. It's now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two...

Wednesday, June 30, 2021

How DFA out-smarts the index funds Index funds are a great tool. They give investors ultra low cost access to a broadly diversified portfolio. In short, rather than picking and choosing which stocks to own, and indexing approach will...

Thursday, June 3, 2021

I Bonds help savers stay ahead of creeping inflation While most of us are earning near 0% on our savings accounts and money markets, the cost of living continues to grind higher. That leaves our “safe money” cash savings...

Wednesday, May 5, 2021

There is nothing like tax policy changes to keep a financial planner’s brain in gear. And President Biden’s capital gains tax proposal is a huge tax change. The headlines say that his proposed (much) higher capital gains...

Wednesday, April 21, 2021

Inflation Complacency May be Dangerous (but so is overconfidence in one's ability to predict the future) I apologize in advance for this rather lengthy post, but it is a complex topic. With every financial plan, I talk about rising...

Thursday, April 15, 2021

As spring is springing, and the pandemic is easing, Financial Pathways is also hopping with activity and news. Here is a little of what's going on: Carlos has started his basic training (Air Force Reserves) and has left us for the next...

Thursday, April 15, 2021

OK, taxes are done (well, maybe not quite this year...) and maybe you are ready to put taxes to the back of your mind for a while. But maybe not quite yet. As soon as last years taxes are done, it's time to start planning for next year...

Wednesday, March 17, 2021

Financial Pathways is pleased to announce that Jim and Laura will once again be hosting a Financial Peace University course. Best of all - we are bringing it right to your living room, That's right - FPU has gone virtual! Do you make...

Friday, March 5, 2021

Bond Market Sends a Warning to Washington No Congressman, there is no such thing as Santa Claus. And to policy makers in Washington, the deep pool of money you have been happily tapping into for the past decade or so may actually have...

Friday, February 26, 2021

Markets Start to Worry Again about Inflation and Interest Rates Interest rates are extremely important to the stock market, and are an important economic indicator as well. When interest rates go down, everyone is happy. Companies can...

Wednesday, February 10, 2021

The Presidents Tax Proposals have Significant Financial Planning implications The president has made no secret about his desire to raise taxes on wealthier individuals. In fact, his tax proposals have been very specific. Here are a few...

Tuesday, February 2, 2021

A Financial Planner has some Fun with Numbers... In his best selling book “Thinking Fast and Thinking Slow” brain science researcher Daniel Kahneman considers how easily our brains are fooled. First reactions are often...

Monday, February 1, 2021

Bubbles are brewing but the broad market remains unaffected so far News of investor mania spread well beyond the financial press last week. Almost everyone has heard by now of the crazed speculation that drove stock price of the...

Thursday, January 21, 2021

Fixed Income Investing Needs Hands On Approach in 2021 OK, I know in advance I am going to bore some readers to tears with this topic. There is no way I know of to make a post on fixed income investing into a very compelling read! But...

Friday, January 15, 2021

Well, it’s been a year since I joined the Financial Pathways team, and oh what a year it has been! Despite only working in person for two and a half months, I’m amazed at how much I’ve gotten to know our clients....

Thursday, January 14, 2021

Long Term Care Planning Long term care planning is one of the most challenging parts of my job as a financial planner. None of the solutions I can recommend feel very good, and no one really wants to think about it much. If I had a...

Thursday, January 7, 2021

I am proud to announce that our own Carlos Ruiz, after months of exhaustive study, has completed all the requirements to become a Certified Student Loan Professional (CSLP). Student loan planning is highly specialized business. The...

Tuesday, December 29, 2020

A frequent question we are asked by financial planning clients is "Should I pay off or pay down my mortgage". This recent article from Morningstar does a good job answering this question. If you don't want to read the entire article,...

Thursday, December 24, 2020

Two generations have entered adulthood without having ever experienced inflation. Even as a baby boomer, my memories are foggy. I was in high school and college when inflation last raged, so I was not fully exposed to its impacts. I do...

Friday, December 18, 2020

Well, we are almost ready to put 2020 behind us. From a social, economic, and health point of view, 2020 was certainly the pits. From a financial point of view, as long as you were either retired or were able to hold onto your job, it...

Thursday, November 5, 2020

Oh how the market so likes to make fools of us mortals. All year there have been two things that investors have been agonizing over. The Virus. The Election. Surely such a bitterly contested election would cause markets to swoon,...

Monday, November 2, 2020

It is the day before the election which we have all been led to believe will be the most disruptive to markets in our generation, and what are markets doing? Up strongly as we approach midday. The more economically sensitive small...

Wednesday, October 21, 2020

One of the Worlds Richest Men Attributes his great wealth to understanding a simple financial concept Warren Buffett was asked once about why, as one of the world’s richest men, he didn’t every buy or own a new car. His...

Wednesday, October 14, 2020

Open Enrollment is here, along with the usual ad barrage Every year at this time Medicare offers “open enrollment” – basically a chance to revisit your Medicare coverage and select an alternative. Choosing a plan can...

Monday, October 5, 2020

The upcoming election makes a lot of investors nervous. In particular this election has everyone on edge. It certainly looks as if there could be turmoil around the time of the election, particularly if there are legal challenges and...

Wednesday, September 23, 2020

As financial planners, we spend a lot of timing talking about the finances and mathematics surrounding retirement. The assumption is that retirement is always a good thing, and a goal to strive for. But it turns out HOW you retire can...

Wednesday, September 2, 2020

New Jersey Financial Planner provides COVID update and suggests reasons for strong stock market recovery in the midst of pandemic

Friday, August 28, 2020

Investing Based on Predictions about the Future is More Difficult than it Seems. Last week I wrote how in the 1990's, investors enthusiasm for tech stocks of every flavor was fueled by a belief that the Internet was going to...

Wednesday, August 19, 2020

Will every generation need to learn about Bubbles the Hard Way? My generation was just beginning to enter our peak investment years around the turn of the century. We were entering our peak earning years, starting to save for...

Tuesday, August 11, 2020

I hope that if any of my readers, or their friends or family are facing an income crisis due to current events, the following tips may prove helpful. For many people, even those who lost their jobs due to the pandemic, 2020 has been...

Monday, June 22, 2020

The attached Bloomberg article offers some interesting insights into our new and somewhat crazy economic reality, at least for any of you economic nerds out there. https://www.morningstar...

Thursday, May 21, 2020

Financial Pathways Update and News Obviously this pandemic has turned everyone’s life upside down, and life at Financial Pathways has been no different. In addition to figuring out how to work at home while still providing...

Thursday, April 30, 2020

And Why Many Investors Overestimate The Impact of Short Term Events A few weeks ago, when the stock market was collapsing and people were panicking, I wrote that all would eventually be ok. That the market was overreacting. And even if...

Monday, April 27, 2020

Markets Swing from Predicting Armageddon to Rose Colored Glasses? OK, as markets stabilized, I took a bit of a break from my almost daily updates during the month of March. I apologize if it appears that I disappeared for a while, I...

Tuesday, April 14, 2020

What was once strange is now commonplace. Ok, I know, financial planning and advice is about as personal as it gets. And we like the personal touch as much as the next guy. But what I am learning as I get used to this “Work At...

Friday, April 10, 2020

So I am preparing to take a much needed weekend break from writing about crazy markets, epidemics, and the economy. All I want to say for today is To our Christian friends, have a happy and blessed Easter and to our Jewish friends Chag...

Thursday, April 2, 2020

Understanding How the Program Works is Key to Not Getting Left Out Rather than the month or quarter end investment review I usually do on the first of the month, I am going to walk through some of what I’ve learned about the...

Tuesday, March 31, 2020

Markets have stabilized a bit recently, so I will take a break from talking investment strategies and consider other concerns that may have arisen from the crisis. Like how do I pay my bills? OK, so maybe you (or someone you love) lost...

Tuesday, March 24, 2020

Went to cash yesterday? Oops! Told you market timing is tough. I’m actually starting to used to 5 – 10% moves in the stock market. What used to be unheard of is now commonplace. Indeed today stocks soared by over 10% for...

Monday, March 23, 2020

Investment Insights from the Best in the GameIn 2008, it was Warren Buffett who famously came out and cajoled people to buy stocks that were being offered at fire sale prices. Many forget that stocks continued to slide for another...

Saturday, March 21, 2020

Your Economic Crisis Management Guide We face a future more uncertain than at any time since the dark days of 2008. Now, as then, we have little visibility as to what the future holds. I have been poring over economists forecast...

Tuesday, March 17, 2020

If you are like me, you are feeling desperate for some good news, so I offer up two bits that will probably be lost in the cacophony of local closings and lockdowns. Good News 1. At least as of lunchtime today, markets are calmed down...

Monday, March 16, 2020

Protecting Businesses from Impact of Distancing Policies will be Key to Future Recovery OK, here we are now, with an economy that only weeks ago was the envy of the world – now appearing to implode around us. So much like 2008,...

Monday, March 16, 2020

Mortgage Rates Hitting Historic Lows Due to Virus There will be a lot of turmoil and economic pain as a result of this coronavirus situation. My heart goes out to the business owners and their workers who will suffer. The S&P 500...

Friday, March 13, 2020

Investment Discipline that is Easy in a Booming Market Can be Really Tough in Times Like These So today was a doozy. Stocks fell by 10% in the biggest one day loss since Black Friday of 1987 (or was it Black Tuesday?). But in my almost...

Tuesday, March 10, 2020

Economic Policy and Coronavirus Warning. This post is a little wonkier than my usual, as I sit and ruminate over arcane matters of politics and economic policy. Markets seem to be stabilizing and recovering a little today. In fact, if...

Monday, March 9, 2020

Riding Out Financial Turmoil by Focusing on the Long Term Financial Plan As if we haven't already been on a wild ride over the last two weeks, the Saudi’s added to the uncertainty over the weekend by effectively declared economic...

Thursday, March 5, 2020

Stock market swings bring back childhood memories. I remember when I was a kid, my great aunt and uncle took us to Seaside to go on the rides. I was a little tyke, so the little boats and cars that ride around in a circle was about my...

Friday, February 28, 2020

Comuterized Trading May Have Fed both Last Years Calm, and the Present Chaos Anyone who pays attention to markets may have noticed that over the past decade, markets have behaved differently. We seem to have long periods of calm,...

Friday, February 28, 2020

Coronavirus Threat to the Economy is Real But Not as Scary as 2008! This week is turning into an utter bloodbath for stocks. As fear of Coronavirus spreads, markets are speculating on the extent of the economic fallout. As I pointed...

Monday, February 24, 2020

Coronavirus Fears and Your Investments Today was an ugly day in the markets. As the coronavirus persists and spreads, markets are finally waking up to the realization that this epidemic will have economic repercussions. As I had...

Saturday, February 1, 2020

January Started Out Strong - Then Came the Corona Virus While markets held firm for most of January, at month’s end fears related to the Coronavirus overwhelmed what was otherwise appearing to be a modestly stronger global...

Thursday, January 9, 2020

To Clients and Friends of Financial Pathways: I am so happy to be making my first post to the Financial Pathways blog. I’d like to share a recent experience I had during my first week at the firm. What do you do when a task that...

Tuesday, December 31, 2019

An Incredible Year for Investors Caps off A Strong Decade It is easy to forget, but just 12 months ago it seemed that the bottom was falling out of the stock market. Talk of recession was all over the news. Clients were calling me...

Monday, December 23, 2019

Rule Changes May Create Financial Planning Opportunities for Some, while increasing tax expense for others. Just when it seems like Washington is completely dysfunctional, Senate pas(sed the SECURE act – a bill that overhauls tax...

Monday, December 23, 2019

Selecting Investments is just the "Tip of The Pyramid" Morningstar is a great resource for financial information, and their retirement columnist Christine Benz is one of their best. In todays posting, she discusses the fact that too...

Thursday, December 19, 2019

A New Addition to the Financial Pathways Team for 2020 I am thrilled to announce the addition of Carlos Ruiz to the Financial Pathways team. Carlos will be joining Financial Pathways as a financial planner starting on Jan 2. Carlos is...

Tuesday, December 10, 2019

Paul Volcker passed away yesterday. Most folks younger than me who are not interested in economics could be forgiven for not knowing the name. But Paul Volker was truly an American hero. It is funny how people who lived through the...

Tuesday, December 10, 2019

As I recently shared with clients in an email on the topic, I am not thrilled with the prospect of a Charles Schwab / TD Ameritrade merger. We will be sticking with them through the transition, I suppose, in part because changing...

Friday, December 6, 2019

December Employment Report Shockingly Good We all complain that the media ignores good news. Well, today there was some really good economic news, so let's talk about that for a change! Despite all the political shennanigans and...

Tuesday, December 3, 2019

Markets and the Economy December 2019 2019 is almost over and, despite the equity markets experiencing a rocky start so far in December, it is likely going to go down in the books as an excellent year for investors. As far as the...

Thursday, November 7, 2019

Since the 2017 Tax Reform Act, most people have had limited opportunity to benefit from itemized deductions. We all know about the $10,000 limit on property tax deductions, but on top of that, the new expanded standard deduction means...

Monday, October 28, 2019

Top Education Deputy Resigns - calls student loan system "broken" https://www.washingtonpost.com/education/2019/10/24/devos-appointed-official-resigns-calls-sweeping-student-loan-forgiveness/ Interestingly, Dr. Johnson also praises the...

Thursday, October 17, 2019

Rapidly Expanding Field of Geriatric Care Management fills a Growing Need As the nations population of elderly continues to explode, there is a new business model that is starting to take hold. Not sure what we should even call them,...

Friday, October 11, 2019

Hint: it's not the stock market. What do you think is the greatest risk to your retirement plan? Most people probably answer a stock market crash. And some might say inflation. And yes, these are significant threats and risks that your...

Tuesday, October 1, 2019

Your humble advisor was quoted in last month's issue of Kiplingers Personal Finance. (click here to read the entire article - my commentary is toward the end - slide 14). The article was titled "13 ways to simplify your finances"....

Thursday, August 22, 2019

Today's unemployment claims number was impressive, unemployment claims have been hovering near ALL TIME LOWS for many months. That is amazing, when you consider that the number of people working today is so much higher than 20 or 30...

Thursday, July 25, 2019

Phishing attacks are becoming more sophisticated - Be careful out there! Phishing refers to the exercise of sending out email, pretending to be someone else, in the hopes of fooling the unsuspecting reader into reading an email and...

Friday, July 12, 2019

"SECURE" retirement act takes the axe to favorable tax treatment of inherited IRA accounts Today I stray into the turbulent and dangerous waters of political commentary. But I feel safe, because in this case taxpayers are being fleeced...

Wednesday, June 26, 2019

Buying a home is one of the biggest financial decisions you will ever make. Shouldn't it be part of a balanced and well considered financial plan? Buying a home is synonymous with The American Dream. And when done prudently,...

Wednesday, June 19, 2019

New Jersey Ranks Fourth in List of "Best States to Live In?" Crazy? Not according to the editors and writers of this article at Wallet Hub. Well, first of all, I am going to presume that the experts at Wallet Hub don't pay as much in...

Wednesday, June 5, 2019

Stocks take a Spring Break. After a blistering rally in the first four months of the year, stocks finally take a breather in May. Markets look set to continue the recent trend of volatility, as uncertainty regarding future direction of...

Monday, May 20, 2019

Money Magazine Takes on Dave Ramsey I am a fan of Dave Ramsey. OK, he can be at times a bit too certain of his own “rightness” – but I find him to be a great entertainer, more often than not compassionate with his...

Monday, March 4, 2019

Questions to Ask Before Taking on New Debt. As a Certified Financial Planner, I am often called on to help people out of money jams. And the majority of those money jams are a result of poor major purchase decisions. Too big a house,...

Wednesday, February 20, 2019

Clearing up Misconceptions Regarding the Trump Tax Bill. OK, right out of the gate, I am not here to defend or disparage the president or the Tax Bill that was passed last year. Wading into that political maelstrom is the last thing I...

Friday, February 15, 2019

Which is More Romantic? Flowers? Or Paying Down Credit Card Debt? OK, this is a day late for Valentine’s Day, but we consider it a reflection on the holiday. We all know Valentine’s day is a holiday that seems invented by...

Friday, January 4, 2019

Holy Cow. Employment Blow Out. And another reason to discount the prevailing narratives being sold to us by the media while doing our financial planning. Commentators have been focusing of late on statistics indicating the economy...

Monday, December 31, 2018

Here is a list of possible financial resolutions you might make for 2019. Most of them are a heck of a lot easier than losing 20 pounds or starting that exercise regimen! 8 Financial Planning Resolutions for 2019 Start a Household...

Wednesday, December 26, 2018

Stock Valuations Cheapest Since 2013 The recent selloff in stocks has a bright side. Stocks are the cheapest they have been since 2013, according to this article on Yahoo Finance today. Many investors had worried about high stock...

Thursday, December 20, 2018

A Lump of Coal in Your Christmas Investment Stocking? No way to sugar coat recent stock market action – markets have been entirely un-festive this year. Today we hit a fifteen month low for US stocks – which are rapidly...

Thursday, December 13, 2018

Here is an article which I found very inspiring. It is the story of a young woman who found herself, early in life, with a large debt load, and poor job prospects. What is inspiring is how she addressed the problem, took ownership of...

Wednesday, December 5, 2018

During the financial planning process, we will often suggest that clients ensure that several key estate planning documents are in place and current. The key documents are a will, a Durable Power of Attorney, a heath directive, and a...

Wednesday, December 5, 2018

Waves and Froth The month of November exhibited a continuation of uncertainty in markets. The month started off with a strong recovery for stocks from a terrible October, followed by another drop, then another recovery toward the end...

Friday, November 30, 2018

There May Still Be a Way to Obtain Tax Benefits for Your Charitable Donation. One of the results of the Tax Cut and Jobs Act is that the vast majority of Americans will no longer be itemizing deductions on their tax returns. The...

Tuesday, November 20, 2018

Should Market Conditions Influence Your Retirement Decision? There is much said about the risk of retiring at the peak of a market. It is generally considered that such timing is not good for the retiree. However, in real life, most...

Tuesday, November 20, 2018

Thinking Like a Business Owner US stocks continue their slump. Tech stocks which had run up sharply earlier in the year are giving back nearly all of this years gains and more as investors come to doubt the sales and profit assumptions...

Tuesday, October 30, 2018

Small Differences in Rate of Return can Have Big Impacts We financial advisors throw percentages around as if everyone understands exactly what they mean. But I suspect that most people haven’t really though through the nuance of...

Tuesday, October 23, 2018

A Healthier (and More Realistic) Way of Looking At Investments Investment experts frequently speak of the need to think long term. To ignore the ups and downs of daily or monthly market movements. And, while logic is on their side...

Saturday, October 13, 2018

After 6 straight down days in the stock market, and 2 consecutive days of significant losses, traders and investors struggled to answer this question today. The market rallied, then fell back - then finished the day (and a tumultuous...

Thursday, October 11, 2018

Stocks were down sharply for the second day in a row today - and I believe this is the 6th down day in a row. The term "correction" is used if the market falls by 10% or more. 20% or more becomes a bear market. I don't think we have...

Tuesday, October 9, 2018

Good Employment News Was Bad News for Investors In a counter-intuitive case of “good news is bad news” the bond and (in turn) stock markets both reacted negatively to an employment report that showed the economy humming...

Tuesday, September 25, 2018

But sound financial planning is necessary to avoid the income trap! It seems everyone wants to leave New Jersey as soon as they retire. However, retirees may want to look closer before they leap out of state to a less expensive...

Thursday, September 13, 2018

I Get a Lesson In College Financial Planning: By My Hair Sylist. It is now almost universally accepted as truth that the days where a youngster could work their way through college are over, a victim of the relentless (and ridiculous)...

Tuesday, August 28, 2018

Financial planners tend to be very debt averse. The best advice I can offer regarding consumer debt of any kind is just avoid it in the first place. Save up for future purchases, pay cash or use debt cards for most purchases, and never...

Friday, August 24, 2018

How You Think about the Process Is Key Determinant of Success Most people hate the idea of “Being on a Budget”. The very term implies some kind of failure. That there is failure in not having enough money to do and have...

Friday, July 27, 2018

Strong Growth in US Economy, Savings Rate Surprise Economic geeks will have a busy day today parsing data in an unusually detailed GDP report. In general, data show a strong economy, and in some ways, a populous that is somewhat more...

Thursday, July 12, 2018

Many financial planners don't like to get "dirty" with complicated issues such as student loans. They like to focus on managing large sums of money. OK, that's where the big $ are, so who can blame them. But we get excited about...

Tuesday, July 3, 2018

Mixed Q2 Results Amid Increased Market Volatility Performance has been mixed over the last quarter. US stocks did well. Foreign stocks lagged. Bonds started off down as interest rates rose – then recovered somewhat. Diversified...

Monday, June 25, 2018

Financial Planning Will be Crucial as Baby Boomers Face a Host of Financial Challenges I just read a great (but depressing) article in the Wall Street Journal decrying the pitiful state my generation finds itself in as we approach (or...

Thursday, June 21, 2018

The Fall of General Electric Reinforces the Importance of Diversification What does that mean anyway, “blue chip” company? The term actually derives from poker. Poker chips are typically red, white, and blue – and the...

Friday, June 15, 2018

It looks as if Social Security benefits may be increasing at a faster rate in 2019. In this video, I discuss the implications for seniors (spoiler alert: don't start your happy dance just yet...), and the factors driving the increased...

Wednesday, May 30, 2018

Oh Yeah, THAT’S Why I Wanted Bonds in the Portfolio It is so easy for investors to get caught up in the popular Wall Street chatter. Interest rates have nowhere to go but up. Bonds are doomed to ever increasing losses. Everyone...

Friday, May 25, 2018

Inflation is a Real, Persistent, but Underappreciated Threat to Retirement Success Driving with my dad the other day he said he needed to stop at a department store to buy some new pajamas. That led (somewhat invevitably when...

Wednesday, May 16, 2018

Studies conclusively demonstrate that mathematical reasoning and financial acumen peak at around age 53, and then gradually begin to decline with age, accelerating as people age into the 70s and 80s. What are the implications for...

Monday, May 7, 2018

How We are Crushing Our Kids with Student Loans (and how to avoid doing so to YOUR kids!) “Don’t worry about it – There is Plenty of Financial Aid Available” That’s about the extent of financial advice...

Wednesday, April 25, 2018

Higher Interest Rates: Bad News for Investors, Good News for Savers? The experts have been predicting it ever since the financial crisis. Higher inflation will result from all the government fiscal stimulus. Such inflation will force...

Tuesday, April 10, 2018

Deadline for 2017 Retirement Contributions approaches Next Monday April 16th is the deadline for making your 2017 IRA / SEP / Roth contributions. If you haven't yet gotten around to it, consider making a contribution this week. Who can...

Wednesday, April 4, 2018

Markets are being buffeted by fears of a trade war, as the US and China increase rhetoric on trade. Markets are up one way, down the next as markets try to figure out the long term implications of trade rhetoric. Let's try to cut past...

Thursday, March 29, 2018

Markets Deliver a Lesson in Stock Pricing and the Role of Investor Expectations. FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google) have been stock market darlings for the past year. Big tech stocks outperformed everything...

Friday, March 23, 2018

Stocks have been selling off the last few days. This time, unlike February, the move looks less like a computer generated frenzy, and more like a good old fashioned market correction. What is driving it? Well, the media blames it on...

Thursday, January 18, 2018

Information and misinformation over the tax bill is maddening. I have spent the last 2 hours researching the topic of how mortgage interest will be taxed under the new tax bill. I still can’t get a completely straight answer. The...

Tuesday, January 16, 2018

Kudos to our financial planning software provider, Right Capital. Only 2 weeks into the year and they have managed to update the planning software with the new tax rules. As a reminder to folks, the tax law made significant changes...

Thursday, January 11, 2018

Your identity is perhaps your most important financial asset. Despite all the press given to recent cybersecurity breaches and the issue of identity theft, it seems many people still don’t give the issue the attention it deserves...

Friday, January 5, 2018

Retirees may still be able to get a deduction for charitable donations under the new tax bill, even if they no longer itemize. The new tax law retains tax law provisions which allow individuals over age 70 ½ to make donations to...

Friday, December 29, 2017

A few last minute (really last minute) thoughts on tax planning for 2018. Prepaying Property Taxes. I had recommended in a previous post how most taxpayers – namely those who have property tax bills over $10,000 per year, as well...

Tuesday, December 19, 2017

I have held off commenting much on the new GOP tax code because, frankly, it was all noise until the final bill was drafted and released to the public. That happened on Friday. So, let’s look at how it benefits you. I am going...

Tuesday, December 19, 2017

I have held off commenting much on the new GOP tax code because, frankly, it was all noise until the final bill was drafted and released to the public. That happened on Friday. So, let’s look at how it benefits you. I am going...

Tuesday, November 28, 2017

It seems as though every time I see a financial article entitled "Worst 10 States for...", New Jersey is on the list. So it is quite refreshing to see that New Jersey is NOT included on Kiplingers Personal Finance just released ranking...

Tuesday, November 21, 2017

A Bitcoin purchased in January of this year for about $750 would have increased to over $8000. A tremendous run-up to be sure. With that kind of return, surely some are wondering if Bitcoin belongs in their investment portfolio. What...

Friday, November 17, 2017

Please join Luba and I in welcoming Jordan Coleman to the Financial Pathways family. Jordan is a business/finance student at Raritan Valley Community College and be interning with us over the next several months. She may be in touch...

Thursday, November 9, 2017

OK, this post isn't about any complicated financial strategy, and the advice herein won't make a bit of difference to your retirement plan. But it may come in useful someday anyway. As a complete financial geek, I've often wondered...

Monday, November 6, 2017

Up, Up, and Away! Investment clients will find October reports posted to the Morningstar portal today. The stock market has now set a new record of 12 straight months without recording a monthly loss. Meanwhile the S&P 500 is extending...

Wednesday, October 25, 2017

No, not for my running career, although I keep trying. It’s a record for the stock market. In fact, we have set (or are about to set) two records of note this week. Big deal, the stock market is always setting records, you say?...

Tuesday, October 17, 2017

We would like to remind all of our senior clients that Medicare open enrollment started on October 15, and continues through December 5. That means it is time to reconsider your Medicare health plan selections, and whether your current...

Friday, September 22, 2017

Lets Face it - Your Identity has been compromised. This is the topic of the week - I have already received numerous calls on the topic from clients worried about the latest high profile hack at Equifax. But even if you weren't affected...

Thursday, September 14, 2017

Income Based Repayment and Forgiveness programs are a minefield of tax and financial complexity! The foolishness that is the U.S. government's student loan policy gets crazier and crazier the more you study it and dig into the details....

Monday, August 14, 2017

Safeguards can protect aging parents (or an aging you!) from money mistakes As financial advisors, we have a unique insight into people’s lives. If something is amiss in a client’s life, we will usually be one of the first...

Friday, August 11, 2017

Jim and Laura Kinney to Host Dave Ramsey's Financial Peace University Financial Peace University is a 9 week financial education program developed by radio talk show host and best selling author Dave Ramsey (Total Money Makeover). Jim...

Wednesday, August 2, 2017

So July is in the books, and not much has changed. The stock market has continued its slow but steady grind higher. Good performance by the stock sleeve of the portfolio pulled our investor portfolios higher for July, the fifth...

Thursday, July 6, 2017

Look Past Recent Performance To Include Dissimilar Markets Markets have been very strong of late. Stocks have done well since the election, and bonds have yet to react negatively to rising interest rates. International stocks in...

Tuesday, June 27, 2017

I have been getting more and more into running over the past few years. A few weeks ago, I joined my daughter in running a 1/2 marathon in Buffalo. I did some reflecting the other day on similarities between distance running and...

Thursday, June 1, 2017

Stability, Stability, Stability – Markets are Being so BORING. Nothing seems to frighten the markets anymore. Not a North Korean madman with nuclear weapons. Not a Chinese debt bubble that makes our mortgage debt crisis look like...

Tuesday, May 23, 2017

OK, this is a bit of technical advice, not financial advice. And I am not the most qualified person to advise on this. But since many of you may have personal data on your computers - including financial data, I figure it is at least...

Wednesday, May 17, 2017

More Money is Not Always the Answer to Financial Problems! Anyone who is struggling to pay their bills and keep the household financial ship afloat can be forgiven for thinking that a little more money will solve their problems....

Thursday, May 11, 2017

Most of my financial planning clients, and almost everyone else I speak with, share the opinion that Social Security is doomed to failure. A deeper understanding of the program suggests that this most pessimistic view is not warranted.

Wednesday, May 10, 2017

Umbrella Insurance That Is. It's often overlooked, and in my experience, rarely even mentioned by insurance providers. But umbrella insurance is incredibly important to protecting your financial life in the event of a major legal...

Monday, May 1, 2017

This is an article that anyone thinking ahead to retirement ought to read / listen to. The CNBC piece (click here to view) makes many of the points I have made to clients in our financial planning sessions regarding the danger of...

Wednesday, April 19, 2017

According to an article in today's Wall Street Journal, consumers are voting with their money, and the vote is overwhelmingly in favor of the independent, fee-only advisory model. This is a vindication of sorts for Financial Pathways...

Wednesday, April 5, 2017

How to Create and Manage a Household Budget The most important single step most people can make toward improving their financial lives is to begin living on a budget. Sound intimidating? It shouldn't be! A budget is about seizing...

Tuesday, April 4, 2017

A Look at Living with Debt in Retirement A growing number of seniors are carrying debt with them into retirement. What are the implications? According to the Consumer Financial Protection Bureau, the percentage of homeowners 65 and...

Wednesday, December 14, 2016

Rising Interest Rates are All Bad News for Income Investors The Federal Reserve made news today by raising interest rates ¼ of 1%. No big surprise there, but they did surprise the market by suggesting that Fed members were...

Wednesday, December 14, 2016

Jim and Laura Kinney Trained and Certified by Financial Radio Host and Author Dave Ramsey Back in June Laura and I traveled to Nashville to be trained by radio talk show host Dave Ramsey. We learned how to coach people using the...

Wednesday, November 9, 2016

Wow. Shocker. I can’t even get my head around the idea of Donald Trump as my president. In a recent email to our investment clients, I had noted that Hillary Clinton appeared to be the clear favorite of the markets, and that...

Saturday, October 1, 2016

Nothing is certain in life, they say, but death and taxes. And in New Jersey, death and taxes go together. But it looks as if dying in New Jersey may be a little less “taxing” in the future. We live in one of the few states...

Wednesday, September 21, 2016

Retirement Success is Part Planning…And Part Luck The First Few Years of Retirement Can Make or Break a Plan I often explain to clients how important investment returns during the first few years of retirement can be. Big losses...