Q. Starting about October 2008, I’ve read and heard opinionators state that based on the country’s poor economic situation and long-term market performance, e.g., the performance of the S&P 500 index over the past 10 years, that strategies, such as “buy and hold” low-cost, tax-advantaged, index funds such as TSP’s C, F, S, and I funds, “dollar-cost averaging,” and invest for the “long term”, are no longer valid ways to invest and save for one’s future retirement. Could you share your opinion on the whether we’re in a “new paradigm” (and what is it?) and whether the “average, unsophisticated investor”…
Yearly Archives: 2010
Q. Do financial planners have to be accredited? Do they have to be certified, registered by states and/or do they have to take courses like accountants do to keep up with the latest information? What about testing? How do I learn about a financial planner’s experience, etc. What is a financial services adviser — just what the title says, advises you about your finances? Is there a site that checks for any complaints and/or if a person really is accredited or does he/she have a degree? What is required to become a financial planner? A. Anyone can call themselves a…
Q. My wife started receiving her own reduced Social Security benefit at age 62, about a year ago. I am younger and plan to start receiving my own benefit at full retirement age (66). Since my benefit will be substantially higher than hers, I know that she is entitled to a spousal benefit equal to one-half of my benefit. However, since she started receiving reduced benefits under an age penalty, would her spousal benefit (i.e., half of mine) also be reduced forever due to the age penalty? A. If your spouse claims her own benefit early and then later claims…
Q. I would like to know if there are financial adviser services knowledgeable in federal retirements that can review a person’s current situation on a one-time basis and make recommendations. What would be a ballpark price range for this type of service and do you think this type of review is worth the effort? Basically, I have been doing most of my own financial planning and I am about 10 years from retirement and would just like an expert to do a one-time review. A. There are financial planners who specialize in federal retirement planning (I’m one), but finding them…