The Diversified Investment Palate

Key Takeaways

  • Successful investment management is based on diversification and asset allocation.
  • Diversification means investing in several different areas, and asset allocation is how much in an area you invest in based on several factors specific to you.
  • Time frame is important in investing as you need to be consistent.

Take Stock in Sam, Bond with Mike

Key Takeaways

  • A stock is a share of ownership in a company, whereas a bond is a debt instrument with a set interest rate, time frame, payment intervals and principal payment at the end.
  • Risk and reward are key with stocks and bonds. Stocks are riskier, with the reward greater, as well as the possible loss. Bonds make consistent money and you tend to get some back if the company doesn’t fare well.
  • Stocks and bonds are risky investments, but it’s important to know their uses.

4 Common Tax Advantaged Strategies

Key Takeaways

  • There are three things to look for in a tax strategy: tax deductible, tax deferred, and tax free. A strategy will most likely not contain all three, but usually will have two of them.
  • Four common tax strategies are 401ks, IRAs, HSAs, and 529 plans.
  • Putting money away using any of these strategies can save you a lot of money over time versus saving money in other ways where they are subject to taxes

Your Future Taxes

Key Takeaways

  • There are two types of tax planners; historians and futurists.
  • Tax historians look to the past to plan for their taxes and can often be left with costly surprises or pay more taxes than they should by not researching changes in the tax code.
  • Being a tax futurist, where you plan your taxes in the first quarter based on changes to the tax code, employer benefits, and personal situation, helps you control the taxes and keep money in your pocket.