Investment Help

If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.

Thursday, January 30, 2014

Presentation Preview

Millionaire Teacher Andrew Hallam

Tonight I give a wrap-up talk for the online discussion of Millionaire Teacher by Andrew Hallam conducted via the Howard County Library System in Howard County, Maryland.  As one part of the presentation, I will give the following overview that hopefully will help people as they think about saving for retirement.

How to Invest

  • Asset Allocation - Percentage in Stocks/Bonds/Cash. Most important decision for investors. Pick asset allocation and stick with it.
  • Low Cost Index Funds - forget market timing and stock picking. Understand the cost of the funds you use and minimize those. Use index funds. 
  • Monitor - keep track of performance. Performance should be close to market returns. Understand that, in accumulating assets, declining markets are your friends.
  • 10% Max Play Money - You are introduced to 3D printing and want to invest. You eat at Chilpolte's and want to invest. Limit these investments to your "10% play money."


  • Taxable, Qualified (401k, 403b, TSP, IRA), Roths - Put accounts statements in this order. This, by the way, is generally the order you'll spend in retirement.
  • Consolidate - Many people have accounts with several brokers and banks. Simplify as much as possible. It helps in getting the big picture and monitoring the overall results.
  • Bonds in Qualified Accounts and Roths/Stocks in Taxable and Qualified Accounts-Two tax rules:  defer taxes and pay as little as possible. Understanding the idea behind location of investments helps along these lines.
How Much to Save and Invest?
  • Add Social Security + Pension + Nest Egg * .04 + Other Income - The idea is to estimate potential income  when you stop drawing a paycheck. Online calculators will help you with this by putting in estimates of inflation and market returns.
  • Income should typically  = 80% to 110% of current lifestyle expenses - Estimate living expenses at retirement and get within the range. 
What Can Upset the Apple Cart?
  • Lose Breadwinner Income - Carry term insurance. 
  • Health - Think about long-term care insurance.
  • Lawsuit - Carry umbrella insurance.

This outline is intended to get the wheels turning.  People need wills and trusts.  People need to consider what it would cost to replace a homemaker.  People need to understand how to rollover 401ks and educate their heirs how to title inherited IRAs.  This outline isn't intended to suggest that dotting all the i's and crossing all the t's is easy but, hopefully, get people started on the right path. Reading the Millionaire Teacher goes a long way down this road.


  1. You should seriously write a book! Great, sensible advice and information!

  2. nice article you have a heap of knowledege