I can count the number of times I have golfed on my fingers. Before taking a swing, I look over the various clubs at my disposal. I think to myself, each club has an extremely important purpose and I must choose very carefully. No matter which club I choose a triple bogey lies in my future. You can in a sense think of ETFs and Mutual funds as different golf clubs. They are almost the same tool but can have times when one makes more sense than the other. Both ETFs and mutual funds are pooled investments that can hold a variety of investments inside of them. Most ETFs are passively managed, with fewer moves occurring inside relative to Mutual Funds. One difference is that ETFs trade like a stock, so you can buy and sell during the trading day. Mutual Funds calculate their NAV or Net Asset Value after the close of the market each day. In golf terms, if a round of nine holes was a trading day and I was a mutual fund, I would only know my score after the round was done. My friend ETF would keep track as we played. Another differentiator is the cost. ETFs are cheaper on average than mutual funds. As you may suspect there is more than just cost to consider here. Mutual fund’s higher expenses come with the benefit of teams of industry professionals and researchers looking to enhance their fund’s return and protect it from any holdings that become undesirable. In essence, the ETFs take more of a set it and forget it approach. ETF managers pick a target like a large stock index and try to replicate it as closely as possible. Mutual Funds can be a little more flexible in their strategy as they are not strictly trying to keep the same weighting as an index. So which fund should I put with which type of… | Read More »
General
The life of Pi
There’s a lot of inspiration in a slice of pie. Much like retirement planning, it all starts with a seed. If you plant the seed early enough and water it just right, it grows into a tree with apples plump enough to sustain you when you need to harvest them. You have to time the apple harvest carefully to maximize the flavor of the apples and their ability to sustain their nutritional value. And then there’s the dough, a perfect blend of two very common ingredients – butter and flour. But, you need to cut that butter into the sifted flour exactly right for the flakiest dough, and only the best bakers can manage that. Most people need a little help. Just like life, you’ll want to add sugar and spice to your pie, and everyone’s preference is different. You have to figure out what proportions best suit you before you seal the crust. Sometimes you need to tweak the recipe to suit your own needs. We can help with that. We’ve been helping people bake their perfect slice of retirement pie for more than 40 years. Happy Pi Day from all of us at Winch Financial. We hope your pie is extra delicious today.
#ValentinesforVeterans on #SendaCardtoaFriendDay
We are celebrating National Send a Card to a Friend Day by putting together some Valentine’s Day cards for our military servicemembers. We are excited to participate in the Soldier’s Angels Valentines for Veterans program, which facilitates the distribution of holiday cards to deployed service members around the world or hand-delivers them to veterans in VA Hospitals across the country. Charity Navigator rates Soldier’s Angels a four-star charity, which is another reason we feel good about participating in this program. They are asking for a donation of $1 per card to defray the cost of mailing them. If you’d like to join us in sending a little love to our veterans, you can either drop your cards off at our office by Friday and we’ll make sure they get to Soldier’s Angels in time to be distributed, or you can send them directly to this address: Soldiers’ Angels Valentines for Veterans 2895 NE Loop 410, Suite 107 San Antonio, Texas 78218 Before sending your Valentine’s Day cards, please keep these tips in mind: The deadline is Feb. 14. Cards can be store-bought or handmade. Individually wrapped candy can be included if it is attached to the card. Include $1 per card, cash or check. You can include an envelope if you want, but not necessary. If you include an envelope, do not seal it. At your discretion, you are welcome to include your return address in the event the recipient may write back to you. However, it is also OK if you do not include any personal information.
Giving Tuesday calls for both generosity and vigilance
By both design and calendar placement, Giving Tuesday is meant to be the palate cleanser that allows us all to digest and breathe a little easier following the ominously titled Black Friday and frenetic Cyber Monday. Meant to call attention to charities in need of support, Giving Tuesday began here in the United States and has since spread across more than 709 countries. The timing of the day also allows tax savvy adults aged 72 and over to donate their Required Minimum Distributions directly to the charity of their choice. (Of course, they can do this throughout the year, but the deadline to withdraw your RMD is Dec. 31 and many people do this in December.) In addition to altruism, Giving Tuesday also inspires a call to vigilance. We encourage everyone to research their charities carefully and to choose their donation method wisely. An international day of giving presents the perfect opportunity for people with nefarious intent as well. Here are five tips to keep you safe as you make your donations and shop online this holiday season: Hover your cursor over a link before you click it so you know exactly where that link will take you. When you look for something in Google or any other search engine, make sure you sift through the results carefully. Many companies intentionally mimic others and pay to be listed above them in search responses. If you are intrigued by something you see on social media, exit the app and initiate a fresh search for information about the company. Avoid clicking directly on links you see on social media. Before you input your credit card information, make sure the address includes an https:// at the beginning. HTTPS is an indication that a company or nonprofit’s website encrypts data to protect the information you give it from cybercrime. Be very wary of public Wi-Fi when you are making a monetary transaction. If you… | Read More »
Four things to consider when you plan your retirement healthcare coverage
Insurance coverage can be one of the most important pillars of your retirement plan. It is also one of the most personal. Policies vary as widely as the people who purchase them, and coverage requirements can change dramatically as we age. In the United States, anyone aged 65 or older qualifies for Medicare, a federal health insurance program. In addition, certain disabilities and illnesses qualify an individual for Medicare. Transitioning from a private, marketplace or company-sponsored insurance plan can be confusing. We always recommend checking with a licensed insurance professional before making such an important decision. Beyond that, here are four things to consider as you plan your coverage: Can you keep your current insurance coverage when you retire? Read the fine print of any policy you choose. Check the cost of your premiums, deductibles and any hidden costs. What will you pay out-of-pocket for hospital stays or doctor visits? Is there a yearly limit on what you could pay out-of-pocket for medical services? Make sure you understand any coverage rules that may affect your costs. Does your plan include your preferred provider? Will you need additional coverage for costs associated with vision, dental and/or hearing? Are the doctors in your plan or network accepting new patients? Prescription drugs. Do you have prescription drug coverage? You may face a penalty if there is a gap between your eligibility date and application for coverage. How much coverage will your prescription drug plan offer for the medicine you require? Are you eligible for a free Medication Therapy Management program? People with Medicare can get their health coverage through either Original Medicare plus supplements or a Medicare Advantage Plan (also known as a Medicare private health plan or Part C). The following chart from the Medicare Rights Center illustrates the differences between the two plans: If you have any questions regarding your Medicare options, please contact us. Our in-house insurance department would… | Read More »