Question: With interest rates at an all-time low, where is the best place to put my savings?

Answer:  Interest rates have remained near zero for so long, it is easy to forget that six years ago a money market yield was 4%.  If by “savings” you mean your short term emergency/opportunity fund, the answer is put the money in an FDIC insured savings account at your bank, or ladder the maturity on some shorter term CD’s that are also covered by FDIC … [Read more...]

Question: Should I change my 401k deferral from the pre-tax contribution to the ROTH option?

Answer: It depends.  The benefit of the pre-tax contribution is that it immediately reduces your income taxes when you make the contribution.  It reduces your tax withholding on every paycheck so some of your contribution is actually coming from money which would otherwise go to the state and federal government.  When you receive the benefits later in life … [Read more...]

Question: How Do I Choose a Financial Advisor?

A good start is to find someone who holds the most respected credential – CFP – Certified Financial Planner.  There are many designations in the financial world but they are not all created equal.  The CFP designation requires extensive study and passing a rigorous test administered by the Certified Financial Planner Board of Standards.  In order to maintain … [Read more...]