When you draft a will, you have to name an executor/personal representative for your will, or else the State will choose one for you (a process that will likely cost attorney fees and a few months of time). The executor’s duty is to marshal all of your assets upon your death, pay your outstanding obligations as required by law, and then make a distribution of the remaining proceeds consistent with your instructions in the will.
Very little online guidance is available to provide assistance for choosing the right executor to serve for you.
Some factors that you should consider when making your choice:
#1. Likelihood of Actually Serving: Ideally, you want to … Read the rest of this article!
I view investing in the stock market under the following terms: (1) about 75% of one’s investments should be dedicated to owning shares in the most dominant business holdings in the entire world, and the bulk of the wealth should come from the “sitting” as earnings per share growth marches onward and dividends get paid out for reinvested into additional shares that can also participate in the earnings per share growth and pay out dividends of their own, and (2) about 25% of one’s investments should be directed towards the purchase of undervalued securities that are selling for less than they are worth, and can deliver more rapid capital appreciation that is usually … Read the rest of this article!
Brunswick has one of the greatest legacies in the history of American business. How many companies out there have track records dating back to before the Civil War, as Brunswick does with its inception back in 1845?
The obvious downside with a business like Brunswick is that a majority of its product sales are cyclical. Manufacturing and boats are great, except during a recession. That can be tolerable, as the average years and good years can provide high enough profits to roll the muck that is encountered during the down years.
My fear is that, upon seeing the announcement that Brunswick is spinning off its fitness business, which includes the brands Life Fitness, … Read the rest of this article!
When investing, there are three to keep in mind that can erode the purchasing power of each dollar that we have:
(1) The first one is inflation. If inflation runs at 4.0% annually, that means it will take $1.04 in 2014 to buy what cost you $1.00 in 2013.
(2) The second thing is taxes. If you own 1,000 shares of ExxonMobil in a taxable account, you will receive $2,520 in annual dividends. But, if you are in the 15% tax bracket, you will have to send $378 to Uncle Sam, effectively giving you $2,142 in oil well money from Exxon that you can use to spend as you please.
(3) The third … Read the rest of this article!
Many of you who have long followed the financial markets are aware of why the conventional wisdom says that “stocks tend to return 10% per year on average.” This data point comes from the well-renowned Ibottson & Associates study that found large-cap American stocks delivered returns of 10% from 1926 through 2012.
Arguably, the results of this study buried the lead, as it also indicated that a basket of American small-cap stocks, now represented by the Russell 2000 Index, delivered returns of approximately 12.2% over the same time frame.
Over an entire lifetime, that extra percentage point or two makes a difference. The large-cap American stocks, which involves compounding at a 10% rate … Read the rest of this article!