Since 2020 members of the Ruedi Wealth team have been writing weekly investing and retirement planning columns for our local newspaper, The News-Gazette.
People often think of generational wealth as a specific large number like $5 million. But generational wealth is actually created by a set of behaviors that work together to maximize the amount that is passed down from generation to generation.
I think when investors buy an individual company they assume their worst case scenario is that the stock price doesn’t very much or at worst falls 20 or 30% in value. But individual companies can fall over 99% in value.
When the market faces adversity in the future, as it inevitably will, investors will once again be tested. At that point though they will be tempted to think “this time is different.” They should instead focus on the fact that “this too shall pass.”
We get a peak to trough decline of 10% or more almost every year. They show up with such a frequency that on our radio show we often refer to declines of this magnitude as the “crosstown bus.”
The tax treatment of an investment depends on four things: the type of investment account, the form of investment return, how long a person has held an investment, and a person's total taxable income for the year.
Though people often think the value of a financial plan is to prevent people from running out of money, another equally valuable aspect of financial planning is preventing a person or couple from spending too conservatively.