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Brain Can Sabotage Buy-and-Hold Investment Strategy

Over 25 years of writing this column, I have often discussed the value of a static buy-and-hold asset allocation with periodic rebalancing. This means investing specific percentages of your portfolio in several asset classes (a few of which are stocks, bonds, commodities, and real estate). Then, at least once a year, you buy or sell gains or losses to readjust each asset class back to the original target allocation.

Doing this can keep you from making “the big mistake” of investing.

An April 8, 2015, article in Advisor Perspectives by Lance Roberts of Streetalk Live sheds some new light on the real value of maintaining a static buy-and-hold strategy.

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Estate Planning Beyond Traditional Family

One of the reasons so many of us procrastinate when it comes to estate planning is a reluctance to think about death and dying. Another reason that may be even stronger is the need to make decisions. It’s not so hard to make an appointment with an attorney to draft a will. It’s much harder to decide what the provisions of that will should be.

No wonder so many people take the simple approach of “leave everything to my spouse and kids.” That works perfectly well for many families. It’s also pretty much what the probate code provides for if someone dies intestate.

But what if you don’t have a spouse or kids?

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Talking About Death, Money, and Emotions

One of the challenges in financial planning is the strong taboo in our society against talking about money. Another powerful taboo is talking about death when someone has a serious illness.
Given this strong reluctance to talk about both money and dying, how can you work with a financial advisor to deal with the financial and emotional issues that go along with a family member’s serious illness? Here are some suggestions

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Teacher Salaries Adjusted For Cost of Living

South Dakota is tops in many things. We are consistently rated as among the best in the nation for business climate, trust law, clean air, low taxes, and the best cities to retire in. It annoys me, then, when we are last in something important, like teacher’s salaries.

But how do our lower cost of living and low state and local taxes affect our low salary ranking? Certainly salaries must buy more in the way of lifestyle in South Dakota than in states that have higher salaries but also higher taxes and living costs.. I was willing to bet, when the annual salary of a South Dakota teacher was adjusted for cost of living and taxes, that we really wouldn’t have the lowest salaries in the nation.

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