Gilbert Wealth Articles

The Long View: On Being Bearish or Bullish

The stock market has a rich history of fluctuating between periods of bullish and bearish sentiment, shaping the overall trajectory of long-term returns. Understanding the dynamics of these market cycles is essential for investors seeking to capitalize on opportunities and navigate the ever-changing landscape. In this article, we will explore the significance of historic bull and bear markets and how their interplay has contributed to the overall growth of the market over time. What is a Bull Market and a Bear Market? A bear market is marked by a prolonged period of declining stock prices, often accompanied by investor pessimism,…
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Portfolio Losses: The Mathematics of Recovery

Investing in financial markets always carries a certain level of risk, and even the most astute investors experience portfolio losses. When portfolio losses occur, a challenging reality sets in: recovering from these losses requires more significant gains than the initial losses themselves. In this article, we will delve into the concept of portfolio losses and the uphill battle investors face when attempting to regain lost ground. Portfolio losses refer to the decline in the overall value of an investment portfolio, resulting from a combination of factors such as market downturns, poor investment decisions, or unforeseen events. These losses can be…
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The Win-Win Strategy: QCDs and Charitable Contributions

What is a Qualified Charitable Distribution? A Qualified Charitable Distribution (QCD) is a direct transfer of money from an Individual Retirement Account (IRA) to a qualified charitable organization. QCDs have gained popularity in recent years due to their unique advantages for both retirees and philanthropic causes. Unlike traditional withdrawals from an IRA, QCDs allow individuals aged 70½ or older to donate a portion of their Required Minimum Distributions (RMDs) directly to a qualified charity, bypassing taxable income.Qualified Charitable Distributions (QCDs) offer a unique opportunity to impact charitable causes while optimizing your retirement savings positively. By leveraging QCDs, you can enjoy…
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What is a Value Stock or Fund?

What sets value stocks apart from their counterparts is the fundamental principle of purchasing at a discount. Value investors aim to identify stocks trading at a lower price relative to their intrinsic value, believing that the market has undervalued them. This approach involves assessing a company's financial health, analyzing its assets, earnings, and potential for growth, among other factors. By focusing on the underlying value rather than short-term market fluctuations, value investors seek to obtain long-term gains from holding good companies until their true value is realized.This article reviews why value stocks are important, where value fits into a portfolio,…
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Unraveling the Numbers: A Comprehensive Guide to Social Security Benefit Calculation

Social Security benefits are one of the cornerstones of anyone looking to retire in the US. A retiree's Social Security benefit provides them with a monthly stream of income that adjusts each year for inflation and lasts for as long as they live. While the actual formula used is complex and beyond the scope of this article, understanding the major components of the calculation will help maximize your Social Security benefits over your lifetime. Key Ideas Delaying Your Benefits Increases Your Monthly Amount Reviewing Your Earnings Record to Catch Mistakes Early Filling Your Top 35 Years Increases Your Benefits Understand…
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Charitable Giving through a Donor Advised Fund

A Donor Advised Fund (DAF) is a specialized account for designed to facilitate charitable giving. A Donor Advised Fund is a valuable tool to consider for anyone who is charitably minded as it provides a number of benefits such as tax deductions, tax-free growth, and charitable flexibilitye What is a Donor Advised Fund and How Does it Work? Donor advised funds have become increasingly popular in recent years as a way for individuals to manage their charitable giving. These funds allow donors to make a contribution of cash or appreciated assets to a public charity, which then establishes a separate…
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A Healthy Investment: Discover the Surprising Benefits of Health Savings Accounts

Healthcare costs in the United States can be quite high, and managing these expenses can be a significant challenge for many people. Fortunately, there is a financial tool available that can help you save money and invest in your future healthcare needs: Health Savings Accounts (HSAs). This article reviews what HSAs are, their features, and how to maximize their benefits. What are Health Savings Accounts A Health Savings Account (HSA) is a separate account that holds money set aside to reimburse you for qualified medical expenses incurred by you or your family members. Similar to retirement accounts, if you are…
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From Risk to Resilience: How to Build a Strong Plan for an Uncertain Future

Monte Carlo simulations are a powerful tool for analyzing complex systems and making predictions about uncertain outcomes. Financial Planners use Monte Carlo simulations to model retirement portfolios, income strategies, and investment outcomes. By using a large sample of historical market data, Monte Carlo simulations can generate thousands or even millions of hypothetical scenarios, each with slightly different outcomes and paths. These scenarios can then be used to estimate the probability of varying market outcomes, such as the likelihood of your portfolio being able to meet your retirement goals.This article goes into Monte Carlo simulation in a little more depth. If…
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What the Bible Says about Money

What does the Bible have to say about money? Quite a lot! The Bible has over 2,300 verses that reference money, wealth, or possessions in some form. Of the 39 parables Jesus told, 11 were about money. This shows us how important it is for us to understand the principles and teachings of the Bible when it comes to our relationship with money. The Bible provides valuable guidance on managing our finances, including budgeting, saving, and giving principles. It highlights the importance of maintaining a healthy relationship with money, recognizing that our ultimate source of security and fulfillment comes from…
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How Flipping Coins Helps You Make Better Financial Decisions

A Monte Carlo is a method used to simulate possible outcomes given a set of parameters or assumptions. In a comprehensive financial plan, Monte Carlo can be used to test the strength of your financial plan against adverse market conditions. Monte Carlo analysis is an improvement over the prior method of just using a constant portfolio return for each year in your financial plan. While using a constant return can simplify the charts and give you a basic understanding of what is happening in your plan, it fails to account for a basic fact that returns each year are not…
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