Financial markets lived up to their reputation during the month of August, which has a record for being difficult. On the first day of August, markets had to contend with a downgrade of U.S. long-term debt by the rating agency, Fitch. They attributed the adjustment to the “expected fiscal deterioration over the next three years, a high and growing general debt burden, and the erosion of governance.” Many financial leaders characterized the downgrade as “ridiculous,” but the stock and bond markets still felt the effects. Another setback for markets came from Moody’s, an important credit agency. They issued a credit ...

Custodial accounts differ from other types of accounts in that an individual controls the account for the benefit of a minor, who is the beneficiary. It’s important to note that the individual managing the custodial account acts as a fiduciary and is legally bound to act in an ethical manner and in the best interest of the beneficiary. Here are some things to know about custodial accounts: · Custodial accounts are held at financial institutions, mutual fund companies, brokerage firms, and other financial organizations. · Custodial accounts do not require distribution at set times. · There are no income or ...

Every year, around 3 million Americans are required to evacuate their homes due to a natural disaster.1 What’s more, this figure does not include the millions of other individuals who are temporarily displaced as a result of fire, flood, or other damage to their homes. Do you have the documents you need if you find yourself required to vacate your residence suddenly? Do you know how to get in touch with your financial providers? Do you know how to get a new driver’s license? Do you have a way to access lines of credit? These and other questions may be ...

Some people go swimming by diving into the pool; others prefer to edge into the water gradually, especially if the water is cold. A decision about putting money into an investment can be somewhat similar. Is it best to invest your money all at once, putting a lump sum into something you believe will do well? Or should you invest smaller amounts regularly over time to try to reduce the risk that you might invest at precisely the wrong moment? Periodic investing and lump-sum investing both have their advocates. Understanding the merits and drawbacks of each can help you make ...