Bonds Interest rates Investing

How Do Interest Rates Affect Bonds? Relationship Between Rates, Bond Prices and Yields

One of the most important things to know about bonds is how changes in interest rates affect bond prices, and therefore yields (unless held to maturity). The relationship between interest rates, bond prices, and bond yields is based on a few simple investing principles. Bond prices move inversely to interest…

Kristin McKennaJanuary 11, 2021

Brokerage Account Investing Updated for 2021

What is a Brokerage Account? Reasons to Use a Brokerage Account

What is a brokerage account? A brokerage account is a non-retirement investment account. Essentially, a brokerage account is the opposite of a retirement account like an IRA or 401(k) in nearly every way. There are no restrictions (income, investment options, limited additions, access, etc.) or tax benefits. Because there are…

Kristin McKennaSeptember 28, 2020

Diversification Forbes Investing Managing Risk Stock options

If You Own Too Much Stock In One Company, It’s a Good Time To Consider Diversifying

Can you own too much of your employer's stock? Undoubtedly, yes. Does holding a lot of company stock create the potential for a large windfall? Also, yes. For employees, it can be difficult to know how much company stock is too much. But identifying a concentrated position is often just…

Kristin McKennaSeptember 21, 2020

Asset Management Current events Forbes Investing

How The Stock Market Has Performed Before, During, And After Presidential Elections

How The Stock Market Has Performed Before, During, And After Presidential Elections There’s a lot going on during any normal election year, but fittingly, this time seems different. Of course, when it comes to investing, unless you have a crystal ball, it’s not worth trying to predict the future. Indulging…

Kristin McKennaAugust 24, 2020

Asset Management Current events Investing

Stock Market Performance by President (in Charts)

As the next U.S. presidential election nears, investors may be wondering what the implications are for their investments. How will the stock market react if the incumbent (President Trump) wins? What will markets do if the current Republican administration is replaced by a Democratic one? How does the stock market…

Kristin McKennaAugust 12, 2020

401(k) Plans 403(b) Plans Asset Management Diversification Forbes Investing Retirement Planning

Are Target-Date Funds A Good Choice For Your 401(k)?

Nearly every retirement plan offers target-date funds as investment options. But are target-date funds a good choice? The age-based method of setting your asset allocation makes sense in some cases, but investors can also stay in a target-date fund too long. Put another way, if your financial situation has evolved…

Kristin McKennaJuly 13, 2020

Asset Management Cash Management Forbes Investing Investing During a Crisis

Is Dollar-Cost Averaging in Volatile Markets Better than Investing a Lump Sum?

How should investors navigate wild swings in the stock market? Investing is never easy, especially during one of the most volatile years in the stock market’s history. Whether you have extra cash sitting on the sidelines or are second-guessing your investment strategy, it’s easy to let hindsight bias or a…

Kristin McKennaJune 23, 2020

Current events Diversification Forbes Investing

Big Tech Stocks Are Worth More Than Ever, But New Lawsuits May Create Problems For Investors

Despite the pandemic and global economic shutdown, the S&P 500 was flat on the year as of market close on June 8th, 2020. Since hitting the recent low on March 23rd, the index has rallied more than 45%. During this time, the five largest companies in the world (Apple, Microsoft,…

Kristin McKennaJune 15, 2020

Brokerage Account Cash Management Debt Management Financial Planning Infographics Investing Updated for 2021

What To Do With Excess Cash: 7 Ways to Use Extra Savings

What should you do with excess cash? If you are holding too much cash, consider how to use the extra money to your benefit. If you have extra cash in the bank, you may be wondering if you should invest the money or pay down debt. Assuming you already have…

Kristin McKennaMay 27, 2020

Budgeting Early Retirement Financial Planning Forbes Investing Retirement Planning

Are You Overestimating Your Expenses in Retirement?

How much money do you need saved to retire comfortably? It depends entirely on how much you plan to spend. In this piece for Forbes, Darrow Wealth Advisor Kristin McKenna discusses ways investors can estimate their expenses in retirement. (more…)

Kristin McKennaMay 18, 2020

Investing