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Sound Advice: October 28, 2026

Which insurance do I need? How much coverage? Think about your insurance as a three-layer setup: homeowners + auto + umbrella liability . The goal is not simply to meet the legal minimums, but to protect your assets if you cause a serious accident or someone is injured on your property. 1. Homeowners insurance A typical homeowners policy should include: Dwelling coverage — enough to rebuild the house, not merely its market value. Other structures — garage, shed, fencing, etc. Personal property — furniture, electronics, clothing, appliances, etc. Loss of use / additional living expenses — if a covered loss makes the house uninhabitable. Personal liability — injuries or property damage for which you are legally responsible. Medical payments to others — smaller injury claims regardless of fault, subject to the policy terms. Replacement-cost coverage for the dwelling and, ideally, personal be...
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Sound Advice: October 21, 2026

What's the importance of all the charts in TV commercials for financial advisers? The charts you see in TV commercials for financial advisers can be useful, but they’re often more persuasive than informative . A chart can make a financial strategy look objective and predictable when the underlying assumptions may be anything but. What to be skeptical about Past performance: A rising stock-market line doesn't mean your money will follow the same path in the future. Cherry-picked time periods: Starting a chart at a market low and ending at a high can make almost any strategy look spectacular. Missing fees and taxes: A chart may show a hypothetical return before advisory fees, fund expenses, taxes or other costs. Hypothetical projections: Retirement-income or growth charts frequently depend on assumptions about investment returns, inflation, withdrawals, and longevity. Small changes in those assumptions can produce dramatically different outcomes. No volatility shown: A...
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Sound Advice: October 14, 2026

Why your adviser must be a fiduciary   You should insist that your financial adviser be a fiduciary because a fiduciary is legally obligated, when acting in a fiduciary capacity, to put your interests ahead of their own and manage conflicts of interest appropriately. Key reasons: Your interests come first. A fiduciary duty requires the adviser to act in your best interest rather than simply recommending something that is suitable or profitable for them. Fewer conflicts of interest. Some advisers can receive commissions, bonuses, or other compensation for recommending particular investments or insurance products. A fiduciary must address material conflicts rather than allowing them to drive the recommendation. Greater transparency. Fiduciary advisers generally have obligations concerning disclosure, fees, conflicts, and how they are compensated. That makes it easier for you to understand what you're actually paying. Better alignment over the long term. A good adviser sh...
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Sound Advice: October 7, 2026

  Name your own price for insurance?   Name your own price for insurance can be dangerous and misleading because insurance isn’t like negotiating the price of a car or a hotel room. The premium is tied to the amount and type of risk being transferred . Here’s why: A lower price can mean less protection. If you choose an unrealistically low premium, the insurer may only be able to offer that price by reducing coverage, increasing deductibles, adding exclusions, or limiting benefits. Insurance pricing is risk-based. Factors such as driving history, location, claims history, property characteristics, coverage limits, and the likelihood and potential cost of a loss affect what coverage reasonably costs. Consumers generally can't simply declare what that risk should cost. The cheapest policy may create a false sense of security. Someone might think, “I have insurance,” but discover after an accident, fire, lawsuit, or other loss that the policy doesn't provide enough...
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Sound Advice: September 30, 2026

Now what? For many women, there comes a time when financial confusion reigns.   It may come after a spouse passes or a marriage goes off the rails.   It’s the same situation for women who never married. The questions are many.   The answers may be few.   Toward the top of the list of concerns is the issue of understanding.   Although there are always complex matters, it’s essential that all of the elements are clearly presented in a straightforward fashion.   There’s more.   Presentation is one thing, but comprehension is another. If there’s a question, it must be asked.   Clarity is the key.   Don’t just say I get it when you don’t.   And, it’s essential to grasp how each of the items fits in the overall situation. In the absence of understanding, no decisions will be made. Here are some of the most pressing questions? What’s the smart way to handle my investments? Where should I go for advice? A bank, stockbroker, attor...
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Sound Advice: September 23, 2026

Is there a good reason to work with an investment manager who uses separately managed accounts? Yes—but the fact that an investment manager uses separately managed accounts (SMAs) is not, by itself, a good reason to hire that manager. In many cases, an SMA is simply a more expensive way of implementing an investment strategy you could get through low-cost ETFs or mutual funds. What an SMA actually gives you: With an SMA, you own the individual securities directly rather than owning shares of a pooled fund. That can provide some legitimate advantages: Tax-loss harvesting: The manager can sell individual positions that have losses while maintaining similar market exposure. Tax customization: You can exclude particular stocks or industries or manage gains around your individual tax situation. More transparency: You can see exactly which stocks and bonds you own. Customization: The portfolio can be constructed around specific restrictions or ...
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