Sound Advice

Here’s Why You Shouldn’t Buy a Variable Annuity? A variable annuity isn't inherently a bad product. In the right situation—typically someone who has already maxed out other tax-advantaged accounts, wants tax-deferred growth, and values guaranteed lifetime income—it can make sense. Still, many financial advisors argue that most people pay more than they receive in benefits. Here are the biggest reasons. 1. High fees eat away at returns Variable annuities often layer multiple fees: Mortality and expense charges: 1.0%–1.5% Investment management fees: 0.5%–1.5% Rider fees (income or death benefits): 0.5%–1.5% Administrative fees It's not unusual for the total annual cost to exceed 2%–3% , which can substantially reduce long-term growth compared with low-cost index funds. 2. Investment gains are taxed as ordinary income Unlike stocks held in a taxable brokerage account, where long-term gains receive preferential capital gains tax treatme...

How likely is a major stock market pullback this year? A major pullback is possible this year, but not something anyone can time with confidence . The sources I found point to a market that is still supported by strong earnings expectations and AI enthusiasm, while also looking vulnerable because valuations are rich and surprises can hit hard. How to think about the odds A 5% to 10% drawdown is fairly normal in most years, and some commentators say 2026 already looks close to that range. The bigger risk is a correction or sharper pullback if earnings disappoint, inflation reaccelerates or geopolitics and policy shocks shake confidence. At the same time, some strategists still expect the bull market to continue, which means the market is not uniformly flashing recession or crash signals. What raises the risk High valuations leave less room for error. Concentration in a few large stocks makes indexes more fragile if leadership wea...

How is the stock market doing? As of late July 2026, the answer depends on exactly how you measure it, but the numbers show a striking difference. S&P 500 (cap-weighted): about +8.5% year to date . S&P 500 Ex-Magnificent 7 Index: about +12.2% year to date (price return as of July 24, 2026). That means the S&P 500 excluding the Magnificent Seven has actually outperformed the traditional S&P 500 by roughly 3.7 percentage points so far this year. This is a notable reversal from 2023–2025, when the Magnificent Seven (Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla) were responsible for a disproportionate share of the index's gains. In 2026: Several Magnificent Seven stocks have stumbled or corrected. Healthcare, financials, industrials, and many smaller technology and semiconductor companies have taken over market leadership. The equal-weighted S&P 500 has also outperformed the traditional ...

What's most important when selecting a financial adviser? The most important thing is  trust , backed by competence and a clear fit for your needs. People consistently rank knowledge, trustworthiness, and the ability to understand their goals near the top when choosing an adviser. What matters most Trust and integrity.  You need someone who acts in your interest and is transparent about conflicts and incentives. Relevant experience and credentials.  Look for education, certifications, and experience with clients in situations like yours. Fee clarity.  You should understand exactly how the adviser is paid and what it will cost you. Communication fit.  The adviser should listen well, explain things clearly, and match your style and involvement level. Regulatory standing.  Check registration, disciplinary history, and whether they are subject to strong ethical standards. Practical rule If you have to choose just on...

What are the various kinds of life insurance? What are the advantages and disadvantages of each? What is the smartest approach to buying life insurance? Life insurance is best thought of in two broad categories: Term life insurance : Coverage for a specific period (e.g. 10, 20 or 30 years). Permanent life insurance : Coverage that can last your entire life and typically includes a cash value component. The "best" choice depends on what problem you're trying to solve. For most families whose primary goal is replacing income if someone dies unexpectedly, term life is often the most cost-effective solution. Permanent insurance can make sense for specific long-term financial or estate-planning needs. Here's how the major types compare. Type Advantages Disadvantages Best for Term Life Lowest cost, simple, high coverage Expires; no cash value Inc...