Over three years ago, TD Ameritrade, the custodian of your investments, announced that it was being acquired by Charles Schwab. Finally, the day draws nigh when Schwab will retire the TD name, and your TD-green statements will turn Schwab-blue. The transition will be complete over Labor Day weekend. When we founded Great Oak, we chose TD as your custodian due to its low costs and superior technology. Fortunately, Schwab recognizes those qualities and will continue the good work begun at TD on your behalf. Not much will change. Visually, your statements and the Schwab website will look different (though most …
Patience in Investing: 2023 Update
It’s OK. We’ve been here before. In fact, it’s a good thing. How can a down market be good? Well, without down markets, we would not have much of an up market. That is, risk equals reward. Stocks have averaged about 10% forever. And that’s more than cash, bonds, commodities, CDs, gold and other metals, annuities, currencies, collectibles, and just about anything else. But for that long-term reward, we must absolutely experience some short-term suffering – the manifestation of risk. They are inextricably related. Anything said to the contrary is either a sales pitch or a lie. And all the …
Frequently “Oaked” Questions
You Asked, So We’ll Answer FOQ: Why are people talking about a government shutdown? Short: There might be one. Long: Since a 1980 interpretation of the 1884 Antideficiency Act, the government must shut down if Congress fails to pass a budget and can’t pay its bills. During a shutdown, only departments covering the safety of human life or protection of property will continue to operate (military, federal hospitals, etc.). While a deal was recently reached to hopefully get us through September, it may not be enough. Congress really has until June to get something more substantial in place. …
2022: Year in Review
2022 brought us two things: a bad market and some rule changes. First, the market. We’ll let you fill in your own description: “That was a really ________ market.” We wonder how many of you wouldn’t share with an eight-year-old what just came to mind. We don’t blame you! We peaked at the beginning of the year and never looked back as we slid slowly, painfully for nine months into bear market territory, with US stocks shedding 19.6% by December 31st. Remember the “Covid drop”? 35% in 33 days. Yet, last year felt worse as the slide just dragged on …