2023 – Schneider Wealth Strategies

Do you have a lost 401(k)? A new federal database will help you track it down.

Tue, 03 Dec 2024 15:37:00 GMT

Marketwatch.com- December 3, 2024

This article discusses what to do with an old 401(k) plan when you leave an employer and a new federal registry designed to help people track down missing 401(k)s.

In the article, David Schneider points out that “Transferring it to your new employer’s plan simplifies your life and simplifies the management of your money.” He also mentions that another advantage of consolidating accounts is that you may be able to take a loan from your current employer’s plan, which isn’t an option if funds are left in an old plan.

Mr. Schneider also states that “transferring to an IRA gives you full control and maximum flexibility with a wider range of investment options.” He adds, “You want to consider where the fees will be the lowest and where your options are broad enough for your plans,” noting “it may be sufficient at your current employer’s plan, or the choice of investments at an IRA could be worth it.

Read More: Marketwatch.com

4 Reasons Why Retirees Should Still Be Checking Their Credit Report

Mon, 21 Oct 2024 15:34:46 GMT

AARP.org – October 21, 2024

This article by AARP stresses the importance of seniors being vigilant about monitoring their credit. In it, David A. Schneider states, “It’s very important that seniors pay attention to their credit reports, because there are (fraudsters) out there trying to get their information on a constant basis,”

He Owns The Home. She Pays Half The Mortgage. Is That Fair?

Mon, 22 Jul 2024 15:16:21 GMT

Financial Planning Magazine, July 3, 2024

Financial Planning Magazine recently asked advisors to answer a reader's question about the fairness of a scenario in which a woman's boyfriend owned a home, but she was paying half the mortgage. The reader felt the situation was unfair since the girlfriend was helping him build his equity, yet she had no home ownership.

Mr. Schneider answered by saying, "I understand how you feel, but if your sister isn't paying more than 50% of the fair market rent for the home, plus half of the ongoing monthly expenses, she is being treated fairly. She doesn't have the right to live in the house without contributing to the monthly expenses simply because her boyfriend's name is on the deed. Given the fact that she is paying $600 now versus the $1,350 per month for her last apartment, she's probably making out pretty well."

Social Security is not enough: How to set up alternative retirement income

Fri, 09 Feb 2024 17:22:57 GMT

Bankrate.com - January 20, 2024

In this article about retirement income, David A. Schneider states, “Many people can benefit from waiting until 70 to collect Social Security since it is the only government-guaranteed, inflation-protected income source.”

The article says, “Schneider points to the fact that filing for benefits early can hurt your monthly payout while waiting to claim after full retirement age can boost your benefit 8 percent a year. The upshot: If you claim at age 62, you can earn a check that’s just 70 percent of your full retirement benefit, while if you wait, you can boost your payout to about 124 percent of your full benefit.”

Falling behind on retirement savings? 4 steps to get back on track in 2024

Thu, 11 Jan 2024 15:20:55 GMT

MarketWatch.com - December 30, 2023

This MarketWatch article discusses planning strategies for people approaching retirement. In the article, David Schneider states, “Make sure you have a plan. If you don’t do the planning, you really won’t have a successful retirement,” adding, “Your 50s are a really important time to be very serious,” and to “Hunker down and get serious. Every investment needs to be prudent and diversified. Increase any savings, if possible. Make catch-up contributions, if possible.”

Read More: Marketwatch.com

If you’re at or near retirement, you might want to consider an IRA CD while interest rates are up

Wed, 27 Dec 2023 14:41:20 GMT

Fortune- July 31, 2023

This article discusses the pros and cons of owning bank CDs in an IRA.

In the article, David Schneider points out that “In order to get the best yields, you’re going to have to

shop around and find the banks offering the most attractive rates at the time you’re funding the IRA,”

and adds, “That could mean opening lots of small accounts at different institutions based on what was

attractive at the time, which can be a nightmare to manage as the CDs mature.”

He also mentions “If you compare a CD with a maturity of five years or less to a corporate bond of the

same maturity, you’re usually going to get a better yield with a CD.”

He also notes that “In general, by laddering and taking your maturing dollars and putting them in a

longer-term CD, you’ll end up averaging the higher rates from longer-term CDs,” says Schneider.

Direct indexing gains appeal as taxable losses mount

Mon, 20 Jun 2022 12:55:00 GMT

Investment News – June 20, 2022

This Investment News article weighed the pros and cons of direct indexing, a strategy that uses individual stocks instead of ETFs and funds as the building blocks of an indexing strategy. The article states “David Schneider, founder of Schneider Wealth Strategies, is also a fan of direct indexing for tax optimization purposes, but he said advisers and clients need to be weighing the added fees.”
Mr. Schneider explains that “Direct indexing offers more potential tax-loss harvesting opportunities than a conventional ETF or fund approach, although these benefits are probably overstated,” and that with direct indexing, “There’s a high degree of customization, so it can be a good strategy for investors who want to avoid exposure to specific companies or industries. But one of the downsides to direct indexing is potentially higher costs versus an ETF or index fund.”

May FOMC Minutes: Big Rate Hikes On Tap At June And July Fed Meetings

Sat, 04 Jun 2022 19:28:00 GMT

Forbes.com – May 25, 2022

This Forbes article discusses the Federal Reserve, interest rates and the risk of a recession.
In it, David Schneider points out that “An economic downtown is undoubtedly possible. That said, it is worth noting that the yield curve that has the best track record of predicting recessions”
He notes that as of the date of the article, the 10-year Treasury yield minus the 3-month Treasury bill yield remains positive- and that historically, that has put the odds of a recession in the low single digits.

One surprising thing people think is a dealbreaker to getting a home equity loan or HELOC

Thu, 03 Mar 2022 16:17:00 GMT

Marketwatch.com – January 19, 2022

This article discusses HELOCs and how to get the best rate on them.

In the article, David Schneider states that “Generally, I advise people to go to their local banks because they will be interested in those loans.”

The article also says that “borrowers may be surprised by just how much rates go up after the promotional period ends, notes Schneider, adding that a borrower could start out at a rate in the 2% range that then jumps past 4%.”

Read More: Marketwatch.com

Some HELOC rates now start below 3%. Tempting, but is a home equity line of credit right for you?

Tue, 21 Sep 2021 12:54:00 GMT

Marketwatch.com – September 8, 2021

This article outlines the benefits and risks of home equity lines of credit.
In the article, David Schneider states that “borrowers need to make sure they can afford higher payments when rates go up,” adding “Don’t be fooled by teaser rates,” which might be a low rate for the first six months, but then will likely rise.
He also notes, “now may be a good opportunity to obtain a HELOC — even if you don’t end up using it — because market dynamics are favorable,” adding “Compared with a year ago, home values have gone up, the unemployment rate has fallen, and interest rates remain low, while banks are more likely to lend than they were in spring 2020.”
The commentary concludes with Mr. Schneider saying, “Anyone taking out a home equity line should use it wisely,” and adding, “They’re a wonderful tool if used wisely; if not, they can dig somebody into a deeper hole.”

Read More: Marketwatch.com

When Clients Resist Owning Global Stocks, Advisors Build Their Case

Thu, 24 Jun 2021 12:35:00 GMT

Investor’s Business Daily- May 7, 2021

Investor’s Business Daily recently asks David A. Schneider about international investments. In the article, he pointed out that “given the recent performance of international markets, people aren’t necessarily thrilled about international diversification,” and added, “but I tell clients that a substantial part of the world’s wealth is outside the U.S,” explaining that global stocks serve in diversifying a portfolio, noting how the S&P 500 lost money from 2000 to 2009. He stated, “to avoid the risk of a lost decade, it’s important to have international diversification.”

He went on to say, “If a client wants to exclude a certain country, I may reply that I don’t particularly like that country either. But successful investing isn’t about whether I’m personally enthusiastic about a country or region. It’s about adhering to a disciplined process and gaining exposure to areas” that enhance the overall portfolio.

5 Smart Reasons To Refinance Your Mortgage Right Now

Tue, 04 May 2021 19:49:00 GMT

Realtor.com- April 26, 2021

This article talks about 5 good reasons to refinance a mortgage. In it David Schneider points out that savings from a refinance can be used to boost retirement savings and also suggests that some homeowners might want to refinance to a fixed-rate “particularly if something is changing in your life, like if you’re about to retire or you’re on a fixed income.”

What Janet Yellen’s appointment as US Treasury Secretary would mean for markets

Sat, 28 Nov 2020 19:51:00 GMT

Business Insider – November 28, 2020

Business Insider recently asked David A. Schneider what Janet Yellen’s appointment as US Treasury Secretary would mean for markets. In the article, he stated, “People are familiar with Yellen from her tenure as Fed Chair, and she is relatively dovish, both of which are pluses for markets,” and added, “Her experience during both the Asian financial crisis and the global financial crisis make her an ideal choice to navigate the challenges we face in getting through the COVID-19 slowdown.”

Single and Planning for Retirement? Here Are 4 Key Things to Do.

Sat, 08 Aug 2020 15:11:00 GMT

Barron’s – August 8, 2020

In this article, which considers retirement planning strategies for singles, David Schneider advises that protecting income via disability insurance can be paramount for singles. He states “Your biggest asset might be your ability to earn an income, and if you’re on your own, protecting that ability is super important.”

Read More: Barron’s – August 8, 2020

How to use your stimulus check to invest for the future

Fri, 17 Apr 2020 12:41:00 GMT

Acorns – April 17, 2020

In this article, which talks about what to do with a stimulus check, David Schneider advises, “If you need the money soon, keep it liquid,” adding “If you don’t, and you’re able to, put it away for retirement.”
He suggests holding onto the stimulus cash while contributing more to an employer-sponsored plan stating, “That would be a sensible place to start, bumping up your 401(k) options.”

He goes on to suggest investors focus on high-quality investments that are broadly diversified, stating that “ If you do invest the money, you have to expect in all likelihood there will be additional volatility, but you’ll probably be very happy you invested 10 years from now, ” adding “This is a good opportunity to take advantage of markets that are down from where they were just a few months ago.”

Retirement Savers Benefit From Changes to 401(k)s

Sun, 05 Apr 2020 17:19:00 GMT

U.S. News & World Report – March 13, 2020

This article discusses the SECURE ACT. In it, David Schneider explains that the SECURE ACT “is considered the biggest set of changes to retirement legislation in more than 10 years.”

He cautions that new rules requiring death distributions to be taken over 10 years or less, can have huge tax consequences for people who inherit retirement accounts, stating “When most people inherit money, they are probably in their peak earning years – in their 40s or 50s.” He adds “If they inherited an IRA in peak earning years and are forced to take large distributions when their tax bracket is already high, they can be bumped into an even higher bracket.”

Advisors Wave Red Flag When Clients Act Against Their Best Interest

Thu, 12 Dec 2019 13:51:00 GMT

Investor’s Business Daily – December 6, 2019

This article discusses scenarios in which advisory clients may want to do something their advisor thinks is not in their best interest.

In it, David Schneider states that “As advisors, we have to be humble,” since “We don’t walk on water. If they want to do something that we think they shouldn’t do, we counsel them about the risks and pitfalls. But we also have to realize that clients may be right” since none of us can predict the future with certainty.

With regards to speculation, he adds that “I say that speculating isn’t investing. It’s a form of gambling. When I say that, clients get it immediately. They know they can go to Las Vegas for one winning night. But the casino always wins over the long term.”

7 Reasons Why You Shouldn’t Buy an IPO

Wed, 14 Aug 2019 21:18:00 GMT

U.S. News & World Report – August 8, 2019

This article explains why most investors should probably ignore IPOs. In the article David Schneider explains that unless someone is a big client at a brokerage firm, average investor can’t buy at the IPO price, stating that “allocations of hot IPOs are not in the cards for mere mortals,”

He also advises that those who do get a small IPO allocation won’t receive enough shares to have it make a significant financial impact for them and that if one can get a meaningful allocation to an IPO, that can be a red flag, stating that “it means that the institutions passed on it”.

Citing a recent study from Dimensional Fund Advisors, he also points out that “generally speaking, it doesn’t look like IPOs do particularly well relative to other stock market investments when you control for relevant risk factors.” He also notes that waiting to buy until after the customary 180 day lockup and the selling that follows may make sense since “you can make a sober decision as to whether or not this is something you really want to invest in rather than doing it in the sort of frenzy and volatile trading after initially comes public.”

Retirement is coming. Here’s how to compound your wealth fast

Wed, 14 Aug 2019 17:57:00 GMT

CNBC – May 22, 2019

In this CNBC article David Schneider clarifies that the real key to successful investing is avoiding mistakes such as failing to diversify your investments or being seduced by fads, stating “If it’s hot, and everyone is talking about it, there’s a good chance it won’t look so good in a few years,” and that “For every Apple, Amazon and Google, there are a million small, speculative companies that ended up going nowhere.”

He also adds that a good starting point for beginning investors is a total stock market index fund, or even a global stock market index fund that will capture the returns of world markets, stating that “they are usually available in a 401(k), or you can buy them on your own through any brokerage firm.”

These people in their 30s are doing a simple thing to get rich.

Wed, 14 Aug 2019 17:56:00 GMT

CNBC – May 13, 2019
David Schneider recently appeared in a CNBC report on investing in your 30s.

In it he advises that investors shouldn’t waste time comparing themselves to people who are spending a lot of money since there is “There’s a good shot they’re running up debt on a credit card, or someone else is funding them,” and “It might seem like they’re living the dream, but fast forward 20 years. “It’s not going to look so fantastic for them.”

He also reminds investors that the stock market has beaten other investments over time because “it’s compensation for bearing risk.”

He reminds investors that ups and downs in the stock market are normal and that “young investors can expect it to drop 30% to 50% once or twice a decade for the rest of their lives.”

Here’s what it takes to become a 401(k) millionaire at any age

Wed, 14 Aug 2019 17:55:00 GMT

CNBC – May 1, 2019

David Schneider was recently featured in a CNBC article on saving for retirement.

When discussing investors in their 40s he states that “this age group needs to immediately max out their 401(k) to the degree they’re able to,” and also suggests investing fairly aggressively since “retirement could be 20 years away.” He also adds that “There’s plenty of time for the stock market to recover [from the inevitable downturns].”
Read More: CNBC – May 1, 2019

6 Money Moves to Make if You’re Worried About a Recession

Mon, 04 Feb 2019 11:42:00 GMT

Consumer Reports – January 15, 2019

David Schneider was recently featured in a Consumer Reports article on 6 Money Moves to Make if You’re Worried About a Recession.
In the article he states that “Credit card debt is so toxic, I would work on getting rid of it before increasing an emergency fund beyond three months” and adds that “In a recession, offers for zero-rate balance transfers may disappear.”

Retirees Should Plan before Renting

Mon, 04 Feb 2019 11:41:00 GMT

Dispatch Argus- September 19, 2018

David Schneider appeared in article that discusses the strategy of selling your home and downsizing to a rental in retirement. In the article he says “A lot of people talk about (selling and then renting),” since “They may have a lot of equity but not a tremendous amount of retirement savings.” But he cautions that the strategy doesn’t make sense for everyone stating that “it may be more (economical) to stay in your house.”

Year-End Moves to Protect Your Investment Portfolio

Wed, 05 Dec 2018 17:54:00 GMT

Consumer Reports – November 12, 2018

David Schneider was recently featured in a Consumer Reports article on Year-End Moves to Protect Your Investment Portfolio.

In the article he explains that rebalancing isn’t a strategy necessarily designed to shoot for higher returns. Rather, “it’s how you protect your portfolio from becoming overly risky as stocks rise.”
Read More: Consumer Reports

5 Reasons You Might Not Need an Annuity

Fri, 22 Jun 2018 12:59:00 GMT

U.S. News & World Report – June 7, 2018

This article explains why many investors don’t need to own annuities. In it, David Schneider points out that “The folks on the investment side frown on them, and the folks on the insurance and annuity side think that almost everyone should have an annuity,” He also states that “The traditional investment portfolio is likely to produce as good or better results” than many variable annuities, due to their higher expenses. He advises that “it’s reasonable for people to assume that if you can get along on a 4 percent withdrawal from your assets with an inflation adjustment that you’re probably at a decent financial position.”

3 Investing Moves That Can Complicate Retirement

Wed, 06 Dec 2017 00:20:00 GMT

U.S. News & World Report – December 1, 2017

This article reminds investors that instead of trying to time an unpredictable market, experts suggest creating a globally diversified portfolio that takes into account both risk tolerance and risk capacity.

David A. Schneider tells investors that timing isn’t likely to increase returns, “since any attempt to sidestep a bear market through timing could easily mean sidestepping the next leg of a bull market as well.”

He also states that investors can fall into a trap and “convince themselves that market timing is a mistake only other investors make, and that when they do it, they’re just being smart or attentive to current realities.”

How to Say ‘Yes’ to Investing Risk

Wed, 06 Dec 2017 00:17:00 GMT

U.S. News & World Report – November 24, 2017

This article discusses investment risk. In it David Schneider points out that “investing is about embracing risk, not avoiding it,” and that eliminating all investment risk is impossible, since whenever you reduce one risk, another type of risk is always increased. He also advises that since risk cannot be truly avoided “ultimately, investing is really about deciding which risks to take and how to balance them.”

Investors: 4 Smart Stock Moves to Make Now

Thu, 27 Jul 2017 18:21:00 GMT

Money Magazine – June 28, 2017

This article talks about how investors should view the stock market eight years into a bull market. Because rising markets often cause investor perception of risk to decline even though their actual risk tolerance probably has not fallen, David Schneider says “I tell people to enjoy this bull market but make sure that you’re not taking on more risk now.”

4 Mistakes That Can Derail Your Early Retirement

Tue, 23 May 2017 13:02:00 GMT

U.S. News & World Report and Yahoo Finance – April 28, 2017

This article discusses 4 mistakes that can hamper retirement security. In it, David Schneider advises against chasing fads and hot investments noting “By the time it’s apparent that an investment or strategy is truly extraordinary, there’s a good shot that performance is about to mean revert and start looking a lot more ordinary,” adding “Buying what made someone else lots of money yesterday isn’t going to make you more money today.” He also warns about the risks of highly concentrated portfolios stating “A great way to suffer a financial reversal that derails your retirement is to have all or most of your money in one stock that takes a dive,” and “Even if that one stock is the reason you have the money you do, be glad for your good fortune, then diversify. Anything can happen to one company and it may not recover, even if it always has in the past.”