Bedel Blog

Welcome to #AskBedel, a weekly personal-wealth Q&A where you can ask financial planning and investment experts for advice. Each week we’ll be answering your personal finance questions, so be sure to submit your questions to Bedel@BedelFinancial.com.

Eli Lilly's future holds immense potential, but a balanced perspective is crucial. While Mounjaro/Zepbound's success and potential Medicare coverage are exciting developments, the impact of price negotiations, administrative hurdles, and overall effectiveness requires careful consideration.

To qualify for a 1031 exchange, a few characteristics must be met. First, the property that you are selling (known as the relinquished property) and the property that you are purchasing (known as the replacement property) must be what the IRS deems “like-kind.”

Treasury bonds might be a good fit if you prioritize safety and are comfortable with limited liquidity. However, if immediate access to your money is crucial, a money market fund might be preferable.

It's important to note that a handful of Bitcoin ETFs were trading before the SEC's decision. However, those funds utilized Bitcoin futures contracts rather than Bitcoin itself.

Is the 60/40 investment strategy dead? 2022 was a brutal year for this strategy. While the stock market's short term decline was unpleasant, it’s important to have an understanding of your goals and objectives before making emotional decisions.

Now that I-Bond yields are no longer offering the eye-watering yields of 2022, you may be looking to sell. Consider waiting until the November rates are revealed to see if the rates climb back a little higher and make the bonds more attractive versus other options.

While the meteoric rise of Lilly stock has been a boon to many investors, managing the new risks associated with the stock is an important consideration to preserve gains and minimize risks for the total portfolio.

Only this year has the FDIC insured Savings Portfolio yield become attractive. Combining it with the tax-free potential and the state tax credit makes it a fantastic opportunity for those setting aside money for upcoming education expenses.

Structured notes can be used to replace existing exposures in your portfolio with a product that offers downside protection and amplified upside returns.

The impact A.I. will have on your finances is limitless. We are still in the early stages of development and adoption, and there are too many inaccuracies within the technology for widespread use, and improvements remain constant.

Certificates of Deposit became something of an afterthought in a zero-interest rate world. The days of earning 0% yield on bank accounts and not much more on conservative bonds are behind us for the moment. So what does that mean for investors?

Bedel Financial has organized a fun and informative scavenger hunt celebrating Women's History Month. This challenging activity will send participants to various buildings and sites across downtown Indianapolis in search of monuments, paintings, statues, and more, highlighting some of Indiana's most influential women.

In December of each year, many mutual funds pay out capital gains. These payouts go to whoever owns the mutual fund on the "ex-dividend" date. These capital gains are gains incurred over the entire year. However, if you purchase the fund the day before the ex-dividend date, you will only own the fund for one day, but you will end up with the entire year's capital gain distribution.

If you've read our previous posts about crypto investing, you've already received cautionary advice about this new and unregulated asset class of cryptocurrency. However, the collapse could serve as a pruning that is helpful for the industry's long-term health.

So, with the odds of positive returns stacked in your favor, do you want to risk missing out to save yourself a bit of downside? Look at the list of risks – do you think you can accurately predict how even one of them will play out?

One of the fascinating developments during the COVID-19 pandemic was Wall Street's short-lived obsession with IPOs and SPACs. The recent choppy performance of IPOs is a good example of how quickly high-risk investments can decline in a broad market pullback.

While we know you get tired of hearing it, the best advice we can give is to stay the course and ensure that your portfolio is aligned with your financial goals. This is not just an empty platitude; we encourage it because it works.

Pat Bowlen purchased the Denver Broncos in 1984 for $78 million. Upon his passing in 2019, there were family disputes and court cases, which eventually resulted in the recent sale of the team for $4.65 billion.

If you are thinking of investing in one of these coins, it's probably safest to stay with one backed by a fiat currency or commodity. Unfortunately, the lack of regulation in this space means there is no way to know if a stablecoin is actually backed by anything.

After the Federal Reserve began raising its Federal Funds discount rate, the headlines predictably shifted to guess whether these actions would cause an economic slowdown and a recession.

As equity and fixed income assets across the globe decline in unison, it is imperative to tune out the noise of day-to-day headlines and remain committed to the strategy of a personalized financial plan.

High yield, investment grade, long-term, and intermediate bonds have taken large hits. Only short-term and adjustable-rate bonds have largely escaped the carnage. So what is happening to the bond market, and what should you do?

Like everything in life, the issue of stock buybacks is not necessarily clear-cut. If done correctly, they can be a helpful tool for management teams, benefiting companies and shareholders alike.

Responsibly managing your finances requires ongoing diligence. It isn’t enough to select good investments and then forget about them. Take time to review your portfolio, both as individual components and as a whole.

The Fed has tremendous influence over the economy and the markets. After years of stimulus, it must navigate an unenviable balancing act of combating inflation without rattling confidence in the markets.

Owning bonds today is still relevant because they provide steady income and protect portfolios when risky assets fall. If you rely on your portfolio for spending, the bond portion should protect your spending level.

The 7% yield is very attractive. It will probably change in May, but even then, the new yield will still likely be well above any other yields that you can get on cash alternatives.

Those who qualify as “accredited investors” or “qualified purchasers” gain access to investments not available to the general public and allow investors to access private investment funds.

Stocks inevitably encounter rough patches and periods of increased volatility. While investors have benefited from seven straight months of increases in the equity markets, it is important to remember the cyclical nature of markets.

The reasons why you should own, or invest, in Bitcoin have changed over time. It should be considered a higher than average risk investment, and we suggest proceeding with caution.

As the second season unfolds, we have learned that Ted Lasso provides valuable lessons that can be applied to personal finances and investing.

The cloudy picture presented by historical data from the impact of inflation and tax increases on the market underscores the importance of developing a long-term investment strategy and maintaining your diversified allocation to the proper mix of stock and bonds

Inflation is a complicated topic that economists have debated for centuries. While the Federal Reserve has indicated that it will begin to increase interest rates, if necessary, to combat high inflation, its ability to do so without negatively impacting the stock market is unclear.

Home prices have been soaring across the country, and new institutional investors are entering the market to compete with traditional buyers. With interest rates near all-time lows and home equity at all-time highs, current homeowners may enjoy a benefit when it comes to cashing out equity.

Not all target-date funds are the same. Investors choose a fund that roughly coincides with their planned retirement year, and over time, the funds adjust their holdings and become more conservative.

Self-investors tend to select an asset allocation for their investment accounts and tend not to change anything as long as the performance is good. So what should you do?

Only you will know if and when it's the right time to hire a financial professional. There's an advisor out there for everyone, whether you're looking for a one-time financial plan or a long-term, comprehensive relationship.

You must do your research before investing in a hedge fund. You will want to be familiar with the investment strategy and understand the fee structure as well as their liquidation rules.

Investing in certain parts of the market without a plan can result in the same dynamic as gambling. Are you ready to make a bet?

While many view the Gamestop "short squeeze" as a victory for the 'little guy,' the story remains unfinished. Many individual investors stand to lose out considerably if the share price falls back to realistic valuations.

While it seems the economy has bottomed out and the recovery has begun, high unemployment and the prospect of a "second wave" of COVID-19 cases continues to create uncertainty for many businesses, including the real estate market.

The addition of Tesla into the S&P 500 Index has been S&P's most controversial decision in recent history. What are the pros and cons of adding the highly valued car company to the Index?

SPACs, also known as "blank check" companies, have raised over $48 billion this year, and it seems like every day a new one gets announced. But what exactly are they, and how do they work?

Bond yields are at historically low levels, and the Fed has indicated no interest in creating negative yields. How do you rethink what bonds mean for your portfolio? What's the best way to avoid disappointment in a post-COVID portfolio?

In the investment world, real estate is generally dominated by office buildings, industrial warehouses, retail stores, and apartment buildings. Given that the real estate market had a significant downturn during the 2008 recession, how is real estate holding up during this pandemic?

While the impact of the Wuhan coronavirus may seem temporary and relatively mild, the scare does serve as a useful lesson for investors. It is a good reminder to investors to expect the unexpected and to not act impulsively.

Could a market correction negatively impact your retirement accounts? A self-directed IRA would provide an opportunity to incorporate non-traditional investments into your retirement portfolio, but make sure you do your research before jumping in.

Has the climb of stock prices caused investors to forget about the importance of having protection in their portfolios to guard against corrections? Maybe defined outcome investments are what you need.

You've just won $10,000. What now? It may be time to hire a professional to remove the confusion from your financial situation.

In July, WeWork was one of the most talked-about IPOs in years. At that time, we noted that it was too early to say what would happen, but said: “it should be very interesting to watch it all play out.” In the span of 30 days, WeWork went from one of the most-anticipated IPOs of 2019 to an indefinitely delayed IPO and a business looking like it could be in trouble. What went wrong, and what’s next?

Any mountain climber will tell you that reaching the summit requires preparation, patience and perseverance – and the same goes for investing. Without a plan, patience, and the persistence to grow your investments despite volatility and risk, you can’t reach the “summit” of your investment plan. We explore the lessons you can learn about investing from the perspective of a mountain climber.

When it comes to your investment portfolio, taking risk shouldn’t be a foreign concept. But many don’t necessarily think of risk when investing in bonds. We discuss the types of risk you would commonly find in the world of bonds and highlight what those risks could mean for your portfolio.

The recent sharp downward move in interest rates, coupled with recent downturns in the market, has created an interesting situation for some investors – guaranteed negative returns on nearly 25 percent of bonds currently trading. What could this mean for your portfolio? Read on for the details.

Taxes are an important consideration in investing. They should not be the sole driving force behind investment decisions, but investors should take them into consideration.

Making the correct financial decisions in your 40s can have important ramifications on the success of your long-term and retirement plans.

By law, Health Savings Accounts are so tax-efficient they may be the best investment vehicle available. Then why are we not maximizing their use?

WeWork (now The We Company) is planning for its IPO either later this year or early in 2020. Is WeWork stock a good fit for your portfolio? While it’s still a bit too early to tell if WeWork will be a good buy, we’ve outlined potential issues to be aware of before you decide to buy.

Paying off your mortgage can be a very attractive option when you find yourself with extra money. Not so fast, though! Is paying that mortgage off really your best financial option? While being mortgage-free can definitely be a good thing, you should be sure it doesn’t make more sense to invest that money. We’ll walk you through what you should be thinking about to make the best decision for your situation.

Investing in farmland used to mean purchasing and running a farm. These days, it’s possible to invest in farmland through two different investment structures. We explore both and weigh the pros and cons.

Simon Pagenaud might have taken this year’s checkered flag at the Indy 500, but you can still take the flag for your finances. With the support of a team and flexibility for those unplanned things that can throw a monkey wrench in your plans, you could find yourself steering your finances into the winner’s circle!

When it comes to asset allocation, there’s no solution that’s one-size-fits-all. As you near retirement, it’s increasingly important to be sure that your balance of stocks to bonds is appropriate. We’ve detailed two methods to help determine what your asset allocation should look like.

Opportunity zone investing might not be a phrase you’re familiar with, but they can be a nice tax advantage for those with unrealized capital gains in their portfolio. We explain what opportunity zone investing is, and how you can determine if this type of investing works for your portfolio.

For some, the 4th quarter of 2018 might have seemed like a tough storm to weather when it came to the stock market. It can be difficult to batten down the hatches and ride out a financial storm, but with proper planning you can help to ensure your financial home withstands any bad weather that might come its way. We have eight tips to help you survive a financial storm.

Yesterday you had stock worth $100 per share. Today it’s worth 25% less! What happened? Spin-offs might not be a common stock market term for you, but it can be a common practice amongst companies. We’ve defined what a spin-off is, along with how you might expect it to affect your portfolio. Read on for the details…

What is socially responsible investing? While there’s no standardized definition within the investment industry, there are definitely certain steps you should take when considering adding socially responsible investments to your portfolio. We’ll walk you through the basics of socially responsible investing and share what to look out for when adding SRI to your investment portfolio.

Most investors will remember 2018 for the stock market’s wild ride in the 4th quarter. But there was plenty more going on this past year. We’ve outlined our top three investment strategies for 2018 that stood out, either for good or bad reasons.

Investment lessons learned during a trek up Mount Kilimanjaro?? It might sound crazy, but…Follow along as Bill discusses the lessons he learned during his climb up Mount Kilimanjaro and discover how they likely apply to your investment portfolio.

Recessions are a fact of life in the world of investments, but there are ways you can help to protect your portfolio from periods of economic downturn. Because no one can accurately predict just when a recession will hit, it’s important to be prepared. Read on for our tips and strategies on preparing your investments to weather the storm.

“Growth” stocks are dominating the stock market right now – think FANG (Facebook, Amazon, Netflix, and Google). So have we seen the heyday of “value” stocks, never to be repeated again? Not so fast – both “growth” and “value” stocks have their place in your portfolio. Read on for the details on both types of stock and what they mean for your portfolio…plus the one thing you might want to do right now to ensure you’re on the right track.

Chances are you’ve heard of target-date funds…but do you really know what they are and if they’re a good fit for your investment plan? We dive into the particulars so you don’t have to! Read on for more information on the pros of target-date funds, as well as their downside.

Investors, the bond market’s yield curve is indicting the possibility of impending recession! However, while the shape of the yield curve can be used as a tool to project the future health of the economy, it is not a crystal ball. Read on for a better understanding of yield curves and how this trend could impact you.

News of rising interest rates has been hard to miss, but if the economic jargon makes you anxious or you’re trying to ignore the topic altogether, you may have overlooked the impact this could have on your investments. We’ve pulled together a few basic points to help you feel more confident in the current economic environment.

Do you know what you’re paying for when you purchase a bond? Most people would say, “Of course - the bond.” But there are fees, similar to a mark-up, built into the bond price. The good news is those costs are now required to be disclosed to the purchaser. Why does this matter? If you know what you’re paying for, you’ll be able to make better-informed decisions on your bond purchases.

Marijuana’s popularity is on the rise, and as states continue to legalize its use, the industry around its growth and distribution could be an attractive investment. But is it really a good investment? We explore this trending industry and what it could mean if you decide to invest.

Tariffs and trade wars and volatile markets…Oh my! You probably already know that the President has imposed tariffs on many Chinese goods coming into the U.S. But you might not understand what that means for the stock market, American corporations, and your wallet. We’ve cut through the hype to focus on tariffs and what they could actually mean for the economy…and your pocketbook!

It’s been just over a year since the Dow Jones reached 20,000 points. Since then, we’ve had a pretty easy ride without too much market volatility…until February. While it’s nearly impossible to predict the Dow Jones future, you can educate yourself on why there’s volatility in the market, as well as the best course of action to take when volatility strikes.

Wondering how future investing and tax strategies might be impacted by changes outlined in the Tax Cuts and Jobs Act? What’s changed and what’s stayed the same? We have you covered - we’ve compiled a list of those changes that might be most pertinent to you, as you consider your investment and tax strategies.

Bitcoin is a daily fixture on the news recently, thanks to its nearly 1,600 percent return this year. But do you really understand what it is? It’s not called a cryptocurrency for nothing. We’ll make it a bit less cryptic for you!

When donating to charity, it’s important to develop a strategy that meshes with your financial goals and tax situation.

What size is your market cap? Prudent investors know that company size is an important factor when building a portfolio.

Everyone knows an annual physical is recommended for most adults. Seeing your doctor on a regular basis helps identify potential health problems before they become serious. Your investment portfolio needs an annual checkup too!

Have you ever wanted to own a skyscraper? How about an entire apartment complex? Well, good news, now you can! And, you don’t have to meet “accredited investor” requirements. How? It’s called crowdfunding!

Everyone has heard of stocks, bonds, mutual funds, and probably even ETFs. But have you heard of “interval” funds? No? You might want to ...

Do you spend your time wisely? When it comes to financial decisions, do you spend a significant amount of time on the small stuff? Have you ever ...

It’s a new year and a perfect time to review your 401(k) investments. If you are saving aggressively for retirement (and we hope you are), then be sure those dollars are working hard for you. Target date funds are a popular investment option, but you may want to dig deeper.

What a year 2016 turned out to be for investors! U.S. stocks ended the year better than anyone predicted, but other categories had mixed results. ...

During the presidential campaign, both candidates talked about incentivizing corporations to bring their earnings held offshore back to the United ...

Are you your worst enemy when it comes to investing for your future? Behavior scientists may say “yes”. People want safety and comfort. ...

Everyone wants a great future! Then why don’t people plan? Many do nothing and leave their future well-being purely to chance.

Most people would likely agree that teaching children about investing is a very important life lesson. However, if you try to have a discussion about stocks and bonds with most children, their eyes will quickly glaze over. How can you get them more involved?

An old adage says: “If it seems too good to be true, then it probably is!” About ten years ago, some wealthy investors were given an opportunity to earn an average 12% return and never lose money. They invested millions! Unfortunately, this story is true and it didn’t end well!

What’s going on with the international stock market? Prudent investors use international stocks to diversify their portfolios.

Your investment portfolio must reflect what your money needs to do for you. If it doesn’t, you may be taking too much risk with your investments or, on the other hand, you may be missing out on important growth.

Get approved for a loan in minutes! Have access to money in just a couple of days! These are claims commercials, both on-air and online, make these days.

We all know what to do when good pets go bad – make a bad reality TV series! But what should an investor do when a good mutual fund “goes bad?”

Alternative investments are not simple or inexpensive. However, if they work, your investment portfolio potentially has better returns with less volatility. And, the availability of these investment options is increasing. But, are they right for you?

Many investors are concerned about the impact companies have on the environment, society, and the economic well-being of the global population. For this reason, they are seeking more than just a dollar return on their investments.

The S&P 500 is down 8% since the beginning of the year. This has been the worse two-week start in the stock market’s history.

As we write this, the stock market seems to be on course for its first down year since 2008. While not fun, drops in the stock market are natural and should be expected from time to time.

Does a 10% drop in the stock market scare you? Emotions lead to bad decisions. Be a smart investor. Understand that markets go up and down and invest only if you have the wherewithal to stay invested while everyone else is panicking.

Today, Greek banks and the Greek stock market were closed, as they will be all week. Meanwhile the Greek citizenry are getting set to vote on a referendum that could determine whether they remain part of the European Union or exit.

Are your 401(k) dollars going into target date funds? If so, take a closer look! Obvious assumptions about these funds prove to be false.

Alibaba is the Chinese version of Amazon and eBay. However, it is already larger than both of them combined! It just went public and investors can now buy its stock on the New York Stock Exchange.