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Financial Decoder

Author: Charles Schwab

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Cognitive and emotional biases can have a big impact on your financial life. Each episode of Financial Decoder looks closely at one financial decision--and the biases that might cloud your judgment and cost you money. Host Mark Riepe, head of the Schwab Center for Financial Research, decodes the behavioral and psychological factors at play and shares strategies designed to improve the way you approach financial crossroads. Other experts join Mark to provide their unique perspective on behavioral economics, portfolio management, retirement planning, personal finance and more.

Podcasts are for informational purposes only. This channel is not monitored by Charles Schwab. Please visit schwab.com/contactus for contact options.
43 Episodes
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Risk management is one of the most important parts of financial planning. But we seldom consider how those risks evolve as we get older. It’s just one of many blind spots that can leave investors of all ages vulnerable. Many people might expect to protect their senior or vulnerable parents, but the risk-management process should begin much earlier when you make your own financial plan.In this episode, Mark speaks with Joel Sauer, director for senior and vulnerable investor investigations in Schwab’s Financial Crimes Risk Management division. They discuss how aging affects financial decision-making. Joel goes into detail about some of the various scams that investors need to understand in order to avoid them. Next, Mark talks with Nancy Murphy. Nancy is a CERTIFIED FINANCIAL PLANNER™ professional and Accredited Estate Planner with extensive experience in a broad range of investment and financial-planning issues. She and Mark discuss building a plan to account for the pandemic and which legal documents are essential for helping to mitigate aging risks. Financial Decoder is an original podcast from Charles Schwab.To learn more, visit Schwab.com/FinancialDecoder.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Investing involves risk including loss of principal.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0321-1WA8)
If you save money and invest it consistently, your path toward meeting your goals may seem simple. But most investors quickly discover that there are hurdles in the way—including our own brains. There are many cognitive and emotional biases that can trap us, and investors sometimes rationalize falling prey to these biases in familiar ways. In this episode, Mark is joined by Brad Bartick, branch manager of the downtown Denver Schwab branch, and financial consultant Joanna Heckman to discuss four different biases that investors have faced recently and what they sound like in action. Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. Please read it carefully before investing.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.Important Disclosures: The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Diversification strategies do not ensure a profit and do not protect against losses in declining markets. The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0221-1EPK)
When you invest, are you simply trying to make as much money as possible without taking on too much risk? Or are you trying to accomplish other goals as well, perhaps making sure that your investments align with your values, or that you’re using your money to help make a positive difference in the world? If those latter goals matter to you, you might be interested in socially responsible investing, or SRI. Michael Iachini, vice president and head of manager research for Charles Schwab Investment Advisory, joins Mark to discuss the differences between SRI, ESG, and impact investing; what to look for in an SRI fund; and the history of performance of these funds, broadly. Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. Please read it carefully before investing.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Socially screened strategies exclude certain investments and therefore may not be able to take advantage of the same opportunities or market trends as strategies that do not use social screens.Charles Schwab Investment Advisory, Inc. ("CSIA") is an affiliate of Charles Schwab & Co., Inc. ("Schwab").Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0221-1EJX)
Most people buy a stock because they think it’ll be a good investment. Nobody does so planning to lose money. But how exactly do you expect this particular stock or trade to make a profit for you? Do you have a trading plan? Most importantly, how will you guard against your own cognitive and emotional biases while trading? It’s a widely held belief that to succeed as a trader, you must learn to control your emotions. But humans are emotional beings, so that’s easier said than done. To address how several biases impact trading decisions, Mark Riepe interviews Randy Frederick. Randy is vice president of trading and derivatives at the Schwab Center for Financial Research. He and Mark discuss a variety of strategies to help mitigate our biases while trading.For more on the show, visit Schwab.com/FinancialDecoder.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. Please read it carefully before investing.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.The standard online $0 commission does not apply to large block transactions requiring special handling, restricted stock transactions, trades placed directly on a foreign exchange, transaction-fee mutual funds, futures, or fixed income investments. Options trades will be subject to the standard $.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, foreign transaction fees for trades placed on the US OTC market, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules. Multiple leg options strategies will involve multiple per-contract fees.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Diversification, asset allocation, and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets. Rebalancing may cause investors to incur transaction costs and, when a nonretirement account is rebalanced, taxable events may be created that may affect your tax liability.When considering a margin loan, you should determine how the use of margin fits your own investment philosophy. Because of the risks involved, it is important that you fully understand the rules and requirements involved in trading securities on margin. Margin trading increases your level of market risk. Your downside is not limited to the collateral value in your margin account. Schwab may initiate the sale of any securities in your account, without contacting you, to meet a margin call. Schwab may increase its "house" maintenance margin requirements at any time and is not required to provide you with advance written notice. You are not entitled to an extension of time on a margin call.Scaling into and out of investment positions does not ensure a profit, does not protect against losses in conversely trending markets, and may involve multiple commissions.(0121-19U6)
In this year-end bonus episode, Schwab experts look ahead to consider what investors might expect in 2021. First, Mark talks with Liz Ann Sonders, Schwab’s chief investment strategist. Liz Ann offers her perspective on the direction of the U.S. economy and stock market. Vaccines represent a light at the end of the tunnel, but Liz Ann cautions that we will enter 2021 still in the tunnel. Next, Mark speaks with Kathy Jones, Schwab’s chief fixed income strategist. Kathy looks at what bond investors might expect from the Federal Reserve and fixed income assets in the new year. Then, Jeffrey Kleintop—Schwab’s chief global investment strategist—joins the show and examines what 2021 might hold for the global economy and markets. Finally, as a busy election season winds down, Mike Townsend, Schwab’s vice president of legislative and regulatory affairs, offers his outlook for what to expect in politics and policy next year.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/financialdecoder.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Supporting documentation for any claims or statistical information is available upon request.The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. Diversification and rebalancing a portfolio cannot ensure a profit or protect against a loss in any given market environment. Rebalancing may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events may be created that may affect your tax liability. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.Investing involves risk including loss of principal.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk. Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax. International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(1220-0XBU)
In Part 2 of this special two-part episode, Mark Riepe analyzes the decision of when to sell a mutual fund and an ETF. First, Mark talks with Michael Iachini. Michael is a vice president at Charles Schwab Investment Advisory and head of manager research. He and Mark discuss fund performance, the tax implications of selling, and what to do if the manager of your fund changes. Next, Mark speaks with Emily Doak. Emily is a managing director of exchange-traded fund research, also at Charles Schwab Investment Advisory. Emily and Mark discuss the premium discount, bid-ask spread, and other factors investors should consider if they’re thinking about whether or not to sell an ETF.You can go back and listen to part one of this episode, on when to sell a stock and a bond, at schwab.com/FinancialDecoder.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. Please read it carefully before investing.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Charles Schwab Investment Advisory, Inc. ("CSIA") is an affiliate of Charles Schwab & Co., Inc. ("Schwab").(1220-0LSV)
The very first episode of Financial Decoder discussed the sell decision—in part because there are so many cognitive and emotional biases that come into play with that decision. Many people are prone to something called the disposition effect, which is the tendency to sell assets that have increased in value but hold on to investments that have dropped in value.In part one of this special two-part episode, Mark Riepe analyzes the decision of when to sell an individual stock and an individual bond. First, Mark talks with Kathy Jones, Schwab’s chief fixed income strategist. They discuss whether or not you should sell a bond if it’s been downgraded, if you should sell before the bond’s maturity date, and how defaults and bankruptcies might affect your decision, among other topics. Next, Mark speaks with Steven P. Greiner. Steve is a senior vice president and head of Schwab Equity Ratings. Steve and Mark consider whether you should sell a stock based on changes in its fundamentals, such as P/E ratio and dividend yield, as well as how to react to bad news and big swings in the market.Part two of this episode will examine the decision of when to sell a mutual fund and an exchange traded fund, or ETF. For more on the show, visit Schwab.com/FinancialDecoder.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.(1120-0S96)
As a bonus for Financial Decoder listeners, here is a special election 2020 episode of WashingtonWise Investor. After an unprecedented election that saw both Joe Biden and Donald Trump receive more votes for president than any other candidates in history, the focus is shifting to how much of his agenda President-elect Biden will be able to enact. In this episode of WashingtonWise Investor, Mike talks to Schwab’s Chief Investment Strategist Liz Ann Sonders about the market reaction to the presumed and actual election results, as well as the promising news from a vaccine trial. They discuss the prospects for a narrow Senate majority—one way or the other—pending a January 5 runoff in the state of Georgia and what the market will be watching into 2021. Mike also shares his key takeaways from this historic election and considers whether a new round of stimulus is likely to come out of the “lame duck” session of Congress.WashingtonWise Investor is an original podcast from Charles Schwab. Important Disclosures:The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. This content was created as of the specific date indicated and reflects the author’s views as of that date.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk including loss of principal.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.Open configuration options(1120-0G0G)If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. 
It makes sense to have a certain level of familiarity with the securities we put in our portfolio. But just investing in familiar securities and products can blind us to other options that might benefit us. In this episode, Mark Riepe explores the “home bias”—or the tendency to invest in stocks from one’s home country—with Schwab’s Chief Global Investment Strategist Jeffrey Kleintop. They discuss how global companies often have a similar footprint, how some countries act as proxies for certain sectors, and ways to avoid the home bias. Next, Mark speaks with Cooper Howard, managing director for fixed income strategy at the Schwab Center for Financial Research. Cooper and Mark discuss how investors tend to over-invest in municipal bonds from their home state, or from bond issuers with which they are familiar. This is a tricky bias in the muni market because there are some tax incentives to invest in munis from one’s home state. Cooper also explains some often-misunderstood characteristics of muni bonds and the bond markets.For more on the show, visit Schwab.com/FinancialDecoder.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Currencies are speculative, very volatile and are not suitable for all investors.Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.(1120-000)
Given the strong market rebound this year, many investors might wonder whether their performance is, in fact, good enough. And that makes sense—we all want high returns. But is shooting for the highest return really the best approach? If a portfolio lags the market indexes we see on the news, our inclination is to feel that something is wrong. However, few diversified portfolios can track a single index, so how should you measure your portfolio’s performance? In this episode, Mark Riepe interviews David Koenig, vice president and chief investment strategist for Schwab Intelligent Portfolios. Mark and David discuss which indexes can be used as benchmarks for certain asset classes, staying on track with your goals, risk tolerance, market volatility, and other issues.For more on the show, visit Schwab.com/FinancialDecoder.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. Please read it carefully before investing.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Small cap investments are subject to greater volatility than those in other asset categories.Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.(1020-0KPJ)
The coronavirus pandemic has created an enormous need for charitable giving, but there are other tax-smart reasons why donors might be encouraged to give more during this time. In fact, Schwab Charitable reports an impressive surge in giving over the past year. From January through June 2020, Schwab donors committed over $1.7 billion in 330,000 separate grants. This represents a 46% increase in dollars granted and a 44% increase in the number of grants compared to the same period in 2019.[1]In this special bonus episode, Mark Riepe talks with Kim Laughton, the president of Schwab Charitable. She and Mark discuss how to identify the right charities for you, how to incorporate charitable giving into your financial plan, and how to make the most of  recent legislative changes when giving, among other topics.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/financialdecoder.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.A donor's ability to claim itemized deductions is subject to a variety of limitations depending on the donor's specific tax situation. Consult your tax advisor for more information.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab Charitable recommends consultation with a qualified tax advisor, CPA, Financial Planner or Investment Manager.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Diversification, asset allocation and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.  Rebalancing may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events may be created that may affect your tax liability.Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59 1/2 are subject to an early withdrawal penalty.While Schwab Plan is available to clients at no cost, any investments you ultimately make may incur costs such as fund operating expenses and advisory fees.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(1020-0RXT)[1]https://www.schwabcharitable.org/press-releases/schwab-charitable-donors-give-record-3.3-billion
Schwab’s recent Modern Wealth Survey revealed that 57 percent of Americans say that they or a close family member has been financially impacted by COVID-19. There’s no doubt that 2020 has upended the plans—and financial plans—of millions of people. What can we learn from this crisis about risk planning? And are there any bright spots?In this special bonus episode, Mark Riepe talks with Jullie Strippoli, vice president and assistant branch manager in Austin, Texas, about the real ways the pandemic has affected investors’ plans.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/financialdecoder.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Diversification, asset allocation, and rebalancing a portfolio cannot ensure a profit or protect against a loss in any given market environment. Rebalancing may cause investors to incur transaction costs and, when a nonretirement account is rebalanced, taxable events may be created that may affect your tax liability.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk including loss of principal. The policy analysis provided by Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59 1/2 are subject to an early withdrawal penalty.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB(0820-04MB)
Illusory correlations occur when people think a correlation between two variables exists, and that correlation, in reality, either isn’t there at all, or it’s much weaker than is commonly believed. One illusory correlation that affects investors right now is the correlation (or the lack thereof) between the performance of the economy and the performance of the stock market.Which indicators really help investors understand the state of the market and the direction of the economy? In this episode, Mark Riepe interviews Schwab’s chief investment strategist, Liz Ann Sonders. Mark and Liz Ann discuss leading and lagging indicators, illusory correlations, how investors can measure valuation and prices in the market over the short term and long term, and other issues.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Correlation is a statistical measure of how two investments have historically moved in relation to each other, and ranges from -1 to +1. A correlation of 1 indicates a perfect positive correlation, while a correlation of -1 indicates a perfect negative correlation. A correlation of zero means the assets are not correlated.Diversification and rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment. Rebalancing may cause investors to incur transaction costs and, when a nonretirement account is rebalanced, taxable events may be created that may affect your tax liability.Investing involves risk, including loss of principal. Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0720-0AKJ)
Leaving a job can be difficult, but understanding what to do with the 401(k) you leave behind shouldn’t add to the difficulty. In this episode, Mark Riepe explores the options available to you if you’ve left your employer but still have a 401(k).  Mark Riepe talks with Nathan Voris, senior managing director at Schwab Retirement Plan Services. They discuss the advantages of various options such as an IRA rollover, an indirect rollover, and doing nothing. In some cases, it might make sense to roll your 401(k) over to your new employer’s plan, but how do you evaluate two different plans to see which is right for you? Mark and Nathan walk you through the details.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab.  If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.   Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.  All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.  Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.A rollover of retirement plan assets to an IRA is not your only option. Carefully consider all of your available options which may include but not be limited to keeping your assets in your former employer's plan; rolling over assets to a new employer's plan; or taking a cash distribution (taxes and possible withdrawal penalties may apply). Prior to a decision, be sure to understand the benefits and limitations of your available options and consider factors such as differences in investment related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, the availability of loan provisions, tax treatment, and other concerns specific to your individual circumstances.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Investing involves risk, including loss of principal.  HSA withdrawals that are not used for qualified medical expenses are subject to ordinary income tax and prior to age 65 may be subject to a 20% federal tax penalty.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0720-03B6)
The recently passed CARES Act makes it easier for people to access money that’s locked away in their retirement accounts. In this episode, Mark Riepe explores the factors that determine whether you should use your retirement accounts to support current short-term expenses. To learn more about specific rules and strategies, Mark Riepe talks with Rob Williams, vice president of financial planning, retirement income, and wealth management at the Schwab Center for Financial Research. They discuss the specific provisions and rules about retirement accounts in the CARES Act and explore other ways that might help you meet short-term cash needs.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/FinancialDecoder.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:Please read the Schwab Intelligent Portfolios Solutions™ disclosure brochures for important information, pricing, and disclosures related to the Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium programs.  Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ are made available through Charles Schwab & Co. Inc. (“Schwab”), a dually registered investment advisor and broker dealer. Portfolio management services are provided by Charles Schwab Investment Advisory, Inc. ("CSIA"). Schwab and CSIA are subsidiaries of The Charles Schwab Corporation.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Investing involves risk including loss of principal.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk including loss of principal.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0620-0WYJ)
We all like low prices and big returns, but when faced with the decision of which bond to buy, should you pick the one with the higher yield? Should you, in essence, shop for a bond bargain? It could be that the yield number catches your attention because it is so salient. This decision is especially pertinent right now, given the low level of interest rates.In this episode, Mark Riepe talks with Collin Martin, managing director and fixed income strategist at the Schwab Center for Financial Research, about what to consider—besides yield—when you are evaluating bonds.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/FinancialDecoder.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Investing involves risk including loss of principal.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. High-yield bonds and lower-rated securities are subject to greater credit risk, default risk and liquidity risk.Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.Preferred securities: (1) Generally have lower credit ratings than the firm's individual bonds (2) They generally have a lower claim to assets than the firm's individual bonds (3) Often have higher yields than the firm's individual bonds due to these risk characteristics. (4) Are often callable, meaning the issuing company may redeem the securities at a certain price after a certain date.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0620-0MLB)
Imagine you’ve received a $1,000 windfall—a special bonus from work, or a gift, or even a small inheritance. Maybe you’ve never invested before, and you think now is the time to start. Or maybe you’ve already got a small portfolio, and you’re wondering what the smart thing is to do with this unexpected bit of good fortune. In this bonus episode, Mark Riepe discusses several approaches for investing $1,000.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/FinancialDecoder.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Investing involves risk including loss of principal.Diversification strategies do not ensure a profit and do not protect against losses in declining markets.Schwab Stock Slices™ is not intended to be investment advice or a recommendation of any stock. Investing in stocks can be volatile and involves risk including loss of principal. Consider your individual circumstances prior to investing.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0320-0W3E)
When the market drops quickly, many investors scramble for the exits. Yet that decision is usually an emotional one rather than a rational one. In this special bonus episode, Mark Riepe discusses some tools that can help you stay the course with your plan. Mark talks with David Koenig, vice president and chief investment strategist for Schwab Intelligent Portfolios. They discuss how you can use rebalancing, tax loss harvesting, and other strategies to your advantage during a down market.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:Please read the Schwab Intelligent Portfolios Solutions™ disclosure brochures for important information, pricing, and disclosures related to the Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium programs. Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ are made available through Charles Schwab & Co. Inc. (“Schwab”), a dually registered investment advisor and broker dealer. Portfolio management services are provided by Charles Schwab Investment Advisory, Inc. ("CSIA"). Schwab and CSIA are subsidiaries of The Charles Schwab Corporation. Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ are designed to monitor portfolios on a daily basis and will also automatically rebalance as needed to keep the portfolio consistent with the client’s selected risk profile. Trading may not take place daily.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions.Diversification, periodic investment plans (dollar-cost-averaging), and rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment. Rebalancing may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events may be created that may affect your tax liability.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59 1/2 are subject to an early withdrawal penalty.Investing involves risk including loss of principal.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0420-03US)
Almost everyone has the goal of saving for retirement. But before you can do so, you face one of the most fundamental questions about investing: Which type of account should you choose? If you’re lucky enough to have a workplace retirement plan, that’s often a great place to start. But if you don’t—or even if you do and want to save more, or just want additional options—the individual retirement account, or IRA, is a popular choice for its tax-friendly features. However, choosing between a traditional IRA and a Roth IRA requires some difficult forecasting. On this episode, Mark Riepe is joined by Hayden Adams, CPA, CFP®, director of tax and financial planning at the Schwab Center for Financial Research, to unpack the complexities underpinning the Roth-vs.-traditional decision.Account choice isn’t a conundrum only when you’re accumulating assets. Listen to the episode “How Can You Pay Yourself in Retirement” to hear more about how to coordinate withdrawals across multiple accounts.Remember that tax laws are always subject to change. You can check out the IRS Newsroom page regularly for updates.Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions.Diversification and rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment. Rebalancing may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events may be created that may affect your tax liability.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Investing involves risk including loss of principal.Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59 1/2 are subject to an early withdrawal penalty.Any corporate name mentioned is for illustrative purposes only and is not a recommendation, endorsement, offer to sell, or a solicitation of an offer to buy any security.
On Financial Decoder, we often emphasize the importance of taking a long-term approach to investing, but not everyone has that luxury. Some investors have bills to pay right now and need to pull money from their portfolios to make those payments. In this bonus episode, Mark Riepe discusses several approaches for selling smartly if and when you have to.Learn more about the benefits of rebalancing in the article “Rebalancing to Help Reduce Risk.”Read about the silver lining of investment losses in “Reap the Benefits of Tax-Loss Harvesting.”Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.Financial Decoder is an original podcast from Charles Schwab.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions.Diversification and rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment. Rebalancing may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events may be created that may affect your tax liability.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Investing involves risk including loss of principal.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(0320-0FYG)
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Comments (3)

G Woods

35k dissions

Feb 23rd
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Beryl

I enjoyed listening to this on my BART ride home this evening. Thank you.

Nov 13th
Reply (1)
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