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Oaktree Financial Advisors Blog

Comparing the Clinton and Trump Child Care Plans

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Millions of Americans pay for childcare or stay at home to provide care instead of working. Millions more provide unpaid care to an adult, while some families are doing both – called the “sandwich generation”.

Workers spend time out of the workforce providing this care, thus costing their families money. The two presidential candidates have proposed different ways of reducing part of this burden on families through their child care plans. Let’s take a high-level look at both.

Your Employer's Life Insurance May Not Be The Best Deal

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Save money on your life insurance and put the savings in  your 401(k)

Many workers sign up for the life insurance that their employer offers and I don't think they give it much thought. They can't shop for it. It's not like they can look at three different policies the employer is offering and take the one that's the best price for them. There's one choice. Granted, there are usually some options. For instance, the Eli Lilly employees we work with are given two times their base salary in life insurance at no cost to them. That's a great deal, no doubt. They then have the choice of purchasing up to an additional five times their base salary at whatever the current rates are. The rates increase in five year bands. For instance, the cost is a certain amount at age 40-44 and then increases from age 45-49, age 50-55 and so on. So the same amount of insurance would cost you more money every five years.

Perspective on Recent Market Volatility

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Often during times of market volatility investors feel as though they should be doing something, but usually the best course of action is to do nothing.  This article gives us a little perspective on the recent market.

The Brexit is Breaking News

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It's all over the news that the British have decided to leave the European Union. Don't let this breaking news break your plans.

Markets don't like the unknown and how this plays out as far as Britain actually leaving the EU is definitely an unknown. We've seen markets reacting negatively, as we'd expect, and we expect that volatility will continue for some weeks.

You may hear dire predictions and awful things. Don't let the news coverage get you too worked up. Remember that the media's incentives are short term while most investor's goals are long term. By next month we'll be hearing about the next event on the horizon that we should be worried about.

Having a broadly diversified portfolio coupled with patience and discipline can help you weather this storm, but we expect it to be fairly short-lived. For investors with long term goals, unfavorable short term events such as this should not have much of an impact. Usually the best thing to do is to ignore these events and stick with your plan. Your long term goals probably haven't changed because of Brexit. Studies show that reacting to these things by trying to time the market, generally end up being very costly to investors.

The Stock Market's Been Crazy Lately: What Does it Mean for My Investments?

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This is a good time to remember that the market doesn't deliver returns in a straight line.  Market ups and downs are normal, and it takes a lot of them to balance out to the average.  You should welcome this opportunity to purchase more shares at a lower price through your 401(k), IRA or other investments.

Investing based on facts, not emotions

Emotions should not have a role in making decisions about your investments. That is why you should not act on stock tips, guess where the market will be in six months or try to predict the direction of interest rates. You should not play guessing games with your investments and neither should your financial advisor.