Behavioral Finance, Financial Planning, Major Financial Decisions

How to Handle a Large Inheritance, Settlement, or Windfall

Rapidly advancing from rags to riches, or riches to… far more riches, is obviously exciting. However, the improper management of this wealth can be detrimental. You don’t have to look hard to find stories about how athletes, lottery winners, inventors, or estate beneficiaries have gone broke despite coming into enormous wealth. An inheritance or windfall should not be handled flippantly.

Behavioral Finance, Investment Decisions

Morningstar Star Ratings – What is a Five-Star Fund?

I had an interesting conversation with someone who was asking about the mutual funds we employ. Specifically, he asked if we use “Five-star mutual funds”. I probably shouldn’t have been surprised, based on how ubiquitous Morningstar is for investment research, but I had never been asked about Morningstar Star Ratings before. In the world of detailed analytics and minutiae, Morningstar star ratings are a throw-away metric. It is a crude approximation of a narrow slice of a mutual fund’s story.

Financial Planning

When Do I Need to Get a Life Insurance Policy?

Disclaimer: Ferguson-Johnson Wealth Management and our advisors do not sell or place life insurance, nor do we have any financial incentive to recommend or refer life insurance for our clients.