If we were playing a game and were to offer you a choice of a sure win of $50 or, on the toss of a coin, a chance to win $100 or nothing, while the probabilistic outcome (50% probability of $0 plus the 50% probability of $100) you would likely choose the guaranteed $50 according to scientific studies. After all, it’s a sure thing—you win. But let’s say we change the rules in the second round, and we offer you a sure loss of $50 or, on the toss of a coin, the chance to lose $100 or lose nothing at all, again the same -$50 probabilistic outcome. What would you pick?
If you and your partner are among the millions whose finances have been impacted by current events, now is the time to make sure you have a plan in place to allow you to work together through the crisis.
Our Financial Planning Experts tackle a listener’s concerns about passing a tax burden to his children with an inherited IRA.
We explain why investing with an eye to the long term is particularly important with stocks.
Creating an emergency fund is unfortunately not a passive enterprise—but over time, it can provide the savings you need to weather nearly anything that life happens to throw at you.
Understanding your biases may help you avoid questionable calls in the heat of the financial moment.
To encourage charitable contributions to deserving qualified charities during these trying times, Congress has relaxed some of its restrictions related to how much a taxpayer can deduct as a charitable contribution in any given year.