Distribution

For many investors, investing typically begins with one stock or mutual fund. Over time, other selections are added because many people understand it may not be prudent to invest everything in a single security, even if it has a “blue chip” reputation. However, just “spreading money around” in a haphazard way may create only an illusion of diversification.

It’s 2004 or 2005 – I can’t remember which one. Christmas time was nearing and I had never purchased anything online before. I’ll never forget it…I was on Overstock.com and ran across this really neat copper bowl that was hand made by people in Tibet. You could actually see the marks on the sides of the bowl from the wooden mallets they used. I knew my friend would absolutely love it. The price was right…besides I wouldn’t find one anywhere else, so I bought it on the spot. I also bought one for myself.

When it comes to pursuing the American Dream most of us try as hard as we can to accumulate wealth. We do this so that we can enjoy a comfortable income and retire with dignity. However, what if you were actually wealthy in retirement and at the same time looked poor on your income tax return? How would that impact your retirement years?