Matt Ahrens

CIMA®
Retirement, Investing, Small Business
97%
Helpful
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3
Articles
11
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“Matt Ahrens, CIMA® works primarily with physicians, small business owners, and young entrepreneurs and has been quoted in such publications as the Wall Street Journal, US News & World Report among others on investment and retirement strategies.”
Firm:

Integrity Advisory, LLC

Job Title:

Financial Advisor

Biography:

As a Financial Advisor at Integrity Advisory, LLC Matt Ahrens is focused on helping business professionals simplify their financial lives and find financial security as they face life's everyday challenges.

Since joining the firm in 2015 as a financial advisor, Matt has overseen the investment management and portfolio construction process for our clients. During this time, he earned the Certified Investment Management Analyst® designation which included an extensive class on portfolio design at the prestigious Wharton School of the University of Pennsylvania. Matt specializes in assisting physicians, small business owners, and young entrepreneurs who often find themselves with little time to manage their own investments.

Matt and his team help their clients track all of their investments in one centralized location and use the information to make sure they can retire when they want to and how they want to.

Education:

BS, Accounting, Washburn University

Assets Under Management:

$135 million

Fee Structure:

Asset-Based

CRD Number:

5308493

All Articles
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3 weeks ago
    College Tuition, Tax Deductions / Credits
last month
    Investing, Alternative Investments
February 2018
    College Tuition, Financial Planning, Retirement Savings

All Answers
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    Investing, Bonds / Fixed Income
Which is the better investment: an A-rated company bond paying interest of about 3 percent, or the same A-rated company paying a dividend of 3.25 percent?
100% of people found this answer helpful

That's a great question, and the best way to approach this decision is to understand the risks and rewards associated with each.  Certainly buying the stock has market risk as the value of the stock will advance or decline to a much larger degree than a bond would.  You also run the risk in a recession that the company reduces or suspends its dividend.  General Electric is a great example of a company that feel from grace when they cut their dividend payment in half at the end of 2017.  If you want to look at dividend paying stocks who are considered Dividend Kings you might want to check out this recent article at US News & World Report.  If your company is paying you 3.25% now, but they have a history of increasing their dividend payout then that dividend increase helps you keep up with inflation.

Bonds have their own set of risks.  The most disastrous risk is that the company defaults on their loans, but that is typically unlikely with an A-rated company.  Second you have interest rate risk.  As rates rise (as we are seeing right now) the value of the bond will fall.  A bond's sensitivity to rising interest rates can be determined in its duration.  A bond with a duration of 5 would be expected to lose 5% of its value if rates were to rise 1%.  This interest rate risk is mitigated if you hold the bond to maturity, because at maturity you receive par value, but this introduces another risk in inflation risk.  How long do you have to hold that bond at 3% annual interest until you get your money back?  If the bond matures in 2030 and in 2025 you could be buying bonds at 6% interest then you may not be keeping up with inflation at your current pace, and you may not be happy getting 3% when everyone else is getting 6%.  But if you sell your bond then you realize the loss in value.

Without knowing your situation exactly it's hard to determine which is more appropriate.  I personally would still lean to the dividend payout until rates rise further.

Good luck to you,

Matt

last month
    IRAs, Stocks
Is there a limit to how much you could earn in an IRA from a brokerage by participating in the stock market?
100% of people found this answer helpful
April 2018
    Financial Planning, Retirement, Pensions, Social Security, Investing
We have a guaranteed income of 80% of our current working income, and will probably never take Social Security as a result; should we still have $1 million saved for retirement?
100% of people found this answer helpful
last month
    Debt, Estate Planning, 401(k), Asset Allocation, IRAs
Is peer-to-peer lending a good strategy for diversifying a portfolio?
100% of people found this answer helpful
last month
    Annuities
What should I do with an annuity that I have inherited at age 54?
100% of people found this answer helpful
last month