This is the question one of our clients asked recently. A good friend in the business had recommended they consider putting a chunk of their savings into the Jackson National Lifeguard Freedom 6 variable annuity and they did what we ask all of our clients to do, call us or contact us with your questions so we can give you our unbiased independent third party point of view.
Seems like a number of our clients are new grandparents and naturally they're interested in taking steps to help pay for college down the road. So, what is the best way for a retiree, a grandparent, to help pay for their grandchild's college?
Recently, the S&P 500 Index's bull market became the second-longest and the second-best market in recent history. If you include reinvested dividends, stock prices are up 340 per cent from the low point after the financial crisis in 2009.
It's easy to think it's been easy money — you just put your chips on the table when the market hits the bottom and let them ride.
It's usually not a good sign for an investment when a large brokerage firm runs an ad in the Wall Street Journal begging for more regulatory oversight and warning investors that the investment category is so volatile that futures contracts could create devastating losses. This is exactly what has happened after the Chicago Mercantile Exchange announced plans to start trading Bitcoin futures contracts. Seems like everywhere you turn these days, you're hearing about the huge increases in Bitcoin prices as well as seeing tons of ads telling you how you, too, can get in on the action.
Here’s why we use index mutual funds and ETFs in accounts we manage and why we recommend them for just about everyone.
A recent research study shows that 93 per cent of all US stock funds that were professionally managed were outperformed by their respective index benchmark over a three-year average.
We get asked this question all the time, and the answer we give most often might surprise you. In most cases, we suggest not reinvesting dividends. Here's why: First, if you need income from your investments, it makes sense to generate some of that income from your dividends. After all, you're going to pay tax on them whether you reinvest them or not. Unless, of course, the dividends are from an investment inside an IRA or 401(k).
We have a client who decided to self-manage about half of his investment assets while we are investing the other half. He decided to do this for two reasons. First, he wanted to use a different system which he had read about. To us, it sounded something similar to Market Timing – being fully invested or all in cash, one or the other. The second reason is he had received comments from his accountant that they had never seen someone pay a financial advisor like us so much in fees. Over the last 18 months, we estimate this client has lost almost...
If you are looking for a simple low-cost investment management approach you might be interested in a fairly new technology being offered by a major brokerage firms as well as some independent startup companies. This technology is often called Robo advisors. The good news is for a very low fee, about one quarter of one per cent, you end up with a diversified investment portfolio typically made up of index mutual funds. One big brokerage firm even claims to provide this service for free!
Even after the financial crisis of 2008 retirees continue to be victims of lies and myths of Wall Street and the financial media. So-called gurus and experts manipulate statistics to convince you-not educate you-that if you don't invest the way they suggest you are in great danger of outliving your money. Here are two popular myths you should ignore if you want to protect your nest egg.
Recently I watched a short video interview of Nobel prize-winning Yale economist Robert Shiller. He has owned his own home for over 32 years and stated that after adjusting for inflation he doesn't think the value of his own home has increased at all. He went on to say that a home is only a good investment if you are a professional and really know what you're doing. But for the average homeowner, your home is really not that great of an investment.