What is a “Fee-Only” Financial Advisor and Why is it Important?
According to the CFP Board, a “fee-only” financial advisor must not receive sales-related commissions.
A life insurance agent, who accepts commissions, from an insurance agency or insurance company, for example, is not a “fee-only” only advisor. Likewise, a Series 7 Registered Representative paid a sales commission by a Broker-Dealer for selling investments.
Here’s why we believe the “Fee-Only” method of compensation to be the most transparent and objective model of advisor compensation.
Seeking Alpha: Practical Application of Modern Portfolio Theory through Technical Analysis – Interactive Brokers
In his influential book, A Random Walk Down Wall Street, Burton Malkiel makes his case for efficient market theory and passive investing all while excoriating technical analysis through straw man argument. About Beta he writes, “Beta really looks suspiciously like a tool of technical analysis in academic drag – a bastard cousin of the technician’s charts”. We believe beta looks like technical analysis because it is technical analysis as is, by extension, alpha. To whit, alpha and beta estimates can be derived solely from historical price action of securities and indices. Moreover, alpha and beta are indicators that can be effectively analyzed by charts. Most important, it is apparent to us that alpha in particular has useful predictive properties for securities selection and portfolio construction.
Rotational Trading using the %b Oscillator
Academic finance is replete with studies supporting or denying the existence of serial correlation in securities prices1. In effect, such studies test the weak form efficient market hypothesis (EMH). Simply put, can investors use technical analysis to beat the market?
Interactive Brokers + Independent Advisor = Smart Investing
Watch this striking, scenic video! Remember, at Successful Portfolios, our credentialed, pros always have your back. As of July 2019, we managed over $92,000,000 in client assets at Interactive Brokers. Our viewpoint as an independent advisor ensures a fiduciary focus on your financial best interest.
What’s the Best Online Brokerage?
Online brokers are a proven smart way to invest. And they’re not just for do-it-yourself investors. In this article posted to Linkedin, I reveal how to select the best online broker.
Online Broker Commission and Margin Rates Comparison Grid
Check out this Cost Comparison of Commission and Margin Rates at Interactive Brokers (IB), E*Trade, Fidelity, Scottrade, Schwab, TD Ameritrade and Vanguard. Talk to Successful Portfolios’ team of expert Certified Financial Planners and Chartered Financial Analysts. We’ll help you choose the best online broker to suit your investment management objectives.
Hurricane Recovery Plan
Hurricane Recovery Plan In 2024 with Successful Portfolios Successful Portfolios LLC has developed a Business Continuity Plan on how we will respond to events that disrupt our business. Since the timing and impact of disasters and disruptions are unpredictable, we intend to be flexible in responding to actual events as they occur. With that in […]
SP’s Mean Reversion Strategy: Snapshot of Account “EC1” Investment Performance using IB Portfolio Analyst
We present the inception-to-date comparative performance of Successful Portfolios’ Mean Reversion Investment Strategy (EC1) and the Vanguard Total World Stock Index ETF (VT). We prepared the presentation using Interactive Brokers Portfolio Analyst.
How to Avoid Investment “DOGS”
In August 1999 near the peak of the stock market tech bubble, a long-time, normally conservative client asked me for a “low priced” stock pick in the then red-hot technology sector. I told him about several stocks that fit the bill. He settled on Corel Corporation, a Canadian based Software Company that was working on porting their Perfect Office Suite to the Linux operating system. Almost immediately upon his buying 1,000 shares at $4.75, Corel began climbing nearly doubling within a few weeks before pulling back. In November 1999, Corel stock soared higher. I called my client and recommended he sell his shares at $28. He sold, booking a 560% profit in just 3 months. The day after he sold, he called me back and asked excitedly “Where is Corel trading now?” “Forty-three dollars a share” I replied somewhat uncomfortably. “Buy it back!” my client exclaimed enthusiastically. Fortunately, I was able to dissuade him. Corel peaked that day at $44 and within months crashed back to earth as the stock market tech bubble burst. The chart below illustrates the gory details. Investors who bought and held Corel stock during its inexplicable moon shot of late 1999 and subsequent crash ended up owning a stock market DOG.
