Need Life Insurance? Remember “Buy Term and Invest the Difference”
As a Certified Financial Planner professional, I believe that for most families with young children, not having life insurance on Mom and Dad is reckless financial behavior. The good news is term life insurance is surprisingly affordable. So if you need life insurance, should you buy term and invest the difference? The short answer is yes! …
Why Write an Investment Policy Statement (IPS)?
Why write an Investment Policy Statement (IPS)? Because an IPS can help ensure you and your investment advisor are on the same page. There are six key elements of an effective IPS for an individual investor
No-commission, No-transaction Fee ETF Lists
Schwab ETF OneSource presents a broad list of sensible no-transaction fee ETF choices. TDAmeritrade maintains an extensive list of commission -free ETFs as well. Download the lists and read Successful Portfolios analysis.
Six Steps to Successful Financial Planning
A smart financial plan can make you money and give you peace of mind. Follow these six steps to successful financial planning:
Advisor Credentials and the CFA Exam Pass Rate
Did you know the Chartered Financial Analyst (CFA) designation is widely regarded as the global “gold standard” of investment advisor credentials? The CFA program ”is truly a meritocracy and if you can’t demonstrate you are capable, it doesn’t matter who you are, whose son or daughter.” That’s something you should think about if you are searching for an investment advisor.
Ten Wall Street Investing Myths Revealed
1. “You cannot invest directly in an index…” 2. Bonds are safer than stocks…. 3. Options are riskier than stock… 4. Smart money invests in Hedge Funds and Private Equity… 5. Buy and Hold is dead… & Five more myths debunked…
Memorable Investment Adages, Axioms, Maxims, and Quotations
Buy the rumor; Sell the news… Be fearful when others are greedy and greedy when others are fearful…The trend is your friend…Buy Low; Sell High…Never confuse genius with a bull market.
Asset Allocation Should be as Simple as Possible but No Simpler
A very simple, yet highly useful asset classification system consists of just two asset classes: (1) equity-growth-stocks and (2) debt-income-bonds.
IRA Required Minimum Distribution (RMD)
The Financial Rules Regulatory Authority (FINRA) provides a free, easy-to-use calculator for determining the annual Required Minimum Distribution (RMD) from your Individual Retirement Arrangement (IRA). The calculator is based on life expectancy tables and Internal Revenue Service (IRS) regulations. FINRA, RMD, IRA, IRS, how is that for alphabet soup? […]
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.
