Over the past few weeks, markets have been experiencing more volatility than what so many have come to expect as the norm and what has characterized the markets over the past several years. It is ironic because when it comes to investing, it is market volatility that is actually the norm – what we have experienced over the last several years is what is unusual.
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When a prospective client over the age of 55 calls my office, more times than not, it is someone who is thinking about retirement. He or she has been working for many years, has accumulated some significant assets, may or may not be eligible for some type of pension and will have social security income. …
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As a fiduciary advisor, you might already be able to guess what our take is on current market news: Unless your personal goals have changed, stay the course according to your personal plan.
Still, it never hurts to repeat this steadfast advice during periodic market downturns. After all, we understand that thinking about scary markets isn’t the same as experiencing them. So, what’s going on? Why did U.S. stock prices suddenly drop after such a long, lazy lull, with no obvious calamity to have set off the alarms?
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At the beginning of 2017, a common view among money managers and analysts was that the financial markets would not repeat their strong returns from 2016. Many cited the uncertain global economy, political turmoil in the US, implementation of Brexit, conflicts in the Middle East, North Korea’s weapons buildup, and other factors. However, equity markets…
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Whether the market is in a bit of turmoil or when it has been performing quite well, it’s important to revisit some of the common behavioral mistakes that can potentially derail even the most well thought out financial plans. Below are six behaviors that we should all look to avoid. Fear and Panic Perhaps the…
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Many people mistakenly believe that investment management is simply selecting the investment or combination of investments that will generate the highest yield or highest long-term return. In reality, sophisticated investment management is actually much more complicated than that as it integrates several interrelated components of which specific investment selection is only one facet.
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The 12 month period ending 6/30/2017 marked the first time in about five years that non-US stocks performed better than US stocks on a trailing 12 month basis. Regardless of recent performance, investing in companies based overseas is a crucial component of a diversified portfolio. Below are some of the reasons we invest abroad: Investing overseas…
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When you hear the word “diversification” in the context of investing, one thinks of owning multiple holdings across asset classes, geographical locations, and industry sectors. The concept of diversification also applies to the sources of cash flows that are generated from an investment portfolio. Michael Kitces, a well-renowned author, and industry thought leader, suggests that there are 4 pillars of retirement cash flow that can come from an investment portfolio: interest, dividends, capital gains and principal.
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Warren Buffett’s annual Berkshire Hathaway shareholder letters often offer sage advice. His most recent 2016 letter was no exception, including this powerful insight about market downturns: “During such scary periods, you should never forget two things: First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is your enemy.”
DetailsA little while back I began jotting down some of the rules that I try and live by when it comes to personal finance. Eventually, I turned it into what you see below, something I’m calling a personal finance vision statement. My plan is to update this over time as I continue to learn more about money, investing and life. For now, here is version one.
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