Commission Free trades are now the norm!

Dear Mr. Market:

To say that the stock market offers a changing landscape is an understatement. It’s up, it’s down, it’s sideways but regardless there is always something new and now…there is something free; stock trading!download

Charles Schwab has truly been a pioneer as being a disruptor and innovator in the financial services world. Once mainly known as a discount brokerage firm for the do-it-yourself and self-directed investor, they created a deep menu of service offerings catering to high net-worth investors but always tried to stick to their roots to still make investing accessible to all. Just last month they shook up the industry once more with a huge announcement… Continue reading

Top 3 “Less is More” Hurricane Florence Stocks

Dear Mr. Market:Ambulance-Chasers

We don’t make it a regular practice to be ambulance chasers every time there is a tragedy or natural disaster. That being said, almost every major event (whether it’s considered good or bad) can create an opportunity for your investment portfolio.

Conversely, the old adage of “less is more”, could certainly apply here. We’re not simpletons just for the sake of it but in general the ‘less is more’ approach can greatly benefit your finances. Think about it…and if you haven’t already, we’ll spell out several major ways that having less of something will benefit your wallet: Continue reading

Does Ann Wagner or any politician really have your back?

Fiduciary4Dear Mr. Market:

We don’t typically venture into topics that involve politics as they can be polarizing to say the least. Everyone can think of an individual they know that is always more than willing to share their political opinions whether you want to hear them or not! From time to time, however, there is a topic that needs to be addressed and political party affiliation has absolutely nothing to do with it … It’s a matter of doing what is right.

Recently the Department of Labor issued a new proposal addressing investment management fees associated with retirement accounts. According to a report issued by the White House Council of Economic Advisors, a difference of only one percentage point in fees equals $17 billion! This is money that will either remain in individual’s retirement accounts or find its way to brokers and financial firms’ pockets.

There have been other versions of this legislation proposed in the past. This most recent version requires any advisor that is compensated for providing advice with retirement accounts (IRAs, 401(k), 403(b), Simple IRAs and SEP IRAs for example) to operate as a fiduciary, always putting the clients interests first. Why is this even a debate?! What it essentially comes down to is the mighty dollar. Continue reading

Are you allowing the “tax tail” to wag the “investment dog”?

Dear Mr. Market:Tax tail dog 1

Not only do you toy with the emotions of every investor; you also have a partner that often surprises them and hits investors where it hurts the most… their pocketbook. Making money in the stock market is great but so many forget that eventually they have to reconcile with Uncle Sam come tax time. Look for example at some investments that we have recently discussed: Under Armour (UA) and InvenSense (INVN).   If you had purchased these stocks on the first trading day of this year (1/2/2014) you would be up 58% with Under Armour and up 20% with InvenSense. These numbers are impressive and would certainly make any investor happy but what happens when they are sold? How will they impact your tax return and how much of the gain will you have to pay?

Nothing is certain except death and taxes.

                            Benjamin Franklin 

*** Before we move any further in this discussion it is important to note that we are not tax advisors. In this article we will be discussing general guidelines. Every investor’s situation is unique and deserves personal attention. If you have questions we would encourage you to talk with a qualified tax professional.

Let’s take a moment to go over some of the basics when it comes to investor tax issues. Continue reading

Independent Review of the Fidelity Contrafund (FCNTX)

fidelity logoDear Mr. Market:

You need to hear about another mutual fund like you need a new hole in your head. That being said, however, how about we talk about one that’s been around for a long time? They must be doing something well….right?

We’ve certainly not held back with our opinion in the past when it comes to mutual funds. While they certainly can warrant a spot in many portfolios, they need to be reviewed and compared carefully to their peers and other investment options. Today we are going to take an in-depth look at a fund we see in many portfolios but very few individuals actually understand what it is. The Fidelity Contrafund (FCNTX) is one of the largest actively managed equity mutual funds there is with assets just under $110 billion! Continue reading