Category Archives: trends

10 Ways to Save Money

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(1) Write it down! – You’ve probably heard this before but the act of simply writing down a goal considerably increases the chances of you actually accomplishing it. One of our favorite quotes is: “A goal without a plan is just a wish” – Antoine de-Saint Exupery

One major thing to remember when writing down goals is to make them concrete and specific. “Saving money” is not good enough. “Saving $10,000 for an exotic family vacation” is better…

(2) Set up your “buckets”– Regardless of the stage of life you are in it’s smart to have different accounts (or buckets as we call them) assigned for specific goals and needs. Initially everyone needs to at least start with their “emergency bucket” where at least three months living expenses is tucked away. Get a few other goal buckets lined up as well. If you’re working you’re likely to have a retirement bucket (401k, 403b etc). If you’re self-employed or own a business set up a SEP IRA or a Simple IRA. (there are plenty of choices here but you get the idea) Do you have a “vacation bucket” or an “automobile bucket” ? Get them established and then start filling them up!

(3) Tackle dumb debt – Credit cards are NOT dumb or evil; not paying them off in full each and every month is.  We won’t get preachy here and to state the obvious the past few years have truly tested many Americans who had to do their best to make ends meet. What we’re pointing out here is that it makes absolutely no sense to hold a balance on a card when you have cash or other “non-performing” assets elsewhere. For example: If you have $5,000 on a card that charges you anywhere from 13% to 22% and your friendly neighborhood bank is ‘generously’ giving you 0.01% to hold your money….there is a serious disconnect. Continue reading →

Why do I own this Annuity and how do I get out of it?

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We can’t tell you how many times we have heard investors say something along the lines of, “I have this annuity that I was talked into years ago, I don’t really understand it and I haven’t heard from the guy I bought it from since”.   annuity pictureAnnuities are one of the most misunderstood and possibly abused financial products in the financial services industry today.  They are layered in promises that are far too often not delivered to the individual that purchased the annuity.  While they look simple in nature they are actually quite complex and it is vital that investors conduct their own due diligence and research before purchasing any annuity product.

The basic structure of an annuity is quite simple; the investor deposits money with an insurance company either in a lump sum or with scheduled periodic payments over several years.  In return the investor will receive a stream of payments either immediately or in the future for a set period of time.  The terms and conditions can vary from company to company and there are many different types of annuities and features that can be added to them.  It is important to always remember that an annuity is a contract between an insurance company and an individual for certain guarantees and that they should never be viewed as investments!  We will attempt to dig in a bit deeper and offer an overview of annuities that will empower investors to make educated and informed decisions. Continue reading →

“The Retirement Gamble” : How to Tip the Odds in your Favor….

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retirement gambleDear Mr. Market:

How many times have we heard the comment that investing in the stock market is like gambling in Las Vegas?  The market allows people to build up their account balances and confidence only to watch it all be taken back and possibly more.  Many people experience this in ‘Sin City’ as their stacks of chips build up only to watch the casino take them all back in what seems like the blink of an eye.  While we could certainly debate the similarities and differences between Vegas casinos and the stock market there is no doubt that both have left investors feeling as though the system is rigged against them.

How nice would it be if you could tip the odds in your favor in Vegas?  What if you could see what the next card or roll of the dice would be or simply improve your chances of winning?  If investing is truly like gambling what if you could increase the odds that your retirement savings would grow more and be there for you when you need them in the future?

Recently we have heard from several investors about a very powerful and informative television report featured on Frontline titled “The Retirement Gamble”.  This presentation pulls back the curtains and exposes many of the dark and hidden secrets of the financial industry that the average investor is not aware of.  There are several factors that investors can control and limit the negative impact on their portfolio resulting in a profound difference on long-term portfolio returns.  We encourage everyone to watch the online presentation of “The Retirement Gamble” that first aired on April 23, 2013.  The presentation is approximately 50 minutes long however it could possibly be the most critical education you’ll ever receive on investing.

“The Retirement Gamble”, Frontline on PBS, April 23, 2013

This show does a tremendous job of getting down to the basics and avoiding all the financial jargons that clutters the industry.  It empowers the average investor to understand many of the key aspects of investing that they need to be aware of and more importantly what they can control.  Below are some of the key points that can be taken away from this program along with some charts and our thoughts: Continue reading →

Target Date Funds – is it time to refocus?

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Off TargetDear Mr. Market :

You certainly have a unique sense of humor! Your unpredictable personality often leaves investors scratching their heads as they attempt to figure out your next move and how they should be positioned.  You’ve reintroduced us to market volatility the last few weeks and left investors scrambling.  During the first quarter of this year, investors moved billions of dollars into the equity markets as they began to gain a sense of comfort based on recent performance.  As investors muddle through the overwhelming amount of investment options available to them, more and more continue to look for the ‘quick fix’ or the ‘one stop shop’ and invest in Target Date Funds.  By simply picking the fund that has a date corresponding to a time frame they have in mind for their investment goals, they can put their portfolio on cruise control and focus on more important things. Simple, right?

If only it were truly that easy…“If it seems to good to be true, it probably is”

Investors need to take a step back and not allow ‘Mr. Market’ to play with their hard earned dollars and take a look if these funds are in fact too good to be true.  While the underlying premise of the fund appears sound, investors definitely need to kick the tires on these funds before buying them.  The typical Target Fund intends to be much more aggressive in the early years and as the years pass and the ‘target date’ approaches, they will become more conservative.  They do this through the asset allocation within the fund. Simply put, in the earlier years the portfolio has a higher percentage in stocks which then get trimmed with a reallocation and more exposure to fixed income or bonds.

Sounds perfect doesn’t it?! Continue reading →

The trend is NOT always your friend….

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BitcoinDear Mr. Market:

How is it that through both bull and bear markets, you are constantly able to create new products and services that entice investors to take on risk beyond what they need in their investment portfolios?   Time after time, we’ve seen investors rush to get involved in the next great investment opportunity. Just looking at the last few years alone we’ve seen the Facebook IPO, Leveraged ETF’s, Day Trading, Managed Futures… and the list goes on and on.  Most recently we’ve seen a new “currency” hit the headlines and attract investors … Bitcoins.

This new digital currency has caught plenty of media attention with the price hitting extreme highs and lows.  Just in the last two weeks Bitcoins were worth as much as $260 apiece and then within days they dropped down to $100 a piece.  This decentralized digital currency allows for exchange without any regulations or protection.  It is based on an online programming code written by a group or an individual that operate under the name “Satoshi Nakamoto”.  If that doesn’t make individuals feel secure then knowing that they can never hold these ‘coins’ in their hands but instead can hold them in their online digital wallet definitely should! Continue reading →