Dear Mr. Market:
Tonight is Game 6 of the World Series but it’s also Halloween. What are your plans? Will you be glued to the television or handing out candy to little ghosts and goblins? Since Mr. Market is a one trick pony and mainly wants to talk about the stock market, we’re sharing an article that was written five years ago on Halloween night. Enjoy! Continue reading
Dear Mr. Market:
Last week I had lunch with an old colleague of mine. It’s always good to catch up with others in the same profession but sometimes it also truly helps you understand why so many consumers are confused. Here’s a brief background and then a summary of an actual conversation between two financial advisors:
Both financial advisors began their careers working for major wirehouse firms (think Morgan Stanley, Prudential, UBS, Smith Barney, etc…). They each then worked at Charles Schwab as part of the Retail Branch Network and Schwab Private Client (SPC) group. Thereafter, Advisor #1 (who we will call Fee-Based Advisor) left Schwab to join one of the advisors that is in their Schwab Advisor Network program. This is a network that has made certain firms wildly successful as Charles Schwab branch representatives get compensated to vector investors and Schwab account holders to meet with advisors who pay to be in their program. Advisor #2 (who we will call Fee-Only Advisor) is not part of any network and is not affiliated with any brokerage firm, mutual fund company, or insurance company. “Fee-Only Advisor” is a Registered Investment Advisor (RIA).
Fee-Based Advisor: So…how are things out there?
Fee-Only Advisor: Good…I keep plugging away but sometimes it’s frustrating to see how undereducated the general public is about this industry. Continue reading
Dear 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 jargon 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
Dear Mr. Market: 