Posted on August 18, 2020
Let’s Look Forward
“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.”
-Alexa Von Tobel-
The decisions we make today can profoundly affect our future. Unfortunately, for prior generations, the impact was never fully known until it was frequently too late to change course. Today, through the continuous advent of technology and advances in financial modeling, we can help clients understand how the decisions they make now may impact their wealth 20, 30 or more years in the future.
Posted on July 11, 2020
How the Economic Machine Works
“I’m just saying that if you understand how the economic machine works, it just works like a machine. These are cause-effect relationships.” -Ray Dalio-
Created by Ray Dalio, this simple, but not simplistic, video is easy to understand. More importantly, it answers a question many of us have wrestled with for years, “How does the economy really work?” This 30-minute, animated illustration offers incredible insight into what is behind the proverbial curtain – a machine that always produces results, sometimes favorable, sometimes not so favorable. Read More
Posted on June 12, 2020
Real Estate Investing
“Don’t wait to buy real estate. Buy real estate and wait.” -Will Rogers-
For most of us, our only real estate investment is the house we currently occupy. In the past, unless we were committed to being a landlord, it was difficult to make other real estate investments. Today, many individuals have the opportunity to invest in real estate holdings through Real Estate Investment Trusts (REITs). Read More
Posted on April 15, 2020
The Importance of Planning Ahead
“Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and most of all self-discipline.” -Thomas J. Stanley-
The importance of planning cannot be overstated. Many successful people have repeatedly attested to the necessity of proper planning. Thomas Edison said, “Good fortune is what happens when opportunity meets with planning.” President Dwight D. Eisenhower said, “Planning is everything.”
Wealth – regardless of how you wish to define it – doesn’t just happen for most of us. Financial security and an enjoyable retirement are typically the result of creating a plan and implementing that plan. The only reason you do not have a plan is because you have neglected to set-aside the time to create one. Read More
Posted on February 12, 2020
Why Investment Policy Statements Matter
“In many spheres of human endeavor, from science to business to education to economic policy, good decisions depend on good measurement.” -Ben Bernanke-
Successful investing, like virtually every endeavor, is grounded in a plan. The plan should clearly address the investor’s risk tolerance, time horizon, and objectives – the designated purpose for the funds. The strategy should also help the investors accurately evaluate investment results using an appropriate benchmark.
A well drafted Investment Policy Statement (IPS) provides both discipline and direction. Investors should not invest in a vacuum; they should only invest once a definitive plan is put in place. As Roman Statement, Lucius Seneca, said, “If one does not know to which port one is sailing, no wind is favorable.”
Posted on January 1, 2020
Global Investing
“Globalization is the process by which markets integrate worldwide.” -Michael Spence-
Today, many investors in the United States are investing globally by default. Many of our largest, blue-child companies are multinationals that have a significant presence around the world. For others, the choice to invest internationally is a much more deliberate one. These individuals often elect to invest globally to broaden diversification and spread investment risk.
Posted on December 3, 2019
Exchange-Traded Funds
“A low-cost fund is the most sensible equity investment for the great majority of investors.” -Warren Buffet-
By now, most investors have heard of Exchange-Traded Funds. Commonly known as ETFs, these low-cost investment options offer trading flexibility, portfolio diversification, and risk management. They can also be remarkably tax efficient. ETFs are now traded on nearly every major asset class, commodity, and currency in the world.
Posted on November 20, 2019
Retirement Income
“Well, today people have to be self-reliant if they want to secure retirement income.” -Scott Cook-
Today, few employees will ever receive a guaranteed pension benefit. Over the last several decades, employers have sought to shift the burden of saving for retirement to the employee. With many Americans now in retirement and many more ready to depart the workforce, the topic of retirement income has never been more important.
Most retirees derive retirement income from several sources, including Social Security, Required Minimum Distributions from IRAs and Qualified Retirement Plans, distributions from Roth IRAs, and taxable investment portfolios. The allocation of these assets is determined by age, risk tolerance, consumption expectations, and desires to leave bequests to family members and charities. Read More
Posted on July 6, 2019
Calamos Chart Talk
“While I take no pleasure in others’ misfortunes, we’ve historically made most of our profits from other investors behaving in a panicked and irrational fashion and selling us certain stocks at prices far below their intrinsic value.” -Whitney Tilson-
Is market volatility really unique? Is it something to be feared? Despite the angst it often causes, market volatility is really quite common. The S&P 500 has experienced a double-digit pullback in a given year 60% of the time since 1975. Interestingly, 60% of the time when the S&P 500 declined by double-digits, it ended the year with a positive return.
Posted on June 8, 2019
Dividend Investing
“A lot of people love Oreos. So their manufacturer is making money. That means more dividends for shareholders.” -Maria Bartiromo-
It is hard to overstate the importance of dividends when developing an investment strategy. Dividend-paying stocks can generate income and grow income, while offering the opportunity for capital appreciation. In addition, dividend-paying stocks may provide better risk-adjusted returns, including lower volatility and offer some downside protection.
