AdviceIQ Articles

  • The Market: Exaggerated Woes

    What’s odd about this stock rally is how it over-reacts to events, such as turmoil overseas, that show little ability to harm the U.S. economy – which after all is what American equity values are mostly based on.

    Consider the latest market buffeting. In September, the Dow Jones Industrial Average lost 0.31%, the Standard & Poor’s 500 fell 1.58%, and the Nasdaq dropped 2.15%.

    Then on Oct. 1, the markets really got hammered. The Dow slid 1.4%, the S&P 500 1.32% and the Nasdaq 1.59%.

  • Retiring, Your Lifestyle Intact

    No matter what tools we use to calculate the numbers, we financial advisors always come to a plain and simple truth: Some clients are well-positioned for retirement and others are not. Which are you? What advice do you need?

  • Investing? Know Your Goals

    You know you need to put money away. You might want to save for retirement or for your child’s education or just need a rainy-day fund for emergencies. Whatever your target, know that different financial goals require different strategies.

    I hate it when a client says, “I have X amount of dollars to invest” and yet won’t tell me anything about his or her goals. I can’t give you a good answer unless I can understand what you’re trying to accomplish with money.

  • Lagging Small-Caps: Bad Sign

    The stock market rally of 2014 is not uniform. Turns out that not all stocks are created equal. Small–cap stocks are negative this year, at odds with their historical tendency to do well in an economic expansion. That sounds a cautionary note for investors.

  • Top Mistakes Investors Make

    Investors are human and they make lots of mistakes. A panel at National Financial Advisors Week spotlighted some of these errors and had some good tips on how to avoid them.

    When the stock market goes south is when a lot of mistakes occur. “History shows we are overdue for a correction,” noted David Callaway, editor-in chief of USA Today and the panel’s moderator.

  • How’s Your Emergency Fund?

    Financial planners commonly recommend you keep an easily accessible emergency fund for unexpected expenses. Too bad few people do it. Take steps now to avoid being caught short of money.

    More than a third (34%) of 2,000 adults recently had an unexpected event such as a medical problem or a home-related expense that set them back financially, according to a national survey by Pew Research.

  • Acrophobia at Market Highs

    Despite a small slide in September and recent days' whipsawing, U.S. stocks remain near their all-time high. Should you worry that this bull market is ending? No. Such records are meaningless. Moreover, there’s a leeriness in the air – call it acrophobia, or fear of market heights – which usually is the opposite of a signal that a rally is doomed.

  • Invest in Private Companies?

    Should you invest in non-public companies? A lot of people are doing that, via privately issued equities and debt instruments; hedge funds, venture capital funds and limited partnerships are also popular non-public companies.

    This trend includes a broad swath of industries, just not tech companies. Banking is the largest in dollar terms. An advisor presentation on private investing, as part of National Financial Advisor Week, noted that this arena is an increasingly popular and profitable one.

  • More Than an Advisor

    Great advisors not only help you with complex financial decisions, but they are your friends who support you for decades. My former business partner and mentor, George Chell, is a shining example.

    I was in a cab, returning to our ship after a day of touring Belfast, Ireland, when I received a text from my father: “George passed away this morning.” He was 92.

    I last saw George this past October, when he drove to my office, and we went to lunch. We ended our lunch the way we always did for the past 33 years, playing Liar’s Poker to see who would pay the tab.

  • Boost Stocks as You Age?

    The standard investment advice is to decrease your portfolio’s stock allocation as you get older, because equities are riskier than bonds and cash – and you don’t want a bear market to devour your retirement nest egg when you need it. But now, there’s research showing that it is safer if you increase your stock exposure.

    Trouble is, this approach doesn’t give you any better results, according to my analysis.

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