AdviceIQ Articles

  • Passive Investing, Actively

    Index funds, which track the entire market or portions of it, do best for investors over time. These funds are called passively managed, because their components get selected automatically, according to index movements. But you shouldn’t be passive about managing them. You must be very active.

    A fundamental principle I preach is that having a core of passively managed mutual funds is the foundation of successful long-term wealth building. I practice that principle, as well: About 75% of the securities in my personal portfolio are passively selected.

  • Rate Increases: Good News

    Higher rates are almost certainly good news for the vast majority of fixed-income investors. That flies in the face of what you often hear: Increased rates spell bond price drops.

    The usual advice to investors is that they should ignore rate fluctuations and hold onto a bond until maturity, when they get back their full principal. But there’s a little-known corollary: If your investment horizon – how long you want to stay with a security – exceeds the maturity of the bond you hold, you are generally better off if rates go up.

  • Advisors’ Plight: Risk vs. Safety

    It’s a paradox, but an understandable one: Investors are especially leery of risk after the 2008 market bloodbath, yet still need returns to fund their retirements and things like their kids’ educations. Taking risk is the only way to get those returns. So financial advisors are walking a fine line in allocating client assets.

  • Know Flying’s Real Costs

    Boarding pass in your pocket, shoes on again after security screening and wheeled suitcase humming at your heels, you even find a seat near the gate. Now you have a moment to add up what this flight really costs you, and here are some sneaky fees.

  • Leaving Money on the Table?

    We all lose money unnecessarily. Do you know when and how? Here are hints and pointers to avoid wasting cash.

    Company benefits. Open enrollment looms for 2013 and you must know how to maximize your company benefits.

    Does your employer offer a 401(k) match? If they do, take advantage: They give you money. This added perk comes along with your salary and helps put some extra dollars toward your retirement.

  • Retirement Budget Dilemma

    People budgeting for retirement are in for a shock. What they will need is often more than they think. Higher-than-expected inflation and psychological barriers to cutting spending are the main culprits.

  • Why to Automate Finances

    The easiest way to ensure your financial success is automate your finances. Simple to say, not so simple to do. Here’s how to start.

    Automating finances means setting up computerized systems to take deposits, payments, investments and other transactions out of your hands – or at least out of your day-to-day thoughts.

  • How to Boost Social Security

    You likely know that increasing your income over time makes a difference in your eventual Social Security retirement benefits. But how much of a difference? This is complicated, but let’s explain it.

    Much depends on your current income and how many years remain before you begin receiving benefits. Social Security calculates your benefits using your:

  • ETF Price Wars: A Good Thing?

    The ETF price wars are heating up. This is good for investors in that it acts to keep fees down for exchange-traded funds. But simply because an ETF has a very low cost is not a sufficient reason for you to buy it.

    Fidelity late last month fired the latest salvo in the ongoing price wars with the introduction of a number low cost sector ETFs. Charles Schwab, TD Ameritrade, Blackrock, Vanguard and others also participate in this price war in one form or another over the past couple of years.

  • What’s Your Advisor’s Value?

    A recent article in Financial Planning magazine, “Calculating an Advisor’s Value,” details the components of planning decisions that help you pinpoint the value of your financial advisor.

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