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Have You Been Burned By Wall Street?
Tweet Share on Facebook September 30, 2010 CommentDuring his summer break from college, my son tried to sell me on the merits of the popular television series Burn Notice. In this TV drama, Jeffrey Donovan plays Michael Westen, a former covert operative who unjustly receives a "burn notice"—an espionage-style termination that results in the immediate eradication of his assets and influence, leaving him isolated and alone.
The finance industry has a similar practice. I call it the burned notice. The courts call it a Notice of Pendency of Class Actions. Ironically, within days of my son's eloquent appeal for the TV drama, I received yet again a burned notice, this time from the United States District Court of Maryland. The notice came courtesy of the fine work of Strong Mutual Funds and my former investment advisors.
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How to Tell if Your Broker is Looking Out for Your Best Interest
Tweet Share on Facebook September 29, 2010 CommentIs your broker looking out for your best interest? A recent study by data and marketing company Infogroup found that three quarters of respondents believe their broker is required to put their clients' interests first. Unfortunately, that is not the case. Most advisors are not required to adhere to that prerequisite at all.
There are actually two paths an advisor can take when entering the industry: become a commissioned broker and simply follow a "suitability" standard for clients. Or he or she can study, take another exam, be permitted to charge a fee, and have a "fiduciary" responsibility for the advice they give. Let's examine each path.
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5 Things Your Broker Won't Tell You
Tweet Share on Facebook September 28, 2010 CommentYou might have an investment advisor or broker who has established a plan that will put you on the right track to meet your goals. Still, you should be aware of some important factors that could affect your financial plan. For those of you searching for an advisor or broker now, these points are key to understanding how their business works and how they can affect your money.
1. Each time your broker or financial advisor sells you investments from XYZ Co., it may pay him or her a commission for using its products.
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When Investors Fail, This Is a Reason Why…
Tweet Share on Facebook September 24, 2010 CommentIt seems obvious, but one way your financial plan or investment strategy will fail is if you buy high and sell low. Simple enough, right? With interest rates at an historical low, it makes you wonder why billions of dollars are flowing out of equity portfolios and into bond portfolios.
To most investors, bonds provide a sense of safety and stability. The problem is that they are subject to market and interest-rate risk. This means that the market prices of bonds do change, a fact that almost anyone who has owned them over the past 12 to 18 months can happily tell you.
[See top-rated mutual funds by category ranked by U.S. News Score.]
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Use ETFs To Measure Your Mutual Funds
Tweet Share on Facebook September 23, 2010 Comment"Once I had fame, oh I was full of pride, had lots of friends, always here right by my side, well my fame oh it died, now my friends all try to hide, everybody loves a winner … but when you lose, you lose alone." — William Bell, "Everybody Loves A Winner"
In all highly competitive pursuits in which every aspect of performance is carefully measured and the statistics are clear and understandable, the winners and losers are easily identified. In sports, we know exactly why the top players are paid their salaries—because they put up the numbers, be it RBIs or assists. In music, top-grossing bands play the amphitheaters while the others play the local nightclubs. And, like the old song says, when your numbers fade, so does fame and fortune—with one big exception.
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The 3 Most Important Retirement Questions
Tweet Share on Facebook September 22, 2010 CommentIf you've started thinking about retirement and you don't know where to begin planning, you aren't alone. These days, many Americans are uncertain about their financial future as a result of false impressions or a lack of confidence. Planning mistakes have been made, family financial obligations are demanding, and mortgages are draining. So where do you begin?
To start, consider the following three questions. Your answers will help you get on track to creating a "plan of a lifetime."
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