Home / Archive by category "Wealth Management"

Wealth Management

Why You Need To Be Careful With Bond Funds

Not all investors understand the inverse relationship that exits between bonds and interest rates; the fact is when interest rates rise, bond values go down.  To understand this concept let’s break this down to see how a bond works.  Bonds have a stated maturity and a stated interest rate that they declare when they are issued.  The most common types of bonds today are government and co...
Read More

The Math of Gains and Losses

  Here’s an interesting part of investing that most investors get wrong. In fact, if most investors understood this they probably would fire their broker. It has to do with how much it takes in percentage terms for a portfolio to recoup losses after a market correction. So let’s look at this.  If you claim to be a conservative investor, and can handle a 10% loss, then I would agree ...
Read More

Order of Returns Risks Within an Income Portfolio

One of the elements that greatly magnifies the withdrawal risk is the Order of Returns Principle. When your portfolio has losing years it can affect its ability to last through life expectancy more than anything else. The graphs below illustrate this. What’s interesting to note about this graph is that both portfolios earned 8.03% and both Ron and Barb withdrew the same percentage for incom...
Read More

How Much of Your Retirement Savings Can You Afford to Lose?

  Of course when most people answer this question they will usually say, “I can’t afford to lose any of it!” So, with a retirement portfolio that has exposure to the stock market in the form of individual stocks or stock mutual funds, let’s first define a loss.  The easiest way would be when you receive your next month’s statement and you see that your portfolio value has dropped from...
Read More

Relative VS. Absolute Return Investing

Relative return strategies measure performance relative to the movement of an unmanaged index of securities,  the S&P 500, the Russell 2000, etc... In the world of relative returns, you “succeed” if you meet or beat your benchmark index; you “fail” if you trail your benchmark index. The consequences of failure – i.e., being fired – are quite drastic. To avoid that fate, a relative return mana...
Read More

5 Reasons Why You Need An Estate Plan

   You Need An Estate Plan. Here's why... Avoiding Probate. We have all heard that this is something to avoid, but what are the problems with probate?  The main ones are the unnecessary costs, and the potential time delays that can tie up assets.   The good news is with good planning it can be easily avoided. Determining Beneficiaries. Without an estate plan, your assets will often...
Read More

Benefits of Using A Revocable Trust

A Revocable Living Trust also known as a Grantor Trust, is commonly used in the estate planning process and has a number of benefits over a will. Avoids Probate. The probate process can be very expensive, often with a cost of 1 to 3% of the estate value.  Also time delays can be between 6 months to over a year in some cases before the assets are finally distributed.  In some cases if the ...
Read More
Top