Tagged with Investing

ASSUMPTIONS MATTER

ASSUMPTIONS MATTER

One of the key things a financial planner does is make sure a client is using appropriate assumptions given the current environment.  We use sophisticated planning software to predict the probability of a client achieving their goals.  These applications go a long way in projecting all the possible outcomes, but the models are only as … Continue reading

WHEN DOES A 4% RATE OF RETURN EQUAL 1.5%?

WHEN DOES A 4% RATE OF RETURN EQUAL 1.5%?

The answer is when you are in retirement.  I talk to lots of people who are entering retirement and the one thing I try to stress is that it is a different ballgame and requires different strategies for managing your wealth.  The objective typically changes from one of growing your money to one of preserving … Continue reading

YOU ARE HARDWIRED TO MAKE BAD FINANCIAL DECISIONS

YOU ARE HARDWIRED TO MAKE BAD FINANCIAL DECISIONS

Given my perception that the stock market is approaching overvaluation, I thought it would be a good time to review some of the weaknesses that we as humans struggle with when making financial decisions.  Sociologists and psychologists have studied human behavior in financial markets and have come up with some interesting conclusions. When it comes … Continue reading

EVERYONE NEEDS AN ADVISOR

EVERYONE NEEDS AN ADVISOR

This article will be somewhat biased given the fact that I am a financial advisor.  Having said that, I truly believe if you can find a competent and trustworthy financial advisor, they can be worth their weight in gold. Many people mistake investment planning for financial planning. Investment planning is just one component of overall … Continue reading

THE COST OF WAITING

THE COST OF WAITING

In today’s busy world, people often are reacting to things that are urgent but not necessarily vital.  One of those vital areas is retirement planning.  We meet people every day that are within 5 years of retirement and still putting off planning.  I believe they do this because they think there is very little to … Continue reading

THE TAX DRAIN

THE TAX DRAIN

I wanted to officially congratulate everyone for making it through another tax season.  We are now in financial freedom territory.  This means you get to keep what you earn versus it going to the government.  If you live in California, “Tax Freedom Day” was April 27th.  That means up until April, 27th, all your earnings … Continue reading

TENNIS, DR. LAURA, AND…INVESTING

TENNIS, DR. LAURA, AND…INVESTING

As many of you already know, I am an avid tennis player and play almost every day.  I just returned from the Indian Wells BNP Paribas Open, one of the premier tennis events in the world. I was able to see some of the best tennis players in the world compete. Sitting there, I couldn’t … Continue reading

AVOID THE NOISE

AVOID THE NOISE

One of the biggest mistakes investors make is to get caught up in the day-to-day news and the plethora of economic data they are bombarded with through the media network.  This causes investors to be increasingly focused on short-term performance.  In my opinion, this is to their detriment.  The more frequently one checks their investment performance, … Continue reading