August 2010 - NorthStar Capital Advisors

Life Insurance Declining

One-third of U.S. households have no life-insurance coverage. This is the highest percentage lacking coverage in over 40 years. [source: Wall Street Journal, 08/30/10]

Life Insurance

Not Participating in the Stock Market?

If you’re in your 30s and you decide you’re not going to be in the stock market, how does that influence your savings? According to Mark Miller, author of The Hard Times Guide to Retirement Security, this is really going to hurt your chances of achieving a secure retirement down the road.

Bond Risks

A reminder that the bond market, thought by many as a safe haven during volatile markets, carries plenty of its own risks.

Be Aware of the Current Risk in Bonds - Seeking Alpha

Be Aware of the Current Risk in Bondshttp://seekingalpha.com/Money continues to pour into bonds at a ferocious pace, with investors confident they are a safe and conservative holding in the midst of all the economic and stock market uncertainty.

Better Long-Term Portfolio Performance

Studies have shown that investors who use a financial advisor experience better long-term portfolio performance because they are more likely to adhere to their strategy and thus reach defined investment goals.

Rate Your 401(k) Plan

Fees are one thing that you definitely can and should control in your investment portfolios. 401(k) plans are notorious for making it difficult to figure out how much you’re paying in fees. BrightScope offers a free tool that shines a light on this dark area. Try it out and be a better informed investor.

BrightScope | 401k Plan Ratingshttp://www.brightscope.com/BrightScope quantitatively rates 401k plans and gives participants, plan sponsors, asset managers, and advisors tools to make their plans better.

“Wolf” Market?

Bull market? bear market? How about a WOLF? A wolf market is characterized by a tight trading range, increase volatility, high stock correlations and quick reversals. We’ve been in a wolf market since April or earlier.

Real-Estate Investing

Real-Estate Investing: the best and worst markets for single-family real-estate investment properties.

Real-Estate Investing: the Best and Worst Marketshttp://online.wsj.comLooking to snap up some investment properties on the cheap? You may want to consider Durham, N.C., Indianapolis and Huntsville, Ala. They are among the best places to invest now, according to a new report that ranks the best and worst markets for conservative residential-real-estate investors.…

Raiding Your 401(k)? Think Twice…

Think twice before raiding your 401(k) for a loan. You pay taxes on the withdrawl at your personal income tax rate and you may be subject to a 10% penalty. You miss out on potential market gains on the amount you cashed out. Double taxation — you repay the loan with after-tax dollars and you’ll be taxed again at distribution. Finally, if you change jobs, you usually have to repay the loan immediately.

Investor Life Cycle ~ Net Worth

It’s interesting to think about how your net worth changes over your life time. This chart does a great job illustrating the typical trajectory

Investor Life Cycle

Perils of Emotional Investing

“So many people get scared when everyone says the sky is falling. They get out of equities and into bonds when it’s exactly the wrong time to do it. When everything is sky high and everyone is optimistic, they then plow back into equities. Their emotions do the wrong thing. “
— Dr. Burton Malkiel (author of A Random Walk Down Wall Street)