Risk of Outliving Your Assets
In my opinion the risk of outliving your assets is far greater than the risk of loss on your investments — Roger Wohlner (CFP)
Bear Markets Are Temporary
“Bear markets have always been temporary and so have bull markets”
— Sir John Templeton (one of America’s most famous mutual fund managers).
Whatever is happening on the upside is not going to go on forever so don’t invest that way. Similarly, when we have a bear market avoid the trap of thinking it will go on forever.
Downsides of Equity-Index Annuities
Considering equity-indexed annuities? Perhaps think again. Downsides include heavy front-end fees (5%-8%) for the salesperson, an upside cap that is adjustable at the insurance company’s discretion and you generally can’t acess your money for 10 years.
Downside Protection Has Downsides http://online.wsj.comFixed-indexed insurance products, commonly called “equity-indexed annuities,” offer the promise of protection on the downside combined with a guaranteed minimum upside. They racked up a record $8.2 billion in new sales in the second quarter and hit an all-time high of $168 billion in total assets…
Generation Y Investors
Generation Y investors, like Robert White, are far less eager to take on risk, and experts say may be doing themselves a disservice.
The new young investor: Shunning stockshttp://money.cnn.comToday, only 22% of investors under the age of 35 say they’re willing to take on a substantial level of risk, according to the Investment Company Institute. Compare that with 2001, when that same group outpaced every other age bracket.
Warren Buffet on Risk
“Risk comes from not knowing what you’re doing” — Warren Buffet
Don’t invest on a hunch.
Don’t invest based on hope.
Don’t invest based on emotion.
The less emotion in your investment process, the less the risk.
Advice for Gen Y
Advice that financial planners have for members of Gen Y.
Financial Advice for Young Adults & Students | What the Experts Have to Sayhttp://www.genywealth.com/advie-from-financial-plannersThrough their years of experience, they have seen just about every mistake someone has made in their 20′s.The only logical thing to do then, is learn from them.
Are you settling for “suitability”?
What if your financial adviser is not a fiduciary? Other types of advisers, most notably people acting as brokers, must adhere to a lower “suitability standard,” meaning a recommended investment merely must be suitable, rather than “in your best interest.”
Warning Labels for Mutual Funds?
A new warning label for mutual funds? Experts recommend a stronger warning or an outright ban on mutual funds performance ads altogether as an inherent threat to investors’ financial health.
Fund Ads Said to Foster False Impressionhttp://blogs.wsj.com/In their quest to recruit Main Street investors seeking above-market returns, fund companies have long relied on newspaper and magazine ads to showcase portfolio managers’ best work. Difficult as that task seemed a year or two ago, the recent bull market has given these firms new…
Do-It-Yourself Investors
Even smart do-it-yourself investors comfortable with online discount brokerages need an advisor. Read more…
Why even smart do-it-yourself investors need good advice | Wealthy Boomer | Financial Posthttp://opinion.financialpost.com I believe that even smart do-it-yourself investors comfortable with online discount brokerages need an advisor, if only a fee-only financial planner. I’ve written before that even Dan Richards — the…
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