A few tips when investing… at least it’s food for thought.

Investing

Why it is important to know if you are working with a fiduciary…
There is a major difference between the term “registered representative” and “advisor.” Most of the public is unaware of these disparities. Basic information pertaining to the Securities and Exchange Acts of 1933 and 1934 compared to the Investment Advisors Act of 1940 and the simple differences between the two helps consumers make informed decisions when working with a financial professional.

What is risk and how does it apply to my specific circumstances…
Risk is not one dimensional. It lurks in every area of investing. Having basic knowledge of the risk/reward tradeoffs, as well as how eliminating one risk can open you to another, helps investors make informed decisions.

Why fees and other cost matter…
If anything in the financial services industry lacks transparency it is fees and expenses. Most consumers have no idea of costs in real dollars. Showing investors how to identify fees and costs can save thousands and even hundreds of thousands depending on their assets.

Why is asset allocation so important…
Academic studies demonstrate asset allocation plays a dominant role in long-term overall performance of investment portfolios. Equipping investors with a basic understanding of this importance will help navigate unpredictable markets.

Why tax efficiencies inside a portfolio matter…
If fees and cost are a peril to wealth accumulation, inefficient portfolio construction, as it relates to taxes, is another. By helping consumers understand basic principles using tax efficiencies, unintended tax burdens can be minimized.

Do mutual fund rating services really tell the whole story…
We see several consumers chasing stars and letters in hopes of achieving higher than average returns. An unknown fallacy with this practice is found in the disparity between rating services for the same fund. In addition, historical evidence suggests rating services provide no lasting benefit.

What does history tell us about investing…
A view from a historical perspective can help investors understand long-term trends. This insight can help formulate decisions for the future. While history in no way predicts future performance it will help define expectations.

Just because an investment product is popular does not make it right…
Many products and programs advertize to consumers how principal might be protected through guarantees, or how to beat the market, etc., etc. Consumers unwittingly make decisions based on “sales talk” and later find several unintended repercussions accompany those choices. In certain sectors of the financial services industry incentives for sales drive a salesperson’s behavior, not the client’s needs. It is advantageous for consumers to become equipped with basic knowledge to combat poor communication from the industry.