Through the years, we have seen many market downturns. From the bear market of 1987 to the economic crisis of 2008-2009, each one has brought its own fears and concerns. In the same way, many investors have concerns about what’s taking place in the market today. In today’s blog, I’d like to take a look at the current downturn and how it compares to those we’ve seen in the past. Follow along as I explore the market downturn and whether this time is different.
A term you have likely heard tossed around in the financial services world is ‘rebalancing’. Economist John Maynard Keynes said, “The market can remain irrational longer than you can remain solvent.” With this major concern in the background, let’s define rebalancing as the action which brings something back into balance. Read more
Traditionally, financial advisors tell their clients, “Don’t take any more risk than is necessary to achieve your goals.” Following that advice, when you turn 70, 80, or 90-years-old, you should move your money into conservative investments with guaranteed low returns rather than keep your money in riskier investments that could potentially provide higher returns. Essentially, advisors say that it’s more important to protect your money at that age than to double it. Yet, is that always true? Is this conventional wisdom ever flawed? Should you stop making any potentially risky investments when you reach a certain age? Well, you will find the answer to that question by asking another: Are you investing for yourself, or are you investing for your legacy? Read more
If you enjoy roller coasters, then perhaps you’ve enjoyed the last twelve months of the stock market. On the other hand, if you’re like many others, then watching the seesaw of events affect your portfolio could be causing you some sleepless nights. With the 2018 Christmas Eve drop and the after Christmas rebound of the market, now may be a great time to check your risk tolerance. Read more
Recently, one particular client was looking for someone to help them reach their goals before retirement. With a seven-figure portfolio, he has done quite well for himself. But he was now interviewing for help from a few brokers in town, and us. They decided to go with another firm. Read more
Who do you suppose you are to your financial advisor? Chances are you are less a person than a “type”.
Maybe you’re the corporate manager who takes risks. Maybe you’re the single parent struggling to build a college fund. Maybe you’re the middle-aged couple who must take care of ailing parents. Whatever the details, what you are not is a unique individual.
It has been my experience, that many financial advisors rely on a handful of investment models to cover the life circumstances their clients find themselves in. They have created six, or eight, or ten portfolios intended to encompass a broad range of circumstances and personality types, and their job becomes fitting you into one as best they can. Whether they have ten clients or a thousand, each will be fit into one of these models, one way or another.
At Heritage Investors, we refuse to shoehorn our clients into cookie-cutter investor models. It would be a disservice to our clients, and it doesn’t work.
Let’s say you are a married couple living next door to your married friends. You are all in your early to mid–40s, reasonably healthy, working decent jobs, and looking to retire in a couple of decades. Let’s say further that you both go to a financial advisor who drops you into the same “perfect” predetermined investment portfolio.
What happens when your life takes an unexpected turn? Life happens. You or your spouse—or both of you—may fall ill or be forced into long-term unemployment. All of a sudden your retirement 20 years in the future takes a backseat to making ends meet today. Or one of you is diagnosed with a terminal illness, and you realize you probably won’t be around in 20 years. At that point, your focus may be meeting expenses and providing for your survivors.
The point isn’t just for tragedies, either. Your calculations will also change with good fortune. Let’s say you come into an unexpected inheritance or some other windfall. Good for you! While you’re celebrating, though, you should also start thinking about how your new situation has changed your plans for the future.
As CERTIFIED FINANCIAL PLANNERS™, we at Heritage Investors pride ourselves on treating each individual or family situation as unique. That’s the way we like it, and that’s the way our clients like it as well. If you think that, you too, may like this approach, please get in touch.
The word virtual is defined as “being such in essence or effect though not formally recognized or admitted.” Each and every day the world we live in, especially in this rapidly changing digital age, seems to move further and further away from the concrete and closer to the virtual. The recent surge in Bitcoin is, even more, evidence of the movement. If you’re like so many others and ready to jump on the Bitcoin bandwagon, make sure you understand it before you dive right in. Read more
Gambling on purchasing a new washer when you see the latest price drop may make you a winner when it comes to saving money on a new appliance. However, when it comes to investing, that strategy, active trading or day trading, may not be your best option for winning. Some financial advisors can give a great sales pitch on why you should buy and sell securities for short periods of time. Basically, you are buying and selling stocks on a regular basis. The goal is to take advantage of short-term movements in price on investments that are in higher demand. More often than not though, active trading and the perils surrounding it will not increase your bottom line. Read more
If you’re looking for real estate investing tips, you’ve come to the right place. I have personally owned investment real estate for years. With that comes the good, the bad and the ugly and I’m not talking about the movie. If you’re like me, learning more real estate investing tips is a must so you can be a better investor. So before you launch into the world of real estate investing, here are a few items you’ll want to consider. Read more