You've made the decision to whip your financial life into shape and work with a wealth advisor to achieve your goals. Now all you need to do is find a trustworthy advisor who has your best interest at heart. Read on for the four questions to ask before hiring a financial advisor.Read More
Timing the market is not a smart strategy for the average investor. Read on to find out why and also learn about three alternative approaches to investing which will hopefully prevent you from pulling your money out of the market in a panic - which is never a good idea.Read More
We often use this analogy to explain market movements. The stock market is like a massive truck engine block suspended in the air by thousands of piano wires, swaying gently in the breeze.
There’s an elf standing on the block with cutters snipping wires, sometime on this side, sometimes on that side.
As the support shifts, the engine block may twist or swing. Imbalances may build up and reach a catastrophic tipping point. The block jerks suddenly, wires break en masse, the engine rolls violently, tossing the elf off on his ass.
Eventually the oscillations settle down, a new equilibrium is achieved, the elf climbs back on and starts snipping wires again.
An observer standing at the side knows that the longer the elf snips, the more likely a violent adjustment. But the observer never know exactly which severed wire will exceed the tipping point.Read More
This year, we brought on board quite a number of new families, but we've only invested 1/3 to 1/2 of their cash. Why? Because this sharp sell-off, 6% in the major stock market averages over the past 6 days, is exactly what we anticipate when stocks have had a good, long run and valuations are stretched to the high side.Read More
If you have a college bound high school senior in the house, here are some useful tips you should know about filling out the FAFSA form. The application for the 2019-2020 school year is now available as of October 1st. You can also use this estimating tool to get a sense of options without filling out the complete form.Read More
I am 27 years old, single, have no kids, and my student loans are being repaid due to my military service. My only expenses are rent and a small number of bills. I have spent the last year saving and reading financial literature and I want to start investing now. What is the most simple and effective way to do so? Ideally I would like something I put a set amount into each month and it grows over time.Read More
Question: There's a lot of buzz about the next recession. Who knows when it will come, but it will. What smart strategies can I employ now in preparation for a downturn in an economy? What to do, what not to do?Read More
A common emotion among inheritors is reluctance to change the investment strategy of an inherited portfolio. “If those stocks were good enough for Dad, they’re good enough for me!” In fact, the moment of inheritance is a perfect moment to start over.Read More
25 years ago I was in the process of forming a wealth advisory business. The usual naming convention would dictate “David Edwards & Associates” – boring! Then I considered “Quantitative Investment Strategies, Inc.” boring, and a little scary. After that, I thought about “Bull & Bear,” “Tigers,” “Eagles” etc., but there were many other financial firms using those names already.Read More
Question: My spouse and I will be inheriting about $750,000 to $800,000. The payoff balance of our mortgage is estimated at about $180,000 at 3.5 percent APR for 30 years. Would it be worthwhile to allocate some of the money we are inheriting to pay off the mortgage loan? We still have 27 years left to pay. Alternatively, should I invest the money and continue paying my mortgage?Read More
We often talk about stock market indicators in terms of green light, yellow light and red light. Are earnings forecasts green, yellow or red? Are bond yield trends green, yellow or red? Are government policies green, yellow or red?Read More
Question: I have about $93,000 invested in non-retirement mutual funds. I have been considering trying to time the market by selling these funds when I sense a bear market approaching (incurring a $1,700 capital loss) and then buying the same funds at a cheaper price once the bear market has arrived. I have no debt and an emergency fund. Is this a good strategy, or too risky?Read More
Question: To find the price-earnings ratio of a stock, I divide the current stock price with the last four quarters of earnings. If the current list price is higher than the number I get when I calculate the P/E ratio, what does that mean? Is the stock overvalued?Read More
Question: My mother passed away a few weeks ago. She left five heirs who want to assure that their inheritance is not going to be subject to market risk before it is distributed. I told her advisor to liquidate most of her portfolio but he said the brokerage firm has frozen the account. What can be done?Read More