I’ve been thinking a lot lately about the types of investments that offer the best risk adjusted returns in this environment. One of the toughest things to evaluate today, and perhaps the most important when investing in stocks, is the sustainability of a company’s business model, cash flows and profits. Technology continues to change things…
Adapting Portfolio Construction – 2 Updates
I’ve been thinking a lot lately about portfolio construction, especially for retirees, in these computer-algorithm dominated investment markets which swing wildly every time someone from the Fed speaks. Markets today are unbelievably short-term focused and my clients aren’t paying me to day-trade their retirement portfolios. This means that portfolios which are built with a long-term…
Why I Like Risk, Volatility and a Falling Stock Market
I know the posts this week weren’t the most upbeat, but hey, I’m not CNBC. My job is to be a fiduciary on behalf of my clients which means I need to be realistic. I understand that it’s more enjoyable to read about exciting, new investment opportunities so I try to limit the doom and gloom.…
Retirement Income Series, Part 3: Selling Options for Income
This post is going to talk about perhaps my favorite source of investment income. It’s something that very few people take advantage of because it can be a little confusing to learn but is ultimately well worth the time. I will go as far as to say that it is probably the most misunderstood and…
The Difference between Individual Bonds & Bond Funds
I received a question after my last post regarding bonds and just to clarify, I was referring to owning individual bonds. The person that asked the question, like many investors, has exposure to bonds in his portfolio via bond funds which can be a mutual fund, exchange traded fund (ETF) or closed-end fund, so I…
Retirement Planning, Part 3: Retirement Income from Bond Interest & Dividends
I spoke with a client earlier this week who called to make sure he’s doing everything needed to retire on time. He was recently surprised to hear that a family member who retired a few years ago needed to go back to work. My client wanted to make sure he’s on track and saving enough…
Retirement Planning, Part 3: Income Strategies: Annuities
A very common question I receive is “what’s your opinion of annuities?” The person is always looking for either a “yes, they’re good” or “no, don’t use them” type of answer but in financial planning general advice is always bad advice. My response is always “they’re a way to generate guaranteed income.” Then the person…
Retirement Planning – Part 2: Planning & Transition
A wise man once told me “if you don’t know where you’re going then you’re lost.” I think this statement just about sums up retirement planning for most people. Now there’s certainly something to be said about not having responsibilities to tie you down each day in retirement but the basis of building a solid…