Don’t put all your eggs in one basket. If you’ve been researching investments for any length of time, you’ve probably heard that admonition. You might also have heard – “there is no free lunch – except diversification. That quote is attributed to economist Harry Markowitz, who won a Nobel peace price for his work on something called Modern Portfolio Theory. In other words, this idea of diversification is highly revered, even among the higher echelon of investment advisors and economists….
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The Only Annuity Strategy I Would Ever Use
I do not love annuities. I don’t even like them. I’ve never recommended them to clients, and I highly doubt that would ever change. It’s still not even going to change today. That said, there is one strategy where I think it makes sense for some people. Before we get into the strategy, let’s briefly discuss the two annuities I really don’t like, and then we’ll talk about the one I dislike the least. First is the Deferred Annuity. A…
Your Credit Score Is Overrated. Focus On This Instead
We hear so much commentary about our credit scores. Hacks to get a perfect credit score. Why your credit score is oh so important. Why your credit score will make you a happier person. After a while, it’s easy to fall into the hype and start obsessing over your credit score. But there is one glaring problem with all this focus on your credit score: HAVING A GOOD CREDIT SCORE DOESN’T MEAN THAT YOU’RE FINANCIALLY SUCCESSFUL. Just imagine someone who makes a good…
Why I Don’t Budget And What To Do Instead
It might be odd to hear that a Financial Advisor doesn’t budget. Kind of like hearing that the butcher doesn’t eat meat. It makes you pause for a second. Do they really believe what they say? Do they eat their own cooking? And it’s true, I don’t budget. At least not in the traditional sense of the term. I used to have complex spreadsheets in Excel that tracked everything that I spent. And I looked at it every month to…
Planning For Your Passing
Now we all know the reality, none of us are getting out of this alive. But despite people knowing that intuitively, there’s still a lot of procrastination around this type of planning. Depending on where you look, only 30 to 40% of people don’t have an estate plan in place. And while there are no statistics on this because it’d be impossible to determine, I can tell you from first hand experience as a financial advisor who talks to other…
Beware of the Financial “Expert”
We all search for people to learn from that we hope to eventually know, like, and trust. Especially when it comes to the complex financial world we live in. Instead of trying to figure it all out ourselves, it makes all the sense in the world to seek out experts who can help us understand the financial world around us. As a result, many of us develop an affinity to these so called financial experts. They are people we’ll never…
What Happens When You Mix Politics And Investing
Hello everybody welcome back to the blog. I am excited to be back and owe you all a big apology for going dark for 8 whole months! It was a nice break and I’m hoping that going forward I will do at least 2 blogs a month. Now let’s just into today’s blog, about what happens when you mix politics and investing. For some background, I have been a financial advisor since 2015, right before Donald Trump announced his run…
What’s Going On With Inflation, The Federal Reserve, and The Stock Market? And What Should I Do Next?
So far in 2022, we have experienced a wild ride in the stock market. We started the year by going down 20% or so over 6 months, then we recovered half of those gains in the next 6 weeks or so, only for the market to fall back down below it’s previous lows. As of this post being published, the S&P 500 is down around 21%. So what in the world is going on? In today’s post, I am going…
Should You Put 1% Of Your Money Into Crypto? Ric Edelman Says Yes. I’m Not So Sure.
Unless you have been living under a rock for the last few years, you have heard about the most recent craze to make money, cryptocurrency. Now there are tons of people talking about cryptocurrency, and like everything in life, be careful on whose advice you take. There are just starting to be a number of prosecutions of insider trading in the crypto space, and my guess is we’re going to see a lot more in the months ahead. With something…
3 Reasons Why I Disagree With Warren Buffett’s Investment Advice
One of my favorite people to learn, inside the financial world and even outside of it, is Warren Buffett. I have been a big fan of his for a long time, and even went to his annual conference with my Dad in 2017. And I tend to agree with him most of the time. But he offers some investment advice on a regular basis that I can’t quite get behind. Now if you don’t know, Warren has a company called…