Diversifying Your Portfolio, Even in "Good Times"
April 21st 2011The economy performed solidly in the first quarter and early quarterly earnings results have been better-than-expected. Even in more optimistic times such as these, however, it's critical to make sure that your portfolio has a clear investment strategy and is adequately diversified. Individual investors may also want to take a closer look at alternative assets to protect the downside during times of extreme volatility.
Understanding Your Portfolio's Exposure to Japan
March 22nd 2011It's undeniable that the events unfolding in Japan in the aftermath of the recent earthquake and tsunami are a tragedy affecting millions of people. It is less clear what economic impact will be. Some think rebuilding efforts could start a long-awaited expansion of the Japanese economy. In the meantime, individual investors should check their international stock and bond holdings to better understand their exposure to Japan.
Putting the Fiduciary Back Into Financial Reform
January 4th 2011Many financial advisory firms promote "client based" services, a misleading term that attempts to appeal to investors, when in reality the firms are acting in the clients' best interests one minute and in their own the next. That's why it's so important for the SEC to use its authority to place broker-dealers who provide investment advice under a fiduciary standard of care.
A Tax Plan for Uncertain Times
November 30th 2010As the New Year approaches, it's more important than ever to monitor the debate over federal tax policy, be proactive in developing tax and investment strategies that are suited for today's changing tax environment, and work with professional advisors to ensure you don't pay more taxes than you should.
Does Investing in Bonds Still Make Sense?
September 7th 2010Over the last 18 months, investors turned to bond mutual funds to net higher yields -- pumping nearly $400 billion into bond funds in 2009 and another $112 million through May 5, 2010. The question is, how long will this bond-friendly, low-interest-rate environment last?
New "Hybrid" Policies Combine Long-Term Care and Life Insurance -- Tax Free
August 5th 2010New "hybrid" long-term care insurance policies offer the benefits normally associated with an annuity or life insurance, plus protection against long-term care expenses. Even better: Funds distributed from these policies are now tax-free.
2000-2009: The Lost Decade … Or Was It?
July 2nd 2010The S&P 500 posted its first negative "named" decade ever from 2000 to 2009. That means, if you invested $1 in the S&P 500 at the beginning of '00, you would have had 91 cents at the end of '09. So, were the 2000s the "lost decade" for investors? Not for all -- investors who maintained diversified portfolios actually fared much better.
No One Has Tomorrow's Newspaper
June 9th 2010After the stock market's strong end to 2009, and its initial gains earlier this year, fear and uncertainty is gripping investors once again. As usual, many are turning to financial experts for insight on when the carnage might end. But as Tom shows, these forecasts often turn out to be dead wrong.
The Wall Street Crisis and the Fiduciary Standard
April 29th 2010During FCIC testimony, Goldman Sachs CEO Lloyd Blankfein, responding to questions of whether betting against securities it was selling to investors was a conflict of interest, said that Goldman had no legal obligation to disclose its bets. "We are not a fiduciary," he said.
2009 Closes Decade Unique to Annals of Investing
February 8th 2010If there can be one financial lesson drawn from 2009, it is to maintain a well-diversified portfolio with different asset classes with low correlations to one another. This ensures you are not dependent on any single asset class to achieve your investment goals.
Federal Estate Tax Law to Change
November 25th 2009The larger and more complicated the estate, the greater the challenge in developing an encompassing plan to maximize the transfer of wealth to heirs. So, over the next few months, keep an eye on what Congress is doing with regard to federal estate tax law.
The 2010 Roth IRA Conversion Opportunity
October 8th 2009Though the IRS instituted income limits that prevented wealthy earners from making Roth contributions and converting existing IRAs to Roths, changes in 2010 allow any taxpayer to convert exiting tax-deffered accounts into Roth IRAs, regardless of income.