Stock Indexes…History and Use

“What is the Russell 2000 Value?” he asked. He is a prospective client, large and 40-something, graying substantially around the edges, and a small-business owner twirling enough plates in the air that he could likely stand in at Cirque de Soleil; he’s a busy guy. He was reading over an investment policy statement that I had prepared, a document that outlined how I would manage his investments. The Russell 2000 Value is an index that I planned on using to benchmark my performance.

As he asked the question, I realized that many of us really do not know what an index is, how they are constructed or work and how they are useful or beneficial.

So, what is an index?

What Is A Fee-Only Financial Advisor?

The other day, I was listening to a radio call-in show on money/ finance. A woman called into the show for a little advice; she said she was 85 and had around $250,000 that she wanted to give or save for her son. She said that she was unlikely to ever need the money, and wanted him to get it. She said that she had talked to 3 “advisors”…all wanted her to buy an annuity with this money…

It makes me burning mad to hear about the uninformed being taken advantage of, being preyed upon, by  so-called financial “advisors” foisting unsuitable advice, peddling insurance products in the guise of “helping”.

A report last year from the Securities and Exchange Commission stated that 76% of Main Street investors did not know the difference between a stock broker/ dealer and a Registered Investment Advisor, or RIA.[1] Add into this mix insurance salespersons in the clothes of a  financial advisor, and real confusion sets in.

Many RIAs are fee-only, and people from all across this land are slowly but surely discovering and moving to fee-only planners and advisors. Why??

Lizard Brains in a Silicon Age

Over dinner and drinks a couple weeks ago, a good friend of mine and I were able to make remarkable progress on solving our country’s most pressing problems: health care, Iran, Afghanistan, the economy, Ted Kennedy’s senate seat… Once we settled with the bigger picture, we moved on to more mundane and personal quandaries. I remarked that I had become convinced that human beings are not good at all when it comes to picking a mate and managing money. My friend told me that he had always done an excellent job with his money…until he got married.

Five Clear Steps For Those In or Nearing Retirement

Boy, there’s plenty of advice and opinions on this topic. Almost every money magazine has an article or two concerning retirement strategies. Earlier this year I outlined five ideas for young people to consider; now, here’s five ideas on retirement…first, get an adult beverage…

Women Are So Much Better At Estate Planning Than Men!!

Life is uncertain, and sometimes the unexpected occurs. Estate and incapacitation planning is a little like the step-child of financial planning…generally it is not too popular a topic. But it is absolutely essential to everyone’s life; we are all going to die at some time, and too many of us will become incapacitated just when life is most interesting.

Let’s look at Dan for a moment…

The Bucket List

Well, it’s been quite a spring and summer up to now; a few unexpected developments and surprises. But, certainly that is life…so often you just can’t see all that is coming around the next corner.

The best part of my summer so far was a trip to Italy and France with my son.

Do You Need Alternative Investments?

In a word, maybe…

There has been a lot of talk lately about alternative investments. What is an alternative investment and how do they help?

5 Clear Steps For Young People To Begin Building Wealth

There’s countless advice on the web and in the media on just what steps to take to achieve your financial objectives; some of it is good and some of it stinks and will cause great harm. Here’s my two cents of pretty reliable advice aimed mostly at younger folks wanting to get started on a sound path to financial well-being:

A Brief Income Tax Primer

The majority of taxes collected by the U. S. Federal Government are from levies upon income earned by individuals. All income will eventually be classified as either “ordinary” or “capital”.

The Art of Practice

I remember when I was a younger and getting interested in girls, how nervous I would become at the prospect of picking up the telephone to call one I was interested in. My stomach would get queasy, my skin would get clammy, I would become interested all of a sudden in doing my chores….anything but picking up that telephone and dialing her number….