DeYoe Wealth Management

2013

 

The Job Growth Conundrum

December 06, 2013 - Morningstar - The Job Growth Conundrum

'Jobs, jobs, jobs. We need to create higher-paying jobs – but not at the risk of squelching business starts or business expansion, which, after all, fuels job growth. How do we solve this puzzle? Boost the minimum wage, be careful not to over-regulate companies and increase taxes on high-income Americans.

The 2009 recession’s job recovery is the worst since the Great Depression. Why are we not creating enough jobs? Five years and counting and we are still not back to the same level of jobs we had prior to the 2008 recession.' Read more

 

 

 

 

fill-retirement-income-gapsNovember 22, 2013 - NerdWallet - How To Fill Your Retirement Income Gap

'In a nutshell, a financial plan is a document that balances all of a family’s current financial inputs – the income and outflow on their cash-flow statement and assets and debts on their balance sheet – with all the family’s hopes and goals. It includes a fair amount of respect for their risk-tolerance and a series of assumptions. There should be a discussion of trade-offs that goes along with the plan’s design, for instance: if you save more you can retire earlier, or, if you send the kids to an expensive private school, you have to work longer, or, if you remain in the big expensive house, you probably can’t travel as much unless you agree to work longer or spend less on some other important element of your lifestyle.

So a plan is essentially a balancing of current and future needs and wants with current and future incomes and assets. The question, “What kind of financial plan do you have?” is simply a reference to how you choose to balance the FINAL trade-off – retirement.' Read more

 

 

November 22, 2013 - AdviceIQ - Bond Party Over? What to Do?

'If the three-decade-old bond party is over, should you forget about them? Not at all. Here is why bonds deserve to keep a prominent place in your portfolio, regardless of what happens to bond prices.
There is a lot of attention paid to the bond bubble. Maybe there is one, maybe there isn’t. Maybe it pops spectacularly or maybe it doesn’t. We aren’t predicting an outcome here. We won’t know for sure until it pops or slowly deflates over time, as today’s very low rates return to some level of normal.

However, because bonds are on center stage, let’s look at their strengths and weaknesses to better assess how they figure into your investments. Obviously, any evaluation of suitability includes investors' risk tolerance, income needs and sophistication, as well as the specific characteristics of the security involved.
Some reasons for investing in fixed income:

“Guarantee” of income and principal. I put the word in quotes because a guarantee is always only as good as the guarantor. Accepting a guarantee from the U.S. government is very different from accepting one from an insurer or an industrial company. This being said, people refer to bonds as fixed income because they expect to receive a predictable stream of interest – and an eventual return of principal.' Read more

 

Manufacturing Financial Products

November 8, 2013 - NerdWallet - Manufacturing Financial Products

'When people hear about manufacturing products, they generally limit their definition of products to things you can touch, sit in, sit on, drive — physical things like cars, toothpaste, toys, even artwork and the like. People rarely think of financial products, such as mutual funds, bonds or other investments, as being manufactured.

We know that when a new car comes out, it is placed on a dais and it spins around with models or robots showing it off. The manufacturing company tries to get press coverage for it and create a buzz about it. They buy advertising and allow bloggers and celebrities to drive it in hopes they get additional coverage or sound bites. New product ideas are tested; the best ones are produced and then marketed.' Read more

 

 

 

Bankrate 5 early retirement success stories October 14, 2013 -AdviceIQ - Fed Debates, Market Yo-Yo’s

'"Retirement as a concept is going through another transition. It seems likely that somewhere down the road, (traditional) retirement won't even be a goal," says Jonathan DeYoe, owner of DeYoe Wealth Management.' Read more

 

 

 

 

 

 

How Much Risk can you Stand October 14, 2013 -AdviceIQ - Fed Debates, Market Yo-Yo’s

'Think the stock market doesn’t pack enough thrills? The surprise Federal Reserve announcement in mid-September to continue stimulus spending sent a hurrah through markets worldwide. How long will this market party last? And what’s coming next?

The Fed quantitative easing program (QE) rolls on as the central bank shells out $85 billion monthly for mortgage and Treasury bonds. The Fed says this heartens the economy and holds down long-term interest rates. Market watchers say great, but the stimulus train must stop sometime.

Not on Sept. 18, when the U.S. Federal Open Market Committee (FOMC) – seven members of the board of governors of the Federal Reserve system, the president of the Federal Reserve Bank of New York and four of the remaining 11 reserve bank presidents – defied some predictions and said QE continues for now.
We’re going to stop QE … We’re going to do it … We’re not going to do it … yet.

The FOMC gave stock markets a gift, in terms of thrills, on par with Marilyn Monroe singing “Happy Birthday to You” to John F. Kennedy. The FOMC announced without a trace of breathiness:

“Taking into account the extent of federal fiscal retrenchment, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program a year ago as consistent with growing underlying strength in the broader economy.' Read more

 

 

How Much Risk can you Stand October 4, 2013 -AdviceIQ - How Much Risk Can You Stand?

'How do you figure out your appetite for risk? It has two components: financial and emotional. How you allocate your assets and your ability to stick with the plan during bad times are equally important.

Unfortunately, the standard questionnaire that some investment professionals use may not capture how you deal with risk. The questionnaire sometimes combines different aspect of the risk profile that should be assessed separately. Words such as “capacity” and “tolerance” are often used interchangeably when they mean very different things.

First, let’s look at the financial component. Risk capacity measures your assets’ ability to sustain risk. Risk capacity is measured in terms of your asset base, withdrawal, liquidity needs and time horizon (when you need the money, such as at age 70).' Read more

 

 

Does Money Buy Happiness October 2, 2013 - Nerdwallet - Does Money Buy Happiness?

'It’s an old question: Can money buy you happiness? Up to a point, yes. But without deep personal relationships, more dollars don’t make you happy.

Last night, I sat with my father and we talked about happiness and satisfaction. My question was simple: Looking back at his life, was he satisfied?

True to form, he proclaimed my brother and I are his greatest achievements. While I agree my brother and I are amazing, I was hoping for deeper insight.

“Dad,” I asked, “what creates happiness?”

We talked about setting and reaching goals, life timelines and the aged Polonius’s lessons for his son, Laertes (Hamlet, Act 1, Scene 3), such as: Keep close friends, don’t lie, “neither a borrower nor a lender be” and “to thine ownself be true.” We talked about the many categories of goals and about the tendency in our culture for our life goals to devolve into financial ones.' Read more

 

 

Enough Retirement Income October 1, 2013 - Advice IQ - Enough Retirement Income?

'Afraid you won’t have enough to retire on? Here are three questions to ask yourself as you plan for your nest egg.

Your uneasiness, by the way, is not misplaced. According to a 2010 Allianz Life Insurance survey, Americans 44 to 75 years old feared running out of money (61%) more than they feared dying.

Advisors today often dwell on creating portfolios aimed at beating the market. One of the first questions clients ask when they walk in the door is: “Tell me about your performance.” But that ignores the simple truth that immediate past performance has no bearing on future returns. How these clients will fare going forward under a hot-hand advisor is not assured.

If retirees had it to do over again, many would ask:

1. How much should I save every month and how much total do I need for a secure retirement?

This is entirely a planning issue. Very few people actually consider what it means to work for 40-some years while spending 75% of their incomes' Read more

 

 

Why I Want to Increase My Retirement Age September 15, 2013 - The Motley Fool - Why I Want to Increase My Retirement Age

'I am 41 years old, a college graduate, a husband and father, a business owner, an engaged member of my community and a proud American. I happen to be a Certified Private Wealth Advisor (CPWA) and Accredited Investment Fiduciary (AIF), and I completely understand all the personal implications of the following:

I would like to immediately increase my "full retirement" age for the purposes of Social Security from its current 67 to 69. And I would like to change the formal date of "full retirement" for all those 53 and younger. I select 53 because if you are older than 53 (you were born before 1960), then your "full retirement" age was already incrementally increased by the National Commission on Social Security Reform in 1983.

Yes, we have been through this before. All those who were born before 1960 were given retirement ages dependent on their birth year, and those born after 1960 were given the same retirement age of 67. For those of us under the age of 53, our life expectancies have continued to increase while our start date for receiving benefits has remained constant. This is the very definition of unsustainable when it comes to retirement income.' Read more

 

The Exercise & Success Link September 16, 2013 - AdviceIQ - The Exercise & Success Link

'Sound body, sound mind, sound finances? It’s true: The better your physical shape, the better the odds that your financial situation is in good shape.

It should be no surprise to hear that diet and exercise form the cornerstone of a healthy lifestyle. But why would a consistent exercise program do as much for you mind and your wallet as it does for your body? I was never able to control my eating habits, until I changed my exercise habits. I was raised (unintentionally) in a competition for who could eat the most. That’s fine when you’re 25, but I was out of control.

When I started exercising with intensity every day, it changed everything. I had the right motivation, my wife Kate (to whom I owe so much) promised to help me with my food issues, and I started to notice results. Seeing this progress was an incredible motivator for me and it helped transform the discipline into a habit.

Now, with a secure exercise regime, I can look back on it and see that the list of positive benefits doesn’t stop with physical fitness. Regular exercise can also provide psychological benefits' Read more

Image courtesy WSJ - Weekend Edition

Image courtesy WSJ - Weekend Edition


 

 

 

 

 

 

 

 

 

 

 

How 'mindfulness' can curb impulse spending August 5, 2013 - CreditCards.com - How 'mindfulness' can curb impulse spending

'Jonathan DeYoe, a wealth manager in Berkeley, Calif., who has a master's degree in Tibetan Buddhism, does something similar.

"I don't sit down and say, 'I'm a Buddhist,'" says DeYoe, who also teaches mindfulness to his 8-year-old son. Instead, "we talk about trade-offs." To get clients to see the benefits of mindful spending, DeYoe says he tries to show clients what kind of life they're giving up by mindlessly spending their income on things they don't need.

"There's been quite a bit of literature in the last two years on the fact that people get a lot bigger bang in terms of their long-term financial success by reducing their spending than they could ever get on the return on their portfolios," says DeYoe.

So, he says, he tries to teach his clients: "Let's be mindful of our spending. Let's think about what we want our outcomes to be like. Let's live by design, rather than by default.' Read more

 

 

Is This the Time to Invest? August 28, 2013 - Morningstar - Is this the Time to Invest?

"Headlines scream of doom and gloom, and opportunity.

Today’s market may not be the greatest opportunity ever. Maybe not even the greatest investment opportunity you will ever have – but it is a decent time and place to put your money to work.

You might call me crazy then follow with a litany of contemporary headlines: Housing Crunch Causes Banking Collapse; Unemployment to Hang on for Years; Wall Street Occupied; Arab Spring Destabilizes Middle East; Europe In Total Meltdown.

They are all true, and then some. But opportunity exists because of fears these headlines create.

We often don’t see it that way. I love thick, juicy, prime, aged rib-eye, especially freshly cut, perfectly marbled and per pound only $5 instead of today’s normal $16. Let’s say you regularly eat this same cut and haven’t seen $5 a pound for 10 years. You might buy and freeze every quality rib-eye you can.

Well, in 2003 the Standard &Poor’s 500 (S&P 500) was at roughly 1,111. It enjoyed earnings of some $55 per share and paid dividends of almost $18 per share, the rest retained for reinvestment and expansion of future earnings. The market paid $20.20 for a single dollar of earnings, down from $43.50 for one dollar’s earnings two years prior. " Read more

 

 

Does Money Buy Happiness? August 26, 2013 - AdviceIQ - Does Money Buy Happiness?

"It’s an old question: Can money buy happiness? Up to a point, yes. But without deep personal relationships, more dollars don’t make you happy.

Last night, I sat with my father and we talked about happiness and satisfaction. My question was simple: Looking back at his life, was he satisfied?

True to form, he proclaimed my brother and I are his greatest achievements. While I agree my brother and I are amazing, I was hoping for deeper insight.

“Dad,” I asked, “what creates happiness?”

We talked about setting and reaching goals, life timelines and the aged Polonius’s lessons for his son, Laertes (Hamlet, Act 1, Scene 3), such as: Keep close friends, don’t lie, “neither a borrower nor a lender be” and “to thine ownself be true.” We talked about the many categories of goals and about the tendency in our culture for our life goals to devolve into financial ones." Read more

 

 

Is It Too Late To Invest? Did I Miss It? August 6, 2013 - NerdWallet - Is It Too Late To Invest? Did I Miss It?

"It would be a bit extreme to call this the greatest opportunity you will ever see. It won’t be the moment you ask your future husband to dance for the first time. It won’t be accepting that first job at the bottom rung that leads to a long career at a great company. And it won’t be that flash of an idea that turns into the next internet craze. It might not even be the greatest investment opportunity you will ever have – I’m the first to admit that markets can certainly go down from here. But, it is a decent time to put your money to work in the great companies in the US and around the globe.

“Are you crazy?” you might ask. Then you might follow that question with a whole litany of today’s headlines: Housing Crunch Causes Banking Collapse; Unemployment To Hang On For Years; Wall Street Is Occupied; The Arab Spring Creates Massive Middle East Instability; Europe Is In Total Meltdown; US Politicians Are Completely Insane." Read more

 

 

Exercise For Health, Happiness & Success August 2, 2013 - NerdWallet - Exercise For Health, Happiness & Success

"In the winter of 2007, my wife and I were going skiing while my folks watched Eli, our 3 year old, until I realized I had forgotten my ski pants at home. My father offered me his. ”Thanks Dad, but you are a bit bigger than I am, so… there is no way they will fit.” Right? Wrong.

They fit perfectly! This was my wake up call. On the one hand, I had a three-year-old (and another baby on the way). On the other hand, I was already WAY out of shape. I tipped the scale at 280 and now, my dad’s ski pants fit me. I had to lose some weight if I was ever going to be able to keep up with Eli and my daughter when they were older. My height had helped me hide the truth for too long, but this brought it all home.

It should be no surprise to hear that diet and exercise are the cornerstone of a healthy lifestyle. But did you know a consistent exercise program does as much for you mind and your wallet as it does for your body? I was never able to control my eating habits, until I changed my exercise habits. I was raised (unintentionally) in sort of a competition for who could eat the most. And, when you are 25 – that’s just fine. But I was out of control. When I started exercising with intensity every day, it changed everything. I had the right motivation, Kate (to whom I owe so much) promised to help me with my food issues, and I started to see results. Seeing the results was an incredible motivator for me and it helped transition the discipline into habit." Read mor

 

 

NerdWallet When “Risk” Gets RealJuly 23, 2013 - NerdWallet - When "Risk" Gets Real

"There are a lot of risks in the markets, but the really big risks occur when everyone (institutional investors, individual investors and other market players) gets on the same side of the trade (for instance, dot.com in 1999, or housing in 2006). This occurrence is difficult to see, but there are certainly signs.

The biggest sign for me is when people talk about redefining risk.

In ordinary circumstances, we can tease out lots of different market risks (Investopedia lists two categories and six basic risks). They are: Credit, Country, Currency, Interest Rate, Politics, and Market risks. These are the risks that really matter to a portfolio, because they matter to companies in operation. When people build “diversified” portfolios, they are blending these different risks together, in the hope of smoothing out their portfolio’s zigs and zags. And, in a normal environment and over long stretches of time, this works beautifully." Read more

 

 

NerdWallet Life Stages: Transitioning From Human to Financial PotentialJuly 16, 2013 - NerdWallet - Life Stages: Transitioning From Human to Financial Potential

"Our lives are a transition between potentials. We start with immense human potential and end, hopefully, with a powerful and steady financial potential.

Human Potential

When we are born, everything we can do and will be lies before us – we have a tremendous human potential. We “own” nothing and all of our assets are in our ability to learn (at first), and innovate, produce and sell ourselves (at last). The more education (both academic and life experience) we get in our formative years, the greater our ability to transfer this human potential into a powerful financial potential—while at the same time enjoying everything life has to offer.

When we continue to educate ourselves, learn new skills, learn how to use new tools and add to our expertise, we are building our human potential. There is no limit to what we can learn to do. At some point, we start to employ this potential in work. Through the application of our effort and intellect, we begin to change the nature of our potential energies from human potential into financial potential." Read more

 

 

Advice IQ - Mental Retirement PrepJune 19, 2013 - AdviceIQ - Mental Retirement Prep

"Getting ready for retirement involves more than just calculating how much you will need and the rate you can draw down your savings. The year before you retire is a crucial time to prepare both financially and psychologically.

Often, I feel that many retirees underestimate their expenses, get bored without a daily grind and panic over market corrections.

Here are a few exercises that you can take during that last year of working life to get ready for the reality of retirement.

Test the retirement expense waters. In about 80% of the stories I hear about people who run out of money, it has little to do with market actions or portfolio losses. We often underestimate expenses both during the planning process and in retirement. People just seem hardwired to believe that they spend less than they actually do. I recommend that you test your estimate out and actually live your retirement spending plan before you retire.

While you are working, it is possible to fudge this a bit. But under-estimating income needs may become a big problem when you try to maintain reasonable withdrawal ratios in retirement that may enable your future income to grow, adjusting for inflation." Read more

 

 

Advice IQ - 2 Ways to Allocate AssetsMay 31, 2013 - AdviceIQ - 2 Ways to Allocate Assets

"The two dominant philosophies of asset allocating assets are strategic and tactical. The former is best for building wealth when the economic picture brightens, and the latter is better for dealing with uncertainty. Whichever method you favor, diversification is still the way to go.

Both asset allocation methods developed from the landmark studies by Gary P. Brinson, Brian D. Singer, L. Randolph Hood, and Gilbert L. Beebower in 1986 and 1991. The authors found that proper asset allocation is far more important than security selection, timing or any other factors for maximizing long-term investor performance.

When Brinson and Beebower put their beliefs into practice in their own companies, however, they each developed their asset allocation concepts in different directions.

Strategic asset allocation. Beebower started SEI, a company that became one of the largest strategic asset allocation shops available. Financial advisors use SEI as a third-party asset manager, effectively outsourcing the management of their clients’ assets. A financial advisor selects an asset allocation appropriate for a client’s situation." Read more

 

 

Advice IQ - Why Pick on AppleMay 29, 2013 - AdviceIQ - Capitalism Helps Giving

"Capitalism is the best economic system in practice for charitable giving because it is the only one that gives us the freedom to allocate our capital as we see fit. But so many people equate capitalism with greed and think that the profit motive is not compatible with giving. This is a wrongheaded notion.

I am not saying that capitalism is free of greed. There is plenty of greed involved, but no more so than in command economies. Economics 101 teaches that capitalism, based on the private ownership of ca

 

 

 

 

 

Advice IQ - Why Pick on AppleMay 24, 2013 - AdviceIQ - Why Pick on Apple?

"Despite the drubbing Congress gave it over not paying U.S. corporate tax on billions of overseas income, Apple actually has generated a lot of domestic tax, and American-based jobs that generate them. Besides, Congress set up the tax breaks that Apple used.

OK, maybe they pressed their luck with their tax reduction strategies – at least from how they appear publicly. And maybe we would all like them to pay a little more taxes (as long as we believe this ends in our paying a little less, which is obviously not true – taxes are not a zero sum game).

\r\nBut if Apple exploited loopholes, an insanely complex tax system put them there. Decade after decade, a goofily naive Congress created these tax breaks.When I look at the stock market today, I feel as if many of the investors around me are willfully deluding themselves. The market’s advance is due to some extent to Federal Reserve support, not basic economic improvement. Stock investors should be wary.

It feels fantastic to reach new highs. I am glad that is happening and even expect the rally to continue a bit further, but this makes it no less an illusion. A reckoning over the country’s high levels of borrowing is coming. Ignorance is bliss, but only until reality catches up with you." Read more

 

 

 

 

Advice IQ - Problem: It’s a Fed-Led RallyMay 21, 2013 - AdviceIQ - Problem: It’s a Fed-Led Rally

"When I look at the stock market today, I feel as if many of the investors around me are willfully deluding themselves. The market’s advance is due to some extent to Federal Reserve support, not basic economic improvement. Stock investors should be wary.

It feels fantastic to reach new highs. I am glad that is happening and even expect the rally to continue a bit further, but this makes it no less an illusion. A reckoning over the country’s high levels of borrowing is coming. Ignorance is bliss, but only until reality catches up with you." Read more

 

 

 

 

 

 

5 Tips From the Pros on How to Save More for RetirementMay 10, 2013 - Money - US News & World Report - 5 Tips from the Pros on How to Save More for Retirement

"Ask yourself, “Am I saving enough for retirement?” If the answer is “no,” you’re not alone. Studies show most people don''t have enough in savings when it comes time to leave the workforce. While young adults with poor saving behaviors miss out on the benefits of compound interest and the ability to make small, reasonable payments throughout their lives, baby boomers who haven’t saved enough are in a rough spot.

To help boomers find retirement success, NerdWallet rounded up tips from financial professionals. If you are sick, you see a doctor. Therefore, if you’re suffering from what we’ll call “insufficient retirement savings syndrome,” you should consider what financial advisers say can help cure your pain." Read more

 

 

 

 

 

Advice IQ College Costs Not Just TuitionApril 24, 2013 - AdviceIQ - College Costs: Not Just Tuition

"When planning for your children’s college education, pay attention to more than just tuition and fees when you choose a school. Housing and food are among the many outlays that pump up the price of education.

Tuition and fees only account for about 39% of the total budget for students who live on campus at public four-year state colleges and universities, according to the College Board. For students who live off-campus at public two-year state colleges and universities, tuition and fees only account for 20% of the budget." Read more

 

 

 

 

 

 

Advice IQ Women Better InvestorsApril 17, 2013 - AdviceIQ - Women: Better Investors

"The financial services industry is unquestionably male dominated, and often stereotypes women as innocent wanderers. This is a mistake, and it’s one that all advisors and investors should realize.

Just last year, an old friend and new client told me that her prior advisors always “talked down to her” and “made me feel like an outsider.” She said, “They always ignored me when I was with my husband, and treated me like an infant when I was alone.”

This is completely absurd for a couple reasons. First, women actually control more money, which is proof of financial success. Second, carefulness is not a sign of weakness or lack of intelligence." Read more

 

 

 

 

 

Advice IQ Wedding CostsApril 15, 2013 - AdviceIQ - Avoid Wedding-Cost Traps

"Is a wedding in your future? If so, prepare yourself to pay a lot. But there are ways to rein in the spending without diminishing the joy of the occasion.

Between the wedding planner, venue, food, flowers, cake, dress, drinks, photographer, videographer, invitations, programs and all the rest, you’re likely to be hearing a lot of this: ka-ching, ka-ching.

More than $50 billion is spent on weddings in the United States each year. The 2012 Wedding Report says that the average wedding has about 133 to 143 guests and costs more than $25,000, not including the honeymoon." Read more

 

 

 

Advice IQ Rules for Advistors ClientsApril 8, 2013 - AdviceIQ - Rules for Advisors'' Clients Investors

"Finding a good advisor is only half of a fruitful advisor-client relationship. Being a good client can help you increase your wealth because some advisors do just a little bit more for great clients who are easy to work with.

Here are a few guidelines for doing your part to build a good relationship with your advisor.

Don’t expect investing magic. There is no such thing as risk-free return. No product or honest advisor can offer you a guaranteed profit. Anyone who says they can is either delusional or simply lying to get your business. Every advisor out there has had big gains and losses." Read more

 

 

 

Advice IQ Do I have enough to retire?April 4, 2013 - Advice IQ - Good Clients are Patient

"Being a good client is just as important as finding a capable advisor. One of the key traits of a good client is willingness to stick to a portfolio for the long-term and trust the advisor’s recommendations.

While finding an educated, experienced and ethical advisor is very important, it’s only half the story. Of course, a good advisor can positively influence a client’s behavior, but the client ultimately makes the decisions that lead to success.

For instance, a man I knew socially came to my firm as a possible client. We decided he was not a good fit for our services because he could not stick to a plan.

We have an extensive intake process in which prospects have plenty of chances to ask questions, get to know us and ultimately decide whether to choose another advisor. We don’t want people to work with us without understanding our fundamental philosophies or fees.

This person wanted to skip the process and just sit down and talk about our investment philosophy and our performance. He spoke with my team leader for 25 minutes. He was pleasant, but tellingly, he said that he worked with three advisors in the last four years." Read more

 

 

 

 

 

March 11, 2013 -AdviceIQ - How to Plan Your Funeral (pdf)

 

 

 

 

 

 

   

 

 

 

Advice IQ Do I have enough to retire?February 15, 2013 - Advice IQ - Do I have Enough to Retire?

"The most important retirement planning task for your last working year is calculating where your income comes from when you retire. This probably seems completely obvious, but it usually isn’t. Your portfolio needs to yield more every year to keep up with inflation.


Inflation is the silent retirement killer. Your income needs to increase every year just to keep up with the rising cost of living. For example, look at how much medical care services costs increase, last year rising 3.7%, according to the Bureau of Labor Statistics.

So it is not enough to look at your portfolio and see if it produces enough income this year alone. It needs to continue to grow and produce more income for each subsequent year. If it doesn’t, your buying power and lifestyle evaporate." Read more

 

 

 

Advice IQ Kids and CollegeFebruary 11, 2013 - Advice IQ - Should Kids Pay for College

"Even if I can afford to pay for the cost of my kids’ college education, should I pay for all of it? No. Having them pay for at least part of education expenses better prepares them for later life.
\r\nAs my kids grow, I know that they should go to college. We promise to do whatever it takes to make sure they get as much quality education as possible. Unemployment statistics clearly show that the job market is heavily skewed in favor of those with a diploma. College is important in the long run both in terms of happiness and future income.

An article in the Denver Post’s Ask Amy column focused on a young woman’s disappointment that her family couldn’t afford to send her to her dream college. She attends a state college that costs more than $26,000 a year. Her mother is sad that she can’t do more, even though she had saved money since her daughter’s birth to send her to school without getting crushed under a mountain of debt." Read more

 

 

 

Investopedia Building PortfolioFebruary 1, 2013 - Investopedia - Tips For CFPs Looking To Building A Portfolio For Clients

"Depending on the age and risk assessment of your clients, how should their portfolios differ?

The conventional wisdom says that investment portfolios should be designed around the age and risk tolerance of each individual client. But experts say this approach is oversimplified. 

\r\n"It is impossible to reduce a client to age and risk tolerance, though Wall Street tries incredibly hard to do this because it makes answering tough questions so much easier," says Jonathan DeYoe, a Certified Private Wealth Advisor and an Accredited Investment Fiduciary with DeYoe Wealth Management in Berkeley, Calif." Read more

 

 

 

 

Advice IQJanuary 31, 2013 - Nerdwallet - Planning for Retirement Income

"No matter how large your portfolio is or how aggressive you’ve been with your stock- market plays, once you’ve retired your primary goal is no longer the accumulation of assets. They’re always nice, of course, but sometime soon (and perhaps it’s already happened) you’re going to have to replace paychecks. You need a financial advisor more than ever – ideally one who’s oriented to this kind of thinking." Read more

 

 

 

 

 

 

 

Advice IQJanuary 30, 2013 - AdviceIQ - This Time is Never Different

"Bull markets happen. Bear markets happen. Just stick to your financial plan, and stay calm and disciplined. When the market sours or slumps, don’t believe talk that this time it is different. It is not.

History shows this is true. Here is a simple chart of the performance of the Standard & Poor’s 500 index for the five years ending Dec. 31, 2012. This covers the decline and recovery from the last U.S. recession." Read more

 

 

 

 

 

 

 

Advice IQJanuary 23, 2013 - AdviceIQ - What to do with Extra Money

"Whenever my clients find themselves with extra money, they wonder if they should spend it, save or invest it or use it to pay down debt. My answer: Save and invest it first, then use the rest for debt retirement.

There is a behavioral challenge to overcome. Sometimes, people who see extra in their accounts tend to use that money for trips or things. Whether it is from a work bonus, a raise, a gift or the fruits of smart budgeting, spending it is tempting." Read more

 

 

 



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