AdviceIQ Articles

  • Don’t Waste a Windfall

    Submitted by Hilary Martin on Fri, 05/10/2013 - 3:00pm

    When you receive a financial windfall, you need to plan ahead to make sure you don’t lose the money. Some wealthy people with money seem to never let go of it and others lose it all in a jiffy.

    Smarts and savvy barely begin to explain the difference. Planning and checking your beliefs about money are the keys to maintaining sudden wealth.

  • Why to Shun Speedy Trading

    Submitted by Brenda P. Wenning on Fri, 05/10/2013 - 12:00pm

    As if you needed more proof that frequent trading is not for regular folks, the high-frequency trading bots recently sent stocks into a free fall for a moment after a fake tweet hit the newswires. This miniature flash crash underscores how institutional investors’ trading algorithms stack the deck against individual investors.

  • Housing: A Good Idea, Finally

    Submitted by Ray Ferrara on Fri, 05/10/2013 - 9:00am

    It’s hardly time to party like it’s 2004, 2005 or 2006, but there is a lot to be excited about in residential real estate. Once again, homeownership is a good investment. And unlike a lot of good investments you hear about too late, this one is rising, affordable and stable (finally).

  • Don’t Overpay Bond Taxes

    Submitted by Russell Francis on Thu, 05/09/2013 - 3:00pm

    It’s easy to overpay or underpay taxes on your bond income and not even know it. Bond taxation is complex and there are several considerations that require different tax treatments. You need to be careful to avoid surrendering too much to the tax man, especially if you invest in zero-coupon or state bonds.

    If you purchased a bond at par, also known as face value – 100 cents on the dollar – and held it to maturity, it is fairly simple. If it’s a taxable bond, you pay income tax on the coupon (interest) income. If it’s a tax-free municipal bond, you don’t.

  • Our Bad Ideas About Money

    Submitted by Hilary Martin on Thu, 05/09/2013 - 12:00pm

    Language shapes people’s thoughts and actions around money, and sometimes leads to destructive behavior. Identifying and understanding your own language about money can help you make positive changes to your behavior and understand other people better.

  • Avoid Medicare Advantage

    Submitted by Matthew Illian on Thu, 05/09/2013 - 9:00am

    Medicare Advantage has disadvantages that make healthcare more expensive for seniors. Recent changes to the laws such as Obamacare are likely to raise costs. Most retirees are better off with regular Medicare.

    Medicare Advantage (MA) is an option that replaces Original Medicare parts A (hospital care) and B (doctor visits) and often includes part D (Rx coverage) as well; it goes through a private operator, while the government runs part A, B and D.

  • Turbulent Market? Try Options

    Submitted by Ara Oghoorian on Wed, 05/08/2013 - 3:00pm

    The stock market’s future is unknowable. But amid periodic market jolts due to Europe and the like, you can buffer your portfolio from downturns or take advantage of possible price spurts. You employ a time-honored method that too few individual investors understand – options.

    An option is a standardized contract to either buy or sell a stock at a pre-determined price on a specific date. Unlike simply buying and selling stocks, options present less risk because you don’t lose as much money if your intuition fails you.

  • Spring Cleaning for Finances

    Submitted by Roger Wohlner on Wed, 05/08/2013 - 12:00pm

    Spring is traditionally the time to clean the garage and to get the yard in shape. It’s also a great time to clean up your investment portfolio. Fresh off tax season, this is a perfect opportunity to get rid of clutter, review your asset allocations and make the necessary changes if your portfolio has strayed from your financial plan.

    Here are seven steps to making your portfolio cleaner and more efficient.

  • Avoiding Student Aid Blunders

    Submitted by Hilary Martin on Wed, 05/08/2013 - 9:00am

    Filing for student aid is filled with pitfalls. Key to the process is a form called the Free Application for Federal Student Aid (FAFSA), which is your family’s only ticket to federal, state and institutional aid, student loans and merit-based and athletic scholarships. Many make very expensive mistakes on the form, or even neglect to file it at all.  

  • The Art of Frugality

    Submitted by Rick Kahler on Tue, 05/07/2013 - 3:00pm

    People who successfully build wealth have one trait in common: They understand the art of frugality.

    These unassuming millionaires know how to live on much less than they make, and they know how to save money. But those behaviors alone aren't enough. Not spending money today does not always result in having more money tomorrow.

    Frugality for its own sake can result in doing without things that matter to you, failing to take care of basic needs like your health and living with a sense of deprivation. It can also lead to spending more money, not less, in the long run.

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SMART ADVICE

 

A Tragic Mistake: ‘I Don’t Need Help Handling my Money’

 

By Larry Light, Editor-in-Chief

May 1, 2013

 

We all like to think we’re smart and self-sufficient. A lot of folks believe they can manage their financial lives by themselves. These do-it-yourselfers are woefully wrong.

 

AdviceIQ is about giving the world the wisdom of smart, honest (none can have any regulatory infractions) advisors. Are we blindly pro-advisor? No, we are clear-eyed about being pro-good advisor. Everyone, even the financial cognoscenti, should have such a helper to sort out life’s perplexities.

 

Lamentably, the financial crisis and the Bernard Madoff scandal convinced many to steer clear of advisors. According to a Deloitte consulting firm study, 57% of those polled say they’re more comfortable handling their retirement planning on their own. Plus, 38% contend they need no professional advice to plan.

 

Really? A story from Paul Sullivan shows how wrong-headed they are. Sullivan is enormously well-versed in personal finance, which he writes about for the New York Times. But it turns out that even he could use some help with his portfolio. One day he went before Tiger 21, an investment club of very wealthy (with at least $10 million in net worth) types who assessed his financial situation. To Sullivan’s surprise and dismay, the group found major holes: He and his wife didn’t have enough insurance, they carried an unneeded vacation home and spent too much.

 

The blasé DIY attitude vexes Edmond Walters, founder and chief executive of eMoney Advisor, which provides support services to advisors. He watches discount broker TV ads that promise you can direct your investments by yourself, without paying an advisor. “It’s dangerous,” he says. “The ads say you can come home after work and spend a couple of hours trading a month. But the professionals have a lot more information than you.” Result: You get slammed.

 

As the Times’ Sullivan attests, it’s good to have a more knowledgeable someone guiding you, an expert who keeps up with all the arcane changes in the financial arena. Do you know how much disability coverage you need? Are you saving adequately for your kids’ education? How much money are you wasting for no good reason? Will your investments support you through your retirement?

 

Walters spent almost two decades as an advisor before he started his current company. “But,” he says, “even I have an advisor.”

 

 

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