AdviceIQ Articles

  • Farewell to Diversifying

    Submitted by Joseph A. Clark on Fri, 04/26/2013 - 3:00pm

     

    Diversifying your assets is a time-honored way to ride out tough times. The theory is that, if one investment type falls, another rises to offset it. But that is less and less the case these days. So how can you protect yourself?

  • Beware Deferring Gains Taxes

    Submitted by Michael Kitces on Fri, 04/26/2013 - 12:00pm

    Tax deferral allows investors to let their money work for them for longer. But in reality, the potential benefits now can actually trigger higher taxes in the future, and may not be worth the risk given market volatility. In fact, it turns out that in some situations the best approach isn’t to defer taxes, but to harvest capital gains and trigger them.

  • Investing and Joblessness

    Submitted by Lewis J. Walker on Fri, 04/26/2013 - 9:00am

    The nation’s persistent unemployment problem worries many investors. A sluggish jobs outlook is a big reason for our slow economic growth. Can investors prosper during a lethargic, jobless recovery? Potentially, yes.

  • Which Tax Records to Keep

    Submitted by Sam Cohen on Thu, 04/25/2013 - 3:00pm

    While filing your taxes this year, you probably scrambled to find records, receipts and bills. If you start planning now, you can make the job easier next time you file your taxes. 

    Here’s a list of the records that you should keep track of between now and next year that can make filing your 2013 taxes less stressful.

  • Yes, Social Investing Pays

    Submitted by Janice Deringer on Thu, 04/25/2013 - 12:00pm

    Does socially responsible investing mean lagging returns? Not at all. Contrary to popular belief, you can do well as you do good.

    More and more investors opt to use their capital to encourage a company to abide by their personal values. Fortunately for them, socially responsible mutual funds deliver returns on par with or better than the markets in general.

    Socially responsible investing (SRI) is an approach that takes into account environmental, social and corporate governance criteria, in addition to the typical investment and portfolio construction goals.

  • 3 Tax Refund Mistakes

    Submitted by Hilary Martin on Thu, 04/25/2013 - 9:00am

    This spring, 85% of Americans will get sudden money – a federal tax refund. If you’re one of them, think ahead to make sure you put that money toward its best purpose, before it lands in your bank account.

  • College Costs: Not Just Tuition

    Submitted by Jonathan DeYoe on Wed, 04/24/2013 - 3:00pm

    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.

  • U.S. Budget Woes and Investors

    Submitted by Brenda P. Wenning on Wed, 04/24/2013 - 12:00pm

    Federal spending looks to stay high for a long time, thanks to Washington’s inability to pass a reasonable budget. Politicians float proposals that effectively fleece retirees and taxpayers. Bond investors should also take warning: The supply of Treasury bonds to fund these chronically high government outlays keeps increasing, making the bonds ever-cheaper and hurting fixed-income portfolios. 

    April 29 marks four years since the U.S. government last passed a budget. Based on the budget he proposed, it seems that President Barack Obama intends to keep the streak going.

  • Why Winning Streaks End

    Submitted by Adam D. Koos on Wed, 04/24/2013 - 9:00am

    Right now, stocks are up smartly for the year, but this is not the time to start buying. Remember that it is most dangerous to invest at the peak, and every winning streak inevitably ends.

    Are we at the peak? Recent rocky days in the market may suggest so. The truth is that no one knows. But joining a rally late is never a good idea.

  • Soaring Stocks? Go for Bonds

    Submitted by Russell Francis on Tue, 04/23/2013 - 3:00pm

    The stock market has done very well so far this year. But if you are at or close to retirement, bond investments should still be a significant portion of your portfolio. With bonds, you can get a healthy return, and use clever strategies to keep risk to a minimum.

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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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