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Being Human: Biggest Obstacle to Your Investing Success?

“Be careful when you follow the masses . . . sometimes the ‘m’ is silent.” – Mark Twain Investing is tricky and many people are doing it so wrong they are dramatically limiting their future prosperity. Today in my video newsletter I want to talk about avoiding doing something wrong. And the wrong often comes simply from following our instincts and being human. Let’s talk about how “being human” can get in the way of successful investing. What We’re Reading How Salespeople Make Money from Your Wealth: This is something that we wrote for the popular website Investopedia.com. It is a must read as it shares with you some first-hand experience of how sales can hurt you (current example is Wells Fargo). It also offers a suggestion of what you can do about it. If Wall Street is Bearish, I’m Bullish! Barry Ritholtz explains all the scenarios to be negative
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Categories: Personal Finance and Wise Money Monthly.

Are You Freed From the Dead Weight of Fees? Find Out Here.

Fees crush the performance of so many portfolios that it is one of the great tragedies of investors. In this week’s video we take a deeper dive into fees. Be prepared to learn just how crushing the performance of fees is on your portfolio. Warning: It likely ain’t pretty. But joy! There is hope, we also discuss how to release yourself from fee underperformance and get your portfolio on the right track.
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Categories: Personal Finance.

Big Banks Are Flushing Your Wealth Down the Toilet: Here’s How

Wells Fargo, Edward Jones, and Morgan Stanley. What do they all have in common? In the past month they have all been involved in some pretty shady activity. They have done things that are completely contrary to what’s in the best of interest of clients. The biggest and most recent example of this is Wells Fargo. In case you haven’t heard, Wells Fargo employees, in an attempt to hit internal sales quotas, opened millions of phony accounts for clients. This allowed those Wells Fargo sales people to hit goals and receive bonuses. They were rewarded for breaking the law. Wells Fargo responded by firing 5,300 employees (yes, it was that widespread!) and by firing the Executive that headed the “phony account” department. They were also fined $185 million by the Consumer Finance Protection Bureau (CFPB). A month before this story broke, this now fired Executive, was touted by the Wells
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Categories: Personal Finance and Wise Money Monthly.

This is Your Brain on Financial Losses

We’re going to keep things really simple this go round. Why? Because this basic principle is what keeps the wise getting richer and the unwise getting poorer. It’s what drives the shift in market wealth from the unsophisticated investor to the seasoned investor. And you just might recognize a bit of yourself in the foundational concept I share in the video. It’s inspired by The Behavior Gap by Carl Richards and is applicable in many situations but particularly investing. So take a look. I think you’ll enjoy and come out wiser as you think about your money. Check out what we’re viewing on the web: Edward Jones hit with suit alleging 401(k) mismanagement: Unfortunately this is becoming a common theme. As people become more educated these mammoth firms that have been ripping people off will be called out. We believe that this is a GREAT thing! If it’s not in
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Categories: Contrarian View and Personal Finance.

What I’d Tell Every Teenager and It’s The Key For Your Wealth Too

I just had a great conversation with a fifteen year old who had been working hard to save his money. I told him one secret about what to do with it and it blew his mind. That secret is the one thing you too should be applying to your wealth building approach. It’s the very first thing everyone needs to do when planning for their financial future. This video reviews that conversation and is a great check up for you as to whether you have the right mind set for your portfolio. It’s short (three and a half minutes long). It’s sweet. And it’s the key to wealth. I hope you’re already doing this one thing. Enjoy. What We’re Reading More Money, More Success, More Stuff? Don’t Count on More Happiness – Money and items are not the key to happiness, including winning the lottery! Read the full article. One
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Categories: Personal Finance and Wise Money Monthly.

Avoiding the Big Mistake and Enhancing Your Returns: Why Hire an Advisor

This past week I had a great webcast conversation with someone that was looking for a new Financial Advisor. As part of that discussion I reviewed this gentleman’s current portfolio, dissected the risk he had in that portfolio, compared it to his risk tolerance and discussed potential reward. His risk tolerance was a 52, which is actually pretty conservative. In fact it was so conservative that it would be very difficult to near impossible to outperform the market. (Remember, the less risk in a portfolio the less reward in a portfolio.) As we discussed this number he said something very interesting to me . . . he said: “The reason people hire an advisor is so that they can outperform the market . . . now you’re telling me that I can’t?” There are a couple of things wrong with this statement which we immediately discussed: 1. “The reason people hire
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Categories: Personal Finance.

What 6th Graders Understand About Investing That Most of Us Forget

I recently had a chance to talk about money and investing with a group of 6th graders. The old saying about “out of the mouths of babes” still holds true. It was amazing how these 11 and 12 year olds just got it. This month’s Wise Money Monthly comes in the form of a video sharing the lessons we learned together and how you may just want to ponder the wisdom of a 6th grader when you consider your portfolio.
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Categories: Markets and Personal Finance.

Wise Money Monthly: Your Early Retirement Plan

3 Steps to Retiring Early Recently one of our longest tenured clients and his wife, took the big step that we have been working on together for years. They not only retired, but they retired earlier than planned. This couple was unique. They never made a ton of money or inherited a fortune. What was unique about them was their discipline. We put a plan together for them and they stuck with it. Here’s a few things that they did . . . and that if you do may improve the probabilities that you can retire earlier than you may think. 1) Save more, spend less. This is the “obvious” step that everyone knows about but few do it. There are several ways to do this including the b-word that everyone hates, budgeting. One thing that we do with several of our clients that makes this step a little easier is automatic
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Categories: Personal Finance.
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