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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.

Two F-words in Finance

For the last year Tony Robbins has been on a mission. That mission is to educate people to the two F-words in Finance . . . Fees and Fiduciary. Below is a terrific video from Investment News. Tony Robbins takes to the streets of New York to explain what fees can do to a portfolio as well as the importance of a “fiduciary.” We at Iron Gate Global Advisors are proud to be Fiduciaries for investors. We are also proud to keep fees relatively low compared to the rest of the industry. Enjoy the video . . .     To view the article and video on Investment News, click here.
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Categories: Personal Finance.

Buyer Beware: Annuities are among the worst investments you can buy

It’s happened again. A client of ours was duped a while ago into buying an investment that has been costing him thousands of dollars in both outrageous fees and investment returns. Unfortunately he’s not the only client. We have many that are in a similar position. Most don’t even know what’s happening until we educate them. The product that we’re warning people about is annuities. The slick annuity salesmen scare the death out of individuals as part of their sales pitch. During volatile times they talk about the stock market crashing and the client losing everything they have. Then they will say “A guaranteed 6% return for life” or something like that to help solve for the fear. Some salesman say that these products protect investors from lawsuits or seizures of their assets. They’ll say anything just to close the sale. It’s such a sketchy investment that FINRA (Financial Industry
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Categories: Personal Finance.

The 8th Wonder of the World

Albert Einstein once said . . . “Compound interest is the eighth wonder of the world. He who understands it, earns it . . . he who doesn’t . . . pays it.” No doubt Einstein is correct . . . time is the essential component to compounding your wealth over time. It’s something that every parent should be teach their kids, every grandparent should be teaching their grand kids and every school in this country should be teaching it in the classroom. To illustrate the importance of this principle here’s a story of one of the greatest American’s that has ever lived, Benjamin Franklin . . . Let’s take another look using an ETF (Exchange Traded Fund) that tracks the S&P 500, the SPY. If you were to invest in the SPY back in 2005 (10 yrs. ago) you would have a return of 75.37%, a very nice gain. However,
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Categories: Personal Finance.

9 Facts about Retirement

Retirement can have many meanings. For some, it will be a time to travel and spend time with family members. For others, it will be a time to start a new business or begin a charitable endeavor. Regardless of what approach you intend to take, here are nine things about retirement that might surprise you. Many consider the standard retirement age to be 65. One of the key influences in arriving at that age was Germany, which initially set its retirement age at 70 then lowered it to age 65.¹ Every day for the next 15 years, another 10,000 baby boomers will turn 65. That’s roughly one person every 8 seconds.² In 2010, people aged 65 and older accounted for 13% of the population in the U.S. By 2025, they are expected to make up 18% of the population.³ Ernest Ackerman was the first person to receive a Social Security
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Categories: Personal Finance.

Words of Wisdom for Every Investor

The first weekend of March is one that we look forward to each year. It is the one time of the year where you have the opportunity to read what arguably the best investor ever has to say about investing, the market, the economy and much, much more. We are talking about Warren Buffett and his annual letter to his shareholders. We read each this letter religiously for the opportunity to learn from the “Oracle of Omaha.” This year was no different. Below is a portion of the 2014 letter. If you read nothing else you must read what we have pasted below. If you would like to read the entire letter just click here. (The bolded sentences below is our emphasis not Buffett’s.) From page 17 and 18 of the 2014 Berkshire Annual Letter . . . “Our investment results have been helped by a terrific tailwind. During the
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Categories: Markets, Personal Finance, and Strategy.

The Five Characteristics to look for in a Financial Advisor

After a decade plus in the markets and after teaching and networking with over a thousand financial advisors, I have witnessed five characteristics that the best financial advisors have in common. These are the five things that I’ve told my family and friends to look for when considering an advisor. It’s a list that is born out of nothing but experience . . . just how any list should be created. The Five Characteristics of a Financial wholesale mlb jerseys Advisor that you should look for are . . . Independence- By independence I mean they own their own advisory firm. There is a major difference between independent advisors and those advisors that work for a big financial institution. The biggest difference is that independent advisors make their own decisions (money management, marketing, fee structure, etc.). These decisions are made by answering the question, “what is right for my client?”
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Categories: Personal Finance.
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