Protecting Your Wealth

Month: April 2012

April 25, 2012  |  

Protecting Your Wealth

Taking a comprehensive approach to managing your wealth means more than just managing your investments. It requires comprehensive wealth management betting colludes wealth protection. There are essentially 2 ways to protect your wealth: Mitigating risk means taking actions that will minimize your exposure to risk and, should that risk occur, minimize its impact. Transferring risk means shifting it away from yourself to another party. Mitigating risk may include taking steps to keep your secrets secret, […]

April 19, 2012  |  

First Quarter Perspective

The first quarter of 2012 was great for equity markets. We experienced a global-wide rally of double digit returns in many indexes. Here at home, the S&P 500 Index rose 12.59% and the Russell 2000 Index rose 12.44%. Overseas, international markets faired just as well with the MSCI EAFE Index gaining 10.98%. The trend upward continued with real estate, as the S&P Global REIT Index rose 10.73%. The picture was a bit different for fixed […]

April 16, 2012  |  

The Long-Term Care Dilemma: Insurers Leaving, Premiums Increasing

We often receive questions about long-term care insurance and those questions have increased lately with the news that several insurers are leaving the long-term care market. While most of our clients have done a fantastic job of accumulating assets and self-insuring their long-term care needs, parents, family and friends may benefit from the following insights in the long-term care industry. There’s a pretty good chance that you or your spouse will have a need for […]

April 11, 2012  |  

Why Is The Average Investor’s Performance So Poor?

The data is conclusive. The average investor’s returns are, umm, below average. How can this be? What appears to be statistically impossible is due to two basic factors, investment discipline and costs. Over the last 20 years, the average stock investor earned 3.49% compared to the S&P 500’s return of 7.81%. A $100,000 investment in the S&P 500 made 20 years ago would be worth $449,967.27 today, versus the value of $198,594.74 for the average […]

April 2, 2012  |  

The Perils of Market Timing: Part 2

For many investors, the temptation to try to time the stock market is irresistible. However, for most investors, market timing is as dangerous as it is irresistible. In my last market timing post, I discussed the downside of missing a few good return days. In this post, I discuss the downside of trying to time allocation to sub asset classes in your portfolio. To demonstrate the difficulty in predicting the movements in stock prices, I […]