Investment Advice

The value of advice

Posted by on August 25, 2010 in Investment Advice

There’s been a certain movement in financial circles to re-examine compensation models of investment advisors.  One of the central proposals to such reform includes moving from a commission based model, with connotations of the hard sale, to a hourly and fee based model, which has a more advisory undertones. Yet, the legal industry, built on [...]

5 signs you are a pushover with your financial advisor

Posted by on February 19, 2009 in Investment Advice

I usually pre-write my posts Sunday morning. Thus, in a completely unplanned companion post to Canadian Capitalist’s comments on this article about the investment industry not being empathic to a retired investor, I look at whether financial advisors are truly the enemy or whether we have seen the enemy and it is us.  Canadian Capitalist [...]

To advisor or not to advisor? Thoughts from the advisor’s side.

Posted by on June 9, 2008 in Investment Advice

Passive investing and the ease in which people can now find unbiased financial information has, in the eyes of some, made the investment advisor/investment planner unnecessary. This school of thought, of which Canadian Capitalist and Michael James are large supporters, argues that most people are better off planning their own portfolio by buying exchange-traded funds [...]

Why large mutual funds under-perform the market

Posted by on May 28, 2008 in Investment Advice

Statistics show that the over-whelming majority of mutual funds under-perform the general stock market index; a study found 78% of actively managed mutual funds lagged the Vanguard 500 Index fund (which tracks 500 large cap stock in the U.S.). Why? The explanation usually given is that mutual funds, even high-flying ones, eventually “revert to the [...]

Stock Investing based on Demographics: Betting on a Baby Boom?

Posted by on February 20, 2008 in Investment Advice

One school of stock investing has always been invest in trends you see around you. Recently, I started noticing how many of my friends were having kids (I am told that women have physical urges to have kids once they reach a certain age which is around my age- umm… “urges” eh? My face loses [...]

2008 Predications

Posted by on December 20, 2007 in Investment Advice

This is my last post of 2007. I am taking an early holiday to rest up (I have had a cold all week), enjoy the family, retain water and watch a lot of meaningless college football bowl games. Before I write on 2008 predications, I wanted to thank everyone for reading and commenting this year [...]

Is it time to buy banks?

Posted by on November 15, 2007 in Investment Advice

Here’s my statistic of the week: Bloomberg reports that that Goldman Sachs, Merrill Lynch, Morgan Stanley, Lehman Brothers and Bear Stearns will earn a combined $28 billion this year down 8.3 percent from last year. Merrill Lynch and Bear Stearns reported some substantial write-downs from subprime mortgage/asset backed commercial paper. So, despite all of that, [...]

Discussing Retirement with the Folks

Posted by on November 14, 2007 in Investment Advice

Of all the scary things that personal finance can throw at you, I am finding talking to my parents about their impending retirement to be a 16 on a scary scale of 1 to 10. For your entire life, your parents teach you about money- either through conversations or observation- and then suddenly one day, [...]

To Emergency Fund or not to Emergency Fund?

Posted by on October 4, 2007 in Investment Advice

The funny thing about starting and running your own small business is that you have to become a magician. There’s a lot of smoke and mirrors involved in making sure you look bigger than you do and you are not merely a one man shop. In a previous life, I started a small business approximately [...]

Debt Management Covers up a lot of Investing Mistakes

Posted by on September 17, 2007 in Investment Advice

I was looking at my financial account statements on Friday to see what my asset allocation is and I started tracking back to much older statements. I went back to the 90′s and things looked quite ugly. Hindsight being 20/20, I must have made almost every investing mistake you could make. Thankfully, I made them [...]