Most people do not like to hear the word “risk” anywhere near the word “finances.” Nevertheless, risk and reward are closely correlated. On average, markets reward investors who accept more risk. On the other hand, lower risk investments may yield smaller returns, but also assure smaller losses. Successful investors understand this relationship and build portfolios that reflect their personal tolerance for risk. Creating this balance in your own investment portfolio will ensure you can stand by your investments in every kind of market.
No bull markets last forever. While, by some measures, we are in the thick of the longest bull market in history, the end always comes. So, investors must always be prepared for bear markets, both emotionally and within their portfolios.
At TrueNorth Wealth, we know that, for long-term investors with appropriate diversification and portfolio construction, bear markets can actually be quite beneficial, if handled appropriately. Consider these four ways to manage the next bear market like a pro, whenever that may be.
We have all heard grandparents talk about the “good old days,” when a gallon of gas only cost a quarter and you could buy candy for a penny. How times change. In just the last half-century, the price of living has risen an average of 3.8% each year.*
Your financial advisor should be capable, experienced, and properly trained. Most importantly, they should be ethical and worthy of your trust. That’s an extremely hard qualification to identify with exactness, but an effective substitute is to make sure that your adviser’s incentives align with yours.
So, as you look for a financial advisor, you should first investigate how they receive compensation for their services. There are three primary methods of compensation in finance: commission-based, fee-based, and fee-only.
As a financial advisor, I often experience older clients expressing concerns about whether or not their heirs will be taxed on inheritance money. These clients remember that when their own parents passed away, they received a direct check and were not required to pay taxes on that income.
How much money does it take to be “wealthy” in America? According to the 2018 Modern Wealth Index by Charles Schwab*, Americans claimed on average that a net worth of $2.4 million dollars makes you “wealthy”. However, the survey also found that many Americans did not define wealth only by net worth. In fact, the most popular definition of wealth did not include money at all; the largest group of Americans considered wealth to be living a “stress-free” life and experiencing “peace of mind.”
Creating and contributing to a college savings plan enables you to financially support your children in their educational goals. Although saving such a hefty sum of money may seem daunting, these three key principles will help you create a personalized plan to save for your children’s college with ease.
For many retired and near-retired individuals, Social Security benefits constitute the foundation of their future income. However, when making the transition to retirement, deciding when and how to start taking Social Security can be the most stressful part of the process. These three fundamentals can speed you on your way.
Does your financial advisor serve your best interests or their own? This article, recently published on KSL360, updates the current legal findings regarding the “fiduciary rule” for financial advisors. On March 15th, 2018 the Fifth Circuit US Court of Appeals struck down the Department of Labor’s “fiduciary rule” law. Also commonly called the “conflict of…
Why is working with a fiduciary as your financial advisor so important? In our several decades of combined experience, too few prospective clients understand the fiduciary relationship, its importance, and the risk they assume when hiring an advisor without it.