What Financial Advisors Talk About, and Why You Should Care
Since 2003, I have been a member of the National Association of Personal Financial Advisors, or NAPFA, which is the largest professional organization of fee-only advisors. Several years ago, NAPFA created a number of small study groups. The group to which I belong has nine members, and all of us are either solo or have [...]
The Real Cost of “Free” Financial Advice
Recently, a friend asked me to look over his mother’s holdings. His mother is in her late 60s, recently divorced, and on her own financially for the first time. She decided to go with the financial advisor rep at her local bank for some free investment help. Because she didn’t pay for any sort of [...]
How to Save Money on a Tattoo
When I was 18, I decided I needed a tattoo. Very original, I know. But I was determined. A friend of mine and I went to a new tattoo shop in our college town. I had a coupon for 10% from the local Penny Saver-type paper. In my defense, I was a broke college-kid. My [...]
How Rising Oil and Gas Prices Might Affect Your Portfolio
Anyone who drives a car is keenly aware of the swift rise in the price of gas. This is largely a result of political uncertainty in the Middle East. What impact will the increase in oil and gas have on your portfolio? The answer varies. In some cases, you’ll see a direct positive impact on [...]
Rebalancing Your Portfolio
You probably already have a financial plan in place that includes an asset-allocation strategy. This strategy helps you control your portfolio’s risk via an allocation among different asset classes. However, your portfolio won’t stay within that allocation by itself. Different investments earn different rates of return, and over time your allocation will become unbalanced. Thus, [...]
How You Compensate Your Financial Adviser, and Why It Matters
There are three basic forms of financial adviser compensation: commissions, fee-based, and fee-only. Should the method of compensation make a difference to you? I (who am admittedly biased on the topic) say yes. Let’s examine each method. Commissions are pretty easy to understand. The adviser is compensated when he or she sells you a financial [...]