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, [...]
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 [...]
Over the years, my kids received savings bonds as gifts for various occasions. We held the bonds to maturity and recently turned over the money to the two oldest kids. In both cases, the extra money came in handy. For my oldest, it provided a bit of a cushion between her college graduation and the [...]
There is no single right answer to this question. According to Boston-based attorney Danielle Van Ess, the general rule for reviewing one’s estate-planning documents is every three years. But she adds that, as with anything else, the right time for a review depends on your individual circumstances. Has your situation changed in any of [...]
The recent earthquake in Japan and its aftermath is a tragedy with enormous human consequences. What does it mean for your investments? While nobody can predict the future with any certainty, short-term events—no matter how tragic—generally pass. Japan is a strong economy with the resources to rebuild and to rebound from this event. Oakland, Calif.–based [...]
Add the next five questions to your notes to take to your first meeting with a new financial planner, and you’ll be prepared to make the best decision for your financial interests. 6. Who will I be dealing with on an ongoing basis?Will the financial planner with whom you are meeting be the one to [...]
Hiring your first financial planner or selecting a new one can be a trying experience. How do you know if you are making the right choice? Will this person act in your best interest? While no selection process is flawless, here are ten questions you should ask before hiring a financial planner/advisor. Will my assets [...]
I have to be practical. I don’t believe anyone should rely on brokers or investment advisers who claim to be able to “beat the market” for investment advice. However, the reality is that 90 percent of individual investors ignore this admonition, often to their detriment. If you insist on using these brokers or advisers, here [...]
To answer this question, first you have to ask yourself several more. The first question is, can you afford to pay your grandchildren’s college tuition? If not, that’s the end of the discussion. Being able to afford it is not just a matter of having enough money on hand right now. It’s also important to [...]
Economic events of the past couple of years have made it more difficult for people to obtain conventional lines of credit, and as a result, many are turning to family members for loans for a variety of purposes. An inter-family loan has its pros and cons. On the pro side, a family member is not [...]
