Over the long run, equity mutual funds can offer some pretty attractive returns. Ibbotson SBBI research shows that Large Stocks have returned an annualized 9.6% from 1926 to 2008. All too often an otherwise rational person will have an investment experience that doesn’t measure up to market returns. Studies suggest that investors actually under-perform the funds they are investing in. How could that be?
Generally, looking out for your own interests rather than those of other people is not considered a positive attribute. But when it comes to looking for financial planning and investment advice, you should do exactly that. Understanding the standard of care required by your advisor is one way to look out for yourself.
Investment Advisors managing over $25 million are subject to regulation by the Securities and Exchange Commission (
After a year like 2008, it is easy for investors to consider throwing in the towel on investing. Wouldn't putting money in T-Bills be better than riskng it in the market? Sure, the approach solves one type of risk - investment risk, but introduces another type of risk - purchasing power risk.
Needless to say, there’s a lot of confusion in the air right now. With multi-thousand page bills being rushed through Congress and endless speculation on new regulatory and tax proposals, the line between proposed and enacted legislation can be a bit blurry. Financial Planning Magazine had an article entitled “Unwrapping the Package” which lists some of the items in the American Recovery and Reinvestment Act of 2009 that you can benefit from. To read the article, follow the link: http://www.financial-planning.com/fp_issues/2009_5/unwrapping-the-package-understanding-stimulus-bill-2661665-1.html
Watching the news each day, we hear about the effect subprime lending has had on the market and the economy. The untold story seems to be the how and why those borrowers took out the subprime loans.
The investment community is struggling with the issue whether capitalism will continue in its present form. Up to this point, winners of the 2008 Presidential election cycle have created more uncertainty than clarity. Look at these examples: