Categories

June 20,
2017

When It Comes to Investing: Don’t Be “Average”

JP Morgan recently reported 20 Year annualized investment returns categorized by asset class. Notably, a portfolio invested 60% in the S&P 500 Index and 40% in a high quality bond index over the past 20 years had an annualized return of 7.2%. Painfully, the average investor with a similar allocation has only had a 2.1% annualized return over the same period. By engaging in the decision to buy or sell their stocks, the average investor earned almost 71% less than the unmanaged portfolio... Read More

May 31,
2017

Building a portfolio - The case for simplicity

  The debate regarding the most effective way to build an investment portfolio continues every time we turn on a television set. Pundits bombard investors with complicated ideologies and exotic products catering to our desire for quick fixes, guarantees and instant gratification. Unfortunately in life, get rich quick schemes and lottery tickets are few and far in between. The same concept applies to investing. In my years as a financial advisor at HFG Trust, I have met with... Read More

May 30,
2017

The Rule of Thumb Fallacy

  This month, our very own Ben Messinger was featured in the Tri-Cities Area Journal of Business. In his article, Ben cautions the over-reliance on the “rule of thumb” yard stick when planning for retirement. Do you feel comfortable using everybody else’s diagnosis or prefer an individualized assessment of your financial health? If you believe you are unique, we strongly encourage you to read Ben’s article to learn how using the wrong assumptions can change... Read More

May 20,
2017

Selecting an Investment Professional

  How does one select an investment professional? This question has rattled my brain for many years and recently resurfaced when my wife needed surgery. It was daunting for a non-medical layperson, which we are, to know which surgeon was most qualified and which procedure was in her best interest. As we labored through the selection of a doctor, I developed greater empathy for those who have or are looking for an investment professional. I use the word “professional”... Read More

April 24,
2017

1st Quarter Market Review 2017

Behavior Risk - Drag on Returns First Quarter 2017 Have you ever heard people talking around the water cooler at your office about the funds they have added or removed from their 401k plan? Has this left you feeling like you aren't staying on top of your finances? The temptation of making changes can be dangerous to your returns. Investors need to make investment decisions around the analysis of risk. Commonly discussed risks are market risk, inflation risk, currency risk, and... Read More

April 19,
2017

Are You Normal?

In a recent conversation with a couple in their 60s, we were discussing their retirement plans, income needs and retirement account balances when they asked an interesting question: “Are we normal?” I clarified the question and found out what they meant: Does our current financial situation look like most 60+ year olds getting ready for retirement? In an effort to “fit in” most people want to know that there are others going through the same thing that they are... Read More

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