My goal with this blog has been to write, with the purpose of educating and sharing information which would be relevant to clients and prospective clients. Up to now, I have written occasionally, but not with any specific quantitative goals.
Today, I'm committing to a new challenge, or opportunity, based on one of the people I read and respect the most, Seth Godin. His organization, @ProjectDomino, is starting a 30 day challenge for bloggers and other writers to create content for each of the next 30 days. I'm going to give it a shot!
Each day, I'll be receiving a prompt from @ProjectDomino, which will provide a guide on this "writing journey." It is to create "an opportunity to reflect on your now, and to create direction for your future."
So, these posts may be business or financial related, or they may be more personal. I am probably going to try to tie in their prompts with wealth management and financial planning, but I'm not really sure.
When you start a journey, or try a new experiment, you don't know where it leads. But new opportunities are the key to so many things.....I am willing to try this.
#trust30 For those of you not on Twitter, that is the hashtag, or way that others on Twitter can follow the posts of people who are participating in this project. My twitter name is @wassermanwealth
Tuesday, May 31, 2011
Monday, May 16, 2011
What You Can Control
You can only control what you can control.
We incorporate this concept as a core part of our wealth management and investment philosophy.
You can control the costs and investment expenses that you incur. This is why we utilize some of the least cost mutual funds, yet they still have excellent performance over the long term.
You can control how globally diversified your investments are, which reduces your investment risk. We actively do this for our clients.
There are some things that you cannot control. You cannot control whether gas prices go up or down. You cannot control interest rates. You cannot control the success or stock price of any one company.
As we provide advice to you, we recognize what we can and what we cannot control, and discuss this with you.
A few weeks ago, Oprah Winfrey taped an interview with President and Mrs. Obama, which was to air on a Monday. Even Oprah could not control that the US would capture Osama bin Laden on the day before this interview was to air. She was very upset that the show aired, which was now seemingly irrelevant. Even for Oprah, there are things she could not control.
As you consider your important financial decisions, you will be most successful if you recognize what you can control, and focus on those items. This will provide you and your family with greater financial security and peace of mind.
We incorporate this concept as a core part of our wealth management and investment philosophy.
You can control the costs and investment expenses that you incur. This is why we utilize some of the least cost mutual funds, yet they still have excellent performance over the long term.
You can control how globally diversified your investments are, which reduces your investment risk. We actively do this for our clients.
There are some things that you cannot control. You cannot control whether gas prices go up or down. You cannot control interest rates. You cannot control the success or stock price of any one company.
As we provide advice to you, we recognize what we can and what we cannot control, and discuss this with you.
A few weeks ago, Oprah Winfrey taped an interview with President and Mrs. Obama, which was to air on a Monday. Even Oprah could not control that the US would capture Osama bin Laden on the day before this interview was to air. She was very upset that the show aired, which was now seemingly irrelevant. Even for Oprah, there are things she could not control.
As you consider your important financial decisions, you will be most successful if you recognize what you can control, and focus on those items. This will provide you and your family with greater financial security and peace of mind.
Monday, April 18, 2011
Top Ten Financial Tips for Tax Day
1. Your investments should be globally diversified. And that means the entire world, not just the US, Europe and Asia. Small and large companies. Value and growth companies.
2. Track your investment performance against worldwide benchmarks. Annually.
3. Consider the impact of an eventual increase in interest rates, especially if you own bond funds.
4. Have a written, long term investment strategy. It doesn’t need to be complicated.
5. Be disciplined and stick to your written investment strategy, regardless of how the stock markets are doing in the short term.
6. Understand the fees you are paying for all of your investments, whether you see them or not. Stock and bond mutual funds. Alternative investments. Individual bonds. Your advisor. You may be surprised by what you find.
7. Understand how your advisor is really compensated. The financial interests of you and your advisor should be aligned (on the same side of the table). Like a fee-only advisor.
8. You can only control things that you can affect, like most of the above. You cannot control the direction of financial markets or any company.
9. Be prepared and plan for the unexpected. And talk to your advisor about what that means.
10. Reduce your taxes by putting certain investments in retirement accounts and others in taxable accounts. Make sure that you and your advisor understand these concepts.
2. Track your investment performance against worldwide benchmarks. Annually.
3. Consider the impact of an eventual increase in interest rates, especially if you own bond funds.
4. Have a written, long term investment strategy. It doesn’t need to be complicated.
5. Be disciplined and stick to your written investment strategy, regardless of how the stock markets are doing in the short term.
6. Understand the fees you are paying for all of your investments, whether you see them or not. Stock and bond mutual funds. Alternative investments. Individual bonds. Your advisor. You may be surprised by what you find.
7. Understand how your advisor is really compensated. The financial interests of you and your advisor should be aligned (on the same side of the table). Like a fee-only advisor.
8. You can only control things that you can affect, like most of the above. You cannot control the direction of financial markets or any company.
9. Be prepared and plan for the unexpected. And talk to your advisor about what that means.
10. Reduce your taxes by putting certain investments in retirement accounts and others in taxable accounts. Make sure that you and your advisor understand these concepts.
Thursday, March 31, 2011
Would you have expected this?
Today, March 31st, represents the end of the 1st quarter of 2011.
Three months ago, on January 1, 2011, did you expect:
The leader of Egypt to be peacefully overthrown?
The price of oil and gas to increase significantly?
Revolutions to be underway in many Middle East countries?
A major earthquake and tsunami in Japan?
We didn’t either.
However, even with all of the above events, do you realize that the S & P 500, a broad index of 500 large US companies, increased over 6% during these same 3 months.
One quick lesson from this information: Even during times of crisis and unexpected news (and almost all periods have some of both), the stock markets throughout the world may still be positive.
That is why we firmly believe in the importance of focusing on the long term and planning for the long term, and not to be focused on the day-to-day volatilities of the stock market or world events.
Three months ago, on January 1, 2011, did you expect:
The leader of Egypt to be peacefully overthrown?
The price of oil and gas to increase significantly?
Revolutions to be underway in many Middle East countries?
A major earthquake and tsunami in Japan?
We didn’t either.
However, even with all of the above events, do you realize that the S & P 500, a broad index of 500 large US companies, increased over 6% during these same 3 months.
- This is the largest 1st quarter increase of the S & P 500 during any year from 2001-2011.
One quick lesson from this information: Even during times of crisis and unexpected news (and almost all periods have some of both), the stock markets throughout the world may still be positive.
That is why we firmly believe in the importance of focusing on the long term and planning for the long term, and not to be focused on the day-to-day volatilities of the stock market or world events.
Wednesday, March 16, 2011
Value of a Financial Advisor: Perspective
As I sit at my desk, with spring beginning to arrive in Farmington Hills, MI, it is hard not to think about world events and their impact on the financial markets.
The horrific events in Japan, both nature and nuclear, are profoundly sad and scary. The events in the Middle East over the past months may be very positive, resulting in increased democracy and freedom for many, but could result in oil disruptions.
Neither of these series of major events could have been predicted on January 1, as 2011 began. As no one could have predicted these events, no one could have made investment decisions based on these events occurring.
Which leads to one of our basic investment tenets: we focus and plan for our clients, for the long term. While we recognize that there are many issues and problems in our country, and throughout the world, we try to assist our clients by keeping a long term perspective. While the events of today are important, they should not control or even impact your financial goals, which may be decades into the future.
As we plan, we are realistic, but optimistic about the future. Our country, and the world for that matter, has proven to be very resilient, if viewed by years or decades, and not day to day. For any time period you select, challenges were faced. Thus, we structure your portfolio with safe, fixed investments for the short term or to provide a foundation of current cash flow, and with stocks to provide growth for the longer term.
We plan for our clients when we begin to work with them. We develop an Investment Policy with them. Then, at times like this, or during 2008-09, we are here to talk to them, if they desire. That is key. By talking about the financial markets and what is going on in the world, we help our clients to keep a long-term perspective, which really means they are able to keep their long term strategy in place (and not panic). That is key to helping their investment experience to be positive, so they will have the comfort and security to know that we are helping them move toward reaching their financial goals.
The horrific events in Japan, both nature and nuclear, are profoundly sad and scary. The events in the Middle East over the past months may be very positive, resulting in increased democracy and freedom for many, but could result in oil disruptions.
Neither of these series of major events could have been predicted on January 1, as 2011 began. As no one could have predicted these events, no one could have made investment decisions based on these events occurring.
Which leads to one of our basic investment tenets: we focus and plan for our clients, for the long term. While we recognize that there are many issues and problems in our country, and throughout the world, we try to assist our clients by keeping a long term perspective. While the events of today are important, they should not control or even impact your financial goals, which may be decades into the future.
As we plan, we are realistic, but optimistic about the future. Our country, and the world for that matter, has proven to be very resilient, if viewed by years or decades, and not day to day. For any time period you select, challenges were faced. Thus, we structure your portfolio with safe, fixed investments for the short term or to provide a foundation of current cash flow, and with stocks to provide growth for the longer term.
We plan for our clients when we begin to work with them. We develop an Investment Policy with them. Then, at times like this, or during 2008-09, we are here to talk to them, if they desire. That is key. By talking about the financial markets and what is going on in the world, we help our clients to keep a long-term perspective, which really means they are able to keep their long term strategy in place (and not panic). That is key to helping their investment experience to be positive, so they will have the comfort and security to know that we are helping them move toward reaching their financial goals.
Tuesday, February 8, 2011
A Tribute to a Colleague
I received an email at 11:11 am on Monday. In the back of my mind, I knew that it may be coming at some point, and unfortunately, it arrived.
A colleague of mine who lived in Gulfport, Mississippi, who I first met over the phone in 2002, passed away over the weekend. He was 58.
Rodney Van Loon was a CPA with a big heart, who was willing to share his time, energy and thoughts with others. For that reason, Rodney’s legacy also includes the value that my firm has brought to its clients.
When I was considering entering the financial advisory business, around 2001-2002, Rodney and I talked a number of times, very extensively. He was already part of the BAM network of financial advisors, which I am now affiliated with. Through these many discussions, I too joined the BAM network, which has been a vital part of the philosophical foundation of my firm. Our investment strategy and business model is based on these early phone conversations.
Rodney was willing to share and talk to me, even though I was a complete stranger. This was a gift to me, which I don’t think he recognized or even thought twice about. I thanked him for it many times through the years. We met in person over the years, at annual conferences and then more frequently, through an intensive multi-year peer program that we both participated in, with other BAM advisors.
Rodney’s deep, strong Southern accent and graciousness were always apparent. He, his family and his firm survived Hurricane Katrina, which devastated his community. He could not survive the disease which took his life on Sunday.
My deepest condolences extend to his family, his friends and clients in Mississippi.
Rodney’s legacy will live on in many ways. The impact of his willingness to share his time with me, so graciously many years ago, will continue to benefit my clients in the future. That is the true value of giving to others.
A colleague of mine who lived in Gulfport, Mississippi, who I first met over the phone in 2002, passed away over the weekend. He was 58.
Rodney Van Loon was a CPA with a big heart, who was willing to share his time, energy and thoughts with others. For that reason, Rodney’s legacy also includes the value that my firm has brought to its clients.
When I was considering entering the financial advisory business, around 2001-2002, Rodney and I talked a number of times, very extensively. He was already part of the BAM network of financial advisors, which I am now affiliated with. Through these many discussions, I too joined the BAM network, which has been a vital part of the philosophical foundation of my firm. Our investment strategy and business model is based on these early phone conversations.
Rodney was willing to share and talk to me, even though I was a complete stranger. This was a gift to me, which I don’t think he recognized or even thought twice about. I thanked him for it many times through the years. We met in person over the years, at annual conferences and then more frequently, through an intensive multi-year peer program that we both participated in, with other BAM advisors.
Rodney’s deep, strong Southern accent and graciousness were always apparent. He, his family and his firm survived Hurricane Katrina, which devastated his community. He could not survive the disease which took his life on Sunday.
My deepest condolences extend to his family, his friends and clients in Mississippi.
Rodney’s legacy will live on in many ways. The impact of his willingness to share his time with me, so graciously many years ago, will continue to benefit my clients in the future. That is the true value of giving to others.
Tuesday, January 4, 2011
Our 2011 Investment Predictions
None.
We have no crystal ball. We cannot predict the future.
These statements are a critical part of our investment philosophy. We recognize and accept that we cannot predict the future direction of the financial markets. If Warren Buffet is not smart enough to predict the future, we certainly cannot.
We do have a very clear investment strategy. We adhere to a disciplined investment approach, for both stocks and fixed income investing. Our philosophy is not based on guessing which country (will Japan or Europe be hot in 2011?), stock sector or company to invest in (should we buy Citigroup and sell Microsoft?). That is not a winning game.
We do know that interest rates are at or near historical lows and that eventually interest rates will rise. We know that when interest rates rise, owners of bond funds will face financial losses, which for some will be significant.
If you own bond funds, or know someone that does, they should talk to us. We do predict that discussion will be a very valuable one.
We have no crystal ball. We cannot predict the future.
These statements are a critical part of our investment philosophy. We recognize and accept that we cannot predict the future direction of the financial markets. If Warren Buffet is not smart enough to predict the future, we certainly cannot.
We do have a very clear investment strategy. We adhere to a disciplined investment approach, for both stocks and fixed income investing. Our philosophy is not based on guessing which country (will Japan or Europe be hot in 2011?), stock sector or company to invest in (should we buy Citigroup and sell Microsoft?). That is not a winning game.
We do know that interest rates are at or near historical lows and that eventually interest rates will rise. We know that when interest rates rise, owners of bond funds will face financial losses, which for some will be significant.
If you own bond funds, or know someone that does, they should talk to us. We do predict that discussion will be a very valuable one.
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