Tag Archives: financial performance

Boomers and Gen X’s May Be in Serious Trouble

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Boomers and Gen X’s May Be in Serious TroubleIn a recent Charles Schwab study titled Independent Advisor Outlook Study, 63% of advisors say it will be difficult for investors to achieve their retirement goals. The study cited a partial list of problems that included: A historically high federal debt, high unemployment, and rapidly growing college and health-care costs.

Sitting in the background are additional causes for concern such as rising longevity, the demise of the defined benefit pension plan, and low saving rates compared to other developed countries. One of the biggest issues is the rise of defined contribution plans, such as 401k, that transfer investment performance risk to employees. Many current retirees enjoy the guaranteed benefits of a pension plan. Their children and grandchildren will not be so lucky. Continue reading →

Investment Performance Is Not An Option

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Investment PerformanceIf you are working, you are saving and investing assets for your future use. The most important use is retirement years when your assets produce income that supplements payments from Social Security and company pension plans.

The more assets you accumulate during working years, the higher your standard of living during retirement years. Increased assets also enhance financial security late in life when you need it the most. You cannot have too many assets. Continue reading →

Beware of the Hot Product Sales Pitch

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Financial planners and financial advisors do not have track records. Consequently, it is impossible for investors to determine the results planners and advisors have produced for current clients.

This is no accident. When financial planners and financial advisors produce no documentation for their results it makes it easier for them to use personalities and sales skills to convince you they are the next Warren Buffet.

One very deceptive sales practice that is used by less ethical planners and advisors is to show you the results of high performing mutual funds. Then they claim they recommended the funds to clients before the performance occurred. The basis for their sales pitch is knowing how to identify hot funds before the performance occurred.

Be advised this sales pitch is rarely true because no financial planner or financial advisor has a crystal ball that allows them to predict future performance. There is a very high probability they selected the funds AFTER the performance occurred and anyone can do that with the benefit of hindsight.

Do not place any value on the hot product sales pitch. Hot products do not constitute a track record. Only independent, audited results for all of their clients is a legitimate record.