We (think we) know how to grow wealth...but do we know how to preserve it? As counterintuitive as it may seem the way to preserve wealth isn’t to eliminate risk but to (smartly) take some. Consider that successful wealth preservation requires a strategy that: 1) preserves purchasing power (i.e. inflation-adjusted value) 2) sustains wealth over [...]
You’re about to reach age 70 ½. You’re facing Required Minimum Distributions from your IRAs. Want to avoid them? Still working? Here’s how: Although RMDs are required for IRAs they are NOT required for Qualified Retirement Plans (“QRPs”) such as a 401(k). As such rolling IRA balances into an employer’s QRP will allow deferral of [...]
According to a recent survey by the Certified Financial Planner Board of Standards 86% Americans say they’re stressed about their finances. What do they do about it? Nothing...at least in a meaningful or productive sense. 27% say that having a financial plan is the best way to reduce stress 22% say the answer is having [...]
The fiduciary standard is an ongoing debate in financial services. Who is a fiduciary, what is a fiduciary obligation, is it right for everyone and what happens if it’s cost prohibitive? To understand the debate requires a bit of context. Historically financial services were delivered piecemeal. Need to get your tax return filed? Call a [...]
A recent study by Legg Mason about investor attitudes, concerns and choices yielded this little nugget: the average investor spends about 90 mins/day thinking or worrying about money while the top 10% spend 2-3 hours per day. That means having a financial plan in place and a planner creating/monitoring/adjusting it could save the average person [...]
...is you. Thank you Josh Brown for this enlightening look at how people can't seem to get out of their own way. If you're an Apollo client (and, if not, why aren't you?!) or a reader of our blog/newsletters you would be correct in assuming the behavioral finance themes underlying the reactions to market stress [...]
Not long ago a prospective client inquired about Apollo’s views of the fixed income markets and, specifically, muni bonds. It was a simple discussion – one we’ve had with our clients a number of times since the ‘market meltdown’ of 2007-2009. We explained that with ‘risk-free’ 10-year Treasuries yielding 2% and the questionable balance sheets [...]
The following is an excerpt from an article by Carl Richards originally appearing in the December/January 2015 issue of Morningstar magazine. We've bolded a few of the more interesting points. I suspect you’ve heard a version of this phrase at least once in your career. It usually makes an appearance after you offer a recommendation [...]
(The following is an excerpt from a recent article appearing in InvestmentNews.) Investors are assuming too much risk in their portfolios, according to a Vanguard analysis of data from Morningstar. The questions are: Who is responsible, and what can be done about it? As reported in last week's InvestmentNews, the proportion of individual investor assets [...]
What's your life philosophy? Slow and steady wins the race or be the shiniest star in the sky? Richard Bernstein has some ideas.