Passive versus Active Portfolio Management

May 20th, 2012 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Investments - (0 Comments)
 

One of the most heated discussions most people have about retirement gets back to investing and managing your money.  There are many who will tell you that if you start out early, invest regularly into a low-risk, low-growth IRA or 401(k) that you will be able to retire comfortably. On the other side of the equation you have wealth managers who demand a more active management of your portfolio; championing active management as the only way to make sense of the investment world. It’s not always easy to figure out which type of management suites you best.

Of course if your active wealth management had taken place during the years between 2000-2010 you also could have lost a lot of money. If your wealth management Florida made the same mistakes a lot of investors did.

It’s tricky; it’s really tough to know.  Both sides have valid arguments. This is why there are investment wealth management Florida professionals. People who will take your passive investments, manage them actively and do their best to generate the kind of returns you had been hoping for. Managed portfolios have movement and activity into and out of different investments every day. Rather than you being responsible for the buying and selling of stocks in your account, an active portfolio manager will instead take care of that for you.

The debate over active and passive investments will continue onward. As the debate rages on though, your investments may be slipping further and further from relevance. What are you going to do about your investments?

 

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Life Insurance: How much and which type is right for you?

May 17th, 2012 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Insurance Planning - (0 Comments)
 

According to some financial advisors, life insurance is as much a basic part of smart financial management as having a savings account for emergencies. Especially if a person has a significant other or children, life insurance provides a financial safety net in case something horrible goes wrong. Without that safety net, a person’s estate and family will be left in an immediate, financial lurch without any ability to fix it right away. Even creative financial planning techniques may not be enough when the damage is done.

A life insurance policy represents insurance coverage that, if a covered person dies, will pay out an agreed-upon sum of money to a named beneficiary. In return, the policyholder pays a monthly or quarterly premium to the insurer to keep the policy active. Doing so provides a financial buffer for the beneficiary, especially for immediate, temporary income replacement.  Even for wealthy families with a high net worth may need liquidity.  If the assets have to go through probate or other litigation or an asset is not easily liquidated like a residence other money may be necessary.  Paying mortgages, day to day living and many other expenses may arise during this often difficult time.  Life insurance may help to create the immediate needed liquidity.

 

There are a few types we will discuss: term life insurance and permanent life insurance.

For people in their early family years with competing demands, term life insurance may be the most practical approach. Term life provides a straightforward insurance coverage for a set dollar amount while the policyholder pays a specific premium. The term period can range but typically can be up to 30 years. If, at the end, nothing occurs then the insurer keeps all the premiums paid. The policyholder then has to go and find a new policy, usually at a higher price. That said, term life works very well as a basic coverage to provide a safety net for a specified period.

Permanent life insurance lasts for as long as the policyholder is alive and pays his premiums; ergo the name “permanent,” insurer can’t end the policy. This provides life insurance well into a person’s later years when a new policy would be extremely expensive. Created early enough, having life insurance in one’s later years can be a boon to senior retirement savings for a remaining spouse, especially in hard times.

Determining how much coverage depends on your needs.  It may be to replace a lost income source for a family or create liquidity as we mentioned earlier.  It can be used for individual losses or business losses, both resulting in the death of an individual.  A financial plan can help you determine which type and how much coverage is appropriate.

While there are many types of life insurance available, you should consult with your financial advisor to review which type is best suited for you and your needs.

 

*** Life Insurance policies are subject to substantial fees and charges. Guarantees are based on the claims paying ability of the issuer.

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Growing Wealth

May 1st, 2012 | Posted by Sickle Hunter in Financial Planning - (0 Comments)
 

wealth managerWith an economically uncertain future many people are wondering how to grow their wealth. Chances are you have explored options like stocks, bonds, commodities and other forms of investment. It can be hard, however, to find the right mix of financial instruments and tools that will yield both security and substantial returns.

It is a wealth manager’s job to help you sort through the countless investments opportunities and tools and help you find the right one for your income, stage in life, and goals. They can help you find the perfect balance of risk and return. As your goals, priorities and income changes a wealth manager can help adjust your portfolio to be a better reflection of your new plans. They can monitor financial developments and keep you abreast of how the fiscal world is changing. Keeping up to date on these changes is time consuming and difficult.

Many people fail to meet their investment goals because they choose to go it alone. They fall for financial scams, mismanage their money, or are unable to access the best information prior to making a decision. The modest fee a wealth manager takes is nothing compared to the potentially devastating effects of improper investment.

 

Estate Planning

April 29th, 2012 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Investments | Retirement Planning - (0 Comments)
 

A wealth manager can offer you advice on how to manage your estate. Once you have saved for retirement you may want to start thinking about how you will budget yourself and what you plan to leave behind as part of your estate.

Many people try to seek a balance of how much they spend and how much they leave behind. People want to live comfortably but still leave something for their relatives and favorite charities. By helping evaluate your assets a wealth manager can equitably steward your estate. They can also ensure your relatives don’t get bogged down in fees, taxes, and paper work. It also ensures bitter disputes over inheritance do not arise because your wishes are clearly established, on paper, with an independent third party.

No one likes to think about their own passing but estate planning is an important financial tool. It is about helping maximize the money you have while meeting any estate goals you may have. You can change your plans as your life changes so don’t feel you are locking yourself into anything. You can rest easier knowing that no matter what happens what is yours will transfer to your loved ones with as little being garnished as possible.

 

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