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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The Value of the Dollar

April 2nd, 2012 | Posted by Sickle Hunter in Financial Planning - (0 Comments)

wealth mangerOne of the many factors that has people worried is the future value of the dollar. Politicians talk about the national deficit, Chinese currency manipulation, and European economic troubles all which can have an effect on inflation and deflation.

These issues are all linked. China is the biggest trade partner of the United States and biggest holder of American debt. Many people also think China artificially values their currency to give them an edge in the global market. This relationship is untenable but there are no concrete answers as to how to fix things.

Many Americans also worry that overspending on social programs will lead to debt problems like those in Europe or lead to more money being printed which would devalue the currency already in circulation. It is unclear, however, if the situation in America is comparable to that in Europe.

It is a scary thought for many people who are about to retire. The idea of saving your entire life and then retiring to find that the money you saved is no longer as valuable as you were banking on it being. A wealth manger can help you plan for any outcomes. Wealth managers can suggest savings and investments that can lessen the blow of any monetary issues.

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Saving for College

January 31st, 2012 | Posted by Sickle Hunter in Education Planning - (0 Comments)

wealth managerA college education is a worthwhile investment. A college graduate will make over a million dollars more over the course of their life than someone with without a degree. College graduates also face much lower rates of employment. Increasingly you need a bachelor’s degree or better to compete in today’s economy.

The problem is the cost of most four year colleges is rising drastically, in most cases faster than the rate of inflation. Even state and community colleges are raising tuition. Some colleges can cost over $50,000 a semester between housing, tuition, lab fees, and other expenses. If you have kids you should be saving for their education now.

A wealth manager can help you save for child’s future. There are many tax incentives for people who save for higher education. These benefits increase for the four years your child is actually enrolled in school. Wealth managers can help you save money today and maximize that money when it comes time to choose a college and enroll.

So don’t panic, start saving. Your kids are going to need that extra income to take care of you when you retire. Start looking at schools, talking to your kids about their options, and consult a wealth manager about meeting your family’s educational goals.

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Fiscal Showdown

January 30th, 2012 | Posted by Sickle Hunter in Investments - (0 Comments)

wealth managerFiscal policy seems to have taken center stage at the Republican primaries. Everyone wants to know about candidates’ financial pasts, plans for fixing the economy, and the net results. Both Republican front runners seem to be attacking each other’s fiscal record in an attempt to win over voters.

Newt Gingrich is deriding Mitt Romney for not releasing his tax returns and for his work with Bain Capital. Gingrich has said unflattering things about Romney’s time working for Bain, claiming he ruthlessly cut jobs and hurt the economy. He also is pointing to his low tax rate (probably around 15%) and saying he is too wealthy and out of touch.

Romney’s camp is firing right back at Newt, however. Romney is demanding to know more about the consultation Newt gave to mortgage giants Fannie Mae and Freddie Mac. Romney is trying to make Gingrich out to be a fierce foreclosure advocate. He also wants more disclosure about the 1990’s ethic investigation of Newt Gingrich, which ended in a $300,000 fine.

Many Republican Party insiders worry this infighting will hurt them in the general elections. Especially considering both men have a similar fiscal policy.

If you are worried about a changing financial and political landscape, hire a wealth manager. Wealth managers may help you sustain your wealth even as economic and political environments change.

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Debt: America’s Monster

January 9th, 2012 | Posted by Sickle Hunter in Financial Planning - (0 Comments)
wealth manger

Too Much Debt!

Many people assume that wealth managers are only for people who have a lot of money saved. Although a wealth manger can help you save and invest, they can also help you get out of debt. Many American’s are in debt at some point in their adult life. The quicker you can get out of debt, the quicker you can start saving. A wealth manager can go over all you debt options and help you navigate the often confusing world of debt, fast.

Debt is a national problem, the American government and the American people are carrying a lot of debt. Restoring people’s credit and borrowing abilities is key for national and individual growth. Quickly paying off your debt now means lower interest rates in the future should you borrow money to buy a house, expand your business, or enroll in higher education.

Making the wrong debt decisions when it comes to payment, interest, fees and other complex financial dealings can end up costing you thousands. Remember, your debtors profit from the interest you pay them. They do not have much incentive to make it easier for you to pay them back. You need someone who can advocate for you and your family.

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