Many clients ask me if they are too old or too broke to make a prudent investment plan. Since I coach my clients to do what is best by using a holistic approach my answer is that it is never too late to create a retirement strategy. Advisors have a tendency to over complicate what needs to be done and how it works in order to impress their clients, making them think that the advisor is really smart. I believe the client should understand what they are investing in and believe it will work to fit their needs.
No one can plan a better retirement than the client themselves with the help of a properly trained and properly positioned coach. The definition of coach itself is helping an individual by guiding them through a process. The process of learning how to make your money work for you can make the experience much more rewarding and less stressful. In the world of financial coaches I believe that should go one step further and they should also be an advocate for their clients wealth. The definition of advocate is some one who acts or intercedes on behalf of another. Someone giving support.
In the spirit of giving support my firm practices as an Investment Advisor Representative; someone who has a fiduciary responsibility for the client, putting the client first in all matters. For a short video on this topic you can visit my website to help clarify the difference between what I do and a broker who sells stocks, bonds and mutual funds.
For those who want a different approach to their investing options I use a co-advisor. They have much more knowledge on investing and have been doing it a lot longer than me. For a quick explanation on how they differ from your ordinary third party money manager you can go to my personalized website by clicking here.
Communication is also a key to great coaching and I communicate with all clients on a daily basis. The investor needs support especially when we are going through the ups and downs of the market we've experienced recently.
Monday, November 14, 2011
Tuesday, October 4, 2011
Are you Correlated?
What is correlation when it comes to investing?
Different asset classes in the market sometimes move in opposite directions called negative correlation. This can protect investors. Well diversified portfolios are allocated so that their asset classes move in a NEGATIVE correlation. Because of the negative correlation portfolios that are properly allocated are not as volatile and will capture gains when markets recover. The reason is that markets that are down are being hedged by markets that are up. Volatility is not good for a portfolio because it is possible that you could lose ground and not recover from those losses. The strategy is to soften the fluctuations to the overall portfolio by negatively correlating.
It sure isn't comfortable while the markets are fluctuating but historically they will consistently move in a positive direction over a 20 year time period.
Is your portfolio negatively correlated?
There are basic asset classes that all balanced portfolios must have in order to reduce this volatility. Most of my clients are coached to know how this works so that they understand how their portfolios are performing.
If you would like to know how your portfolio is diversified and correlated we have some sophisticated software that we can plug your portfolio list into that will give us a report on your investments. Give me a call if you are interested in evaluating yours, a second opinion never hurts. My office number is 610-695-8748 or email me at roy@yourwealthadvocate.com.
Different asset classes in the market sometimes move in opposite directions called negative correlation. This can protect investors. Well diversified portfolios are allocated so that their asset classes move in a NEGATIVE correlation. Because of the negative correlation portfolios that are properly allocated are not as volatile and will capture gains when markets recover. The reason is that markets that are down are being hedged by markets that are up. Volatility is not good for a portfolio because it is possible that you could lose ground and not recover from those losses. The strategy is to soften the fluctuations to the overall portfolio by negatively correlating.
It sure isn't comfortable while the markets are fluctuating but historically they will consistently move in a positive direction over a 20 year time period.
Is your portfolio negatively correlated?
There are basic asset classes that all balanced portfolios must have in order to reduce this volatility. Most of my clients are coached to know how this works so that they understand how their portfolios are performing.
If you would like to know how your portfolio is diversified and correlated we have some sophisticated software that we can plug your portfolio list into that will give us a report on your investments. Give me a call if you are interested in evaluating yours, a second opinion never hurts. My office number is 610-695-8748 or email me at roy@yourwealthadvocate.com.
Tuesday, September 13, 2011
How do we plan or live through our retirement when the market goes volatile?
Creating Sanity from Chaos
Taking a holistic view from 25000 feet up on our lives is the mantra to follow if you want to remain in a sane state throughout your retirement and pre-retirement years. We mustn't worry about outside influences that don't affect our reality in these matters. Like watching CNBC everyday and seeing all of the buzz in the markets, whether up or down in the long haul it probably won't affect us.
One way to protect our nest egg from direct market exposure would be to use methods of investment that pay us no matter what the market does, even if it is a lower return it can be better in the long run. We often forget that not losing money when the markets drop can be a considerable help when we are in the mode of drawing down on the portfolio. I often show clients the math of average returns that will prove that just because an investment boasts a 25% average return the net result could be zero gain. It is often an eye opening experience for the client.
A vehicle that is regaining popularity is permanent life insurance. It provides consistent positive returns into your account while protecting your family from unforeseen circumstances. You can borrow from yourself instead of from the bank and add to your own wealth. This concept has been around for many years and used by the wealthy to provide a guarantee in order to transfer wealth to future generations while being able to access the money for lifetime use. Because of the gained popularity insurance providers have introduced new products which enhance the returns by taking advantage of a limited upside of the market while still protecting them from the downside.
In our office we use these vehicles on a regular basis with clients who aren't interested in market exposure yet need inflation protection and the ability to borrow from their own nest egg. If you want to learn more contact me at 610-695-8748 or email me at roy@yourwealthadvocate.com.
Alternative Market Options
Some of my clients who wish to utilize the market but want some downside protection have asked me to research the market for a money manager who has this philosophy. Well I am proud to say that I have found exactly such a manager. This company researches the market globally 24 hours a day 7 days a week and from this research receives a signal for each of the asset types and sectors and will either invest or go to cash in each segment. This process is quite complex for them however the client can rest assured that they are out of the market during downward trends and back in when the markets are rising. It is not a perfect process however it has a higher success rate that the "buy and hold" strategy that is often used by money managers.
If you are interested in protecting your portfolio we can develop a special customized process for you. Please call me or email me if you want more information or schedule a meeting.
Taking a holistic view from 25000 feet up on our lives is the mantra to follow if you want to remain in a sane state throughout your retirement and pre-retirement years. We mustn't worry about outside influences that don't affect our reality in these matters. Like watching CNBC everyday and seeing all of the buzz in the markets, whether up or down in the long haul it probably won't affect us.
One way to protect our nest egg from direct market exposure would be to use methods of investment that pay us no matter what the market does, even if it is a lower return it can be better in the long run. We often forget that not losing money when the markets drop can be a considerable help when we are in the mode of drawing down on the portfolio. I often show clients the math of average returns that will prove that just because an investment boasts a 25% average return the net result could be zero gain. It is often an eye opening experience for the client.
A vehicle that is regaining popularity is permanent life insurance. It provides consistent positive returns into your account while protecting your family from unforeseen circumstances. You can borrow from yourself instead of from the bank and add to your own wealth. This concept has been around for many years and used by the wealthy to provide a guarantee in order to transfer wealth to future generations while being able to access the money for lifetime use. Because of the gained popularity insurance providers have introduced new products which enhance the returns by taking advantage of a limited upside of the market while still protecting them from the downside.
In our office we use these vehicles on a regular basis with clients who aren't interested in market exposure yet need inflation protection and the ability to borrow from their own nest egg. If you want to learn more contact me at 610-695-8748 or email me at roy@yourwealthadvocate.com.
Alternative Market Options
Some of my clients who wish to utilize the market but want some downside protection have asked me to research the market for a money manager who has this philosophy. Well I am proud to say that I have found exactly such a manager. This company researches the market globally 24 hours a day 7 days a week and from this research receives a signal for each of the asset types and sectors and will either invest or go to cash in each segment. This process is quite complex for them however the client can rest assured that they are out of the market during downward trends and back in when the markets are rising. It is not a perfect process however it has a higher success rate that the "buy and hold" strategy that is often used by money managers.
If you are interested in protecting your portfolio we can develop a special customized process for you. Please call me or email me if you want more information or schedule a meeting.
Tuesday, August 2, 2011
Personal Cash Flow Maximizer
It is possible to grow wealthy during bad economic times, when you follow a blueprint.
Have you ever felt frustrated seeing your money disappear in the market?
Are you concerned that you don't know where to put your money to keep it safe?
Are you worried about making ends meet with the high cost of living; kids' homes, credit cards and taxes.
I am giving away 25 copies of a book that will change the way you think about the items mentioned above. The book is entitled "Save Money Millionaire". However the book itself can never give you a personalized plan to help you achieve your goals.
For that it takes a more personal approach. That's why I've been trained as a Safe Money Millionaire Advisor to create a unique BLUEPRINT_.. just for you so you can get on the path to becoming a Safe Money Millionaire.
In this no obligation blueprint I could help you discover;
How to find - on average $312.00 per month you are currently wasting( It's like giving yourself a $3744 per year raise without working any extra hours.)
A proven blueprint to show you how to create an income you can not live. ( Imagine knowing you have an income for the rest of your life!)
3 ways to protect yourself from the ravages of tax increases! (This powerful strategy is the difference between growing YOUR wealth...or funding Uncle Sam's spending spree)
"The Power Down Plan": How to payoff all our debt in 9 years or less. ( Imagine that wonderful day when you own everything free and clear..-including your mortgage)
The 117 year old 'secret' life insurance and safe money financial tools that allow you to keep your money safely and out of the market...while growing EVERY YEAR guaranteed.
WARNING: What you are going to discover is NOT what Wall Street and traditional guru's preach...so be ready for a totally different approach!
If you're fed up with the roller coaster and want a safe way to grow your wealth... this may be a good option for you. (It's not for everyone. If it's not for you, I'll won't waste your time or mine, I'll just let you know and we'll part friends.)
Remember, there's no obligation. I'll be happy to answer your questions and give you a blueprint that could help you solve the biggest concerns and issues in your life today. I think you'll find it extremely exciting and liberating to see there is some light at the end of the financial tunnel!
Please give me a call at 610-695-8748 and we can create a Personalized Blueprint just for you and your family.
Tuesday, July 19, 2011
Does Your Company Sponsor your 401K
New Compliance Standards on the Horizon for 401K sponsors.
When I talk to 401K sponsors (employers) the questions below are questions I ask them.
What are your top 3 ideal outcomes for this plan? What?s the Plan supposed to DO?
What do you like/dislike/would you change about your current plan? What kind of complaints do you get from
participants?
Who are all the decision makers on the plan?
How much personal liability would you like to delegate for the following plan components?
What are the total fees [explicit and implicit] for the primary components of your plan?
If you find any of these questions making you uncomfortable as a plan sponsor, they should. If you want to find out more on how to make your plan compliant and reducing your liability give me a call at 610-695-8748. We can discuss how to make your plan and your conscience more safe.
When I talk to 401K sponsors (employers) the questions below are questions I ask them.
What are your top 3 ideal outcomes for this plan? What?s the Plan supposed to DO?
What do you like/dislike/would you change about your current plan? What kind of complaints do you get from
participants?
Who are all the decision makers on the plan?
How much personal liability would you like to delegate for the following plan components?
- Investment selection
- Investment Policy Statement Development & Compliance
- Investment Monitoring, Trading Discretion, Reporting
- Participant Education: Ongoing material in compliance with 404(c)
- Record Keeping: Daily Valuation, Web Access, Payroll Integration
- Administration, Compliance Testing, Form Preparation
What are the total fees [explicit and implicit] for the primary components of your plan?
- Investments
- Advice
- RK
- Admin
- Trust
- Custody
If you find any of these questions making you uncomfortable as a plan sponsor, they should. If you want to find out more on how to make your plan compliant and reducing your liability give me a call at 610-695-8748. We can discuss how to make your plan and your conscience more safe.
Friday, June 24, 2011
Save Money and Use it to buy "things" at the same time.
Save for Retirement and have fun at the same time!
There is a technique that I often coach my clients through I call "spending your way to wealth" this method actually allows the participant to buy things and save money at the same time while utilizing one of the principles of prosperity that is using one dollar for multiple purposes. You could use the same money to finance a new or used car, downpayment for a home, or anything you could imagine.
I have posted a video on the website http://royinnella.com which explains how it works. Do yourself a favor and look at it and then call me to discuss how it may help you fund things like paying back home equity loans, buy a new car, finance a child's education r anything you can imagine while at the same time building wealth and protecting your family from financial disaster.
Friday, May 6, 2011
Getting Protection While Building Wealth
Do you know anyone that enjoys risk taking? Of course you do.
This is what they like: The excitement of the win and the tension of not knowing where your next profit making opportunity will come. The thrill of exorbitant returns. And of course telling all of their friends how well they did on the investment. And how many of those folks do you know that are really killing it and making solid profitable returns in their investment plays?
Many of us know investors who say they are getting 6 or 10% or more on their investments, or think they are with their stock broker. I often ask my prospective clients how much money have you gained from your original investment? Most will say their average return number but they haven't had the real analysis of actual dollars returned for their investment analyzed. That is usually because their broker likes to keep them in the dark about their returns.
What most novice investors don't realize is that even though an average return of 8% may seem like they are doing well with their investment, if their are dips in the returns that fall below 8 % what was the gain that led to the recovery? All of this because the math is not the real number the dollars returned are the real returns.
An Example of a 25% return that is really 0%.
An example of a seemingly 25% average return might really be a 0% return . Say you invest $1000 today and a year from now you have $2000. Well that is a 100% return on your investment. Say that the next year you lose $1000 on that account. That translates to a -50% loss and you end up with $1000 again. Say the next year you get a 100% gain again to $1000 than the next year lose -50%. That is an average of 25% returns however you end up with what you started with. In my book that is a 0% return.
As a financial coach I teach my clients to how to not only get consistent positive returns but at the same time using their money for multiple uses. This is one of the basic rules of macro-economic thinking that most advisors know nothing about.
There are ways to get consistent returns that are safe an guaranteed while getting multiple benefits from those dollars. If you have an interest in learning how you can tap in to this resource please call me at 610-695-8748. Learn more at my website by visiting yourwealthadvocate.com
Tuesday, February 15, 2011
Tuesday, February 1, 2011
Variable Annuities Exposed
Many people hear the word annuity and are immediately "turned off" and when asked why they usually give a reason like "My brother-in-law has one and doesn't like it" or "My next door neighbor says that they are bad". There are many varied reactions to the term. Now you may be thinking to yourself that I am endorsing annuities while reading this. I believe that all investments have the appropriate use depending on the goals of the investor. All annuities have common traits these are traits like a guarantee of some sort, a death benefit of some sort and a tax deferral. I explain the different types on my website here...
Variable annuities however are really securities in that the principal value can fluctuate based on the market value of the securities inside the separate account of the product. This type of annuity usually has an income feature that attracts most investors however the principle value usually becomes eroded with fees and charges and market volatility. I have seen many clients who come to get my advice after buying one of these investments and sorry because of poor market returns and fees eroding the principal so much that the value is only in its death benefit and income stream.
When mutual funds originally were conceived variable annuities were introduced as a hybrid insurance and investment product. Since then even mutual funds have been exposed as an expensive way to build diversification in a portfolio.
I see no reason to use a variable annuity today especially since there are so many alternatives available to investors with a solid guarantee and a better return.
If you own a variable annuity and want to see if it is worthwhile for you to exchange out of it. You may be able to do an exchange without a tax consequence into something more appropriate for your investing needs. You can use the IRS rule 1035 exchange rule to transfer your funds into another investment or a more appropriate annuity. Many of my clients have bettered their investment position by exchanging out of their variable annuities without any tax consequence. It is a fairly common procedure to move out of these products. If you want to learn more about getting out of your variable annuity you can call my office at 610-695-8748 or send an email to roy@yourwealthadvocate.com. There is more information about this on my website http://www.yourwealthadvocate.com
Wednesday, January 5, 2011
7 Things You Should Know Before Hiring a Financial Advisor.
You should feel comfortable with a financial professional before you work with him/her. Make sure to ask the questons below to make sure that you get all of the information you need to make an informed decision.3. Are your plans composed of commission based securities or are
1. What are your fees
Some advisors are licensed investment advisor representatives and some are stock brokers and some are simply insurance salespeople. Make sure that the individual that you are about to work with has the proper credentials to get what you need.
2. Are you a securities broker or an investment advisor representative or both?
For the reasons mentioned above you should know the individuals motivations before working with that person. Is there a conflict of interest in working with that broker, or does he/she have your best interest at heart.
3. Are your plans composed of commission based securities or are
they based on a percentage of assets that you manage?
The investment advisor representative works for a fee (usually a percentage of assets that they manage for you). The insurance salespeople work on a commission and the stock broker also works on a commission.
4. What are your current licenses?
5. Have you ever been reported to FINRA for a violation?
This is something you can follow up on at finra.org which has all of the information about any licensed advisor.
6. What is your engagement process?
You want to see any documents to be signed and possibly have them reviewed by your attorney.
7. How often do you communicate with your clients?
You should know how often your advisor reviews your portfolio and who is responsible for making any changes. Some advisors have annual reviews some semi-annual and some quarterly.
Feel free to contact me at 610-695-8748 for more information or go to my website at http://www.yourwealthadvocate.com.
src="http://www.statcounter.com/counter/counter.js">
Subscribe to:
Posts (Atom)