Our Perspective on Britain’s “Exit”
Britain’s decision to exit the European Union has brought with it all the expected trappings of a significant news event — projections of crazy market volatility, wild headlines and a fair dose of uncertainty about the long-term impact on the global economy and our individual financial lives here at home. Many questions immediately arise as we pay close attention to how the event will play out in the weeks and months to come. But our perspective is the same as it has always been in times like these. Your financial plan is built with diversification and your personal risk tolerance in mind — it’s designed to weather the ups and downs that inevitably follow significant world happenings. > SEE MORE
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Waypoint Wealth Management
Is Your Advice Good Enough?
In today’s climate of one-page financial plans, bargain-basement fund pricing and automated investment tools, you may wonder whether you need a living, breathing financial adviser.
We think you do, but with a twist. First, we need to redefine traditional financial advice – the kind that’s been delivered by those focused on issuing buy/sell recommendations, executing transactions, making you think they have the best investment product for you, and collecting their commissions. If that’s what you’re thinking of, you are correct. You don’t need that. You probably never did.
As we face continual changes with the markets, Social Security, taxes, etc., the welcome advances we referenced above are best thought of as augmenting rather than replacing the solid advice most investors still sorely need to see their way through to a rewarding retirement.
So, what is “good advice”? > SEE MORE
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Waypoint Wealth Management
My Love/Hate Relationship With ‘Past Performance’
“Past performance is not indicative of future results.”
Sound familiar? If you have invested in any regulated investment of any form, you have read or heard this phrase before. I have to be honest. Even as a professional advisor, when I read this and explain it to clients there is something about it that gets on my nerves. Don’t get me wrong, I’m not saying it’s untrue or that I don’t believe it. We don’t know what the future returns of our investments are going to be. We don’t know the exact short-term direction of an investment, and if anyone tells you that they do, you should find another advisor because you will be set up for failure.
If I really think about why this phrase annoys me, I think it is because I want to find some certainty with an investment’s outcome. Doesn’t everyone? > SEE MORE
Posted by:
Pete Dixon, CFP®
Partner and Advisor
Tax Savvy Investing, Part 1: Keeping More For You
Most people think the best time to attempt to reduce their tax bill is around now – because it is, well, tax time! The truth is, the best way to minimize your annual tax costs is to engage in year-round tax-wise investing.
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Waypoint Wealth Management
Shoes and Unexpected Upturns
There’s an old story that I love about two shoe salesmen that are sent to Africa by the company they work for to review the potential growth opportunities in this new land. Upon returning, one of them has sour news. “No one has any shoes,” he despondently reports. The other salesman, however, has a different viewpoint and exclaims “Great news! No one is wearing any shoes!”
With a return of -4.9%, the month of January was the ninth lowest on record for the S&P 500, dating back to 1926. So far in February, the index has retracted by another -4.5% as of this writing. The perspective that we have during times like these can have an impact on how we feel about our money and possibly even how we invest. The urge to do something to take advantage of volatility or to try and avoid more potential loss isn’t just limited to the average investor. There are also many advisors that attempt to weave and dodge during times like these. > SEE MORE
Posted by:
Pete Dixon, CFP®
Partner and Advisor