Posts Tagged ‘stock market’
Variable Annuities Insure Beneficiaries Against Loss Due to Market Risk
This is the second in a series of articles that I am writing on variable annuities. Readers are urged to read the first installment before tackling the one that follows. My initial article about variable annuities stressed: Financial advisers have strong incentives to sell variable annuities as they pay more in commissions than most other…
Read MoreVariable Annuities Offer Tax Advantages as a Retirement Investment Vehicle
Financial advisers have several good reasons for selling variable annuities to their clients. They get paid more for one thing. On most other investments, the higher the amount a client invests the lower commission rate is for the adviser. In mutual funds, this is called a “break point.” An advisor, to illustrate, may get paid…
Read MoreWhen a Million Is Not Enough — Part II ( Margin is not the Answer)
Everyone saw it coming except my client. Big Dan pulled up stakes and left. My client had backed him until her million dollar nest egg was severely depleted and her own well being in jeopardy. The margin loan (See Part I) was not being repaid. It was on the books at a rate of 8.50%.…
Read MoreInflation Persists as a Concern for Folks in Retirement on a Fixed Income.
I worked in the financial services industry for over 40 years, the last fifteen of which as a Financial Advisor for Merrill Lynch in Winston-Salem, NC. My novel, Deadly Portfolio, builds a story around Matthew Wirth, a retiring financial advisor who, in preparing for his own retirement, is turning his practice over to junior partner,…
Read MoreThe Best Time to Buy or Sell in the Stock Market.
As a retired financial advisor, the question that I am asked most often is, “Is it safe now to get into the stock market?” I answer, “No. It’s never safe to get into the market.” When the market is falling, I hear, “Do you think I should get out?” Again, “No.” Investing isn’t like swimming…
Read MoreHow Much Should the Middle-Income Household Risk in the Market?
Middle-income families often do not have the resources to employ financial advisors. Yahoo Finance states that middle-income households have an average of approximately $110,000 set aside for their retired years. Financial advisors and brokers at major firms like Merrill Lynch, Morgan Stanley, and UBS Paine Webber are looking for mega buck accounts—accounts with $250,000 or…
Read MoreFinancial Advisor or Stockbroker. A Brief History.
In a recent interview, I was asked whether the 30 basis points charged against Mac McAllister’s $18,900,000 account in Deadly Portfolio: A Killing in Hedge Funds was realistic. 30 basis points is three-tenths of a percent, or $56,700 each year for managing the account. An $18,900,000 account is not 18.9 times more work to manage…
Read MoreSocial Security and What’s in the Boat
Matthew Wirth describes what the financial side of retirement is like in Deadly Portfolio: A Killing in Hedge Funds. Matthew tells his wife, “No more income . . . just social security for the rest of our lives. We need to live on what we’ve saved. Like pushing off from the dock. We’ll need to…
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