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…

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The 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…

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How 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…

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Financial 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…

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Social 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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