By Paula Pant. You're in your golden years, and you're thinking hard about estate planning. You want to leave gifts for your heirs, but should you wait until you pass away? Or should you give some money to them now? First,...Read more »
The dangers facing today's investor have never been more deeply felt. The bloody lessons of the Great Crash of 2008 left no investor untouched, but some weathered the storm far better than others, and instead of facing financial desolation, are looking forward to continued prosperity now, and in the years to come. If you stuck to your guns and avoided the temptation to sell into the bear market or flee for the imagined safety of bonds, annuities, or bank cash, I salute you.
Which camp are you in? For as painful as the Great Crash of 2008 was, it will not be the last one. And as the market has rebounded sharply from the March 2009 lows, it was only natural to have forgotten the lessons of the Great Crash, to have become comfortable as the post-2008 rising market one of the longest bull markets ever in the US continued to soar, and maybe to let our guard down a little as we went with the flow. A lot of people felt that way in the months before 2008 changed everything for modern investors.
We be racing toward another such inflection point, as "US large caps" the kind of stuff that's in the S&P 500 and dominates many index funds and investors' accounts, maybe yours had floated from deeply undervalued to fairly valued to probably overvalued and primed for a correction or bear market.
As we face an ever-uncertain future, knowing how to control investment danger can make all the difference between staying on the path to prosperity, and facing a bleak and impoverished retirement.
During the mid twenty teems, we feel one of the greatest dangers is an overconcentration to US large cap stocks, which may be due for a correction or bear market sooner than many investors may want to believe. On the other hand, other asset classes with significant profit potential may be underweighted or totally absent from investors portfolios, sharply increasing risk and reducing profit potential. Later in this report you will have the opportunity to request a no-obligation portfolio review to help you assess these risks for yourself.
Some of the material in this Wealth Matters section summarizes basic measures that each investor would be wise to consider to evaluate and guide their investment planning. It can also be extremely useful in flagging danger signs before catastrophic losses become, perhaps, unavoidable. As such, it is intended as a diagnostic tool, to guide the practiced eye toward those indicators which may warn you that something may be amiss, and help you take corrective action while it may still be relatively painless to do so. While helpful, these guidelines are by no means foolproof. Still, they can uncover danger signs you really should address, which could make a very real difference in your financial health.
This material can be used on two levels. The first is your application of the basic understanding that you will gain from the insights you read here to your own investment situation. This alone is certain to raise many questions, and even a bit of probing on your own can help you a lot. The second level is through the free offers of professional service you will learn about as you go through our website. You will have the opportunity at no cost or obligation to have some of the tests described here actually conducted on your portfolio, by a trained and licensed investments practitioner, using professional analytic evaluation techniques. We call this a Portfolio Stress Test". This level can give you very detailed information with very little effort on your part, and in the wake of the massive selloff of 2008, and near-certain stormy markets ahead, could make a huge difference in protecting your retirement and your family's financial security.
Dr. Jeff Camarda is a financial advisor located in Fleming Island & Ponte Vedra, FL. Dr. Jeff has over 33 years' experience working with local businesses and investors. More information about Dr. Jeff can be found at www.camarda.com.
This article was written by and presents the views of our contributing advisor, not the WiserAdvisor editorial staff. WiserAdvisor has qualified Financial Advisors in Jacksonville, Florida area. WiserAdvisor offers financial advisor matching service who meets your screening criteria. Following financial industry's best practice, we recommend that you talk to at least 2 to 3 advisors before making any decision. To introduce yourself to one of our advisor subscribers, please click here.
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The current tax law calls for a gradual increase in how much you can leave behind to loved ones over the next several years. Then, in 2010, the entire estate tax is scheduled to be repealed, only to revert back to 2001...Read more »
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