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Casual Articles - The Five Costliest Questions You've Never Asked Your Financial Advisor
Online Strategy for Getting Ahead on the InternetOnline strategies are incredibly important if you are going to make any money online – I really mean that. You cannot just sit down at your computer, without a goal or a cause, and make money online. It just won’t happen.Think about all the time you waste online. What can you do about it?Set a time limit to surfing for new information. Decide that 10 minutes is all you will spend on any one search.Another time waster online is trying to learn everything you can about something before you actually start to do it.Just do it! What makes you more money, reading for hours about how to build a squeeze page, or following the directions in one source, and just doing it? Of course, just doing it. So take the information in this book and use it. Just do it.Same thing for anything else online. Find one source, do it the way it says to do it, and get it done.W
Fees There are two types of fees. First there are flat or hourly fees, similar to how an attorney or CPA bills his or her clients. With hourly fees it is important to define up front which services will be performed, and to receive an estimate of the total cost.
The second type of fee is based on assets under management. This fee is usually between one and three percent of the account balance per year. This compensation method works best when an investor hires an advisor to manage his or her portfolio. When the compensation method is a fee, based on assets under management, the advisor can only get a raise if he or she gr
The CAN-SPAM Act of 2003 was supposed to eliminate spam email. This federal spam law that became effective January 1, 2004, was passed by Congress to get rid of junk email.So why didn't the law eliminate spam and why is it so difficult to stop it? Still today, more than 40% of all e-mail is still unsolicited sent to you by spammers even though that law passed.The truth is email spammers make so much money they can afford to outsmart The Federal Trade Commission with sophisticated technology.It is almost impossible to enforce this law although a few do get caught and pay the huge price.Spam is not likely to go away anytime soon, and it's difficult to eliminate spam email altogether. But there are some simple ways to significantly reduce spam from getting into your inbox.Here are Four Fighting Spam Tips:Protect Your Email AddressDon't display your email address in newsgroup postings, chat rooms
You need help with your investments. But how do you find the right advisor for your needs and goals?
* Where do you start?
* Which advisor is right for you?
* How do you know you are asking the right questions?
Selecting an investment advisor can be a daunting task. Answering the following questions will improve your chances of success.
# 1: What do I want to accomplish?
The most important question investors can ask is one they ask themselves. It is essential to know what you want to accomplish. As Steven Covey said, “put first things first.”
* Do I want to manage my own investments?
* Do I want advice on how to manage my investments?
* Or, do I want to hire a skilled manager to direct my investments for me?
These are different questions, requiring clear but distinctive answers. For example, if an investor determines she would like advice on how to manage her investments, then she needs to be prepared to take some responsibility for her investment’s performance. That is because advice is just an opinion or recommendation about what should be done. Ownership for her investment’s performance still rests squarely on her shoulders. On the other hand, if an investor hires a portfolio manager to manage her investments, then by definition that manager is taking ownership and responsibility for the performance of that account.
Once investors are clear on what they want, what questions should they ask a potential advisor?
# 2: How do you get paid?
This is the most important question an investor can ask a potential advisor. Why is this question so important? Because aligning compensation with the investor’s goals, growing his account, is the most powerful way to ensure his goals are realized.
Advisors and financial planners are compensated in many different ways, but the majority of advisors either charge commissions or fees, or both.
Commissions Commissions or sales charges come in several forms. First, investors pay a commission when they buy or sell a stock, bond, or Exchange Traded Fund (ETF). Investors may also pay a commission when an advisor sells them a mutual fund. These charges are often called sales loads or sales fees. Commissions tend to work best when an investor knows exactly what he or she wants, or if that investor plans to make very few transactions.
The problem with commissions or sales loads is that the investor pays the advisor up front. Imagine if realtors were paid up front to sell a house. What incentive would the realtor have to ensure the house actually sells? Additionally, commissions can often drive a product sale, which may not meet the investor’s goals.
Fees There are two types of fees. First there are flat or hourly fees, similar to how an attorney or CPA bills his or her clients. With hourly fees it is important to define up front which services will be performed, and to receive an estimate of the total cost.
The second type of fee is based on assets under management. This fee is usually between one and three percent of the account balance per year. This compensation method works best when an investor hires an advisor to manage his or her portfolio. When the compensation method is a fee, based on assets under management, the advisor can only get a raise if he or she gro
If you have a home based business or a family business, you probably cannot afford to hire a professional copywriter to create your advertising. However, you still need to advertise your business, so how can you make it as effective as possible? One thing you must never do is try to create a fancy advertisement. The instructor of a class of students learning to be copywriters said, "Creativity is not a positive virtue for an advertising copywriter. Whether it is a print, on-line or broadcast ad, when you ask a potential customer what he thought of the advertisement, you do not want him to say it was exceptionally creative. Instead, you want him to say it made me want to buy the product right now."Here are five advertising tips that you may use to help make your advertisements much more effective.1. Customers want believable proof that your product is better than the product they are currently using. Let people know how good your product o
* Do I want advice on how to manage my investments?
* Or, do I want to hire a skilled manager to direct my investments for me?
These are different questions, requiring clear but distinctive answers. For example, if an investor determines she would like advice on how to manage her investments, then she needs to be prepared to take some responsibility for her investment’s performance. That is because advice is just an opinion or recommendation about what should be done. Ownership for her investment’s performance still rests squarely on her shoulders. On the other hand, if an investor hires a portfolio manager to manage her investments, then by definition that manager is taking ownership and responsibility for the performance of that account.
Once investors are clear on what they want, what questions should they ask a potential advisor?
# 2: How do you get paid?
This is the most important question an investor can ask a potential advisor. Why is this question so important? Because aligning compensation with the investor’s goals, growing his account, is the most powerful way to ensure his goals are realized.
Advisors and financial planners are compensated in many different ways, but the majority of advisors either charge commissions or fees, or both.
Commissions Commissions or sales charges come in several forms. First, investors pay a commission when they buy or sell a stock, bond, or Exchange Traded Fund (ETF). Investors may also pay a commission when an advisor sells them a mutual fund. These charges are often called sales loads or sales fees. Commissions tend to work best when an investor knows exactly what he or she wants, or if that investor plans to make very few transactions.
The problem with commissions or sales loads is that the investor pays the advisor up front. Imagine if realtors were paid up front to sell a house. What incentive would the realtor have to ensure the house actually sells? Additionally, commissions can often drive a product sale, which may not meet the investor’s goals.
Fees There are two types of fees. First there are flat or hourly fees, similar to how an attorney or CPA bills his or her clients. With hourly fees it is important to define up front which services will be performed, and to receive an estimate of the total cost.
The second type of fee is based on assets under management. This fee is usually between one and three percent of the account balance per year. This compensation method works best when an investor hires an advisor to manage his or her portfolio. When the compensation method is a fee, based on assets under management, the advisor can only get a raise if he or she gr
Have you ever thought what would be the consequence of uncontrolled expenditure? While the desire to purchase continues to be unsatisfied, the income base gives up much earlier. The result is debts. Debts up to a certain level are admissible. Debts need to be managed to keep them within this level. The process involving the use of several techniques to curb the amount of debts is known as debt management.Outside agencies may not always be the ones who carry out debt management. In fact, the first step towards debt management, i.e. accepting that debts are a menace, is taken by the borrower himself. This is an important step because no amount of debt management tips will be little helpful if the borrower does not have enough motivation to bring about a change in his financial situation.Debt management help, for debts on a smaller scale require more participation of the individual himself. For debts that are not large and where the step is
Once investors are clear on what they want, what questions should they ask a potential advisor?
# 2: How do you get paid?
This is the most important question an investor can ask a potential advisor. Why is this question so important? Because aligning compensation with the investor’s goals, growing his account, is the most powerful way to ensure his goals are realized.
Advisors and financial planners are compensated in many different ways, but the majority of advisors either charge commissions or fees, or both.
Commissions Commissions or sales charges come in several forms. First, investors pay a commission when they buy or sell a stock, bond, or Exchange Traded Fund (ETF). Investors may also pay a commission when an advisor sells them a mutual fund. These charges are often called sales loads or sales fees. Commissions tend to work best when an investor knows exactly what he or she wants, or if that investor plans to make very few transactions.
The problem with commissions or sales loads is that the investor pays the advisor up front. Imagine if realtors were paid up front to sell a house. What incentive would the realtor have to ensure the house actually sells? Additionally, commissions can often drive a product sale, which may not meet the investor’s goals.
Fees There are two types of fees. First there are flat or hourly fees, similar to how an attorney or CPA bills his or her clients. With hourly fees it is important to define up front which services will be performed, and to receive an estimate of the total cost.
The second type of fee is based on assets under management. This fee is usually between one and three percent of the account balance per year. This compensation method works best when an investor hires an advisor to manage his or her portfolio. When the compensation method is a fee, based on assets under management, the advisor can only get a raise if he or she gr
When you first sign up for a MySpace profile you’ll see that the name you requested during sign up is shown at the top of your profile. As your profile matures or your interests change, you may want to redefine the direction of your profile and change its name.Your name is practically your MySpace headline and what you select will have an impact on how people view you. Do you want to be known as just “Your Name,” or would you rather select a name that stands out from the crowd and gets people to take notice.Using a name that represents your favorite interest is a great way to stand out. You’ll also benefit by using a specific keyword or keywords that you would like to represent you. Choosing the right keywords will give you additional exposure in searches throughout Myspace and even in the search engines.Changing your display name is quite easy. To do so you’ll want to sign in to your profile and click ‘Edit Profile.’ Once you have
The problem with commissions or sales loads is that the investor pays the advisor up front. Imagine if realtors were paid up front to sell a house. What incentive would the realtor have to ensure the house actually sells? Additionally, commissions can often drive a product sale, which may not meet the investor’s goals.
Fees There are two types of fees. First there are flat or hourly fees, similar to how an attorney or CPA bills his or her clients. With hourly fees it is important to define up front which services will be performed, and to receive an estimate of the total cost.
The second type of fee is based on assets under management. This fee is usually between one and three percent of the account balance per year. This compensation method works best when an investor hires an advisor to manage his or her portfolio. When the compensation method is a fee, based on assets under management, the advisor can only get a raise if he or she gr
With hundreds of new franchise concepts being started every year, it is nearly impossible to keep track of the freshest ideas. Here is an update of two new franchises and how they have fared in their first several months of franchising.The Counter - No, this isn’t just another fast food hamburger joint. Besides serving hamburgers, The Counter has as much in common with your local McDonalds or Wendy’s as the World Cup has to do with your child’s weekend soccer game. First opened in Santa Monica in 2003, this trendy update to the classic burger joint serves its burgers with any combination of 10 cheeses, 26 toppings, and 17 sauces. So, go ahead and order that Danish Bleu Cheese Burger topped with dried cranberries and a ginger soy glaze you always wanted.Since 2003, The Counter has received the type of press that most companies can only dream about. After being listed as one of the top 20 burgers in the country by GQ, the holy grail of endo
Fees There are two types of fees. First there are flat or hourly fees, similar to how an attorney or CPA bills his or her clients. With hourly fees it is important to define up front which services will be performed, and to receive an estimate of the total cost.
The second type of fee is based on assets under management. This fee is usually between one and three percent of the account balance per year. This compensation method works best when an investor hires an advisor to manage his or her portfolio. When the compensation method is a fee, based on assets under management, the advisor can only get a raise if he or she grows the investor’s account.
# 3: How will you invest my money?
It is critical that the advisor has a clear plan for investing the client’s money.
* How will the advisor determine which investments are right for the client?
* Is the plan customizable or one size fits all?
* Will the plan change with the client’s changing goals?
* How would the investments change in a deteriorating economic environment?
The answers to these questions should be clear and intelligent. Ask for clarification about why the advisor’s recommendations fit your goals.
If the prospective advisor is recommending mutual funds, ask why he or she is not using index funds. Because according to Morningstar, the mutual fund rating company, 90% of all mutual funds and annuities fail to outperform the S&P-500 index.
# 4: Do you have an exit strategy?
This is where most advisors fail. Nothing goes up forever. Therefore, it is imperative to know when to take the chips off the table.
Warren Buffett once said that there are only two rules to investing. Rule #1: Don’t lose money. Rule #2: Never forget Rule #1.
POP QUIZ: If your portfolio loses 25% of its value this year, what return would you need next year to break even?
Investment Year #1 Starting Value = $100,000 Return = -25% Ending Value = ?
$100,000 x (1-25%) = $75,000
Investment Year #2 Starting Value = $75,000 Return = ? Ending Value = $100,000
($100,000-$75,000)/$75,000 = 33.3%
Did you get the correct answer? If you lose 25% of your portfolio, it takes a 33.3% return, just to break even! If you lose 50% of your money you need a 100% return, just to break even! That is why it is critical not to lose money.
The main reason so many investors lost money in the last down market is that they, or their advisor, did not have an exit strategy. An advisor needs to have a predefined plan for what he or she will do if an investment loses money. Remember, there is no reason to be emotionally attached to any investment. Investments are designed for one thing and one thing only: to make money.
# 5: What is your track record?
This is where you find out if an advisor is driven by results or commissions. When investors hire an advisor for recommendations, or to manage their account, they need to make sure that the advisor has a track record of success.
* How have the advisor’s client accounts performed in down markets?
* How have the advisor’s client accounts performed in up markets?
* How does the advisor’s performance compare to a benchmark, like the S&P-500 index, in up and down years?
This is where you want to ask for numbers to back up t
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