Articles

As investment options continue to expand and competition for investment dollars increase, the mutual fund industry is coming under increasing scrutiny for the expenses charged in many mutual funds. With the advent of no-load mutual fund, index funds and exchange-traded funds, many investors are questioning the reasonableness of expenses charged by many of the industry’s more popular funds.

For centuries we've known that men are bigger cheaters than women. It seems that men, by their very nature, are more inclined to hide their infidelities and risk their relationships. Now we learn that women can be bigger cheaters than men, but with financial affairs, not romantic affairs.

The ever-present and incessant chatter of the financial media has Baby Boomers anxiously pinned to their TVs, computers, smart phones and investment magazines as the so-called experts prognosticate on the coming bear market.

Most people couldn’t bear the financial hardships resulting from unexpected events, such as a major house fire, a car accident, a disability or the premature death of a family breadwinner, which is why the most important component of a sound financial plan should be your personal risk management strategy.

If you’ve ever seen it, it’s one of those things you’ll never forget – the mass migration of hundreds of thousands of wildebeest moving across the plains of Africa in search of a fresh feeding area. It’s magnificent to watch. Of course, we know why mammals herd together – it’s because there’s safety in numbers.

Perhaps the most important factor in formulating your investment plan is your risk tolerance; that is, the amount of risk you’re willing to assume in order to achieve your most important objectives. More precisely, your risk tolerance is based on your financial and emotional ability to withstand negative returns on your investment portfolio.

Any protection strategy that focuses only on insurance can leave you and your family vulnerable to the threat of a legal system which doesn’t necessarily share your objectives.

While the current stock market boom has some people rejoicing it doesn’t appear as though their level of anxiety has abated much. Investors sometimes have short memories, but a stock market rally is not likely to make people forget the carnage left behind in their 401(k) s and stock portfolios after one of the worst market declines in our history.