Category Archives: Wiser Blog
What happens, though, if because of health or company early retirement mandates, you are forced to retire before age 59 ½? How can you access your retirement savings without paying penalties? The answer is 72(t). Continue reading
Many investors, especially retirees and conservative investors are investing in bonds either individually, through a bond mutual fund or a bond exchange traded fund (ETF). Investors seem to associate bonds with safety, but this may not be the case going forward. How can you protect your bond portfolio in these uncertain times? Continue reading
Very often individual investors choose mutual funds based on the historical performance of the fund. To many individual investors it seems logical that past great performance would only indicate a tendency for future great performance. According to a July 2013 report from S&P, this may not be the case.
Having a long term care policy in place can help you preserve assets that would otherwise be diverted to custodial care, and give you peace of mind that your care needs will be addressed should the need arise. Continue reading
If your house was paid for, would you take out a loan to invest it in the stock market? Amazingly many people reading this would actually pause to think about it. The answer should be no. Continue reading
It’s 2013, and the new IRS limits have kicked in. Here’s what you need to know concerning your 401k, IRA and other limits. Continue reading
Casey Smith is President of Wiser Wealth Management, a Marietta, Georgia-based fee-only fiduciary wealth management firm offering asset management, tax preparation, estate planning and financial planning services. Wiser’s unique investing techniques have earned Casey speaking engagements at top ETF conferences around the world. When not running Wiser Wealth, Casey doubles as a pilot for an Atlanta-based commercial airline. Continue reading
In any market, your portfolio should be constructed to meet your risk tolerance. But what does this really mean? Advisors should know the historical volatility of their portfolios; many on the selling side of this business don’t have a clue, they just want to sell you a product. For the individual investor there are tools to measure portfolio volatility. Continue reading
Vanguard shocked the investing world today by announcing that they are changing the benchmark of 22 of its funds from MSCI to FTSE indexes. Continue reading
One of the many benefits of using Exchange Traded Funds (ETFs) is cost. An investor today can build a complete portfolio using all ETFs for less than 25bps (0.25%). The low cost leaders in ETFs have been Vanguard, State Street and Blackrock’s iShares.
Recently Charles Schwab entered the ETF business …
Buy and hold investors should always focus on long term healthy asset classes. In regards to investing in Europe, the key question is whether or not Europe will be a financially healthy asset class over the next ten years. Continue reading
With the impact that the European debt crisis is having on portfolios, many people are looking for ways to diversify from this impact. Adding real estate to your portfolio is one way to do this. Continue reading
So you purchase the annuity and tie it to the S&P 500 index. This year, the index grows 20%. You would expect to see a 20% return in your annuity, right? Wrong! Continue reading
I need to save ___% of my paycheck to reach my financial independence goal to make working optional at age___. My retirement nest egg needs to be built to $_____ to achieve this goal. Continue reading
Many people think estate plans are for the rich and not necessarily famous. After all, most of us don’t have millions of dollars sitting around, with heirs who fight with murderous intent. But you would be surprised at how useful – even essential – an estate plan can be for the average citizen. Continue reading
If interest rates are too high such as to make your minimum payments too onerous to allow much wiggle room, do not be shy about calling the debt provider to ask for a reduction in the rate. They don’t have to honor your request, but it doesn’t hurt to ask. Continue reading
There has been a lot of discussion concerning the use of exchange traded funds (ETFs) as the primary investment vehicle within 401k plans. The barriers that once stood in the way are being removed by innovative record keeping and the growing use of ETFs in private and institutional accounts. Continue reading
IndexUniverse.com recently published a report with all the ETFs that pass though capital gains to its investors. Apparently in 2011 only 93 ETFs made this list. Continue reading
You can go with your gut when choosing between steak or chicken. Use knowledge to choose an advisor. This book will help you do that. Continue reading
A stretch IRA is not officially in the IRS code. It is a wealth transfer method that allows you to potentially “stretch” and even grow the IRA assets over several generations. The strategy involves adjusting beneficiary designations to minimize so-called required minimum distributions (RMDs) over a long period of time. Continue reading
It’s almost 2012. Your business has done better than expected. Here are a few things you may consider to help lower your tax liability before year end, but you had better hurry! Continue reading
No matter how aggressive an investor you are, investing in one company, or even a few companies, is not a wise move. Continue reading
We often get questions about what can be done in a portfolio to protect from a falling dollar. Often many people refer to gold for this solution, especially with every other advertisement on Fox News from companies trying to sell you- guess what- gold! Continue reading
Except maybe your 401(k). …
There is no room for greed in investing. In the investing world you can’t have your cake and eat it, too. If you want the reward you have to take on the risk as well. Put another way, you have the potential to be rewarded for the amount of risk that you take. Notice I said “potential”. Reward is not a guarantee. The reason is risk. Continue reading
But is a debit card really better than a credit card? Studies have shown that we spend more when using a credit card. You’d think that using a debit card would alleviate this problem, since you know that you’re using your own money to make the purchase. This isn’t true. Some smart college students I know have figured out they do indeed spend more using a debit card, and now use cash for most purchases. Continue reading
Worry much about your investments? In volatile markets, it’s easy to feel uneasy. Memories of 2008-2009, when the market lost more than half its value, are still fresh in everyone’s mind. So when the market swings widely nowadays, investors get concerned. Sometimes concerned enough to act.
Emerging Markets should be a part of every portfolio. With many ETF choices this post dives into Emerging Market modeling. Continue reading
At what age is it better to save for retirement? In your early years of working, money is probably tight. It’s hard to find the extra money to save towards such a far end goal, when the rent needs to be paid, and you have a more immediate need to build emergency savings. You might think that waiting until later in life to save for retirement, when your income is likely higher and you can more likely afford to do so, would be the best option.
***Originally published in the July 2011 edition of NAAIM’s “The Active Manager” By Scott Freeze.
You have done well for yourself. You’ve watched your pennies, saved aggressively, invested wisely, and now, in your golden years, you have a retirement nest egg that is more than you need. You have a philanthropic bent – an alma mater you’re fond of, a charity that is near and dear to your heart. How can you donate to these worthy causes without sacrificing to the IRS more than you think it deserves?
The research staff here at Wiser Wealth recently analyzed all the broad based ETFs that track emerging market indices. The staple in Emerging Markets is currently Vanguards VWO and iShares’ EEM. The comparison articles on these funds are endless. One fund that filtered to the top of the Emerging Market ETF list that might be less known is Wisdom Tree’s DEM. We compared it in this article to Vanguards VWO. The following report helps compare the DEM and VWO Emerging Market strategies as well as the results of the last few years. Continue reading
The pictures and stories from Japan have shocked us all. The human aspect of this country’s struggle to cope with the earthquake and tsunami tugs at our hearts. The same applies to those in Middle Eastern countries crying out for freedom and democracy only to be responded to with bullets …
Portfolio yields are under pressure due to the worldwide flight to safety over the last few years, making conservative and income growth portfolios more difficult to manage. While bond investments made a few years ago have done historically well, new investments have greater principal risk with low historic yields. Continue reading
“The problem with freedom and democracy in the Muslim world is that it is a figment of the imagination that only exists in the minds of Condoleezza Rice and Hillary Clinton.” Continue reading
A new exchange traded note (ETN) has come to market offering a well-known approach to investing found in active investment strategies, but new to the exchange traded products. The US RBS Trend Pilot ETN (ticker TRND) tracks the total return of the S&P 500 (actual return plus dividends), but provides safety in that if the S&P 500 drops below its 200 day moving average, then TRND will “sell” the S&P 500 and “purchase” short duration US treasury bonds. Looking back to 2008, TRND would have been in treasuries during the financial crisis, missing the worst decline in the S&P 500 in decades and benefiting from treasuries climbing to record prices. Continue reading
The 2010 Tax Relief Act has been passed. What does this mean for your estate plan? Continue reading
Chris Ciulla, a client here at Wiser Wealth Management is organizing support for our troops through his program A Random Act of Christmas. Chris is raising money to purchase gift cards that he and his family will hand out to our troops as the pass through the Atlanta Airport. The gift card will be used by the troops online to pick out a gift of their choosing. You can contribute with a little as $32 to purchase one gift card. Continue reading
There are several types of annuities with the most popular being the variable annuity. The bank salespeople, often falsely referred to as financial advisors, make the sales pitch sound as if these products are the best things since the Wright Brothers took flight. I say buyer beware. Continue reading
Can an ETF Fail? A study by two PHD’s makes one believe that ETFs are unsafe investments. Continue reading
The title “Financial Advisor” has a myriad of meanings. To most, it probably means a financial “expert” to guide you through important decisions and help manage investment assets for the present and future.
However, all advisors are not the same. So, how do you pick one? Below are five factors …
Vanguard has lowered the floor on S&P ETF index investing. Continue reading
It really comes down to symbolism. The World Trade Towers symbolized American Capitalism created from a free people. The Towers reminded us that Americans have the freedom to invest. The freedom the innovate. The freedom to take risks and earn great rewards. The freedom to learn. The freedom to live…. a free people.
WisdomTree has introduced an addition to the ETF landscape with an active ETF in the emerging market bond category.
Emerging market bonds are a unique asset class with extraordinary characteristics which many ETF investors have made part of their portfolios for many reasons. Emerging market bonds have high absolute returns with low correlation to other markets and are high yielding vehicles. Continue reading
Investors tend to do poorly when they react to what the market does instead of preparing for what may happen and taking advantage of long-term forecasts. With a reactionary attitude, investors will rarely do well. Continue reading
First-quarter gains have taken a huge hit against large declines in the second quarter. According to Morningstar’s ‘super sectors’ reports, Information is down 10.46%, Service 12.23%, and Manufacturing 10.92%. Some market data would suggest that an underlying cause of these losses is uncertainty in the market. Continue reading
Top 5 estate planning mistakes
I recently read a report that suggested that only about 20 percent of the population has a formal estate plan. After reviewing the points below, please take a minute to consider whether it’s time for you to create or update your estate plan.
TIP Securities have been around only since 1997, placing them a time period with only relatively tame levels of inflation. That being said, the need for inflation protection is very relevant, and investors now have access to five TIPS ETFs. They give investors a choice among broad based, intermediate, short-term, and long-term durations. Continue reading
Debt, while once viewed as a negative for the average American, now seems to simply be a part of life. Using credit and having debt outstanding is normal now not only for the most people, but for the government as a whole. The US federal government deficit is currently over $13 trillion and is growing by about $4.09 billion each day. To put this amount into perspective, with a $13 trillion debt obligation, each person in the world owes almost $2,000. That is $2,000 for 6.7 billion people. Continue reading
The Senate sweats this week over the self imposed July 4th deadline for President Obama to sign the Financial Reform Overhaul Bill. The bill is reported to be over 2,000 pages, and reaches into every corner of the financial industry from credit card transactions to advisors.
The bill ventures into some places where legislation has previously left alone. In many ways, the financial system needs some changes, however, for the most part, the Independence Day bill is more confusing than freedom-promoting. Continue reading
PowerShares listed the second-ever international corporate bond ETF for trading this week, behind State Street Global Advisor’s international corporate bond product, falling right in step with the unfolding of the debt crisis in Europe. The PowerShares ETF provides a broad exposure to international, investment-grade corporate bonds issued in developed countries. Continue reading
One of the most popular ideas in the investing world, the Efficient Market Theory, argues, very simply, that a stock’s price equals its value. This would mean that a stock’s price reflects all publicly known data, including future expectations of the stock’s performance. Continue reading
ETF cashflows have climbed despite worries about rising rates in fixed income ETFs. Investors also seem to be pouring money into global ETFs even though overseas markets continue to abound.…
“Because major developed markets are now so highly linked, there is no way for problems in Europe to remain isolated there; we will see a ripple effect here in the US.” Continue reading
The amount of jobs added went up in April even well above what is expected, adding 290,000 jobs to the market. Up from 200,000 added in March. Continue reading
The government allows companies like Goldman and other brokers to act under suitability rules. This means that a client has to be suitable for the investment, but does not mean that the product is the best for the client. Continue reading
ETFs in Europe are starting to get some interest. This is my journal from the ETF Conference in Amsterdam. Continue reading
Dawn Levine an Attorney in Marietta, GA often gets asked what she thinks about Wills done over the internet. Continue reading
Wiser Wealth Management offers free tax preparation services to those currently out of work. Continue reading
The end of 2009 saw the entry of a new ETF in the already dense ETF landscape: a currency hedged ETF. This new feature is of interesting significance due to its packaging inside an ETF.…
Morningstar has released their Box Score Report looking at active vs. passive investing strategies over the second half of 2009.…
Faith Shares launches the first faith based ETFs. Continue reading
You expect that your banker or broker will always do what is in your best interest. Can they? It’s a mixed up world when your financial advisor is your salesman. Continue reading
ETFs are empowering individual and professional investors with the power of transparency, diversification, low fees, and, compared to many of active fund managers, better performance. …
I was recently privileged to be on a panel at the Inside ETF Conference in Boca Raton, FL last week. The event was a great success with over 800 attendees, and was broadcasted live by CNBC.…
Irving Kristol, “an indexer is stock-picker who has been mugged by reality.” Continue reading
There is an old joke that financial news journalists write about the hot stock or mutual fund by day and privately invest in long term healthy index funds by night. Could this be true of active fund managers as well? Continue reading
Despite Republican efforts to do away with the Death Tax, the House voted to pass H.R. 4154 with a final vote of 225 to 200. H.R. 4151 will extend the 2009 3.5 million personal exemption (7.0 million per couple) and the 45% tax rate above those levels through 2010.…
A look at look at 401k Maximizer, a active trading platform for airline employees and how this pie in the sky approach may leave some grounded in the long term. Continue reading
Recently, many have reasoned that sectors drive market returns. Using the complete lineup of global sector ETFs from iShares, an investor can utilize the power of sectors within the US while reaching into developed and emerging international markets for simple to complex asset allocation strategies.…
This article was written for www.etfmarketpro.com
International bond ETFs are an asset we can no longer ignore, but as some industry experts have brought up in the past, bond ETF construction has many inherent flaws.…
We have been bombarded with spam emails claiming that the dollar is falling and that we must purchase their strategy to save our portfolios.…
Morningstar has released their BoxScore Report covering actively managed mutual funds to Morningstar indexes.…
Recently, Jason Zweig, in his Intelligent Investor column, discussed data mining and proprietary trading on Wall Street, and the unreliability most of these strategies have on predicting the future.…
I recently received an Estate Tax update from The Estate Plan (TEP). TEP cited Leimburg Associates, Inc as the source of the following information. Here is my summary.…
The article was created for www.etfmarketpro.com.
Investable indexes are designed to be realistic representations of actual market spaces (the S&P 500 index represents the securities in the S&P500); however, in some asset classes, indexes are too idealistic to be managed as ETFs in a cost effective and efficient manner.…
This ariticle was also posted at ETFMarketPro.com
Commodity ETFs are different than traditional, plain vanilla ETFs and investors need to be made aware of the risks.…
Recently, some commodity ETFs have been forced to stop the creation process of ETF creation units, meaning that the funds and trusts are being forced to act like closed in funds. …
Correlation is generally defined as “the strength and direction of a linear relationship between two random variables.”…
Leveraged ETFs Under Investigation
The Massachusetts Secretary of State, William Galvin, is looking into the marketing of leveraged ETFs and has reportedly written letters to the three biggest players in this market, ProShares, Direxion and Rydex.…
This article was written for and also appears at ETF Market Pro.
Currencies are different than any other type of investment. …
The managers of the Harvard Endowment have long been hailed as innovators. Their alternative investments include commodities like timber (famously employing lumberjacks), private equity, and hedge funds.…
Georgia’s banks made the front page of the Wall Street Journal yesterday (6/10/09). The article notes that Georgia is home to 4% of the banks in the United States, but is responsible for 20% of the US bank failures since August.…
When investing in mutual funds, the investor is handing his money over to a mutual fund manager, giving him or her full discretion in trading the asset as he or she sees fit. …
In an environment where the stock market recovers and the credit crisis is in the rearview mirror, will your investments recover with the stock market, lag behind or remain at today’s levels? The investment tool you are using will make the difference.…
PowerShares, a company who has lead the way for fundamental ETFs, closes 19 of these funds. Are more closings in other ETFs to follow? Continue reading
Click Here to view PDF With Charts inserted.
IndexIQ, on March 25, 2009, launched its first hedge fund ETF. This is following in the wake of 2008 where many hedge funds were affected by mass withdrawals and highly leveraged bets went bad, causing many to shut down.…
In recent years, gold has seen spectacular price increases. Looking at some history may reveal where gold is heading in the future and why.…
Something I’ve been big on lately is ETF tracking error. An ETF’s ability to track an index can be a bigger cost (implicit cost) to an ETF, and investors should be very concerned with this. …
Index IQ came out with their first Hedge Fund ETF last week. A lot of press has been surrounding this ETF in the industry. The ETF, the IQ Hedge Fund Multi-Strategy Tracker ETF, ticker symbol QAI, has an expense ratio of .75%. Below is the fund’s strategy.…
Barclays Global Capital announced Monday that recent rumors were true and they plan to sell iShares.…
In a recent press release, Lou Harvey, President of DALBAR, said,
For 15 years, QAIB has shown that investor returns lag what performance reports and prospectuses would lead one to believe is acheivable. While those returns are, in fact, theoretically acheivable, the reality is that investors are not rational, and