I have found that the importance of having an investment philosophy—one that is robust and that you can stick with— cannot be overstated." —David Booth The US stock market has delivered an average annual return of around 10% since 1926. But short-term results may vary, and in any given period stock returns can be positive, negative, or flat. When setting expectations, it's helpful to see the range of outcomes experienced by investors historically. For example, how often … [Read more...] about The Uncommon Average
Capital markets have rewarded investors over the long term, and having an investment approach you can stick with may better prepare you for the next crisis and its aftermath. It will soon be the 10-year anniversary of when, in early October 2007, the S&P 500 Index hit what was its highest point before losing more than half its value over the next year and a half during the global financial crisis. Over the coming weeks and months, as other anniversaries of major crisis-related events pass … [Read more...] about Lessons for the Next Crisis
Haphazardly selecting stocks by the toss of a dart is not an efficient or reliable way to invest. In the world of investment management there is an oft-discussed idea that blindfolded monkeys throwing darts at pages of stock listings can select portfolios that will do just as well, if not better, than both the market and the average portfolio constructed by professional money managers. If this is true, why might it be the case? THE DART BOARD Exhibit 1 shows the components of the … [Read more...] about Quit Monkeying Around!
Costs matter. Whether you're buying a car or selecting an investment strategy, the costs you expect to pay are likely to be an important factor in making any major financial decision. People rely on a lot of different information about costs to help inform these decisions. When you buy a car, for example, the sticker price tells you approximately how much you can expect to pay for the car itself. But the sticker price is only one part of the overall cost of owning a car. Other things like sales … [Read more...] about Getting What You Don’t Pay For
Extra! Extra! Read All About ... Income! Scottsdale Wealth Planning CEO Paul Ohanian, CFP®, with SWP Guest Contributor and investment strategist Anthony Tanner, CFA, discuss the challenges faced by savers in this era of low (and ever lower) interest rates and where smart solutions may be found. Pick up a copy of the July 2016 issue of the Arizona Journal of Real Estate & Business on local newsstands, or read the full article online HERE. How do you address the INCOME GAP? Leave a … [Read more...] about In the News: Minding the Income Gap
At Scottsdale Wealth Planning, we pride ourselves on being an independent registered financial advisor and fiduciary to our clients. But exactly what is an independent financial advisor, are what are some of the benefits to engaging this type of professional? Independent registered investment advisors (RIAs) are professional independent advisory firms that provide personalized financial advice to their clients, many of whom have complex financial needs. Because we are independent, we are not … [Read more...] about Key Benefits of Independent Advisors