WorthPointe’s Chief Investment Officer Christopher Van Slyke discusses how high fees kill returns in managed futures with Bloomberg TV
Posted by admin on Friday, November 8th, 2013 at 10:03 pm
Posted by admin on Wednesday, November 6th, 2013 at 3:43 pm
In a recent article for USA Today, investor Warren Buffett shared what he feels are the three biggest mistakes that investors make. To read this list, and the article in full, click here.
Posted by admin on Friday, November 1st, 2013 at 9:15 pm
by Charles L Stanley CFP® ChFC® AIF®
When entering retirement, having a big, fat IRA feels good. It provides a certain sense of security —and that’s a good thing. However, when you consider estate planning for a family with a taxable estate in excess of $5.25 million, that big, fat IRA is a horrible asset to own. Why? Because at the death of the IRA owner, the IRA will be subject to both income tax and estate tax. Depending on the details of the case, it’s entirely possible to lose 75% or so of the value of the IRA to taxes. So, what should you do to avoid this extreme taxation?
Give it away
Actually the give it away strategy is only fully effective if the owner is already planning to make charitable gifts anyway. It’s just much more efficient to make those gifts directly from the IRA to your chosen charity [501(c)(3) organization]. Making charitable gifts directly from an IRA avoids income tax on the distribution and reduces the taxable estate. This reduces the after-tax cost of the gift by quite a margin.
Posted by admin on Monday, October 28th, 2013 at 4:10 pm
by Scott O’Brien, CFP®
Director of Wealth Management
We are thrilled to share news that University of Chicago Professor and Dimensional Fund Advisors board member Eugene F. Fama has been named a co-recipient of the 2013 Nobel Prize in Economic Sciences, in recognition of his contributions to the “empirical analysis of asset prices.”
It’s about time we had some wonderful investment news to celebrate! It’s also about time that Professor Fama has been tapped to receive one of the highest academic honors available. Dr. Fama’s groundbreaking work in capital market theory has unquestionably enhanced our ability to assist each of our clients in achieving their personal long-term investment goals – whether the contribution has been realized or unsung.
Posted by admin on Wednesday, October 16th, 2013 at 4:48 pm
After a great meal, we generously tip the waiter. The dentist soothes our toothache and we happily pay for the relief. We don’t mind paying for services when the benefits justify the cost.
Similarly, we don’t mind paying investment fees if performance warrants the expense. However, there are two reasons why brokerage fees are rarely defensible:
- Historical evidence indicates that the markets are so efficient, beating a simple index fund is next to impossible over time.
- The brokerage industry is so adept at camouflaging their fees most investors have no idea what they are paying for portfolio management.
It’s logical to conclude that reducing expenses will increase returns. But how do you do that when most of the expenses are buried deeper than an Egyptian Pharaoh?
Posted by admin on Monday, October 14th, 2013 at 9:12 pm
All of us here at WorthPointe wish to congratulate Prof. Eugene Fama for winning the Nobel Prize in Economics. Most of our clients won’t remember us mentioning Prof. Fama’s work as we described the theoretical underpinning of our investment philosophy but, Eugene’s ideas (including the efficient market hypothesis and small, value, profitability stock premiums) underly most all of our success as investors. Thank you Prof. Fama!
Posted by admin on Friday, October 4th, 2013 at 9:54 pm
Scott W. O’Brien, Director of Wealth Management
According to Morningstar, in May the average bond fund dropped in value by nearly 7% when interest rates spiked. This followed much speculation about the possibility and timing of when the Federal Reserve may end their bond-purchasing program. The timing is important, as this program and the quantitative easing programs before it have been holding interest rates down in an effort to stimulate the economy.
The investment philosophy at WorthPointe Wealth Management is to hold fixed income assets (bonds) that are shorter term and higher quality. By short term, we mean 5 years or less in duration, which is a measurement of interest rate risk.
Posted by admin on Tuesday, October 1st, 2013 at 3:30 pm
The October 2013 issue of WorthPointe‘s Trust Connection covers a very important issue in financial planning: ensuring that your pet or pets are properly cared for in a range of different circumstances. Whether a disaster strikes, you become disabled, or you should pass, there are steps you can take to see that your pets are properly cared for, such as establishing a pet trust. Pet trusts are extremely helpful tools that can ensure that your pet does not end up in a shelter or on the streets in the event that something should happen to you.
To learn more about this important topic, you can read the October Trust Connection in full by clicking here.
Posted by admin on Tuesday, August 27th, 2013 at 8:16 pm
INNOVATION: A New Dimension of Expected Returns
Morgan Smith, IMBA, CFP®
Imagine if you had a very nice car you trusted to get you where you needed to go and it magically transformed itself, feeling factory-fresh and faster, but still maintained all the quality features you’d come to know and appreciate. This is a good analogy to what WorthPointe’s investors will be experiencing this coming year without having to lift a finger.
WorthPointe’s solid reputation with clients can be attributed to both our specialized wealth management process for successful families and business owners, and our track record of consistent investment results. Now, we’ll begin implementing a new investment strategy across all our client portfolios that’s been shown to have consistently boosted returns relative to portfolios that didn’t implement it.
Posted by admin on Monday, August 5th, 2013 at 7:54 pm
The August 2013 edition of WorthPointe Wealth Management’s Trust Connection newsletter has been released, covering the important topic of planning for incapacity. Because of the remarkable advances in medical technology that have occurred over the past decades, incapacity planning can be of considerable importance for ensuring the quality of your end-of-life care. The newsletter details the steps that can be taken to provide power of attorney for healthcare decisions in situations involving incapacity, as well as the considerations that should be taken in choosing who to entrust with this critical responsibility.
For more information about incapacity planning, read the full edition here.