Average is not good enough … Our goal at Family Investment Center is excellence. We find excellent investment products and supervise an excellent service package. We maintain a library of excellent research materials and financial planning resources. We also demand top safety and security for our clients.
We won’t settle for average. We continually seek top managers or securities and meld them into superior custom portfolios. Each palette of investments is carefully tailored to personal or family goals. We enlist excellent managers, research, resources, and effort for our clients. Don’t settle for average. You deserve excellence.
Please search our blog posts for answers to common investment questions, and we look forward to sharing our knowledge and experience with you first-hand.
Get Started With Some Investment Advice From Warren Buffett
Are you confused by all the conflicting advice out there on how to best invest your money? What would an investor who has seen a large amount of success with his investing list as top investment advice? Warren Buffett has been successful with his investment strategies and offers up some basic foundational steps that can be a key part of any investment strategy. Let’s take a look at several of his recent tips:
Keep it Simple
Warren Buffett says he doesn’t look to “jump over seven-foot bars” with his investments. Instead, he seeks out the one-foot bars he can step over. These one-foot bars include non-flashy investments like utilities, insurance and manufacturing, which is something that will always be in demand, thus representing a generally safer and potentially successful investment.
Be Careful With Forecasts
Buffett is known to say that forecasts say more about the forecaster than they say about the future. He’s extremely mindful of trying to guess how markets are going to behave, and doesn’t go into panic mode when the market fluctuates. Instead, investors need to stick to their long-term plans.
Trustworthy investment advisors will tell clients to always think long-term in their investment strategies, especially if they’re putting any assets into the market. Yes, when the economy takes a turn, so too may your investments. However, the market recovers, and so too do your investments. Buffett says you can’t think short-term and that if you’re not willing to own a stock for 10 years, don’t even consider it for 10 minutes.
Don’t Make Impulse Decisions
Buffett is a great student, which means he’s always reading and always thinking. He says the more he does that, the less likely he is to make impulse decisions. Impulse decisions can actually be prompted by something investors read – especially anything that touts a stock as a “sure thing.” Don’t jump on it. Always be reading and thinking.
Don’t Sit Fearfully
The only time you should be fearful of jumping on an investment is when others are feeling greedy. However, a careful and well-planned strategy can provide great results. When an opportunity arises that you’ve had your eye on for some time, take action.
Buying Stocks and Homes Have Similarities
Buffett encourages people to buy stock the way they buy a house. Why? Because, if you understand a stock in the same way you understand a house you plan to live in for decades, you’re on the right path.
At Family Investment Center, we like the words of Buffett because we too share the same values in terms of not being impulsive, having a commitment to attention to detail, looking at investments as long-term strategies and not trying to forecast what the market is going to do. We know every investor is different and requires a different strategy to reach their goals. Contact us today to help you develop your personal investment plan.
The State of the Target-Date Mutual Funds in an Investment Portfolio
The best investment portfolio goals are long-term in nature. However, as you get into the latter part of your career, it makes sense to start rethinking how your investments are diversified.
Changing your investment strategies by shifting assets to safer places as you get older could be a change you need to make. Does this mean all ofyour stock investments need to be shifted as you near retirement? Not necessarily. We know that there are risks related to investing in stocks, but there are also rewards. Generally, when one retires, there’s still a need for at least a portion of stocks, just to keep pace with inflation. So, for many, the changes to investment portfolios near retirement are only slight.
The Target-Date Fund
The advantage of target-date funds is that you can invest in a variety of stocks and bonds that will automatically become more conservative as you age. The closer you get to your retirement date, the more bonds and less stocks you’ll see in the portfolio.
For instance, you can choose a fund that currently invests 55 percent of your assets in stocks and 45 percent into bonds. The bonds will help to ensure that a good portion of your money is safe while the stock investments give your investment portfolio room to grow with the market. As you age, the fund manager will adjust the portfolio more conservatively.
Exchange-traded funds (ETFs) are similar to mutual funds in that each ETF owns shares of numerous stocks or bonds. ETFs give you the opportunity to customize how you make investments in equities and bonds in a way that are more suitable for your specific goals and your style of investing.
Another advantage is that ETFs offer lower expense ratios than typical mutual funds. And similar to individual stocks, they are actively bought and sold from open to close of the market.
While buying shares of individual stocks could be the best fit for you, that will definitely not be the case for everyone. Although many of the dividend-paying stocks have rallied for a number of years, that also means that many share prices are higher now. Ask your investment advisor about stocks that will give you a good mix of income, value and growth potential.
Build a Strategy With a Professional
Taking the DIY approach to your investment portfolio might feel gratifying, but this is too important an issue to treat it like a hobby. Consider asking an investment advisor for help assisting you in adjusting your investments as you get closer to retirement.
At Family Investment Center, we’ve worked with many clients in situations just like yours, and we have strategies that can provide you with confidence. Contact us today and let’s work toward your goals together.
Simple Investment Strategies to Get You Started
Are you a part of the Millennial generation that is being discussed so frequently today? Some of the attributes that have been pinned on you aren’t accurate, nor are they fair, but you’re definitely in a generation that is coming up – fairly new to your career and perhaps struggling to come to terms with investment strategies that will see you through to a fruitful retirement. We have compiled some personal finance tips that can put you on the right path.
1. Your Parents Aren’t Always Right
One common characteristic of Millennials is that they have “helicopter parents.” These are well-intentioned parents who took great interest in every part of their child’s life. They are often thought of as friends for whom you can go to for advice. However, when it comes to helping you develop investment strategies, you have to realize your parents’ situation is entirely different from yours.
There is a good chance that the strategies your parents developed for themselves will not work for you. You shouldn’t have your retirement account invested the same way someone from another generation does. You need to look at what you want to accomplish and align with the best investment strategies for your unique personal situation.
2. Look at Your Finances Often
It can be a source of stress when you’re constantly on a tight budget, but you need to avoid ignoring your finances, as that will make developing a plan more difficult. You’re not always going to like what you see, but at least you have the option to be proactive rather than reactive.
3. Look for Inefficiencies in Your Budget
It’s understandable that as you pay down your student loans and pay all your bills on your base salary, the money you put toward investments may not be a large amount. However, making small cuts to your budget can give you a nice little boost now that could turn into a lot of money later on.
Cable television is one expense that might feel painful to cut out at first, but that extra $100 (or more) per month can do wonders for an investment account. From clothing purchases to eating out, find areas where you can make small changes.
4. Take Advantage of Automatic Contributions
Many employers offer retirement plans with a company match. If your company has this, you’re losing money by not signing up. If your workplace doesn’t offer a plan, consider setting up an IRA and have money directly deposited into it each month.
At Family Investment Center, we’re committed to helping our clients find the right path to financial freedom. Contact us today and let’s discuss where you want your own personal “freedom tour” to take you.
Protect Your Future With a Wealth Management Strategy
We all admire the risk-taking entrepreneurs out there who put so much on the line and reap great rewards in return. However, while entrepreneurs are known for their abilities to creatively build a plan for their startup, they can be lacking in planning their exit strategy for safeguarding their wealth. If you are an entrepreneur and this describes you, the lack of a wealth management strategy will not only affect your own retirement, but the financial good of your family and the generations to follow.
It’s not uncommon for the bulk of an entrepreneur’s portfolio to be heavily invested in his or her own company’s shares. However, if for example, you’ve got 60 percent of your money in your own shares, the remaining 40 percent should be in something with less risk associated with it. This will give you a more diversified portfolio.
Why is it so important for an entrepreneur to take more precautions in a wealth management strategy? Most are supported by investors who could stand to lose their entire investment if something goes awry.
And what about the exit strategy? According to a U.S. Trust survey, roughly 63 percent of business owners have not formulated an exit strategy. They don’t have a plan for whether or not they’ll sell or transfer ownership upon their death or retirement. This is also an important aspect of developing a wealth management strategy because this merger or acquisition process can be quite complex, and a lot rides on the success of this process.
Also, according to a study by Deloitte, only 59 percent of family-owned businesses have a plan in place for an unfortunate event, such as the death or disability of the head of the company. The lack of a plan can lead to a difficult and damaging set of events to follow, and it can sink the company and potentially destroy business and family relationships.
If you head up a company and something should happen to you, you will want your family to be protected. Also, a wealth management plan should establish protections for all your business partners so they have the capital they need to continue on.
Many great and powerful companies have been built on the backs of risk-takers, but when it comes to building and managing a portfolio for wealth management, it’s important to turn to a professional investment advisor who is steeped in the knowledge of what risk means in investments.
At Family Investment Center, we can work with you for a wealth management strategy that considers your unique needs. Contact us today and let’s get started.
Steps You Can Take Now to Get Started With Your Retirement Planning
Many people who are still years away from retirement look forward to that day when they leave the workforce to enjoy the golden years. However, when the retirement date comes close, those thoughts of rest and relaxation are often replaced with trepidation. Why? Because retirement planning has been put on the back burner. What can you do to improve your outlook and develop a plan now?
What will weekly and monthly expenses look like in retirement? This is something you must consider as you begin your retirement planning. Perhaps you have debts today that you know you don’t want to carry forward into retirement. Your plan may include managing a way to enter retirement with reduced debt so you’re not tied down.
There are various calculators, such as DebtBlaster, that allow you to come up with a more solid strategy for retirement expenses. You also need to consider how inflation and the cost of living will differ in terms of where you choose to live in retirement and for healthcare costs.
2. From Where is the Income Derived?
You should develop a complete list of pension, 401(k), IRA, Social Security and other income resources. This will help you gain a better picture of how much you can spend at any given moment. Also, be sure to write out all the contact information, passwords, account numbers, etc., so should you become disabled or pass away, there will be no confusion regarding these accounts.
3. Retirement Goals
Part of planning for retirement is looking at things aside from money. Will you follow a passion or pursue a hobby? Will you be focused on recreation, or will you take this time to continue your education? Obviously, if travel is on the itinerary, you’ll need to budget for that, as frequent travel can get pricey. However, it’s important that your retirement goals will work with the plans of your spouse, family and friends.
4. Finding an Advisor
Planning for retirement can be a process full of complexities. When you partner with an investment advisor, your eyes will be opened to a number of issues that you likely would never have known existed. Look for an advisor with transparent fees and for one that will act as a fiduciary. When you have a fiduciary working for you, they are acting in your best interest – not their own. Unfortunately, there are many investment professionals out there who are driven by the commissions they earn, which means their investment advice isn’t always in clients’ best interest.
At Family Investment Center, we’ve always acted as a fiduciary, which means you can trust that when it comes to your retirement planning, we’ve got your best interests as our primary focus.