Investing In Gold

Our Best Advice For Gold Investing Is Tread Lightly

Gold generates no income.  It has no revenue. Gold has no business model and doesn’t make anyone’s life better (aside from the obvious “shiny pretty thing” quality).

The only way gold investing is profitable is if you find a greater fool to buy it tomorrow.  Intel makes computer chips, they make my computer work so I can blog this post about gold.  Nevada Energy powers my computer.  3M makes the yellow post it notes on my desk reminding me to let the dogs out later today.  Those companies produce goods and services which generate profits…  Gold does none of that.

Investing Advice for Gold

Gold Has Value To You

Gold actually has value to you, but not in the sense that you’re probably thinking.  The fact is gold serves an important part to an overall well rounded investment strategy.  Gold is a diversifier!  Though I don’t know if I’d consider it an investment in the purest sense of the word.

Everyone should have some allocation to gold (account size permitting, smaller accounts may not).  Most of our clients have from 2% to 5% in diversified commodities.  Roughly 20% to 30% of that is in gold and other precious metals.

You shouldn’t buy gold as an investment however.  I lost a client last year who insisted on investing in gold with 25%+ of his portfolio.  He sold every equity position he had at the absolute market bottom in 2011 in July.  He locked in substantial losses that would have been erased within 6 months (patience my friend…).

He bought a few hundred thousand in gold at roughly the same point in time – when gold was at the high for 2011.  Foolish!  Hindsight is 20/20 though, the market could have gone lower, gold could have gone higher.  But the fact is he DESTROYED an otherwise well diversified investment plan for retirement with ignorance and foolishness.

I know it sounds harsh, but the facts don’t lie.  I had spent well over 12 hours in the prior 6 months with him and his wife developing that retirement plan.  It included gold as an asset class.  But it included gold as a diversifier, not as a pure investment.

Rebalancing Into And Out Of Gold

Most of our clients last year had new OUTFLOWS from their commodities positions.  Not because we were timing the gold market – but because gold and other commodities had risen.  This presented a problem for as as investment managers.

When gold and other commodities rise they become a larger portion of a clients investment portfolio.  When they become a larger portion of a client portfolio the client’s risk profile becomes “out of whack”.  We must no sell some of the commodities positions and buy some of the other asset classes which didn’t do so well.  It’s a sure-fire recipe for buying low and selling high with your investments!

So Tread Lightly With Gold

Don’t look at gold so much as an investment, but as a part of an overall investment plan.  Gold and other commodities can be very useful, but as a part of an overall investment portfolio strategy.  Get an expert investment plan and stick with it!

 

Best Mutual Funds 2012 Q1

We’re All About The Best Mutual Fund Investment Advice

So here’s our best mutual fund investment advice – DON’T CHASE MUTUAL FUND PERFORMANCE!  We’d actually far prefer running for cover than chasing mutual fund performance.  It always seems to be a sure-fire recipe for investing disaster.

The fact is the overwhelming majority of the top performing mutual funds FAIL TO REPEAT!  We’ve posted stats on this before, but the odds are staggering.  Investing in the top performing mutual funds just isn’t a wise or prudent investment plan.  We recently uncovered the top 10 performing mutual funds for the first quarter of 2012.

The Best Large Cap Growth Mutual Funds 2012 Q1 are:

 

Mutual Fund Name Mutual Fund Ticker Total Return Q1 2012 Mutual Fund Share Class
Rydex Dynamic NASDAQ-100 2X Strategy A RYVLX 45.83% A
Biondo Focus Investor BFONX 39.69% No Load
Touchstone Sands Capital Select Growth A TSNAX 23.87% A
Baron Fifth Avenue Growth Retail BFTHX 22.69% No Load
Eaton Vance Atlanta Capital Focused Gr A EAALX 21.51% A
Fidelity Advisor Growth Opportunities A FAGAX 21.41% A
Hartford Growth Opportunities A HGOAX 21.36% A
Fidelity Advisor Growth Opportunities T FAGOX 21.36% T
SunAmerica Focused Growth A SSAAX 21.32% A
Fidelity Growth Company FDGRX 21.16% No Load

Avoid the “hot stuff” and you’ll be far more successful over the long-term.  Plan first, then invest, monitor and manage – that’s a recipe for success!

It’s Normal To Want To Own Those Mutual Funds

You’d be abnormal if you didn’t wish you owned them in fact.  Who wouldn’t want to own the best mutual funds?  The problem is investor behavior.  Just because these funds performed well doesn’t mean they’re right for your investment plan.

The fact is investors behave badly.  We commonly chase what WAS the best, and overlook the slow and steady course to success.  It’s all psychological.

The Best Mutual Funds of Q1 2012 - RUN!

The Best Mutual Funds Don’t Really Mean That Much To You

Think about it…  Just because it performed the best doesn’t mean it didn’t take FAR MORE risk to do so?  Is the extra risk really appropriate for your investment plan?

What if these funds have massive tax burdens to them?  Some of the best performing funds have outrageously high turnover and consequently a lot of embedded tax implications.  You can literally buy some of these funds, experience a capital loss for 2012 and STILL OWE TAXES on what the investors who came before you made!  It doesn’t seem fair, but then life’s not fair.  You need to be SMART with your mutual funds!

On a side note, check out Investment Advice for more free mutual fund investment advice.  It’s a good free financial resource.

 

More of the best mutual funds to come in different asset classes!

Self-Serving Financial Advisors

If you downloaded the free report “Inside The Gap: Hidden Profits From The Death Of Mainstream Investing” (available on the home page) you’ll remember I talk extensively about the conflicts of interest in the financial industry.  My frustration isn’t with any particular financial advisor or Wall Street firm, it’s with the business model.

The business model is self-serving, not client serving.

Selling investment and insurance products for hidden commissions and excessive investment fees shouldn’t be the primary driver of serving client investment needs.  The primary driver should be helping clients achieve their investment and financial goals.

I receive these marketing pieces periodically.  This one below came in an email a few days ago.  The funny thing is I’m on some list of insurance brokers.  I don’t even sell insurance!

It’s sad to me that insurance salespeople (it’s not much different with some financial advisors and some major brokerage firms) sell certain products because of perks and spiffs like this.  Shady insurance people may be eyeballing that iPad or new computer, and not looking out for your best interests!

Insurance sales incentives, perks and spiffs.

Sell some insurance and annuities – GET FREE GADGETS!!!

You notice it’s all about sales – it’s not about client service!  Sad but true.  I’m also still struggling with why the sales guy has springs on his feet???

The next time you choose a financial advisor make sure you interview them thoroughly.  Make sure they have your best interests at heart!

Retirement Plan Investing

Recently I was interviewed for a website RetirementPlanningHQ.net.  The founder Zach Daniel is a sharp guy in the financial industry and puts together informational websites in an effort to help educate the public on issues affecting their investments and retirement planning.

Here’s a recap of my interview:

 

1. Tell us about yourself and your background in finance and retirement planning.

 

Greg Phelps, Financial Advisor & Wealth Manager

Greg has over 17 years of experience creating financial solutions for challenging investment and retirement planning problems.  He serves as the primary financial advisor and retirement planner to many financially secure families in Las Vegas and nationally.

Greg has considerable financial advisor experience with two of the largest wealth management firms, Morgan Stanley and Goldman Sachs.  He’s also served as a Regional Manager of Wealth Management and Director of Fiduciary Advisor Services at RSM McGladrey, the nation’s fifth largest accounting firm.

In 2005 he formed REDROCK WEALTH MANAGEMENT, a registered investment advisor firm.  The firm delivers an excellent client experience through comprehensive financial planning coupled with low-cost institutional investments and full disclosure of all fees.

Through his is extensive experience, Greg has developed broad problem solving capabilities in helping his clients achieve the financial and retirement planning goals they value most.  He’s put his experience and knowledge to work in the creation of Portfolio Architect to help investors succeed nationwide.

Greg has worked diligently throughout his career to expand his financial, retirement and investment planning knowledge and skills.  He’s earned several highly coveted designations and credentials in the financial services industry:

  • CERTIFIED FINANCIAL PLANNER(TM) CFP®
  • CHARTERED LIFE UNDERWRITER® CLU®
  • ACCREDITED INVESTMENT FIDUCIARY® AIF®
  • ACCREDITED ASSET MANAGEMENT SPECIALIST® AAMS®

 

Greg is a member of the National Association of Personal Financial Advisors as a NAPFA Registered Financial Advisor.  NAPFA is the nations largest and most exclusive association of pure fee only financial planning advisors.  He is also a member of the Financial Planning Association (FPA), a Paladin Registry 5 Star Financial Advisor and is FADD Certified (Fiduciary Advisors Due Diligence) by Investor Watchdog.

2. What is your advice to someone just starting out in looking to plan their retirement. 

 

Get a plan.  Without a plan you’re wandering aimlessly.  Throwing money into random accounts and investments  is NOT the solution.  Don’t become a collector of the latest investment fad or buy all the hot funds or stocks.  The best retirement planning advice for a young investor is to save as much as you can each month in this order:

 

  • Have your emergency account in place – 6 months to 12 months of bare bones living expenses (peanut butter and jelly, no cable tv type of lifestyle).  It should be in cash, CD’s and money markets.
  • 401k contributions (or other employer plan) – Contribute up to at least the amount any match stops.
  • ROTH IRA – if eligible and you have the cash to do it, the ROTH IRA is generally best for younger investors due to tax free withdrawals and no required minimum distributions in your lifetime.
  • 401k contributions again – Even if you don’t get a match, contribute to the maximum possible amount you can or are allowed by IRS rules.
  • Invest in taxable accounts – When you’ve exhausted all other investment opportunities, use a taxable account with low-turnover low cost mutual funds and ETF investments.

Retirement Plans Basics Include IRA's and 401k Plans

In ALL accounts (where possible) don’t invest in junk, and don’t pay commissions.  Buy only no-load no commission index funds.

 

Get a proper risk profile and stick with it.  When the markets are DOWN look at it as a great opportunity to invest at lower prices.  Too many investors make the mistake of stopping their investments when the markets drop – don’t be a sheep – do the opposite of what the masses do!

 

I don’t mean this to be self-service but I created my Investing Advice and Investment Plan website Portfolio Architect for just that purpose.  We create expert asset allocation models customized for young and older investors.  We populate them with low cost no-load mutual funds and ETF’s.  Get an investment plan like a pro and stick with it!

 

3. How do you decide how much to save and what vehicles are to be used for investing?

 

This is hard – it’s based on budget.  A minimum of 10% should be allocated to retirement savings and any extra you can save is a bonus!  There are some great calculators on the web as well.  But it’s all based on your budget for younger investors and what you CAN save in many cases.

 

4. What mistakes do you see people make in planning for retirement and what advice would you have for people in each decade of their lives on what their financial priorities should be?

 

Buying the “hot stuff” on CNBC or the cover of Money magazine and watching Jim Cramer is a massive mistake!  Remember, CNBC is created for SHORT TERM INVESTORS!  It’s NOT for long term retirement planning.  Also remember they sell ads, and those ads generate revenue.  Don’t fall prey to the talking heads on the tv or the fancy brochures.  Get the best retirement plan and stick with it!

 

I generally group investors into the accumulation phase, the mid phase, and the decumulation phase.  

 

As younger investors accumulate assets for retirement they should be more aggressive – for example 80% in stocks and the rest in bonds and cash.  They should be willing to withstand volatility in the market place and look at stocks as long term growth assets.  There’s more value in stocks when they’re down and less when they markets are up!

 

As they reach the mid phase which is about 5 years from retirement, they should become slightly more moderate with their investments, generally 60% to 70% in stocks, the rest in bonds and cash.  I also have my clients start allocating a portion of their investments to a larger income fund account.  This account will serve for cash flows when they retire.  It helps them turn their portfolio into a paycheck without market risk.

 

In retirement the biggest mistake investors make is getting far too conservative.  Bonds are risky too!  Inflation is a retiree’s biggest enemy, NOT market volatility!  So maintain a moderate growth allocation for example 50% to 60% stocks and the rest bonds and cash.

 

For retirees in the decumulation phase, more conservative investing is based on how much in assets you have and your NEED to take risk.  Wealthy investors don’t NEED to take as much risk in many circumstances, but most of US do!  So educate yourself or get a great FEE ONLY financial planner – never go with a fee-based or commission based financial advisor!  There are too many conflicts of interest in their business model and not enough “client-based” advice.

 

5. How does diversification play a role in planning for retirement?

Diversification and asset allocation determines over 90% of your investment success!  It plays a massive role in all investors performance.  Proper diversification can reduce risk and provide opportunities to rebalance in up AND down markets.  I can’t say enough about the role diversification plays.

 

But you can over-diversify as well!  Don’t become a collector of investments, invest in a distinct asset allocation model with separate asset classes, don’t own 10 large cap US stock funds and think you’re diversified!  Get a solid asset allocation plan and stick with it.

 

6. What are the top books you recommend for personal finance, investing, planning for retirement

 

For investor philosophy and mindest – “The Beharvior Gap” by Carl Richards is excellent.  I also LOVE Nick Murray’s book “Simple Wealth Inevitable Wealth”, by far it’s the best book on investment planning and philosophy available!  You can’t go wrong with those two.  And for pure investing the book by Larry Swedroe book “Winning Investment Strategy” is excellent.

Mutual Funds A Shares Fees

Share Classes Affect Your Mutual Fund Investment Returns and Performance.

Share classes are designated groups within certain stocks or mutual funds which gives them special characteristics.  These characteristics can be something along the lines of voting or resale rights.  With respect to mutual funds, class dictates the way loads (sales fees and expenses) are applied.

The higher the load or commission, the lower the investment return.  Some investors look only for low-cost no-load mutual funds in their investment portfolio strategy to save fees.  These fee savings have a direct correlation to the investors long term investment returns.  The more you pay the less you get!

Mutual fund fees and expenses drain your investment returns

It’s important investors know and understand exactly what mutual fund fees and commissions you’re paying for in your fund investments.  This article covers one of the most popular mutual fund share classes available – the class A share mutual funds.

Class A Share Mutual Funds

A share mutual funds generally have a high front load or commission, and a lower ongoing management fee.  For example, the American Funds Growth Fund of America Class A share (ticker AGTHX) has a 5.75% front load commission.  For every $1,000 you put into this fund, you get $942.50 invested.  That fee or commission represents the amount paid to the financial advisor and investment company for you to invest in the fund.

Generally you’d expect if you invested $1,000 you’d have $1,000 invested.  It’s just not the case with class A share mutual funds.  That commission is lopped right off the top of their investment.

This fund also imposes a 0.68% expense ratio.  Part of that goes to the financial advisor who sells you the mutual fund (a 12B1 fee), the rest to the mutual fund company to manage the fund.  In this $1,000 example that means roughly $7.00 a year disappears in the form of an investment fee.  As the fund grows, that expense ratio remains the same meaning the actual dollar amount increases.

Class A share mutual funds do offer breakpoints however, so the more you invest the lower the up front commission can be.  But those breakpoints for most mutual fund companies are generally at $50,000 or $100,000 and up.

Most mutual fund companies will allow you to aggregate all family funds to reach these breakpoints even if they’re in different mutual funds.  For example you can buy $50,000 of two different American Funds and reach a $100,000 breakpoint to save on the up front commission.  In this $100,000 example the commission drops to 3.50% or $3,500.  Once again, that commission goes mainly to the financial advisor who sells you the fund (and their employer).

There are thousands of no-load mutual fund investments available today.  Anchoring your investment plan with high quality low cost mutual funds is a great investment management strategy, as the fee and commission savings will go directly onto your bottom line!

At a minimum, before investing in any share class of mutual funds you should do your homework and understand what you’re paying, who you’re paying it too and what you’re getting in return for the fees and commissions you’re paying.  A penny saved is a penny earned!

We provide complete investment reviews including a detailed accounting of all mutual fund fees and expenses.

 

Target Date Mutual Funds

A target date mutual fund (sometimes referred to as a lifecycle or age-based fund) is a pooled investment giving you a fully diversified portfolio in one mutual fund.  They start more aggressive and become more conservative as the target date approaches (usually retirement).

 

Target Date Mutual Funds Make Investing Simple!

Who doesn’t want to make life easier?  Target date mutual funds simplify things by creating and managing a mix of investment assets which adjusts over time.

You don’t need to pick the right mutual fund managers.  You don’t need to create the right asset allocation.  All you need is a quality fund with the approximate maturity of when you’ll need the money!

For example I’m 38.  If I want to retire at 60 I’d pick a target date mutual fund about 22 years into the future – roughly 2035.  These mutual funds generally come in 5 year increments.  So while a 2034 target date fund might be perfect I’ll have to settle for a 2035 fund.

Target date mutual funds start more heavily weighted in equities for more growth.    In my hypothetical 2035 target date mutual fund I might have 80% stocks, 18% bonds and 2% cash – a fairly aggressive asset allocation suitable for a younger investor with a long time horizon.

More exposure to stocks means more volatility.  Generally the longer you have before you need the money the more volatility you can endure.

In 15 years that fund would be considerably more conservative.  It may have 45% stocks, 45% bonds and 10% cash.  This would adjust all on it’s own – with no trading or managing on my part.

Target Date Mutual Funds Get More Conservative Over Time

Target Date Mutual Funds Help Keep You On Track

Target date mutual funds also make re-balancing simple.  Rebalancing goes against logic making it incredibly hard for most investors to do.  It requires selling mutual funds which did well, and buying the ones that didn’t.

Rebalancing is a key component of proper investment management.  Once you set a target asset allocation, it shouldn’t change with the exception of major life or financial events (however it should be reviewed once per year).

The asset classes (stocks, bonds, commodities, etc.) you invest in will fluctuate up and down.  As stocks go up they become a larger part of your portfolio.  This requires selling some stock, and buying what didn’t go up (typically bonds).

This process must be repeated on a regular basis to keep your portfolio in tact with your risk profile.  Target date mutual funds do this all for you, taking emotion out of ongoing investment management.

 

Target Date Mutual Funds Aren’t Right For Everyone!

These funds can oversimplify things.  Investors have different risk tolerances, other investments, and specific financial planning needs.  Target date mutual funds simplify these things with a one-size-fits-all approach.

I’m all for keeping things simple, but not at the expense of proper financial planning.

For example target date funds are built on the premise that at some date in the future the funds will need to be liquidated.  Most investors assume this is retirement.

I have yet to find an intelligent investor who liquidates his investments the day he retires.  Your investments don’t come to a halt just like your life doesn’t.  If anything you’re just getting started!

In retirement you have another 20 or 30 years of investing left.  A stamp 30 years ago was .15.  Today it’s .44.  A gallon of milk will be 10$ in 20 years.  Inflation erodes purchasing power and is your biggest enemy in retirement.

Liquidating your investment portfolio may feel right in retirement, but the CD’s and savings accounts at the bank won’t help you buy that same gallon of milk when it triples in price!

Back to my example.  In 2035 my target date mutual fund might have only 20% in stocks.  Yet I’ll have another 30 years in retirement.  20% in stock isn’t going give me enough long term growth to offset the loss of purchasing power due to inflation!

Like most investors, my planning situation is more specific than a target date fund can handle.  Target date mutual funds can be good for some circumstances, but most investors need more specific investment planning.

 

Target Date Mutual Funds In Your 401k

401k plans can be a good spot for target date mutual funds.  Most 401k plans have limited investing options, and many 401k plans have poor choices as well!  In a retirement plan target date funds can be great.  They simplify things and keep your investments on track.

However – in a 401k plan  it’s prudent to consider your true long term goals.  Will you liquidate your investments upon retirement?  Probably not.  It makes sense to consider a longer target date fund than your hypothetical retirement date to get an investment which more accurately defines your investment needs.

Most of our private clients have portfolios with a moderate asset allocation even in retirement.  If they had a target date fund in their 401k at work and retired this year we would be increasing their allocation to stocks and reducing their allocation to bonds to get them back to a good long term asset allocation.

 

Target Date Mutual Funds Summary

They can be great for many investors and in many circumstances.  Smaller investment accounts and 401k retirement plans are great examples of where target date funds fit in nicely.

But be aware of the pitfalls of target date funds.  The fees, expenses and commissions may be higher.  The target date might not truly represent your specific financial objectives.  Target date mutual funds can oversimplify things, leaving you with an investment portfolio that’s too conservative or too aggressive.

There is no substitute for expert financial planning.  You should always consider your financial situation in it’s entirety before looking at specific mutual fund investments.  Hiring a professional fee only financial advisor is a must for complicated financial needs as well.

All in all, target date funds can be a great option for the average investor.  Consider target date funds as an alternative for your investment plan!

Bond Funds and Interest Rates

Most investors don’t realize bonds can be highly volatile, even government bonds.  I’m not referring to the risk of default either, I’m specifically referring to principal loss in the event of rising interest rates.

Since bonds pay a state coupon rate, as interest rates in the economy change bonds already issued face valuation adjustments.  Here’s how it works

  • Buy a 5 year treasury bond today at 1.71%, and you get $17 a year in interest, plus your $1,000 back in 5 years
  • Two years from now a NEW bond investor can get a 3% coupon (hypothetically of course, I don’t have a crystal ball)  = $30/year
  • The new investor get’s almost twice the yield as your bond
  • Your bond on the open market now must be discounted – or a principal adjustment – in order to make it even with new bonds
  • That markdown has to be roughly equivalent to what new bonds are paying (plus other factors beyond this discussion)
  • For the next three years, an investor buying your bond needs to make up $13 ($30 – $17) in lost income per year, that’s $39 or 3.9% of the bond value for the rest of the life of the bond
  • A new investor might pay you roughly 96.1% of par value for your bond, or $961 dollars to compensate for the lost income
  • Your bond, if you sold today, would be worth about 4% less than what you paid for it
  • You must hold to maturity to get the original $1,000 principal back.

That was a very crude example and it’s more complicated.  There’s bond convexity, duration, and other market speculation factors that control the open market for an already issued bond.  But the example is a reasonable illustration.

The same holds true with bond mutual funds, except it can be far worse because there is no finite maturity date – the bonds just roll over and over at the managers discretion.

Bond Fund Values and Interest Rates

 

This is solely a discussion on interest rates in the economy, not default speculation.

If interest rates go up, your bond mutual funds will go down.  The longer the maturity (more specifically the duration) of your bond mutual funds the more it will drop.  It’s that simple.

I’ve said for a couple years now I see a large problem for investors – specifically retirees – who chase yield in bond mutual funds.  The more aggressive you get trying to increase your investment income, the more risk you have to your principle.  If you’re going to be aggressive with bonds why not own stocks?

Retirees specifically face a huge problem if they’re living on a fixed income.  Many retirees have little to no stock exposure and prefer the lower volatility of bonds and bond mutual funds.  But with interest rates at historic lows at what cost?  Stocks will likely far outperform bonds over the next decade (stocks have doubled the return of bonds over the long term), and the real risk to investors is inflation (erosion of purchasing power) – not short term volatility.

I often say in my private practice that my core concern is ensuring my retired clients can buy the same gallon of milk today at 4$ when it costs $10 in 20 years!  Or mail an envelope in 30 years when they’re 90 and a stamp costs $1.50 (the math works out, and remember a stamp was just .15 in 1980!).

Bonds – while less volatile than stocks – aren’t safe!  They fluctuate as well.  You can experience principle loss with bond mutual funds just as you can with stock mutual funds.

The only prudent course of action is to build a diversified portfolio, one that is well rounded and pegged properly to your personal risk profile.  Rather than focus on specific asset classes or mutual funds, focus on the foundation of your investment plan – the asset allocation.

We offer the Portfolio Engineer and Portfolio Architect services for your asset allocation plan and investment management needs.  If you don’t have an investment expert in your corner, you need one!  Let us be your expert and craft you a world class portfolio of no-load institutional mutual funds today!

Fee Only Investment Advice

Truly Unbiased Flat Fee Only Investment Advice

Most investors don’t understand what they pay their financial advisor, or who the fees and commissions go to for that matter.  In 17 years of advising clients I’ve yet to find one who could clearly articulate the layers upon layers of fees and expenses their mutual funds and ETF’s charge, and the commissions their financial advisor earns.

We believe strongly that providing clients fully disclosed flat fee only investment advisor services removes all conflicts of interest.  We also believe that removing all conflicts of interest starts with our compensation model because:

  • Fees and Commissions Reduce Your Returns - Clients must earn a rate of return higher than the fees and expenses they pay in order to overcome them just to break even.
  • Fees and Commissions Create Conflicts of Interest - If the advice provided by your financial advisor is jaded by the lure of a big payday or heavy fees, they’re likely to be conflicted in the investment advice they provide to you.
  • No Hidden Agendas - No trips, perks, spiffs, commissions or fees means Portfolio Architect investment advice is clear from any hidden agendas.  We don’t have any wholesalers or other employers to appease.  This allows us to truly be unbiased with our investment advice to you!

We also warn investors of the allure of seemingly fee only investment advice.  Many financial advisors call themselves “fee-based financial advisors”.  This is a misnomer in many ways.  Fee based investment advisor services were created by the Wall Street machine to confuse investors, and make them feel like they were getting independent investment advice.

Fee based is just a fancy way to say a financial advisor accepts fees AND commissions.  Fee Only investment advice prohibits accepting any form of compensation other than fees paid directly by the client – like your accountant or your attorney.  The most unbiased way to work with clients is through fully disclosed fee only investment services.  This allows us to provide objective investment advice in your best interests without conflict.

You’re our employer, not some Wall Street investment or insurance company.  We work for you, NOT Wall Street!

See the difference flat fee only investment advice can make with your investment planning today!