Bonds are not the stodgy, boring things that most investors think of even though there's no army of talking heads on financial news shows talking about them. They are a huge market (about double the value of stocks as noted in my last post). They are an essential part of our economy. Most companies cannot function without easy access to credit. In fact, the shock and uncertainty that followed ... Read More
CD
Ask the Adviser: Why Should I Rollover My 401k From My Old Job?
There are many valid reasons to consider a 401k rollover. Costs While it may not seem like it, you are paying for your funds to stay with your old employer’s sponsored plan. You just don’t see it. Fees for employer plans are not very transparent. While you may not see an actual bill, your employer is probably paying for the administration of the plan through hidden fees assessed on the ... Read More
Ask the Adviser: What’s a Market Linked CD and Are There Risks?
It's natural for investors who are still skittish after a decade-long roller coaster ride with the stock market and plummeting real estate values to be risk averse and seek out investment alternatives for protecting their nest eggs for retirement, college funding or simply their emergency cash. And where there is demand, there will be supply. So naturally, financial firms will design products ... Read More
Beware the Siren Call
Like the mythical siren's call, the pitch is enticing - a seemingly perfect investment. Investors can buy into a contract offering a minimum return with the potential to capture the upside of increases in the stock market while avoiding portfolio value declines if - and when - the market goes down. This blend of promises can be found in 'equity-indexed annuities" or EIAs offered by insurance ... Read More
How to Make Sure Your Cash Investments Have FDIC Protection
Written by Rob Williams, Director of Income Planning, Schwab Center for Financial Research, March 16, 2009. Although bank failures have been relatively rare historically, it’s prudent to evaluate the steps you can take to protect the assets you have in the banking system. Steering depositors away from panic and instilling public confidence in the banking system were reasons why Congress created ... Read More
