A month ago ‘The Market’ appeared to be rosy with the SPY, the ETF tracking the S&P 500, up 8.16% YTD, as of 9/30/2014. Then a few weeks ago the markets crumbled forcing most of the indices to give up most, or all, of their gains for the year (SPY: +2.35% YTD thru 10/15). Then suddenly, without hesitation, the markets recovered (SPY gained 9.40% from 10/15 to 11/12); well many of them at least. That is how it reads in the papers anyways.
This is the seventh post in a series inspired by a Forbes Magazine article that listed a number of questions you should ask a financial advisor.
If you’ve been following this series, you know that at Sampson Investment Management the relationships we develop with our clients are the most important components of our value proposition. There is no lack of financial advisors or wealth managers out there – it’s who you create that relationship with, that matters.
Getting to know our clients in a deep and personal way allows us to best serve them as they seek to achieve their goals, objectives, and dreams. This means that regular and consistent contact is an important part of our service model.
This is the eight post in a series inspired by a Forbes Magazine article that listed a number of questions you should ask a financial advisor.
It’s good to know what makes your prospective financial advisor unique and it’s not an easy question to answer for many. For us, no single aspect of our value proposition makes us unique, but the combination of several key factors differentiates us from the crowd.
First of all, we assess our clients needs and develop a plan of action based upon the financial planning process. While many advisory firms employ this process, few have the background in psychology and over 30 years of experience to bring to the table. For those who meet our minimum standards for asset management, we provide such services at no additional cost, which is definitely unique to financial advisors.
This is the sixth post in a series inspired by a Forbes Magazine article that listed a number of questions you should ask a financial advisor.
It is important to ask your investment planner about their process to ensure it fits with your expectations. Not every firm is for every investor so we’ll take this opportunity to share with you how we operate.
The investment process at Sampson Investment Management begins with the belief that managing risk is the best way to maximize returns while minimizing risk over a market cycle.
This is the fifth post in a series inspired by a Forbes Magazine article that listed a number of questions you should ask a financial advisor.
What kind of client do you specialize in?
One of the most exciting aspects of our business is the diversity of our client base, with very different goals and objectives for their financial futures. There is, however, one important criteria that we find critical to our ability to provide optimal value in those relationships: The ability to have an honest, open, and transparent relationship with our clients is necessary to provide the kind of experience critical to our individualized approach to financial planning and investment management.
This is the fourth post in a series inspired by a Forbes Magazine article that listed a number of questions you should ask a financial advisor.
Searching for a financial advisor that fits for you can be overwhelming. Over the past few weeks, we’ve been digging deep into some of the questions you should ask when meeting with a prospective advisor.
“What services do you provide?” is an important one.
The core service we provide at Sampson Investment Management is investment advice and management to achieve our clients’ short, intermediate, and long term goals. But we are more than an à la carte menu of services from which you can choose. We provide guidance over the decades to our clients as the expected and unexpected occur, affecting every day decisions. We choose to work with those who are interested in building a relationship and working together over the long-term. Of course, it’s better for our business to retain clients, but it’s beneficial to you to have an advisor who knows and understands their entire situation.
Some time ago an article appeared in Forbes Magazine that listed a number of questions you should ask a financial advisor.
Over the next several weeks our blog will answer these questions for our firm.
The first question asks “Are you a fiduciary”?
A fiduciary is a legal or ethical relationship of trust between two or more parties. Typically, a fiduciary prudently takes care of money for another person. One party, for example a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to the other one, who for example has entrusted funds to the fiduciary for safekeeping or investment. Source.
In the early days of investing, if someone wanted to make an equity investment, they purchased individual shares of stock, and achieved diversification by purchasing shares of a number of different stocks. Similarly, if an investor wanted exposure to debt, they purchased individual bonds, and achieved diversification through purchasing bonds of various companies, with varying maturities.
Ugh! Since 2008 the phrase has become both cliché and more applicable than ever in so many areas of finance and life, and college tuition and financing seem to experience a new-new normal every year. It is now very normal for most high school seniors and their families to come face to face with some very difficult choices, and some very long-term financial consequences.
The average annual tuition expense is $23,000 in-state; $36,000 out-of-state; $45,000 -$55,000 private.
The average debt of a four-year college grad is $30,000.
Over the past decade or so, ETFs have increased in popularity as funding vehicles for investment portfolios.
The Mechanics of an ETF
When you purchase an ETF you are essentially buying a diversified portfolio of assets within a particular sector, much like an index mutual fund. Unlike mutual funds, which are priced at the end of each trading day, ETFs are priced throughout the trading day, just like stocks. Like stocks, ETFs can be sold short, or can be purchased on margin, allowing additional options for enhancing (or reducing) investment returns. ETFs also tend to be more tax efficient than mutual funds, and their expense ratios (management fees + trade expenses) are generally lower as well.