What Are the Asset Classes?

The securities that exist in today’s financial markets can be divided into four main classes: stocks, bonds, cash, and foreign holdings, with the first two representing the major part of most portfolios. These categories can be further subdivided by “style.” Let’s take a look at these classes in the context of mutual fund investments: Equity Funds: The style of an … Read More

wwikeadminWhat Are the Asset Classes?

How Are Asset Allocation Models Built?

Simply stated, financial advisors build asset allocation models by (1) taking historic market data on classes of securities, individual securities, interest rates and various market conditions; (2) applying projections of future economic conditions and other relevant factors; (3) analyzing, comparing and weighting the data with computer programs; and (4) further analyzing the data to create model portfolios. There are three … Read More

wwikeadminHow Are Asset Allocation Models Built?

What Is Right For You?

It’s important to be informed about asset allocation so as to avoid the “cookie cutter” approach that many investors end up accepting. Many of the asset allocations performed today take this “one size fits all” approach. There are all sorts of investment recommendations continually flowing from the financial press. The key question is: Are they suitable for you? Regardless of … Read More

wwikeadminWhat Is Right For You?

The Efficient Frontier

The “efficient frontier” concept is a key to investment success. A graph demonstrating the efficient frontier is shown below. Any expected return (left side of graph) carries with it an expected risk (bottom of graph). This risk-reward relationship varies from individual to individual. Conservative investors cannot tolerate more than a low level of risk, and are willing to accept a … Read More

wwikeadminThe Efficient Frontier

Your Retirement Plan

How To Get Started The number of people who are financially unprepared for retirement is staggering. One study revealed that more than half of the adults in the U.S. were planning to depend solely on Social Security for retirement income. Another study indicated that the great majority of Americans do not save nearly enough money. This Financial Guide provides you … Read More

wwikeadminYour Retirement Plan

Estimating Your Retirement Income

Most people have three possible sources of retirement income: (1) Social Security, (2) pension payments, and (3) savings and investments. The income that will have to be provided through savings and investments (which you can plan for) can be determined only after you have estimated the income you can expect from Social Security and from any pension plans (over which … Read More

wwikeadminEstimating Your Retirement Income

Becoming Debt Free

Ever feel the weight of the world coming down on you? That’s the way anyone feels when they are buried under the rubble of what I call “bad debt.” So what is bad debt? Bad debt is any consumer debt that does nothing to increase your financial position but instead further deteriorates your financial position. The typical suspects of bad … Read More

wwikeadminBecoming Debt Free

Planning For Independence

I would like for you to view “retirement” as the dirty “R” Word. I know a lot of those in the financial services industry help clients plan for retirement but all of them are missing the boat. You should not be planning for retirement but instead should be planning for financial independence. Retirement has such a finality to it that … Read More

wwikeadminPlanning For Independence

Avoiding Bernie Madoff Scams

Before I tell you how to avoid Bernie-Madoff-type scams, what if I told you Bernie Madoff was right? Would you immediately hit the escape or exit button off this website and conclude that this guy must be looney? Before you do that, I’d like for you to hear me out for a second or two. I know Bernie Madoff is … Read More

wwikeadminAvoiding Bernie Madoff Scams

Fire Your Financial Advisor

That’s right I said it…Fire Your Advisor! If you have one, pick up the phone right now and do a Donald Trump on him or her and let that person know “They’re Fired!” And if they ask you why, tell them Ike, The Financial Independence Coach told you to do so. That’s right I’ll take the blame for you. And … Read More

wwikeadminFire Your Financial Advisor