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Beware of high-yield investments

Today’s low-yield environment has left investors frustrated and searching for a reasonable return on their money. Seniors who rely on their portfolio income to help fund spending needs are especially vulnerable. Conventional sources of income such as Certificates of deposits (CDs) and money market funds yield almost nothing. Bond yields, while slightly higher, come with increased interest rate risk which threatens to drive down the value of the underlying investments once rates begin to rise.

In an attempt to generate more income many are turning to Read more

Is real estate still a solid investment?

Is real estate still a sensible investment? Although many factors will determine whether it makes sense for you, most savvy real estate investors would likely agree that the improvement in recent residential housing data, current values and low financing rates make this an attractive time to consider an investment in this asset class. However, while the timing may be right, the form your investment takes should depend on your goals, finances, and the role you are willing and able to take. Read more

Striking the right balance with asset allocation

Harry Markowitz, Nobel laureate in economics and a pioneer in investment theory suggested that a fundamental responsibility of any investor is to manage the risk of their portfolio. The risk he was referring to is volatility: the ups and downs of stock prices during the year and from year to year. Investors who ignore risk in pursuit of returns expose themselves to intolerable portfolio declines prompting them to abandon their plan thereby converting temporary losses into permanent ones. Conversely, those who choose to minimize or avoid volatility entirely must be willing to accept returns that may prove insufficient to fund their future goals. Read more