If you’re approaching retirement age, you may be considering a move to a more retirement-friendly state, particularly if your current state of residence imposes numerous taxes on social security, pensions, and other retirement income. While making the decision to relocate is not something that can be done lightly, there are a variety of options available nationwide that may allow you to retain more of your retirement income. Of course, taxes alone are not the only...
GRAND ILLUSION #4: EQUITIES ARE TOO RISKY AND SHOULD BE AVOIDED It happens all too often. The office receives a phone call or an email from a nervous investor who has been surfing the internet or watching their favorite news network. They’ve come across an article, a headline, or an advertisement proclaiming that the stock market is poised to drop by some cataclysmic amount. Further, the advertisement promotes the idea that the stock market is...
When looking for any professional advisor, it is important to be able to match their characteristics, temperament, client profile and experience level to your own profile. Would you like to learn from a retirement specialist who has worked with retirees for the last 30 year? Scott M. Peterson, ChFC is a true expert in the field of retirement planning and literally wrote the book on retirement income planning. Request a complimentary copy of our new...
Grand Illusion #3: The Persistence of Performance “If past history is all there was to the (investment) game, the richest people in the world would be librarians.” -Warren Buffett If you have ever bought shares of stock, a bond, or shares in a mutual fund, you were presented with the following disclaimer: “ Past performance does not guarantee future results. ” The U.S. Securities and Exchange Commission requires it and the SEC is right, there...
Grand Illusion #2: Superior Investment Selection The fallacy that the stock market can regularly and consistently be outperformed by superior investment selection is the ugly stepsister to the first ‘grand illusion’ of investments, market timing The notion that through an extensive search of the stock market or the mutual fund industry, investors can reliably uncover the next investment superstar is categorically false. You might think, “If I could only find and buy the next Apple,...
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Grand Illusion #1: Market Timing The first “grand illusion” of investments is market timing. Market timing presupposes that those who are smart enough, or follow the markets closely enough, can figure out both when to get into the stock market and when to get out. The goal is to miss the pain and experience the gain. Of course, we would all love to own equities and enjoy the profits while avoiding downturns, but unfortunately, it...
Investment Fiction: Welcome to the Grand Illusions As investment advisors, as well as ones who have extensively researched investment-related topics over the past thirty years, we have come to a disappointing conclusion: the ideas embraced and promoted by many in the investment industry and the media are not shared by the facts that are revealed in the academic world. The next few blogs will be dedicated to debunking the investment fallacies of our day such...