Being smart with $$ -- Low Income This Year? Maybe Convert.

Are you in a lower-than-usual tax bracket this year?  Consider a Roth IRA conversion.  This involves moving money from a pre-tax IRA to a Roth (after-tax) IRA and watching your money grow tax free until you need it in retirement.  No tax will be due in the future but you do need to come up with money today to pay taxes.  However, if your tax bracket is low this year then it may be worthwhile.  Ask me for more details. And hurry because it must be done by Friday to count for 2016.

- Larry Pike, CFA, Client Priority Financial Advisors LLC

- www.clientpriority.com 

Being smart with $$ - Look Forward Not Backward

"I'm not selling my losing stock until I get back to even." You've heard people say this right? But is that a way to determine what to own? Your cost basis has nothing to do with what's an appropriate investment for you or whether a position has value. Does the stock seem cheap or expensive at its current level? If may have fallen because of bad news or bad earnings and may not be cheap even at the lower level. But the tax loss does have value (if not in a retirement account.) So take the loss and invest in what's right for you. Still love your oil holding but want the loss? Sell it and buy a similar oil stock to take the loss and still have your desired exposure. (But don't sell and rebuy the same stock or the loss won't count). Remember, where you bought an investment might have little to do with what it's worth today so look forward not backward when deciding what to own.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Take your RMDs. Inherited Accounts Too

Have you taken your Required Minimum Distributions for this year on your IRA? If you're not yet in your 70's you're off the hook. But If you inherited an IRA then you still must. Don't delay. The penalties can be severe for not doing so. Call me with questions. 

Larry Pike, CFA

www.clientpriority.com

Blog: clientpriority.blogspot.com

Being Smart With $$ - Too Much to Pay for Financial Advice

Is $50,000 too much to pay for financial advice on a $300,000 retirement account? Well, that's your average cost over 10 years when paying a simple annual 1% fee. Consider hourly, fee-based advice instead which would likely save you 80% of that cost.  If you were offered a low-risk chance to make $40,000, wouldn't you take it? Is your portfolio even larger?  The difference is even more substantial.
(Note: Cost includes fees and lost earnings on those fees. Assumes 6% investment returns.)
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Timing the Market Post Trump is Hard

Trump is in. In response, some people are lightning up on their investments while others are adding. But timing the market is hard. When investors first found out Trump was likely to win, stocks fell a stunning 5%. If you were someone who sold at that point, you have given up 7% of gains since then. That's an average year's worth of gains. Timing the market loses more often than it wins. Staying invested and letting your portfolio grow over the decades has historically been a winning strategy. 

Larry Pike, CFA

www.clientpriority.com

Being smart with $$ - Trump and Dump (international)?

Trump! So dump your international stocks? Not so fast. The markets adjust to new information faster than you can trade on it. Since the surprise results of the election, U.S. stocks are up and international stocks are down. Are you still thinking of selling your international stocks to buy American? Then you are saying you disagree with the consensus of the world's investors because the change in prices over the last few days already reflects their collective view as to what the election results mean to stocks around the world. But if you know better, go ahead and trade.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - I Love Lucy and Stocks

Do stocks scare you? If you plan to own them for only a year they should.  You could have a year like 2008 and lose 36%.  But if you plan to hold them for the long term, your worries should fade.  Going back to 1950, the worst 10 year performance is an annualized loss of 1.4%.  Not great but that’s the worst.  And if you never sold in less than 15 years, the worst you did going back to just before “I Love Lucy” was a positive annualized 4.2%. Stocks have returned about 9% since the late 20s.  Short term? Risky. Long term? I Love Lucy AND Stocks.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com
- Blog: www.clientpriority.blogspot.com

Being Smart With $$ - Ignore the Trillary Effect

Election day is 21 days away. (Not soon enough if you ask me.) Are you making any bets in your portfolio that stocks will rally or fall more under one candidate versus the other? Remember that stocks are currently at prices that the millions of investors worldwide think are right.  And they have priced in the risks or rewards expected with the election results in 3 weeks. Since timing the market is a losing game for the majority of investors, consider ignoring the Hump or Trillary effect and focus on the likely gains expected over the next 21 years instead of the next 21 days.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being Smart With $$ - Would you rather...?

Would you rather... 

...have a financial advisor that only sells a couple of products with enormous commissions and will recommend those to you no matter what your needs are - or - have one who doesn't get any commissions and considers the universe of investment products in deciding what is right for you?  

...have an investment advisor that automatically takes thousand of dollars in fees out of your account each and every year even if you don't need, want or get any advice many years - or - have one who gets compensated only when they actually help you? 

--> Depending on your answers to the questions above, you may want to consider an hourly, fee-based advisor to help with your financial needs. 

Larry Pike, CFA

www.clientpriority.com

Being smart with $$ - Who Wants To Be A Millionaire

Who wants to be a millionaire? Forget the game show. Ask the rich how they got their millions. Did they inherit it? 80% say no, they earned it through jobs, business and investing (US Trust survey reported in Money Mag). Did they buy hedge funds? Mostly no. 90% report that buying and holding basic stocks and bonds is the source of their success. Did they roll the dice and take big risks? No, they mostly played it safe. Living within your means, saving money every month and investing over the decades is how you get there. Or maybe you CAN win it on a game show.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Advertisers in mutual funds entertain us

TV ad: A big mutual fund company asks why settle for average returns with an index fund that simply mimics a sector when you can buy their company's funds.  Here's why: One of their 3 large-cap funds did an average of 1% worse per year than an index fund of large stocks over the last 3 years.  Their 2nd large-cap fund did an average of 5% worse per year for the last 3 years and their 3rd (and newest), large-cap fund did over 8% worse in the last year. So do they really need to ask why we would settle for average? Wouldn't it be simpler if they suggested that we buy index funds and then just write them a check for entertaining us with colorful and exciting ads?
(Disclaimer: Only large cap stock funds were analyzed and their funds in other sectors may have done better.)
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Buy American, AND Foreign

Maybe you like to buy goods made in America. But when it comes to your portfolio don't ignore international stocks. Maybe you're turned off by the horrible returns of international stocks vs. US stocks in the past 5 years. Many analysts say that makes foreign stocks cheaper by comparison. And a decade ago foreign stocks had trounced US stocks in a similar fashion. Gerstein Fisher says (in Money Mag, Sept'16) that over the last few decades a portfolio with 25% international stocks did equally as well as one without but with substantially less volatility along the way. So while you are buying American, don't forget to also buy foreign.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Be More Buffet than Gekko

I often hear people say they think stocks are going to fall so they will get out of the market for a while.  We all think we can time the market.  At what cost though?  IShares reports that being out of the market for just the 5 best days for stocks in the last 20 years (through 12/31/15) would have cost you over $17.000 in gains on just $10,000 invested.  You would have missed over 40% of the total gains you should have earned.  Be more Warren Buffet than Gordon Gekko and stop believing you have the magic power to zip in and zip out at just the right times.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Tomorrow is hard enough to pay for

How not to have debt?  Don't buy what you can't pay for today.  Put $5k on your credit card to go on vacation and you'll pay about $15k over 10 years to pay it off (at 12% card rates).  Pretend there's no such thing as credit and find a way to get by on what you have.  Your future will be hard enough to pay for.  Don't get there and find you have to pay for your past as well.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Average is something to count on

Why is "average" good in the stock market? Because if you buy a stock index fund to ensure that you will earn average returns, you know you won't do worse than average.   Money Magazine (Aug'16) discusses mutual funds that were top performers for many years but in the last 3 years were in the bottom 1% of all their peers. People who jumped into these funds 3 years ago are licking their wounds. Why is average good? Because average is something you can count on.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Average is above average with Index Mutual Funds

Average is above average. At least that is true when referring to mutual funds. Mutual fund ads often say you should not accept just the average returns of "index funds" which are designed to simply match the market.  The ads say: "Buy our fund and have a chance at doing better." But because Index funds have such low fees, they outperform about three quarters of actively managed funds. If index funds beat three quarters of the pack, then their so-called average returns are above average.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Timeshares - 50% off or forget it

Summer is vacation time!  Maybe that's why I've been called twice with Timeshare offers.  Buy now and get a free vacation every year (except for the upfront $20,000-$50,000 cost that is no longer earning you interest) and the annual maintenance AND switching fees to go to new locations (IF they are available).  Couldn't you just use all this money to pay to go anywhere you want any week?  And here's another big problem:  If you want to sell, you may be lucky to get 20% of the original value since there's very little market for these.  So I ask you, if you really want a timeshare, why pay full price from the company that offers to wine and dine you when you can buy one from someone looking to dump theirs for likely 50-60% below the cost from the company.  You'll still take a loss if you decide to sell later as the broker takes a big cut but I'd rather save $25,000 upfront on a timeshare "the company" is selling for $50,000
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Trump or Clinton for your portfolio - and - Why diversify?

July 25Why diversify our stock holdings when we should just buy the winners? Not long ago it seemed you could never go wrong owning Goldman Sachs and Apple. As heard on CNBC today, owning these two stocks means worse than 20% losses in the last year compared to the nicely diversified large cap stock index that is up 4% in the same time. Why not just buy the winners? Because we never know who they will be until after the fact.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

July 22Trump or Clinton? What changes to my investments should I make if it becomes clear one of them is winning? None. The talking heads tell us to make changes but standing pat is usually the best approach. Money Magazine (July 2016) says stocks go up most of the time no matter who is in office and point to several cases where experts advised on dramatic changes to your portfolio based on a new President and such changes would have cost you a fortune. Many pointed to individual stocks they said would be affected. One example Money Mag uses is gunmaker Smith and Wesson that experts said would be pummeled under an Obama presidency but it actually beat the market by a huge amount. Buy-and-hold usually beats market timing. Stick to your plan.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being Smart with $$ -- Mega Lottery! The Path to a Backyard Vacation

BLOCKBUSTER MEGA-MILLIONS LOTTERY! What's the harm in playing $1? If I keep playing, maybe I'll eventually win.  It's $1 twice a week and then $2 twice a week for PowerBall.  It seems harmless, but a 40-year old could instead invest those small amounts and by retirement at age 67 they would have enough money to take an $1800 vacation every year for the rest of their life.  But cocktails in the backyard can be nice too.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - How did you do?

The year is half over.  How did your portfolio do? Are you down or flat after a very volatile 6 months?  You shouldn't be.  A diversified portfolio should have returned around 4% so far this year.  If you did much worse than this, ask your advisor why and ask them how much THEY made off your portfolio this year.  If they made more than you did, there's a problem.  Ask me about a smarter way that puts the client first.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Take a Xanax and sit tight when markets go insane

Markets in disarray.  What to do?  Remember that every decision starts now.  You cannot go back and sell stocks Thursday and avoid a 5% loss.  Research shows many investors sell after a fall and buy after a big rise, often with the worst timing possible. Even experts don't know what's next.  Many smart senior Wall Street traders will disagree with each other.  So leave emotion out of it and maintain the risk profile and stock exposure that is appropriate for your circumstances.  And maybe take a Xanax to get through the next few trading days.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - 20 minutes of hilarious & excellent advice

MUST SEE. The funniest and most useful 20 minutes you can spend understanding how to be smart about investing and protect yourself against bad advice from financial advisors. 

Larry Pike, CFA

www.clientpriority.com 

https://youtu.be/gvZSpET11ZY

Being smart with $$ - BREXIT: What now?

BREXIT! Market tsunami! What's next? Do the experts know? Societie Generale advises that there is "grave danger of further weakness in the weeks ahead." Yet market guru Mohamed El-Erian says on CNBC that there's quite a few opportunities for those with cash. Who is right? Potentially both. But those who exit the market now may miss a large rebound. Or those who plow cash in may find they have invested just before a further fall. The experts don't know. But if you have the right amount of cash invested in stocks based on your personal circumstances, perhaps you should wait it out and enjoy the upside that can be expected over the next 10 or 20 years.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- When to sell stocks

Do falling stocks make you want to sell? You should sell before they fall, not after. How do we know they're going to fall? We don't and that's what makes stocks risky in the short term. But in the long term historically they have provided great returns for patient investors. So when should you sell? Only when money invested for long-term goals becomes money needed for shorter term goals.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Diversify or bust

Why do we diversify our investment portfolios?  Because of a day like today.  The big monthly jobs report says the economy might be weaker than we thought.  That has led stocks to fall.  But a weak economy is often good for bonds and other holdings affected by interest rates.  So bonds, preferred stocks and REITs are all up.  If you are diversified, you're ok today.  If all your money is in Globalstar Inc., a satellite service company, you're having a monumentally bad day.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Maybe you shouldn't "Sell in May and Go Away"

"Sell in May and Go Away."  Or don't.  The old Wall Street adage says stocks do worse in the summer but do they?  Sometimes.  Stocks underperformed June-August last year vs. the rest of the year but outperformed during the same period in 2014.  This year analysts are largely saying what they often say: "This year might be different."  Of course it might.  Every year is different and the dynamics that affect the markets are always changing.  But if you stick to your financial plan and don't try to time the market, you have the best chance of reaching your long-term goals.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Stop making it easy for thieves

If the IRS calls and wants you to send iTunes gift cards to resolve a back-tax problem, it's not the IRS.  If a prince from Zimbabwe sends an email and wants to give you $10 million, it's not really a prince from Zimbabwe. If your investment company sends you an email that says your account has been hacked and you must enter your password now, it's probably not your investment company. When in doubt, contact the agency or company directly by calling a phone number you trust or opening a new browser to reach the company. Let's stop making it easy for thieves.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Buy and Hold and Ignore the Masters of Hindsight

Ten days ago everybody hated Apple.  The masters of hindsight started their hating AFTER it already fell 18% in a month. They said Apple's prospects were drying up.  Then Warren Buffet said he bought a cool billion dollars worth.  Suddenly everyone thought it was okay to buy Apple again. Today Apple's suppliers are indicating Apple's sales will by huge again.  The stock is up almost 8% since everyone started hating it.  So what's a guy or gal to do?  Buy a portfolio of good stocks, like an S&P 500 mutual fund, hold it for the long term and stop listening to the masters of hindsight.  And if you think that this message is telling you to buy a bunch of Apple then you aren't paying attention. 
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Choose your advisor wisely

Your financial advisor may not be focused on your best interests. Many advisors are not "fiduciaries." But that could be changing somewhat thanks to some new regulations. Even after this new rule goes into effect, consider carefully whether an advisor is looking out for you or him/herself. The new rules actually allow an advisor to put you in poorly performing investments if that's all his/her own firm offers. Choose your advisor wisely.
http://time.com/money/4283416/fiduciary-standard-rule-what-you-need-to-know/
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Masters of Hindsight

Everybody loves Apple.  Well they did when the stock was going up.  CNBC was full of people praising the company saying its upside was limitless.  Even your hair stylist and oil delivery person were telling you to buy it.  But now that the stock has fallen 18% from mid April and 13% from the start of the year (compared to the rest of the market that's up), suddenly everybody knows it's a dog and you should punt it.  Where were these recommendations $20 ago?  Now all you hear on CNBC is how much everyone loves Amazon, now that it's up 66% in the last year.   Bold prediction: IF Amazon were to fall 20%, I predict people will start saying they no longer like it.  And IF Apple rises 20%, people will again tell you how great a stock it is.  We are all masters of hindsight.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Are you managing your stock risk?

Stocks could drop 80%?!  They did in Japan.  The Nikkei stock index hit a peak about 26 years ago and then began a fall so severe that 19 years later it was still over 80% lower. Even today it's 58% below that level from 26 years ago. Makes you ask if you are managing your stock market risk.  Stocks are right for many investors but your exposure must be considered within your bigger picture. Some people feel that you can never go wrong with stocks but many people in Japan might disagree. Can that kind of pain happen in the American stock market? Many people would say "No!"  But nobody in Japan thought it would happen there either. Moral: Manage Your Risk.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - With stocks, don't just buy what you know

Doctors love healthcare stocks.  Programmers love tech stocks.  Bankers love financial stocks.  It has been said "buy what you know."  But if each group is buying different sectors, how can they all be right?  They can't.  But if they buy a stock index fund that tracks the whole market, they don't have to worry which sector will perform best or worst and in the long run they will enjoy the upside of the market without the added volatility of being exposed only to one sector. So I say to you Mr. Plumber:  Roto Rooter should not be the only stock in your portfolio.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Kids need financial discipline

46% of parents go into debt buying something their kids want (according to Reuters/ChrisTaylor/04.18.16).  Is this really best for you OR your kids?  Children who get everything they want may become adults who can't make good choices with their money.  These kids may discover late in life that they are buried in debt and have no money for retirement or their own kids' education.  Start saying "no" now.  Give them an allowance and make them choose how to spend money.  If they need more, they can get a job and learn to earn what they want.  That's a lesson best learned early.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Beware the mutual fund ads boasting strong performance

"Awesome 1-year performance", boasts a mutual fund ad. But did they mention that several of their other mutual funds did not do so well, and that they even closed some funds for inferior performance?  If a company has enough funds, they are pretty likely to have at least a couple that are above average.  But knowing in advance which ones will be the winners is the hard part.  And funds often find it difficult to perform above average on a consistent basis.  So be careful not to be the investor who is always chasing last year's winners only to find that you own this year's losers.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Working forever may not be possible

"My retirement plan is to work until I'm 90!" I hear this a lot.  But perhaps we should consider Plan B: Save more now.  People overestimate what their ability will be to keep working.  1/3 of workers plan to keep at it past 65 but only 14% do and the reason is usually unexpected health problems or a layoff.  (Per Employee Benefit Research Institute in Money Apr '16).  Having trouble sorting out how to save more?  Call me and we'll figure it out.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Stop worrying about bear markets

Still worrying about stocks falling? If so, you are probably trading rather than investing.  Stocks often fall hard.  But the patient have been rewarded.  Bear markets averaged 33% drops since 1946 and it took over 3 years on average from the start of the fall until you recovered your losses. (Source: Sam Stovall of S&P Global) But what's 3 years?  If you're not investing in stocks for your needs many years out, you're approaching it wrong.  Kiplingers (4/16) says money invested in stocks in 1965 has increased by 100 times!  But you would have had to patiently wait out 8 bear markets.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Recent grads can benefit from advice

I just met with a recent college grad who wants to get off to a good start planning for his financial future. Making smart decisions at a young age can mean the difference of millions of dollars to you. Does your recent college grad need some guidance? I can help.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- I Care

I care about YOU.
I want to help you reach your financial goals.
I want your wealth to grow.
I want to help you make smart money decisions.
I don't want you to be taken advantage of by a financial advisor or anyone else.
I don't want you investing in something that makes your advisor rich instead of you.
I may work for free for someone who needs me but who can't afford to pay me.
I care about YOU.
- Larry Pike, CFA - www.clientpriority.com

Being smart with $$ -- $1 becomes $100,000

Save $1 per day between graduation and retirement and it turns into $100,000. Another $1, another $100k. Have you wondered how you will reach your retirement goals? There's a start. (Assumes stock market returns.)
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Fed interest rate changes are different than what you may think

The Fed left rates unchanged today. What does it mean? The Fed changes only overnight lending rates, or loans that mature in one day. The markets dictate rates on all longer maturities. Did someone tell you that the Fed is raising rates so you better lock in a low mortgage rate now? It doesn't work that way. Long-term rates move differently than short-term rates and are hard to predict. In fact, since the fed raised overnight interest rates by a quarter of a percent three months ago, five-year maturity treasury rates AND 30-year mortgage rates are both LOWER by about a quarter of a percent.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Is your financial advisor a fiduciary? I hope so.

Is your financial advisor a fiduciary? This is someone who must make investment recommendations that are in the client's best interest and must consider the client's interests ahead of their own.  You'd be surprised to know that many investment advisors do NOT have a fiduciary responsibility.  If you haven't asked this question, maybe now it's time.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Famous stock picker says just buy index funds

Famous mutual fund manager Jeff Vinik said to buy low-cost Index Funds (unmanaged, mostly static portfolios of investments) instead of high-fee actively-managed mutual funds.  He said it's too hard for active managers to beat the index (CNBC TV 3/10/16).  This is advice from someone who successfully beat out index funds for years at Fidelity.  But now he says the market has changed and it's harder.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Gimmicky car insurance features are not free

Nothing in life is free, including gimmicky car insurance features.  You know those ads that say OUR company gives you "better car Replacement" or "accident forgiveness"?  You pay extra for those features (says Kiplingers Feb '16).  Makes sense since insurance companies aren't in business to lose money and all those features have an added cost to them.  So forget the gimmicks and get the coverage that's right for your needs.  And don't fall for the ads' implications that switching companies gets you something for free.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Don't fall for scammers posing as the IRS

It's tax season which means it's time for fraudsters to try to scam you out of money.  Did the "IRS" call you or email you?  If so, it's fraud since they initiate contact only through the mail.  DON'T click any links on the emails and DON'T give away any personal information on the phone.  If concerned it could be real, contact the IRS directly.  One great way to have more money is not to be tricked into giving away the money you have.  
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Good Credit = Good Love

Happy Valentine's Day! And if you have a high credit score, "HAPPY" is likelier for you. People with stronger credit are more likely to have lasting, committed relationships. And you are also likelier to be happier with your mate if you have similar credit scores. (Per a Federal Reserve study.) So maybe this year your Valentine's gift to your significant other should be skipping the fancy dinner and pay off some bills.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Don't let a lower stock price fool you into thinking it's cheap

If a stock hit a high of 75, is it now cheap if it's at 50? How about 40? 23? Where a stock used to trade may have little to do with what it's worth now.  CISCO hit 75 in the year 2000 and sixteen years later it's below 23.  And that's for a great company.  Amazon has recently fallen from around 700 to 490.  Is it cheap?  Who knows?  Some experts will always says yes and others will always say no.
Larry Pike, CFA
www.clientpriority.com

Being smart with $$ - Does the Super Bowl predict the stock market?

If you want the stock market to go up this year then root for the Panthers. The Super Bowl has a decent record of predicting stock market success. The market goes up if the NFC wins and down if the AFC wins. Of course, if you believe there is a causal relationship here and plan to invest accordingly, then you need a new financial strategy.
Larry Pike, CFA
www.clientpriority.com 

Being smart with $$ -- Larry Pike advises students

See Larry Pike in StudentHealth101, a nationally distributed online student newsletter, giving advice to students on managing their money:
http://readsh101.com/m/1115/04/umflint.html
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Beng smart with $$ -- The Joneses want to keep up with YOU

The JONESES are trying to keep up with YOU!  But it may not feel that way.  Median household income in Massachusetts is $67k vs. $53k nationally (US Census). In "rich" towns like Needham, it is $125k (says Berkshire Hathaway Homes).  So if you want to be able to retire some day, live like the Joneses: spend less and save the difference for your old age.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- The experts are often wrong

The experts are wrong! Well, sometimes they are.  Billionaire Carl Icahn said Apple would go above $200/share by year end 2015.  It ended around $105.  Oil tycoon T. Boone Pickens said oil would go to $100.  It ended 2015 around $38.  (As seen is Money Mag, Dec. '15).  The experts don't have crystal balls so don't assume they will be right.  Diversifying properly will protect you from betting the farm on a wrong call. .
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Dow 26,000 by 2026!

BOLD MARKET PREDICTION: The Dow will hit 26,000 or better by the year 2026!! Ok, maybe it's not so bold. In fact that's only a 5% annualized return, which is below the long-term average for the stock market. But if you think that prediction is entirely reasonable and perhaps conservative, maybe we can stop worrying about what the market is doing in January 2016.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Dips in stocks can be good

Successful investors buy when the markets are high and when they are low. Dollar-cost averaging is the strategy where an investor buys on a regular basis as the stock market rises and falls. Monthly deductions from your paycheck into your retirement plan is one way to accomplish that goal. If the Dow is at 25,000 ten years from now, then along the way I would rather buy stocks at 16,000 than at 18,000. Dips in the market let you buy assets cheaper on your path to retirement than if prices went steadily straight up.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Fear, greed and speculation

Stocks are down about 8% since the year started.  But what do we know today that we didn't know 3 weeks ago?  A little perhaps, but 8% worth?  In the short term, the markets trade on fear, greed and speculation.  In the long term, they trade on fundamentals.  If you are invested properly, you should be able to ignore the volatility.  If you are not invested properly, perhaps we should speak.  
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Contradictions in the financial press...be careful what you read

Contradictions! That's what you get in the financial press.  If you read just one story you might think it's time to sell.  Someone else might read 2 pages over and think it's time to buy.  Money Mag (Jan/Feb 2016) says on page 63: "Why Quality Stands Tall" and "now is an especially good time to upgrade the caliber of your portfolio." But then on page 68 a new article says "The Case For the Scariest Stocks" and "history says times like these are precisely when you want to buy" them.  Read with caution and don't be too quick to follow one opinion!
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Winning Star Wars = Losing trade

Do you think it is easy to trade stocks? If somebody had a crystal ball and told you a month ago that Disney's Star Wars release would shatter expectations, would you have bought or sold Disney stock? Most reasonable people would say "buy."  However, in the last month, Disney is down 8% more than the rest of the market! Go figure. There's another reason I like stock index funds: You will never do worse than the market.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - 2015 was flat, were you?

The first day of trading in 2016 is ugly.  But how did you do in 2015? A balanced portfolio suitable for many families should have returned just a hair into positive territory.  Your response may be that returns were quite negative!  My response is that you need to review your financial plan. High fees, inappropriate investments and excessive trading may have caused you to lose money.  Ask me for details.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com