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