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

Being smart with $$ - Crappy earnings = Roth conversion opportunity

Were your earnings crappy this year? Your silver lining may be to convert some Traditional IRA assets to a Roth IRA at a lower tax rate than if you earned more money.  But year end is days away so get that done if it suits your needs.  Let me know if you want to know more.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ - Even half of recent stock returns would be great

The stock market may be down slightly for the year. But the 3-year average annual return for the S&P 500 index of large stocks is a positive 12%. Long term investors will have good and bad years but we should be quite happy with 12% average returns. I'd be happy with half that in the years ahead. Even at just 6%, your money would double in about a dozen years.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Being smart with $$ -- Too late for "file and suspend" but don't miss the next thing

Have you heard of the "file and suspend" strategy for squeezing thousands of extra dollars out of Social Security?  No? Well you can ignore it now because Congress put an end to it last month (though a few people over 66 can still benefit.)  But if you haven't heard of it, you should seriously consider having a financial advisor so you don't lose thousands on the next thing like it.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com