Should you stay invested in the short term while waiting for interest rates to rise?
Q: Should you stay invested in the short term while waiting for interest rates to rise? A: First, other than very short-term interest rates that are heavily influenced by the Federal Reserve, it’s difficult to predict changes in interest rates....
The Three Keys to Surviving Major Life Transitions
You might think that the most important work a financial advisor can do is related to allocating a client’s investment portfolio, or perhaps helping secure a timely insurance policy or drafting the optimal estate plan. In fact, the most important...
What are callable bonds? And what are the risk and return of callable bonds?
Q: What are callable bonds? And what are the risk and return of callable bonds? A: Callable bonds are fixed income securities that give the issuer the right, but not the obligation, to call in, or prepay, the bond prior...
Market Expectations for Interest Rate Increases
Q: Should you stay invested in the short term while waiting for interest rates to rise? A: First, other than very short-term interest rates that are heavily influenced by the Federal Reserve, it’s difficult to predict changes in interest rates....
Investing against the Odds, and the Facts
Earlier this summer, I was on a hike with a friend and mentioned that while we’d started at about 9,000 feet, we’d reach an elevation of 12,000 feet by the end of the trail. My friend replied, “That’s a fact...
Think Rightly
Today I’d like to take a look at some important concepts contained within Daniel Pink’s bestselling book, A Whole New Mind. His focus on the ascendance of right-brain thinking fits squarely into our continuing conversation about ways to best train...
Talking Dollars Makes Sense
It’s not easy having conversations about money. Carl Richards, director of investor education for the BAM ALLIANCE, says they can “leave us feeling confused, misunderstood, and even angry.” That doesn’t mean you are better off not having these talks. In his...
Overview of Mortgage Backed Securities
Q: What are mortgage-backed securities? A: Investors of mortgage-backed securities (MBS) own an undivided interest in a pool of mortgages that serves as the underlying asset for the security, and these investors then receive a share of the resulting cash...
Quick Take on Fixed Income – Effects of Lowering Credit Quality in Municipal Bond Portfolio
Q: Can you capture higher returns on a municipal portfolio by lowering its credit quality? A: Investors generally demand a higher yield when purchasing lower-credit-quality municipal bonds due to their greater risk. The assumption is the greater the risk, the...
Quick Take on Fixed Income – Characteristics of Preferred Stocks
Q: What are the characteristics of preferred stocks? A: Preferred stocks can be viewed as a hybrid of stocks and bonds. Preferred shareholders receive preference over common equity holders (hence the term “preferred”) for dividend payouts and in the event...
