May 12, 2017

Timing the Market: Why it Does NOT Work

Often a new client, as we are designing their portfolio plan (Investment Policy Statement), may assume we should buy when the market is doing well; and sell when the market isn’t doing so hot. This process is called “Timing the Market.” Timing the market doesn’t work. It’s a nightmare scenario that will cost you thousands of dollars. As a CERTIFIED FINANCIAL PLANNER™ that works in the industry day in and day out, I cannot reiterate this point enough. TIMING THE MARKET DOES NOT WORK! We at Heritage Investors just don’t time the market. We don’t have crystal balls telling us when the market is going to be high or low. Here’s why TIMING THE MARKET DOES NOT WORK! Many people assume financial professionals are privy to a magic formula that will yield greater results than others. They tend to think, we know how to make more money buying and selling at market peaks and valleys. However, the market has a mind of its own. It’s anybody’s guess on what it will look like from opening to closing bell. It’s our belief that a well-balanced portfolio designed to match a client’s risk tolerance is the best solution for their desired returns. Our job is to […]
March 23, 2017
timing the markets

Is Market Timing a Good Idea?

If you’ve ever thought about timing the markets then you need to watch this video. Hey, guys! This is Justin Goodbread with Financially Simple. I gotta tell you a story. One particular client was looking for someone to help them reach their goals before retirement. With a seven-figure portfolio, he has done quite well for himself. Then they interviewed us and some other brokers in town. They decided to go with the broker. Now, let’s fast forward about eight months. I receive a phone call early January of this year, and the now client said, “Hey Justin. And I need to sit down and talk with you because I made a mistake”. Well, that’s not something you hear from a prospect. I said, “In what way did you make a mistake?” He said, “Well I went with another person, a broker in town, and this last year I made no return on my portfolio.” I was thinking that makes no sense to me. How is that possible? The S&P is hitting all-time highs, the DOW Jones just broke 21,000, you would think the portfolio would be reflecting some gains. Come to find out, the portfolio had actually lost 2%. In a […]
June 28, 2016
RMD's; retiring early

Why you will never retire!

Why you will never retire! We all have hope and dreams—traveling, relaxing, playing golf every day or for me personally sitting on a beach after a morning of wetting a line (a.k.a. fishing)…basically enjoying the vacation life every day.  Whatever you’re dreaming of could be nothing more than a pipe dream unless you take the necessary steps. According to a recent survey, half the households in America have saved less than $10,000 for their retirement income.  Whether they’re just overspending or planning to live off social security, most people aren’t saving enough to retire plain and simple. So what’s the reason for this trend? 1. We start saving too little too late  Most people spend their years in college and come out in their early 20s. Then they get into their 30s, and they are trying to find that new job, buying their first house, getting married, having babies. Somewhere between their 30s and 40s life seems to be getting a little better–maybe they get a pay raise at work–and now they go out and go in BIG DEBT buying brand new fancy cars, big fancy toys, big fancy houses, etc. and they still aren’t looking toward retirement. All the sudden we get into […]
May 14, 2016
best time to buy a stock

4 Steps to pick a Mutual Fund in your 401(k)

“4 Steps to pick a Mutual Fund in your 401(k)”, Picking the right mutual fund may seem like a daunting task when landing a new job or revisiting your 401k investments at your current job. However, it doesn’t have to be nearly as mind-boggling as it may seem. While this is not the level of detail that a CFP®, Wealth Manager, or  Investment Advisor is going to provide you as their client, it is a simple strategy to help you choose the mutual fund that’s right for your investment needs. In order to start choose your investing style: a.k.a – asset allocation. How much small, mid or large cap do you want? Are you considering international as an option? Do you desire fixed income?   If you still need some help deciding the type of investor you are, then Google ‘risk tolerance exam’  and you’ll turn up a litany of resources to help you pinpoint that. As you discover your investment style, you’ll be able to settle into the funds that fit your overall plan. You’ll essentially be building a pie chart. For example, maybe you want 40% large, 30% mid, 20% small and 10% international. You’ll then identify the funds in […]