Read Doug’s articles originally printed in The Jerusalem Post.
Profile Perspectives
Proper financial planning can change your relationship with money.
Should Retirees Diversify Globally to Protect Their Savings?
Retirees who diversify globally protect themselves from investing with too much home bias.
If you are saving for a future retirement, your goal is probably to grow your capital. If you only focus on higher returns, though, you may take risks you cannot afford. Markets are volatile. Diversifying globally may be a good way to lower volatility and smooth out returns…. Read more
Should I Sell Out before Losing Money in a Stock Market Crash?
A retiree called me, nervous about the stock market crashing. He wanted to know if he should abandon the markets by selling his stocks and staying in cash.
An alternative to timing the market
Since you can’t predict when the market will crash, you need a good defense. Historically,… Read more
Are Emerging Markets’ Potential Returns Worth the Risks?
Investors are on track to invest $1 trillion in emerging markets in 2017. Emerging market investments allow investors to try to capture higher investment returns in exchange for higher risks… sometimes significantly higher risks.
Investing in rapid growth
As emerging markets transition to free market economies, they can offer potentially greater economic growth (as measured by gross domestic product (GDP)) than developed countries…. Read more
Will Dividends or Interest Boost My Retirement Savings More?
In a well-diversified portfolio, you normally have three different type of earnings — appreciation, dividends or interest. “Appreciation” is the growth in the value of your investment based on the market going up. Income investors receive “dividends” or “interest” on their investments.
Interest
Interest is what you earn on money you lend out. … Read more
When Does Past Performance in Investments Matter?
When analyzing a company, pundits examine past performance and fundamental assets. On Profile Investment Services’ 20th anniversary, I’d like to focus on both:
The company’s history
In 1997, the Israeli government passed a law that all investment advisors needed to be licensed by the Israeli Securities Authority. Up until that point,… Read more
3 Important Things to Do before the New Fiscal Year
Avoid some common financial problems by considering these three points before the new fiscal year begins:
Review your financial plan
No matter how accurate your financial plan was when it was created, things change. Review your plan now and make sure it still addresses your current risk tolerance and needs. … Read more
I Don’t Feel Inflation. Is it Hurting My Savings?
Inflation doesn’t hit like the sting of a credit card bill from an overzealous shopping trip. Rather, its bite is slow and painful.
Because the price level of goods and services tends to rise gradually, inflation’s slow incursion on your pocketbook is commonly described as ‘creeping up’ on you.
Good versus bad inflation
Inflation is most noticeable when it rises faster than your salary,… Read more
Israeli Pension Plans
Israeli law requires that full-time workers who have worked for longer than six months receive a pension plan through their employers. This is part of the government’s plan of making sure individuals have private pensions to supplement their governmental pensions. Pensions are a highly regulated field, and as such the details are in constant flux…. Read more
How to Manage a Multi-Currency Lifestyle
Multicurrency strategies are part of the everyday life of most dual citizens.
If you are balancing your investment account in U.S. dollars but recording your grocery and rent expenses in shekels, you’re probably an American oleh.
The following three areas make currency volatility a real challenge for cross-border investors:
Currency trading
Two-thirds of retail foreign exchange traders lose money…. Read more
Corporate or Treasury Bonds-Which Bonds are Better?
Corporate and Treasury bonds can help you turn your nest egg into an income stream. In fact, generating a steady income stream to supplement your pension may be one of the hardest parts of retirement.
Bonds have a set interest rate and they usually pay twice a year so you know exactly how much income you should receive and when you can expect to receive it…. Read more