The compliance officers at many mutual fund companies seem to believe that the Patriot Act (which was supposed to deter and punish terrorism, and strengthen U.S. measures to prevent, detect, and prosecute international money laundering and financing of terrorism) made it illegal to let people living outside the United States buy U.S…. Read more
Investment Strategies
An Alternative to Mutual Funds
Since Americans living abroad are frequently denied the opportunity to buy mutual funds, how can investors diversify their portfolios without being responsible for the day-to-day management of dozens of individual stocks and bonds?
One possible answer is a separately managed account, or SMA. An SMA is a customized portfolio offered by a brokerage firm and managed by an independent investment management firm or money manager…. Read more
Is Your Home Your Retirement Nest Egg?
Many people consider their home to be their best investment because they get to live in what they hope is a one-way street to real estate appreciation. People’s homes are often the largest percentage of their net worth. However, as I often remind clients, it may be fine to enjoy living in a nice house,… Read more
The Not-So-Secret Secret Tool I Use to Help Clients Make Money
When I recently offered a client the services of a money manager, he was surprised and asked, “You’re my financial guy, so why don’t you trade my account? Do you have some secret tool in your back pocket?”
I’ve heard this question quite often, and the answer is that having a third-party money manager alongside a financial planner can help clients get the best of both worlds…. Read more
Is Currency Diversification Important?
A dual citizen, residing in one country and keeping assets in another, should consider currency diversification.
Currency exposure isn’t only about which currency (USD, EUR,NIS, GBP, etc.) your assets are in, but currency diversification is also determined by the underlying investments in your account.
Mutual funds are generally considered good diversification tools as they are built so that the movement of any one security in the fund won’t dramatically affect the product’s value…. Read more
Are Junk Bonds Worth the Higher Yield?
Higher yield usually means greater risk. Frequently, investors are mesmerized by high-yield bonds and ignore the reason for the high yield. Higher yield bonds mean that there is a greater chance the bond might default. Investing in a bond fund or an exchange-traded fund diversifies away some of the risk, but won’t completely protect you from defaults on principal or interest payments…. Read more
Skyrocketing Interest Rates Draw Yield-Seeking Investors in Droves
With skyrocketing interest rates, investors are looking for a way to make more money. Yield-seeking investors have started looking at bond funds, which can offer diversification and professional management.
How’s the fund’s performance?
Just because the pros manage mutual funds, that’s no guarantee of returns. In fact, when a mutual fund company buys bonds,… Read more
Do Dividend-Paying Stocks Provide Enough Income?
Equity ownership
When a corporation sells shares of its own stock, these represent ownership in the company. In other words, a purchaser of even just one share of stock in a company is an owner of the company, albeit a very small owner. As a company prospers, it has the option to reinvest profits back into the business…. Read more
How to Stay One Move Ahead in the Game
One of my favorite hobbies is playing chess. Apart from the challenge of checkmating my opponent, I enjoy the lateral thinking, planning, and strategic thinking skills that are involved in the game.
Recently, I was privileged to interview Israel’s top chess player, Grandmaster Boris Gelfand, on The Goldstein on Gelt Show…. Read more
What You Need to Know About Timing the Market
This is the final installment of our series on investment strategy. This week’s article is about market timing, which is essentially the opposite of dollar-cost averaging.
Pros who believe they can put their money into the market at “optimal” times monitor trends and other financial criteria. They believe that markets follow predictable patterns and that market timers can select stocks before they shoot up…. Read more