Thinking Differently About Investing
I can remember having that “light bulb moment” early in my career. It was the late 90’s, and I was eager to find out what the “secret sauce” was that gave investors an edge. I can remember analyzing the past performance of many, many money managers and continually discovering a common theme. Those managers with better long-term track records proudly admitted that they paid less attention to shorter time frames. They didn’t care what the stock market was going to do in any one, three, or even five year period. Those who ended up with better returns than most of the other managers cared more about holding onto the stocks of businesses for longer periods of time and didn’t allow short-term volatility to get under their skin.
This is how it began to dawn on me: maybe it wasn’t important to try and figure out what the market was going to do, in order to be a successful investor. > SEE MORE
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Pete Dixon, CFP®
Partner and Advisor
The Life You Chose
For some reason, a lot of people seem to be retiring lately. Over the last year, I and my partners Dave and Grant have helped numerous people make that leap away from their career, which for many can be a scary time. This is a very rewarding aspect of our careers as advisors. And it is also humbling and a great responsibility to advise those clients through this major event in their lives.
Once we get beyond the “X’s and O’s” related to the financial aspect of this planning, I can’t help but think about this next chapter for them and this word “Retirement.” At a recent class I attended, financial planner and Forbes columnist Carolyn McClanahan said something that we couldn’t agree with more. She said “let’s stop calling this Retirement, and start calling this just another transition in life that needs to be planned for.” To me, that opens up the realm of possibilities for the future rather than just contemplating what you would stop doing (which is the traditional way to approach retirement).
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Pete Dixon, CFP®
Partner and Advisor
Is Your Advice Good Enough?
In today’s climate of one-page financial plans, bargain-basement fund pricing and automated investment tools, you may wonder whether you need a living, breathing financial adviser.
We think you do, but with a twist. First, we need to redefine traditional financial advice – the kind that’s been delivered by those focused on issuing buy/sell recommendations, executing transactions, making you think they have the best investment product for you, and collecting their commissions. If that’s what you’re thinking of, you are correct. You don’t need that. You probably never did.
As we face continual changes with the markets, Social Security, taxes, etc., the welcome advances we referenced above are best thought of as augmenting rather than replacing the solid advice most investors still sorely need to see their way through to a rewarding retirement.
So, what is “good advice”? > SEE MORE
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Waypoint Wealth Management
My Love/Hate Relationship With ‘Past Performance’
“Past performance is not indicative of future results.”
Sound familiar? If you have invested in any regulated investment of any form, you have read or heard this phrase before. I have to be honest. Even as a professional advisor, when I read this and explain it to clients there is something about it that gets on my nerves. Don’t get me wrong, I’m not saying it’s untrue or that I don’t believe it. We don’t know what the future returns of our investments are going to be. We don’t know the exact short-term direction of an investment, and if anyone tells you that they do, you should find another advisor because you will be set up for failure.
If I really think about why this phrase annoys me, I think it is because I want to find some certainty with an investment’s outcome. Doesn’t everyone? > SEE MORE
Posted by:
Pete Dixon, CFP®
Partner and Advisor
Tax Savvy Investing, Part 1: Keeping More For You
Most people think the best time to attempt to reduce their tax bill is around now – because it is, well, tax time! The truth is, the best way to minimize your annual tax costs is to engage in year-round tax-wise investing.
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