Strategic Asset Management



Free Information




Free Information: Broker talk

Anyone who gives you the following lines should be given a second going over.

We need to completely revamp your portfolio
Most portfolios I see have most of the elements needed, but just in the wrong proportions. Selling everything and purchasing different stocks or mutual funds should alert you to the idea that your advisor is getting paid on commission and isn't looking out for your best interests. Anyone saying everything needs to go should be examined very closely. Furthermore selling everything and buying new instruments could very well hand you a large tax bill at the end of the year.

You need some cash-value life insurance
A combination life insurance and investment vehicle rarely make sense for people. The policies are loaded with fees, reducing your returns. It's better to buy term life insurance and fully invest in all the tax deferred accounts (IRA, 401k) available to you. In some estate planning situations it makes sense for such policies, but the vast majority of us can get more bang for the buck separating the two.

This is a safe way to earn X%
Nothing is 100% safe. With return comes risk, you can't get around that. Anyone who says otherwise isn't telling you otherwise.

You need to save $XXX a month for your retirement assuming a 12% return
How is a computer program supposed to tell you precisely how much you need to save to retire? Nothing is going to happen in the next 20 years that will alter that amount? The 'magic' number will change over time as you change your expectations about your retirement and life's events alter your situation. I do provide estimations to clients, but they are based upon conservative returns and with a strong caveat that the future is very unknown.


Strategic Asset Management
voice: 253-927-0998

Strategic Asset Management is an investment advisory firm registered in Washington State.

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