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 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 is an investment advisory firm
registered in Washington State.