Words for the week, life planning.
"There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle." Albert Einstein
"Sometimes the questions are complicated and the answers are simple." Dr. Seuss
"I'm not afraid of death; I just don't want to be there when it happens." Woody Allen
"The fear of death follows from the fear of life. A man who lives fully is prepared to die at any time." Mark Twain
"May you live every day of your life." Jonathan Swift
Financial planning really should be more life planning. Setting priorities and goals. Revisiting and readjusting through life's changes.
To write a financial plan has limited value! Working lifelong with a Financial Advisor has inestimable value, if they are truly helping you to work towards your best outcome. If they are a fiduciary towards you and your entire financial life.
Fred Reisch writes; ERISA imposes the fiduciary standard and "prudent man rule"-including that duty of loyalty-as well as the prohibited transaction rules to regulate the decision makers' conduct.
Wouldn't it be best if everyone in the room were required to put the participants first in making recommendations and decisions? ... Arguably, it would be. ...
Many advisers are fiduciaries, but many are not. How can a plan committee tell the difference? It's fairly easy. If an adviser says in writing that he, or the firm, is a fiduciary, then the adviser is. If the adviser doesn't provide such a written statement, then he, or the firm, isn't (or at least the adviser doesn't think so). The moral of that story is, if you want to ensure your adviser puts the interests of the participants first, just as you are required to do, then get it in writing."
As a fee only Registered Investment Advisor we serve as fiduciary to our clients. Our interest is as closely as possible aligned with the best interest of the individuals we advise. We avoid any conflicts of interest that might diminish trust and replace serving in the best interest of others.
There are many other risks to a person's financial life than investment risk. This past week the Supreme Court ruled that Inherited IRA accounts were not considered retirement plans. The result is Inherited IRA's are not protected from creditors.
One may want to establish a trustee relationship as a part of designating beneficiaries of their IRA's.
Other considerations in naming a beneficiaries IRA to a Trusteed IRA may be, ability for minor beneficiaries to inherit, to establish some control on how fast the IRA can be distributed or establish who may be named as eventual beneficiary of he account.
Marrs Wealth Management can work with a partner Administrative Trustee and serve as a Directed Fiduciary Investment Advisor for your heirs Trustee IRA.
Other life concerns may arise around many different issues.
Some recent articles in Trusts and Estates Magazine surround, diminished capacity planning, trustee considerations and taxation issues.
It may be time for you to consider additional reasons to review with your adviser and attorney, issues in planning other than investment decisions.
The S and P 500 index trended up last week + .54%
The 10 year Treasury Yield index trended down last week.
The US Dollar index was up last week. .48%
The CRB Commodities index trended up last week. + .12%
The Gold Index trended down last week - 2.13%
Inflation Linked Bonds trended down last week - .12%
The US Aggregate Bond Index trended up last week. + .05%
The International Aggregate Bond Index trended down last week. - .11%
The New York Composite Index trended up last week.
The Dow Jones World Index trended up last week + .44%
The NCREIF Index is aggregated and reported quarterly and is a total return broad representation including rents and appraisal of non-traded Commercial Real Estate.
2014 1st qtr + 2.21%
Year to date gold and inflation linked securities lead. Stocks are outperforming bonds.
Many investors take the wrong approach looking primarily at recent return and average percentage rates. Overall risk measures and managing downside risk play an increasing role in end results.
Investors instead should be focused on managing Dynamic Beta exposure, evaluation Active Share, Sharpe ratios, Treynor ratios, Sortino ratios and Alpha.
The above is for informational purposes only and not an offer or recommendation to buy or sell. Past performance is no guarantee of future return. All decisions about investments should be made within parameters of risk, time frame, financial position and overall asset allocation.