Friday, October 19, 2012
W.A. Smith Financial Group - 3rd Quarter Economic Update Featuring Bill Smith and Chris Bertelsen Information contained in this economic update recording are from 10/17/2012 and are for educational purposes only. It does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk, and unless otherwise stated, are not guaranteed. Past performance does not indicate future results. Be sure to first consult with a qualified financial professional or a tax professional before implementing any strategy stated within the recording.
Wednesday, June 27, 2012
When a habit begins to cost you money, it becomes a hobby. So goes the saying with mostly any investment in your portfolio. Whether you are apt to investing in bonds, or financial stocks, or you simply like to put your money into gold – following your normal routine on an investment that has “treated you well” in the past can be dangerous. In fact, in the science of behavioral economics, this is called “anchoring”. According to Gary Belsky and Thomas Gilovich, the authors of Why Smart People Make Big Money Mistakes and How to Correct Them, anchoring refers to the tendency we all have of latching on to an idea or fact and using it as a reference point for future decisions. This idea is especially important when in or nearing retirement. As 10,000 people turn 65 every day for the next 19 years, you can fully expect millions to trillions of dollars being pulled from riskier investments and funneled into safe havens that produce peace of mind. After all, everyone keeps saying the #1 fear that today’s retirees have is running out of money before they die. So, it is only reasonable that people will develop a lesser tolerance for losing their nest egg. So brings the conversation to the topic of investing in gold. According to SmartMoney.com, gold has been up for 11 years in a row. That’s a decade of growth for an asset that buys and sells like any typical stock or mutual fund. That decade of growth had investors dumping as much as 25% or more of their portfolio into gold and gold funds by the year 2010. However, feelings are beginning to turn for many. The typical argument most gold buyers give is that gold serves as a hedge to inflation for their portfolio, and some even believe that gold is a true safe-haven for your money. Still others buy the precious metal as a diversification measure. Safety, however, could be the furthest thing from the truth. Probably the most extreme excuse for owning gold relates to the idea that if or when our government were to fail, U.S. currency could revert to the gold standard again. Gold is what I call the “Armageddon” trade.WASmithFinancial.com to request a free consultation with one of our retirement advisors over the phone or in one of our three office locations in Ohio. You can also visit NoIncomeWorries.com for more information about my book, Knock Out Your Retirement Income Worries FOREVER.