The Financial Coach Show

Expectations & Emotions: Investors Biggest Dangers

Bryan Binkholder — Wed, 10 Mar 2010 23:40:56 +0000

Most investors are their worst enemies when it comes to investing along with the corrupt marketing system of selling investments that we call Wall Street & brokerage firms (and their minions: Financial Salespeople). Not understanding our risks in an investment strategy, falling prey to clever marketing and ‘Past Performance’ along with emotions that sidetrack us spell one thing and one thing only: loss and emotional pain.

Before you invest, DO NOT fall prey to investment ‘hype’ such as past performance or a fund managers ’skill’. Instead, first know what you want to achieve and then use investment strategies and a policy statement that guides your investing in good times and bad. Keep costs low, rebalance and stay focused to achieve success.

Invested Properly: 2008 & 2009 were fun but you’re back even or better!

Bryan Binkholder — Sun, 28 Feb 2010 22:02:09 +0000

The market was wild in 2008 and 2009 but if you maintained focus, kept to your investment strategies and rebalanced you were highly successful! Blue Ocean Portfolio’s, utilizing low cost index and Exchange Traded Funds, did what they were supposed to do in 2008 and 09. Watch the video to see how you could be utilizing such a system for your investment accounts.

Sample Blue Ocean Portfolio’s Jan.1 2008-Dec 31 2009 PDF

Congress Rejects Bill To Force Stockbrokers/Advisors To Act In Clients Best Interest

Bryan Binkholder — Sun, 28 Feb 2010 21:50:58 +0000

Jason Zweig from the Wall Street Journal discusses how the Congress rejected the bill requiring stockbrokers and insurance agents to put consumers interest first. The only people giving independent advice conflict free are Registered Investment Advisors.

Brokers Refuse To Put Clients Interest First By Becoming Fiduciaries

Bryan Binkholder — Sun, 28 Feb 2010 21:47:45 +0000

Most investors are unaware that two worlds exist in Financial Advising. One world (of the Stockbroker & Brokerage Firm) sells product and they must make recommendations that are ’suitable’ to the investor. The stockbroker (or advisor as many prefer to call themselves today) works first for the firm and then the consumer. An ‘Independent Registered Investment Advisor’ on the the other hand, must put a consumer first and disclose all conflicts of interest in a clear and upfront manner. All registered investment advisors also work off a fee based compensation model instead of a commission based. For this reason, conflicts when selling or advising on securities should be more transparent and client focused. Read all of the articles below if you are using a broker that works for a firm (key hint: they’ll have all kinds of wording at the bottom of their card saying “investment offered through xyz firm…….etc…etc..). This is a broker and even though they may also be an ‘investment advisor’, you are dependent on them on some deals working for the firm and in some cases working for you. Our suggestion is stay away and ONLY deal with Independent Registered Investment Advisors.

Group wants client interest put first: Edward Jones get 1/2 of revenue from ‘Preferred Funds.’ St. Louis Post Dispatch

401k/Trustee Directed Plans – Excerpt from 02.21.10

scampbell — Mon, 22 Feb 2010 18:31:10 +0000

Bryan and Jim continue discussion about 401k plans and the high fees associated with choice vs. the lower fees of trustee directed plans. For most plans under $6 Million Dollars, the costs of 401k plans can be rather prohibitive, ranging in the 2.5% to 3.5% category when all costs are figured in. In many cases companies are wanting to create a ‘benefit’ for their workers but by selecting an insurance company such as Principal, Lincoln or Mass. Mutual they actually create a liability due to the added insurance cost in the plan. Other 401k plans with multiple mutual funds do no better in lowering the cost. In fact, have many ‘hidden fee’s’ as can be learned about in the articles following. A trustee directed plan allows any company sponsor the ability to cut ‘costs in half’ while providing better investment options for the workers as a whole. More information about trustee directed plans and lower cost 401k plans can be found by calling Blue Ocean Portfolios at 636-530-9393.

401k Fees Employee DOL PDF

401k Report: Key Pages 39 & 40 PDF

High Cost of 401k Plans PDF

WSJ How Much Does Your 401k Really Cost

Life Insurance – Show Excerpt from 02.21.10

scampbell — Mon, 22 Feb 2010 18:19:14 +0000

Excerpt from 02.21.10 – Bryan and Jim discuss the importance of having enough life insurance and knowing the important differences between whole, universal and term life policies.

101 On How To Get Government Budgets Under Control

Bryan Binkholder — Thu, 18 Feb 2010 21:43:41 +0000

Wow! Governor Christie of New Jersey gave one of the most incredible interviews I’ve seen and you must watch and learn. As our deficits balloon and tough choices are eventually made, many will cry ‘what about this group or that group.’ We all need to learn to live within a budget and that includes the Government.

Take 15 minutes and learn why New Jersey is such a mess and what tough choices it entails.

The “Experts” Stock Picks for 2010–Yeah Right

Bryan Binkholder — Fri, 08 Jan 2010 03:39:21 +0000

Experts are always telling us what stocks to buy and sell. For most investors, we view this as what John Bogle of Vanguard Funds called it, “Investtainment.”

There has been NO PROOF that stock pickers, market timers or analyst can accurately and predictably predict the market and achieve above average returns.

The best way to invest is to utilize low cost index and exchange traded funds while developing a portfolio that manages your risk comfort. Cost, risk, asset allocation/diversification and rebalancing are the only things you can control so learn the facts.

http://online.wsj.com/article/SB126126238767798771.html

The Financial Coach Show – 2/28/10 – Part 2

scampbell — Sat, 02 Jan 2010 15:42:28 +0000

Broadcast of The Financial Coach Show from 2/28/10, 6-7pm hour.

The Financial Coach Show – 2/28/10 – Part 1

scampbell — Sat, 02 Jan 2010 15:35:29 +0000

Broadcast of The Financial Coach Show from 2/28/10, 5-6pm hour.