Too Far Back in the Market?

Big returns numbers, and your desperation to get back to "even", lure many investors back into the market.

As investors (and also as humans), we have a short-term memory about what happen to cause us to lose money. We are all certain that this time will be different. We'll be more prepared when the market falls (notice we said when). Looking back the last 10 years though, many investors have not made a dime on their accounts.

From a recent Wall Street magazine, "Many advisors assured their clients to stay the course with their current portfolios. Now they are reporting that many of them are back to 2007 asset levels and ready to take on more risk. At least one advisor says that his clients are taking on too much risk."

In the article, the advisors condoning riskier behavior where either younger in age or experience, while the more experienced advisor was cautious about the risk. After 25 + years experience in the business, we know that there our too many factors that can upset a fragile market and the costs associated to fix your account. The needs for a higher degree of safety and additional guarantees are greater than ever before.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Death of Modern Portfolio Theory

Modern Portfolio Theory is an investment theory in which you try to maximize return and minimize risk by diversifying among several different asset classes. It has long been held as the key theory in creating portfolios for every broker and planner since it's creation.

The "pie" or asset allocation model that so many investors have seen was designed to make your portfolio meet a risk level. Many brokers sold the pie as increasing safety to their clients. The theory was put to the last beginning in the fall of 2008 and failed miserably at the expense of investors.

All of the assurance of you being properly diversified came crashing down over the last two years. Many of our listeners, and investors like you, watched as your portfolio crashed 30, 40, or 50%. The worse part was there was nowhere to hide (not even cash as we saw one of the largest money market funds break the $1/share mark).

Since you can't diversify your assets to save your future, what can you do? The problem with the theory is just that. It is a theory. People today are aware that they have very little safety in their accounts when they were told (or sold) as being reasonably safe.

After extensive research, we found that over 90% of retirement and investment accounts lack a guarantee of principal. By making safety a cornerstone of our portfolios, we saved our clients millions in wealth during the market slide.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

A Different Look at Safety

All investments have real risk associated with them. Some have more, some have less, but they all have some. In good times, no one stops to ask what if. What if the market falls? What if the economy falters? What if my needs become greater? What if the unexpected happens?

At WealthKare, we don't look at how much risk you can tolerate. We look at how much SAFETY you NEED. Only through understanding this, can you be properly prepared for the what if's of life. Understanding of a clients' needs cannot be assessed through a 15 question quiz, but can be determined over time through conversations about the dangers of risk and having realistic goals.

Because of the time involved, your portfolio cannot and should not be stuck in a rigid mold, but be able to allow the flexibility needed to make the changes as they are learned.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

The Playoffs

As we are breezing through January, the thought on many men's (and even most women's) mind is the Super Bowl. We watch the game and cheer for the team we want to win. Some people still even have hope it will be their team that makes the big game (sorry Steelers and Eagles fans).

But no matter how hard we cheer and agonize over each game, we are just spectators.

Most of the people we have talked to over the past 25 years are the same for their finances. The "game" is their retirement and their money. Unfortunately, they are letting their broker play it for them. What makes it worse, the brokers, planners, and even the do-it-yourselfer's are really just on the sidelines. 


The real players that control your retirement and investment accounts are the fund managers. They are executing the plays that will determine the game. To make the playoffs, your retirement needs to have the best players on the field.


Today, more than ever, people need to become active participants in making sure they have the right players on the field. 


To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)



To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Can You Be Too Safe?

If you have been reading along with us so far (and if you haven't, we highly recommend you go back and catch up), you probably think we would answer "no" to that question.

While it is true that many Americans do not have a sufficient amount of safety, you ABSOLUTELY can be too safe. If you have kept your money out of the market the last 18 months because of the risk of another crash, you missed a lot of growth in 2009. This is just one example of having too much safety.

Because of ignoring safety when your portfolio was created, many people panicked, got out, and stayed out of the market because of fear. Brokers and planners usually ignore the safety discussion because the products and programs they sell have risks.

When building (or rebuilding) your portfolio, safety needs to be balanced to suit YOUR needs and REALISTIC goals.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

90% of Your Lifetime Return Comes from One Big Decision

Most of you have taken a risk tolerance quiz. You know how they go, 'If your account drops 10%, what would your reaction be?' These have been long used by stockbrokers and financial advisors and have lately been added to most self-help investment websites.

Usually, you are asked 15-20 questions like the one above to help determine your risk tolerance. From there, they create an asset allocation plan or an "investment pie" to determine where your money should be invested and how risky it can be. You probably aren't aware how important those questions can be.

According to an independent Morningstar report, this one quiz determines where 90% of your investment return in your lifetime will come from. This is a pretty serious decision that most people see as a pop quiz making up part of your initial interview.

While this is important in the basis of modern portfolio theory and has created a lot of marketing material for the financial industry, the models often fail to display the true level of risk from these allocations and provide a false sense of security.

The idea that your risk tolerance can be measure by a questionnaire is at least debatable and it cannot and should not be used as the primary factor to expose you to risk in the biggest decision you have to make for your portfolio. Unfortunately the industry uses everyday and we have retirees that have lost 30% of their money justified by a 15 question pop quiz.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Why the Show and Blog?

One listener to our show asked why we are doing this. He wanted to know if, even though he enjoys the content and our discussions, this was really just an advertisement for our firm. We thought this was a fair question that deserved a full explanation. Bruce has written financial columns for several area newspapers over the years. Looking at the radio show and the blog, we had six basic goals.

First, the show and blog had to be purely educational. We weren't going to use our advertising dollars to push a product. We aren't salespeople, we are private wealth managers.

Second, we wanted to create a forum that shows our audience that we can have discussions about money that is not complicated. Finances can be easy to understand.

Third, we saw too many people leave their investing to chance and will not meet their needs into retirement. We wanted to empower you to get involved.

Fourth, the number one problem facing current and future retirees is that they will run out of money. No one is doing anything about it and we want to help you better understand it and deal with this issue.

Fifth, the show and blog will present a balanced answer to tough financial questions. Sales people will rarely bring up the downside to a plan and we want you to realize there is no such thing as a free lunch. You need to understand the positives and negatives to a plan so you can make a smart education choice about your finances.

And finally, this show corrects an issue we have had for years. In our practice, we have talked to hundreds of people just like you and over 95% of the people become clients because, just like the show and blog, our practice is unique, direct, and to the point. One of the most common comments we hear is that they never knew someone like us existed. Now, you know that there is a source of quality, sound financial advice without the pressure of a sales pitch.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

New Year’s Resolutions; Have You Forgotten Already?

Almost everyone I know makes New Year's resolutions. Some people vow to get healthier. Some vow to change their personality. Some even choose to change their finances. Sadly, most people never carry their resolution through the whole year (or even January!) let alone their whole lives.

Your finances and the decision to improve your situation do not have to be tied to a tradition like New Year's. Whether you are saving for retirement, just retired and scared how long your money will last, or have been retired for a while and are looking for the best way to pass your assets onto the next generation, you need to start asking questions, getting complete answers you understand, and taking ACTION on those answers.

Your resolution does not get to stop there! You will need continue forward and get updated information as the world changes. As your goals evolve, so will the financial climate.

Most failed financial programs are the result of lack of maintenance and/or failures to update the account holder and manager.

Your financial resolution should become a tradition all of its own!

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)



To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)