Articles

Even in our gone-fishing portfolios we suggest investing more overseas than in the United States. For most investors, foreign stocks will be their largest and most important allocation. Including the right mix of foreign stocks will help you relax and go fishing no matter which foreign seas are in turmoil.

On Jun 21, 2011, David John Marotta appeared on Radio 1070 WINA’s Schilling Show to discuss which countries to avoid investing in, or to underweight, due to high debt and deficit and low economic freedom.

David Marotta discusses avoiding countries with high debt and deficit.

Creating a gone-fishing portfolio begins with a top-level asset allocation. We use six asset categories. The three for stability are short money (maturing in less than two years), U.S. bonds and foreign bonds. The three asset categories we use for appreciation are U.S. stocks, foreign stocks and hard asset stocks.

Americans seem to be divided on the importance of raising the U.S. debt ceiling. Regardless of your personal politics, avoid investing in countries that cavalierly allow their debt and deficit to balloon.

Summer is almost here. It’s time to go fishing or take a trip or do wherever else you enjoy while on vacation. Unless your interests lie in investment management or you have a trusted fiduciary watching over your investments, consider having a portfolio designed to allow you more time to relax.

Understanding how Cost-of-Living Adjustment (COLA) works uncovers some of the complex cause and effect between Social Security adjustments and the real cost of living with higher gasoline prices.

If the American family hopes to emerge from this debt crisis, the American people must recover the productive zeal that fueled our country’s growth in the past.

The United States has three sectors of the economy suffering under regulatory red tape: financial services, energy and now health care. I’m certain the financial services regulations have caused more harm than good.

Save your money for what you are truly passionate about.

In 2010 I published a column entitled “Now’s Still the Time to Buy a House.” Investing is like chess in slow motion. It is important to review your moves to see how they turned out. Sometimes they don’t turn out well. Our prediction about real estate, however, was brilliant.

The old saying is true: Money can’t buy happiness. Families earning $25,000 a year overspend trying to keep up with those making $50,000, who in turn attempt to live like those making $100,000. For many families the lure of consumerism wins out over qualities like foresight and patience that saving requires.

Someone asked me what disclosures I would require for financial advisors. I’ve written these principles in a yes-or-no format and reworded the questions. “Yes” is the best answer and “no” means you should seek more information or not consider that advisor at all. Although answering affirmatively to all 10 questions would be my first screen in selecting a financial advisor, it still does not guarantee the person has the competence necessary to offer comprehensive wealth management.

Setting a target asset allocation is the most critical part of investment management.

Many people believe a dollar saved on their taxes is not worth the same as a dollar of their salary or a dollar of gain in the stock market. They are correct. A dollar saved on your taxes is actually worth more.