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Experts Explain: Finding a Financial Advisor. How to find the right person to help manage your money.
David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing tax planning in 2012 and the most important things to do now to prepare for rising taxes in 2013.
Last month I was eating lunch at a local restaurant when I noticed an offer by GiveBuddy.com that the restaurant would send a check for 10% of my receipt to any organization I chose.
Interview with Donald Jay Korn, author of mystery novels “Payable On Death” and “In For a Pounding” featuring money manager Anderson Crown.
Emerging market bonds are an attractive way to get a higher yield, but historically they have come with higher volatility and a high incidence of default. But that has been changing.
David John Marotta was interview on radio 1070 WINA’s Schilling Show discussing why you shouldn’t hold gold or cash, how governments can destabalize economies, and what investments you should hold instead.
Many parents feel obliged to pay for their child’s wedding, but financial advisers can try to help keep the spending under control. About one in three mass-affluent parents believe it is their duty to pick up about half the bill for their first child’s wedding.
Wisdom is the ability to exercise good judgement in the fact of imperfect knowledge. Sometimes that means reframing the question.
Study in Boston area, with undercover actors posing as clients, showed commission-based advisors putting their own interests first
A U.S. Public Interest Research Group report in 2004 found that one in four credit reports have serious errors that could significantly lower your chances of being approved.
The tax code provision that allowed IRA owners to contribute up to $100,000 directly from their IRA to the qualified charity of their choice–without recognizing the donation as income–expired at the end of 2011, but what if it is reinstated?
I read a number of articles touting the growth and “advantages” of annuities. Personally, I’ve never met an annuity I liked.
“Variable annuities are garbage. They have huge expenses; big fees if you try to bag out before a certain point; and massive tax problems compared to other ways you can invest. But that’s what you’ll probably be steered to by a commissioned insurance salesperson.”
Laws have always regulated who may marry, the obligations related to marriage and children and whether and how a marriage can be ended. Governments have always put their own social agenda above the pluralism of personal choice.
I was on the radio today and someone called in claiming that Vanguard Emerging Market ETF (VWO) had done nothing but go down in value.
A large number of people in the United States are worried about our profligate spending and the resulting devaluation of our currency. They are worried about politics and socialism and the economy.
Precious metals will, on average, just keep up with inflation, but your after tax return would mean you fell behind inflation by the 28% tax you must pay.
A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility. Its primary appeal is simplicity. As a secondary virtue, it avoids the worst mistakes of the financial services industry.
A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility.
When growth is relatively cheap it should outperform value.
Currently large is relatively cheap and small cap is relatively expensive. For that reason, the R1000 or S&P 500 should outperform the R2000 small cap.
Think of static asset allocation as where to set your sails and dynamic asset allocation as a way to keep your balance as your boat glides and sometimes bounces through the waves.
A low P/E 10 bodes well for the next 20 years of investing, whereas a higher P/E 10 suggests a lower expected return.
The Shiller P/E ratio is computed by taking the current price and dividing by the average inflation-adjusted earnings from the previous 10 years.
The highest peak for the regular P/E was 123 in the first quarter of 2009. It was much higher than the historical mean of 15, yet it was the best time in recent history to buy stocks.
What we would really like to measure are the changes in price (P) that cause a company with a good long-term track record to look relatively cheap. Economist Robert Shiller created just such a measurement.
If you want to get in shape and need push in the right direction, you hire a personal trainer. If you want advice and a push in the right direction to be in good financial shape, hire a financial advisor.
“If you want an extraordinary career, stop procrastinating.”
The Marotta allocation method is a proportionally weighted allocation based on the square of each Sharpe ratio. Squaring the Sharpe ratio drastically reduces asset categories in proportion to their distance from the efficient frontier.
“Today, if you make enough money for [Goldman Sachs] (and are not currently an ax murderer) you will be promoted into a position of influence.”
Diversifying your portfolio means finding assets that have value on their own merits but do not move exactly alike. Here are the principles on building and rebalancing asset classes and subcategories.
Crafting portfolio asset allocations is a combination of art and engineering. Just as a blending of colors can produce cerulean, so a blending of indexes produces a unique shade of risk and return.
David John Marotta presents a list of the best Exchange Traded Funds (ETFs) of 2012 and how you can take advantage of these funds in your investment portfolio.
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David John Marotta presents ten important wealth management ideas for those in and approaching retirement.
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David John Marotta presents how to use Roth conversions, segregations and recharacterizations to put the most money where it will never be taxed again in the most tax efficient manner.
Some say don’t make extra payments, take the tax deduction. Others say you need to be debt free.
The 85-year-old Palo Alto patriarch has turned helping his 10 grandchildren into a hobby that has paid off for multiple generations.
The efficient frontier measures all investments on a scale of risk and return. Risk is commonly placed on the x-axis, and return is placed on the y-axis.
Should it be invested aggressively, like 100% equities, or use the same split as my taxable investments, such as 50-50 stocks vs bonds?
Even if the overall inflation rate is only 2.25% in the next 10 years, an investor who holds a 10-year Treasury until maturity will realize a zero real return after inflation.
A stock’s valuation is measured on a continuum from “value” to “growth” In broad strokes, value stocks are cheap and growth stocks are expensive.
There is a distinction between existing high capital gains exposure in a mutual fund verses future capital gains you expose yourself to.
Given all the greed and deceit in the world of financial services you shouldn’t have to trust your financial advisor. Here is a list of eight safeguards that should be in place to help safeguard your money.
The second factor of investing is size as measured by a stock’s total capitalization. Over time small cap will outperform large cap even after factoring out measurements of volatility.
Many couples have significant issues about money. Many people’s beliefs are holding them back from enjoying life to its fullest potential. Make sure someone asks you the right questions.
“Deciding when to take Social Security benefits is critically important to maximizing long-term benefits. Benefits may be claimed as early as age 62, or as late as 70.”