Money is always an emotional issue, but often when our emotions will participate in our investment, we will make wrong decisions. This can be a costly mistake. Separate and maintain emotional investment for many investors seem almost impossible. When the reaction is too fast, let emotions cloud judgment, even the most professional and experienced investors do not make the best decisions. However, maintaining emotional investment decisions can give away your chances of success.

The following are four tips on how to keep emotions separate and investment:

1.Setting financial goals. The first step is to set financial goals, investment, financial goals if done correctly can keep emotions out of the picture. There is a plan that will help you keep an eye on his big photo T. For example, if you save to retire in 20 years, you know you have more time than that to make up any losses if you plan to retire in 10 years. These objectives also allows you to focus on what you need to do today to get there.

2. Fighting the urge to check the performance too frequently. You may be someone who has the urge to clean up your investments every day, it may be several hours. In this process, you will see more markets for maneuver than if you checked monthly or quarterly. Checking constantly this will not in any way beneficial to your portfolio, but this will cause more anxiety. If you own individual stocks or mutual funds it is more important in this account or any type of personal retirement accounts. Check these holdings can often cause you to PANIC, you may make the purchase or sale of a unit. Instead, make your check to monthly or quarterly, adhere to concentrate your entire plan.

3. You know what to buy and target risk. know what you are buying is crucial to help you avoid frustration sentiment. Always do your own research before you buy anything, even if you have external assistance. Learn what investments are, how it can help you achieve your goals, what the risks are, and when and how to exit. If you do not own research, you will not take full responsibility for your trading, the negative emotions.

4. A professional assigned buffer. You can be a financial professional to create your own images between your investment and have aIn the middle of the two given distance Onal region. Commissioned by a neutral third party who can help you calmly look at their situation and encourage you to stay on track, you can hold your own thing, you can actually control more responsibility.

You know what? from large financial programs for small purchase decision, it often helps to write things down. Then, you can check how you decide – this should cause you to make better

A lot of people have written a new department for most financial advisors work rules held a “fiduciary” standard. Until the rules take effect, most financial advisers held need to consult the “applicability” a watered-down requirements in the law. Two questions come to mind:

• What is in line with fiduciary standards and recommendations This is just the difference between appropriate recommendations
• How I know that, if a trust is truly as One? ?

The best way to explain these concepts are by way of example. Frank is 65 years old, very conservative, concerned about stock market volatility. He owes $ 300,000 on his mortgage, pay interest at 4%. He wanted to send ELL is $ 300,000 older rental house there is a potential income tax the sale of $ 50,000 IRA account is currently $ 400,000 in cash, $ 350,000.

A broker / dealer of “appropriate” consultation

First Frank sought to maintain the appropriate standard proxy opinion. Sarah applies to Wall Street based on a very large national companies. She knew that if she told Frank paid off the mortgage, she would lose potential business, and possibly her work. You see, because she held only a suitable standard, she owed her primary allegiance to her on behalf of the company, rather than investors.

In contrast, it is recommended Frank pay off the mortgage, but she brought out a graph showing how the stock and bond markets, trying to convince the people how to invest in the market will be paying off more than the history of the best retirement Mortgage. Finally, there is a lot of pressure 施加弗兰克 into cash, and the IRA were after-tax rental property in addition to stocks and bonds. Sarah will invest $ 1 million into the forthright costs $ 57,500 mutual fund commissions first antenna installed.

With 2:00 different opinions from the level of 2 RIA

Next, Frank fiduciary advice is recommended to keep the fiduciary standard two different registered investment advisor (RIA) is. RIA that he first heard from Sarah the same opinion, but will invest in no-load fund, so Frank can avoid paying a commission. RIA is recommended to pay off the second mortgage, investment and the rest for stocks and bonds. In these three meetingsFrank brought the fear of rising interest rates and questioning Ø˚F bonds are the best investment solutions. Similar reactions per consultant, citing the long history of bond performance statistics.

Sometimes you hold the same standard RIA does provide a completely different opinion? In answer to this question is absolutely yes. Take care of the fiduciary standards are not always applied consistently. One problem of this standard is that if you sell stocks and bonds for a living, you might believe that stocks and bonds everyone needs. If you sell annuity, rather than stock, you could tell how the stock market volatility frightening is that they go out with the world’s stock and bond investments.

Trustee suggested last piece has a different view

What could better trust search solutions ň look? Frank found the views of a RIA who is also a certified public accountant. The first recommendation is to pay off the mortgage. The second is a liquidity emergency access to credit, home equity lines. As for the rental of the house, instead of paying the sales tax, a tax deferred 1031 exchange is finalized, reinvested professionally managed apartment building. Finally, mixed stock and fixed-indexed annuity is recommended as an alternative to bonds.

Frank stored in income tax, improve cash flow, and has better growth potential risk was no significant increase in the overall portfolio.

Final word: I trust rules

I am usually very happy with the new DOL rules and its attempts to raise the bar to take my industry. However, I do not think the new rules is not enough. How adviser really provide the best advice, if they can not be licensed – and fully understand – stocks, bonds, real estate passive, insurance products and the impact of federal tax laws?

Finally, financial planning advice is based on your opinion of consultants. Based on the views of their familiar, their license and experience is varied between what advisors. Opinions can not be easily measured or compared.

Therefore, even if a new set of industry standards, it is still the best choice for their own financial advisers by the consumer when their due diligence.

As the second-longest bull market in history makes its way into the ninth year, many investors are understandably ask: when to stop? We had a rich, if there is a foolproof method to find out. However, we can make some guesses.

One thing to remember is that the bull market is not old age to die alone. Something must kill them. And the most reliable weapon is economic recession. This is not always the case. There have been no bear market decline is the collapse of the 1987 program. But many of the most severe recession accompanied by a recession – or, more precisely, by one. The Great Recession began in December 2007, is a bear market in October of that year, ie before the beginning of the conversion price then in Lop Nur 57. Ť his recession began in March 2001, the peak of the market and then launched a 49% stock decline in March 2000.

Frequent false alarms, economist and market strategist Ed Yardeni Yardeni Research said. And proved to be correct -. “When the bear market in the next market is expected to start once the recession is expected to have a large number of market downturn since 2008 has proven to be buying opportunities,” Yardeni said.

When the recession and the stock market is doing on the mountain, they can do so immediately, with the start of the recession and bear market in July 1990, after more than a year can lollygag. On average, the stock market peak of 7.7 months after the recession began, according to market research firm Investment Technology

If we only know that the next recession will begin. So, Yardeni has a heart Date: March 2019, he was based on the average number of months after the economy continues to reach its previous peak, dating back to the early 1970s, expanding his determination. From November 2013, which is when the economy finally surpassed the 2007 pre-recession peak date, Yardeni arrive in March 2019.

The date is not official forecasts, Yardeni, who added that it comes with no guarantees, and that a large number of problems. “Then we today show that in March 2019 is a realistic date, or recession sooner or later, you know? Right now, in March ’19 modeling realistic,” Yardeni said. “But if pressed,” he added, “I would say it mayIt could be in the future. “If you insist on the economic cycle and if the average stock market has the same effect – whether it is a big” if “- then investors should be looking for a top of the market

The four signs of recession in the next year in August

Sam Stovall, chief investment strategy investment research firm CFRA, look at the four indicators, the recession on the horizon of his search. Stovall said that since 1960, every recession Housing starts decreased from previous years over the same period. these pits dropped from 10% to 37% decrease in range, they have an average of 25%. the latest report on housing starts showed that less than 3% decline. “Therefore, we yellow alarm, not red, “Stovall said.

Consumer confidence index is another signpost. before the recession kicked in, you will usually see the 9% average decline in Monte University of Michigan hemolysin climate index relative to the previous year Tovar Bies said current reading: up to 2.4%

In the six-month period leading economic indicators in the Conference Board’s drop meant trouble, also fell 3 .%, On average, ahead of the economic downturn in the last six months of registration changes: an increase of 3%

Finally, when the one-year note yields below the 10-year bond yields dipped – is called inverted yield curve -.. look out Stovall said worse, long-term interest rates has been under pressure recently, the Fed pushed short-term interest rates to rise, “we get a flat yield curve, but nowhere near the vicinity of the reverse,” Sri Lanka Tovar said his conclusion is: there is no recession in sight

Look at your risk of double-dip recession and bear market, consider a third risk – early exit in the last year of a bull market bull market the return is the history of generous return, including dividends, in the last six months, an average of the last 12 months, 25% and 16%.

Nevertheless, investors have every reason to be ascribed right at this stage Note level of the game. now is a good time to make sure your portfolio reflects your life stage, your risk tolerance. adhere to a regular schedule rebalancing, to lock in gains, and maintain stocks, bonds Other assets, an appropriate balance between home and abroad. Whatever you do, make sure your portfolio is that you want it to be summer vacation you goBefore next year.

Bloomberg put a little scare investors in October last year, reported the research study found associated with the traditional 60/40 mixture, yielding stocks and bonds to even 5% real rate of return over the next 10 years is slim chance in your 401 (k).

Story, “The next 10 years will be ugly people, your 401 (k),” would have been a conversation starter. If you increase your risk? Save more money each month? Change your entire investment plan? Or should as a writer warns that “got used disappointed”?

This is an interesting topic, but hardly a surprise to anyone who has been following the market.

Things have been very good for a long time. In the end, love is a compromise – this could be your bottom line. Issue

Today’s “buy and hold” strategy

Traditional stock, bond portfolio refers to a negative correlation: when stocks rise, bonds go down. People will tell you it is to invest 101: You play as a hedge against the other.

But stocks and bonds is high, and now – the way it has been for many years. This makes diversification more difficult.

The value of bonds are up, but production is not.

The 10-year yield varies, of course, but let’s say for example’s sake, (June 6 rate of) its 2.21%. If you return 2.21%, minus 1.6% inflation rate (the number used in the related research report company, although it is within the range of 2%), you can not see the return of 1% of the effective interest rate.

In addition to production, the only way to strengthen the bond returns through capital appreciation bonds. The only reason almost always rise in value of the bond is due to lower interest rates. We are currently in a low interest rate environment, interest rates seem more likely to rise over time, not down. Therefore, if interest rates rise, bond values ​​may decline, it is possible that the total return on a bond is negative.

As for the stock – we are in the second longest bull market in history. But the length of the bull market does not necessarily mean as much as stock valuations. And now, the market is certainly not cheap.

Various websites (including Multpl.com, which providesEarnings ratio (P / E) the number of monthly) reported tio RA is somewhere between 25 and 26.5. This only happens a few times in history: P / E numbers during the collapse of the Internet bubble in 2008 and 2000, this high when the stock overvalued crazy, it often means that the market correction due …… or a more severe fall. This is unlikely to be able to continue at this pace for the next 10 years.

It’s all together, which means that the traditional buy and hold, the US stock and bond loaded passive investment strategy is not likely in the next six or seven years significant net returns.

Some alternative strategies

So, how can you do?

• Rather than relying on passive management, take a look at tactics do not depend on just follow the market. For example, the department RO tation or investment momentum can take advantage of market trends. Identify these trends and corresponding investment often lead to enhanced returns.
• Consider some of the money market cheaper valuations. Research data has international branches and emerging markets outperformed the US market, strictly because they are cheaper. But if you do, you might assume more risk, so …
• Balance with other non-traditional investments, something you do not typically a 60/40 stock / bond portfolio to see movement. For example, preferred shares have a decent production could offset the impact of rising interest rates; if you hold to them, they can create a good amount of revenue. Real estate and commodities are often different than the next way to market mobile E – they do not have the same relevance bond market.

Talk about your financial rut of these professionals and can guide you around the low return on the investment portfolio and other strategies. There are ways to make money there – you just need a box of traditional stock / bond investment look outside.

Everyone wants to make money, no one wants to lose it. It looks very simple.

Unfortunately, not a lot of financial instruments that can provide such a guarantee. Typically, you want to earn enough money to retirement, you have to take some risks.

However, if your financial professional is really looking out for you, he will put as much emphasis on risk management as he did to help you get the best return.

Most planners will talk about risk tolerance, and ask your age, your income, your net worth and problems, when you want to retire to determine your ability to deal with market volatility. But there should be so much better than it. Our abbreviation for our process – CAN: ability, attitude, need. You really can not put together a financial plan workablË not consider all three. It broke this:

C is the capacity

This is how much you can afford to risk the nuts and bolts. In this capacity that you absorb losses do not affect the ability of your retirement standard of living. This is the danger of an important part of the dialogue – but if you give it too much weight, it could throw things. For example, a consultant may put the client into a book he was uncomfortable, just because he has a high net worth, and the consultant’s opinion, capable of losses. Or, he could put a young, but risk-averse individual vehicles become more volatile, because he / she should have “time to rebound.”

Typically, a customer requires a “conservative” portfolio, but this is a SUBJective items. When you say you risk adviser, it is concrete. Think about the amount of USD in:? How much are you really in danger, if there is a downturn in the market

A is the attitude

Once you’ve sorted out your capacity for risk, you need to do some introspection, and make sure you are how you want to lose money. This is not something you can afford it; this is about your mood. You have character and desire to pursue a more favorable result – higher returns – less favorable risk results in – a terrible loss

In my company, we use a software program called the Riskalyze , which is based on behavioral psychology and how people make reallyThe choice between qualitative and opportunities to help customers and in-depth assessment of their true feelings. I t assignee your number from 1-100, where 1 is the most conservative approach and the 100 most volatile. Then, we put a person’s current portfolio and see how their scores for Riskalyze, and make adjustments if necessary. And it is usually necessary if they had not put the risk into account.

A couple came in recently, their score is 19 100 which is extremely conservative. But their current portfolio is 55 this figure seems fairly middle section of the road, but for them, in a market downturn loss can be devastating.

N Need

Finally, take a look at your financial vehicles must be how many times to meet the needs of your income plan is very important. In some cases, individuals may have a little more risk in order to make up for the shortage of their savings than they want. But we also see who is risking more than the actual need to make their retirement plans job.

For example, if you need a 3% rate of return in order to support your income plan, and decide what you want is another increase of 2%, you can limit your risk of a vehicle, will provide 5% return. Why target return of 7% 8% risk if needed may adversely affect your portfolio

A key retirement plan is this: if you have enough, never take risks do not have enough. You save and invest your money for the purpose, and this purpose is to support your lifestyle when you do not work. Getting there is not the end of it – you have to make the money last

Navigate his own way, and by retirement just across the Golden Gate Bridge to drive your own car a little bit. You’ll never make that journey fog, if there is no fence, keep you from falling off the edge. Management fluctuations may like to wear your portfolio fence, so you move forward  in the right direction

If you do not feel comfortable with your current financial strategy – or, if the concern is to let you in at night – to talk to you the practice of financial professionals related to CAN. It can make all the difference.  

People who consider my work sometimes ask: “? Well, Meg, what is do it” Considering how much time I spend do what I do, as well as the breadth of my work, I can try to boil down, will soon illuminate the mysterious sleepy several points.

However, this is a worthwhile question to ask? – and the answer

Why is it so mysterious planners

When you are looking for a new doctor, you do not ask her how she was, everyone “So, what do you do, Doctor?” all we know that doctors do. Why Few people know what a financial planner to do. As I’ve discussed, are:

• No minimum training or education necessary to call by their name
• There is no minimum set of capabilities, we can rely on. There is such a professional.
• Dazzling variety of companies hire professionals who sell their financial planner or similar.
• Is not readily quantifiable way to determine success.
• A large trust deficit overcome.

You manage money, right?

It is has been leading the industry in the last decades of service, so it’s no surprise, you think this is what financial planning to .

Although, yes, a lot of people planning to invest your money for you, yes, it is a useful and valuable service provided, your money invested for the a thing , many, a good financial planner yet.

Aspects of technology investment has become a commodity. You can get a reasonable portfolio of fundamental and cheap ROBO by an independent consultant (improvement or Ellevest, for example) and all-in-one mutual fund (Vanguard LifeStrategy funds, for example). Therefore, financial planner who only “do” money management probably not worth it.

Specific financial problems planner can help you with

The easiest way to explain what I do is to list the financial problems I help clients understand and take action. I focus on women in the high-tech industry, so this is not- Remote as an exhaustive list for achieving this. Ultimately, a planner you depend your specific circumstances.

• Figure do not know how you need a cash cushion, and when you want to grow more than how it is. How
• It is calculated to save 401 (k) and how to invest.
• Determine your tax planning and help you find a demand for accountants.
• Answer the question, “Should I exercise my stock options? When? How many?”
• Develop a plan RSUs for your subject.
• Figure out what to do with your stock inventory. selling? Accept? Donate
• Create a savings plan to make more progress towards the situation:? Retirement, buying a house, etc.
• Help you come up with the down payment of the purchase
• Assess the interests of employees.
• Jobs assessment.

Something more important

The list above is a simple and easy way to understand what I do. The real value is that when we enter the “squishier” field, which is more difficult to put a chart-inch

• I bring clarity What may feel “uncertainty abyss, “as one client recently described it. Google will be happy to provide more information about personal finance for you than you can consume in a lifetime. But the idea is for you and your family important?
• I can help you focus . When you need more life insurance, turn over some of the 401 (k) plans to invest some extra cash, and manage the risks of the company’s stock, you should first do?
• I help identify when your statement does not reflect the values ​​and priorities in your financial behavior . If you tell me you want to buy a home, but you spend most of the money to travel, you either need to rethink your goals, or you need a better system to save.
• Accountability I have for you, to help you insist, we do plan together. It is difficult to change behavior, whether it is your diet, exercise, financial or relationship. I can read and study a lot, but I got stuff to do, when I work with my business coach.
• I can help you understand your own finances gain confidence. Imagine, you would feel if you really understand what happened, why you do what you’re doing? One of my clients recently celebrated she announced she had her old 401 (k) into the newly established her IRA, and all this through their own investments. That is not something you can not teach. Now she is permanently better understand and deal with their financial situation.
• I give you “permission” thing to do ÿOU want to do or think you should do anyway. Not what you want to do, of course, but if I do not think it will make your financial situation in the revocation risk, I will give all my seal of approval. One of my clients want to buy a home but do not have enough cash to pay the first payment. I suggested that she immediately stopped her retirement savings account and all funds and funnel into the HSA savings account for a while. She was relieved, because she had thought about doing this, but do not know it is doing the right thing.
• I heard . Interestingly, when you start talking about your money, you start talking about each other part of your life. I am not a mental health consultant, but I can tell you, as long as trusted experts, you can uninstall all your financial worries to be worth the price of admission all by itself.

If you do not use the power of your portfolio in international stocks, you can get on a good thing, missed in the next few years.

Past performance is not always indicative of future performance, but there are some subtle indicators now pointing to diversify income and international equity portfolio.

Although there are many parameters to keep the funds in US stocks, there are good reasons to invest overseas is a good choice, in order to maximize future returns. Even many points for international stocks may not support heavy as you might think

Myth # 1: International stock does not perform as well as Wall Street

According to the last few years, the debate winner. However, so far in 2017, international equities in Europe is a healthy margin tperforming those in the United States.

Historically, after the poor is outstanding performance . Since 2008, the US market outperformed the international markets – a good eight years running. Many investors and financial experts believe, it may be reversed soon. Rising interest rates, overvalued and slow growth in combination can reduce the stock of investment income in the United States – by historical standards, the valuation in the United States high-level overseas, especially in Europe, and interest rates at historically low valuations . For the current average P / E ratio of US stocks is about 17-18 times earnings, which is at the high end. Foreign markets, on the other hand, at an average of 12-13 times earnings.

Myth 2: too much volatility

Terrorism in Europe. Venezuela to take over GM facilities. Concerned about North Korea. Uncertainty and Russia.

Have the means to invest in overseas too risky!

But in the international market it does not lie in the world of investment as a whole. When it comes to investment outside the United States, the world is divided into two categories – the developed and emerging markets

Developed markets are larger, more stable markets such as France, Germany, Japan, Britain and Switzerland

Emerging markets are those that are still in development subject to greater volatility, such as Brazil, India, Russia and China.

While investing in emerging markets has become a bigger risk, which is similar to ŧØDecided to invest more aggressively in the United States. There is more volatility and risk, but the rewards could be even higher. Investors may obtain a lower valuation and enjoy the growth, stability and development of the national economy of emerging markets at the same time.

If you are worried about currency fluctuations, these problems can be eliminated by funds, hedge exchange rate risk.

Myth: My investments do well, so I do not need to change it

Why fix what is not broken? Remember, follow the advice on the stock market each Disclaimer: Past performance does not guarantee future performance. Well, just because the strategy is to work now does not mean it will stay like this forever.

For conservative investors, there is ample opportunity to go where the money is held by the cheaper accumulate wealth. Investment funds may go further and return will be greater, not to take more risks than your current portfolio strategy.

United States, including nearly 50% of global stock markets. This makes nearly half the world’s stock markets closed, if you invest in the United States, insist on the table – you may have lost

Finally, there are global funds in half the likelihood that you can put your money in the combination of the US stock market and international stock markets. These global funding provides the best of both worlds – exposed in the US and international markets, developed and emerging

When considering changing your portfolio STrategy, please consult your financial advisor. In Telemus, we take a holistic approach to the accumulation of wealth, and look at the short-term and long-term goals, as well as large-screen action, investors market. Your trusted financial adviser will be able to guide you to the correct international stock portfolio for you in order to maximize growth and harvest, while meeting your overall investment objectives.