The Financial Coaching Center

Separating Myths From Truth; The Story Of Investing

reichgardner — Wed, 11 Jan 2012 15:31:52 +0000

Much of what you think you know about investing is wrong, but if all you do is read the financial press or watch financial media, you’ll never know it. Learn the truth about investing, and discover the secrets savvy investors already know.

Separating Myths From Truth; The Story Of Investing

reichgardner — Tue, 10 Jan 2012 19:47:22 +0000

Crisis And Collapse?

reichgardner — Sat, 03 Sep 2011 15:00:42 +0000

As we hear all around us the cries of crisis and collapse, it’s a good idea to read the words of America’s greatest investor. Many of you are familiar with Warren Buffet, and his annual letter to shareholders. Here’s an excerpt from his letter of February 26, 2011:

Money will always flow toward opportunity, and there is an abundance of that in America…Commentators often talk of ‘great uncertainty.’ But think back, for example, to December 6, 1941, October 18, 1987, and September 10, 2001. No matter how serene today may be, tomorrow is always uncertain.

Don’t let that reality spook you. Throughout my lifetime, politicians and pundits have constantly moaned about terrifying problems facing America. Yet our citizens now live an astonishing six times better than when I was born. The prophets of doom have overlooked the all-important factor that is certain; human potential is far from exhausted, and the American system for unleashing that potential – a system that has worked wonders for over two centuries despite frequent interruptions for recessions and even a civil war – remains alive and effective.

We are not natively smarter than we were when our country was founded nor do we work harder. But look around and you see a world beyond the dreams of any colonial citizen. Now, as in 1776, 1861, 1932, and 1941, America’s best days lie ahead.

Whatever you do this Labor Day, celebrate the American spirit of working hard for a better tomorrow.

“The Mutual Fund Industry Is A Huge Scam”

reichgardner — Fri, 19 Aug 2011 21:04:36 +0000

All of you who are clients of The Financial Coaching Center, LLC, know how we feel about the mutual fund industry, and why we believe in our philosophy of trying to achieve market rates of return with reduced volatility through broad diversification and efficient, low-cost, passive investments. Here’s an article written by Yale’s legendary investment guru David Swensen in which he shreds the mutual fund industry:

http://www.businessinsider.com/david-swensen-mutual-funds-2011-8#ixzz1V6O4yxZV

Don’t let your friends and loved ones gamble or speculate with their financial futures. Invite them to attend Separating Myths From Truth; The Story Of Investing soon. We offer the program every month as part of our Investor Coaching Series, and it is essential for anyone hoping to begin to achieve peace-of-mind about money. Check under “Events and Classes” for the next scheduled class, and let us know how many will be attending. During these times of market volatility, learning about how markets actually work is more important than ever.

Don’t Get Burned By These “Hot” Investments

reichgardner — Tue, 26 Jul 2011 11:13:10 +0000

FINRA Issues Warning About Chasing Yields

All of you know how adamant we are at The Financial Coaching Center about helping you understand the relationship between risk and reward. Most of you who have been to our classes know how markets actually work, and realize there is no free lunch. Yet you also know people who are hurting because of low interest rates, and who might be tempted by promises of high yields.

As usual, there are plenty of “advisors” anxious to capitalize on the fears of those who need fixed income. Regulators recently issued a warning about three products because of significant “recent high inflows.” Those three products are structured products, junk bonds, and floating-rate bank-loan funds.

“Investors should always look behind an investment’s yield, ensure that they understand how the investment works and carefully consider its fees and risks before investing,” Gerri Walsh, vice president for investor education, said in a statement.

Structured products “can have significant drawbacks such as credit risk, market risk, lack of liquidity and high hidden costs,” the alert said.

Ahh, yes. Lots of risk and high hidden costs, business as usual. Here’s the link if you want all the details:FINRA to investors: Watch out!

By the way, when did you last attend one of our classes? There is no substitute for education. Trusting an “advisor” to do the right thing, when that person is selling products for a living, is not a great strategy.

Our next class is Thursday. If you’re planning to attend, just let us know. It will be a fun, informative session.

If not, why not?

A Home is a Lousy Investment

reichgardner — Mon, 11 Jul 2011 20:14:08 +0000

Here’s a link to an excellent article in the Wall Street Journal by Robert Bridges illustrating why today’s young people would be foolish to imitate their parents and view home ownership as the cornerstone of personal finance.

http://online.wsj.com/article/SB10001424052702304259304576375323652341888.html?mod=WSJ_Opinion_LEADTop

Retirement and Health Care Costs

reichgardner — Mon, 09 May 2011 12:56:55 +0000

So, how much do you think you’ll need to spend on health care in retirement? If you’re like most, you have no idea.

A survey by Sun Life Financial, released Wednesday, found that 92% of workers said they don’t know how much their health care will cost in retirement.

40% said they have “no idea” what their health care costs are likely to be in retirement, and another 51% estimated less than $200,000 would be needed.

While no one knows for sure, a recent study released in March calculates a 65-year-old couple retiring this year will need $230,000 on average to cover medical expenses in retirement. That number does not include dental services or long-term care.

What can you do? Even though it’s difficult to estimate exactly what will be needed, there are things you can do now to prepare.

Develop a retirement plan. At The Financial Coaching Center, LLC, we can work with you to help you estimate your retirement costs and how much you should consider saving.
Buy disability insurance, which will replace a portion of your income if you’re unable to work due to illness or injury, which can keep you from dipping into your retirement fund. 9% of workers have done just that, and most say they’ll never be able to replace the money. Check with your employer first and see if it offers group coverage. If not, give us a call and we can help.
Get and stay healthy. Do all of those things all of us should do; stop smoking, maintain your ideal weight, and exercise regularly.
Consider long-term-care insurance. Most people aren’t aware that if they need nursing home care (and about 70% of individuals over age 65 will require some type of long-term care) Medicare won’t pay for it. Costs vary depending upon where you live, but right now the cost of a skilled nursing facility for my 93-year-old mother is $5,500 a month. Those costs are rising at a rate of about 4.5% a year.

As a client of The Financial Coaching Center, LLC, you can do much more than the vast majority of Americans who are doing nothing. We’re ready to help you and your family tackle the issues surrounding retirement. And, as always, the sooner we get started, the better.

Asheville Businessman Charged in Ponzi Scheme

reichgardner — Wed, 16 Feb 2011 14:44:17 +0000

So it’s happened again, this time right here in our backyard. An Asheville business man faces charges for running a Ponzi scheme that cheated investors out of $13 million. Who got burned? All kinds of people, including those who were “college educated, in banking, and financially smart.” Of course, if they had received my earlier email about the warning signs of a Ponzi scheme (John Elway Fumbles His Investments) or my email about how to check out securities (Teachers Learn Investing Lesson the Hard Way) they might have avoided losing everything.

So where do you stand? Do you forward emails touting investments you know nothing about? Or do you let people know they can get real financial education every month at The Financial Coaching Center? Do you delete our emails? Or do you let people know where they can learn the truth about investing? Do you kid yourself that you really understand the way markets work? Or have you actually invested the time (ONE HOUR A MONTH!) to learn the truth?

Maybe you just bury your head in the sand. Maybe you pretend you don’t care about your financial future, or the financial future of those you care about. Maybe you just let apathy take its course and do nothing. That’s exactly what the crooks are counting on.

Don’t kid yourself. The threat is real, the victims are real, the scammers are targeting their next victims now, the money they steal is real, and NONE OF IT HAS TO HAPPEN. Once a month, one hour of time is all it takes to stop the loss and the pain.

Separating Myths From Truth; The Story of Investing is free to you and anyone you care enough about to invite. Thursday, February 24th, 5:30 PM. Wine and cheese provided by us. Motivation is up to you.

Are you part of the problem, or part of the solution? There is no middle ground.

Dying Banker Tells the Truth About Investing

reichgardner — Sat, 22 Jan 2011 17:30:52 +0000

Wow. Here’s the extraordinary story of Gordon Murray; former Wall Street insider who decided as he faced death to finally level with investors about the right way to invest. It is, of course, exactly the way we construct our clients’ portfolios at The Financial Coaching Center, so you already know this, but it’s unique to see and hear it from a man who spent his career playing the game on the other side.

http://abcnews.go.com/Nightline/video/gordon-murray-hero-wall-street-12691101

Please share it with your friends and family today. But don’t stop there. Help them learn how to take the next step. Invite them to attend Separating Myths from Truth; The Story of Investing, February 24th, at The Financial Coaching Center. It’s FREE when you invite them, and it only takes a minute to sign up on our website.

For Gordon Murray, it was important to tell the truth before he passed. Now you can keep his work alive. Help us continue to spread the truth about investing.

Talk About a Wrong Number…

reichgardner — Thu, 06 Jan 2011 16:02:05 +0000

One of the tools of the trade for brokers is the cold call, pitching investments to anyone who will pick up the phone, often using high-pressure sales techniques and promising unrealistic returns.

But cold-calling brokers from Financial Network Investment Corp., and Meyers Associates LP, recently got into hot water when they unknowingly dialed regulators of the Missouri Securities Division. According to a cease-and-desist order filed by the state, one broker pitched a mutual fund to an investigator, telling him he could expect a 20% to 25% return within six to eight months, which he characterized as a “realistic” and “very conservative” estimate.

Another, calling the same office, pitched shares of a communications company, suggesting it would soon rise over 60% in price because it was about to be acquired by Apple, Inc. According to the Missouri action, the broker called the deal “money in the bank” and “safe money.” You can check out the details at:

http://www.investmentnews.com/article/20110102/REG/301029980

Of course, as a member of Team Sigma, you know what to do when you get a cold call; HANG UP!

But what about your friends and family? If they haven’t been to our Investor Education Series, they’re probably unaware of the “Money Demons” that lurk inside all of us, and can be used by unscrupulous salespeople to lead us into making terrible decisions. In fact, most of your family and friends probably still believe that stock-picking somehow makes sense.

So help them help themselves. Invite them to our next session of “Separating Myths from Truth; The Story of Investing,” January 25th at 6:30 PM. As always, as your guest, it’s Free. Just go to our website and register. There’s no reason for anyone you know to get stung. Helping them learn about money and investing in one of our fascinating, friendly, and fun coaching sessions is always the right call.