As someone who has worked on Wall Street for 30+ years, the answer for individual investors is yes. The individual investor is at an informational disadvantage. There is a reason Wall Street and successful fund managers have technology and data budgets in the tens of millions of dollars and pay their portfolio managers, security analysts, and programmers hundreds of thousands of dollars each year. The gargantuan amount of information available through exchange tick data, news sources, social media, access to senior management, and financial statements is critical to making successful investment decisions. Professional investors using state of the art technology …
What is the Meaning of Diversification?
While the question is simple, the answer is not. Below I have listed several factors where diversification plays a role in reducing risk in an investment portfolio. Asset allocation Most people think of asset allocation when considering if their portfolio is properly diversified. We allocate our monies across the following three (3) asset classes: equities, fixed income, and cash. The decision to include an asset class is based upon their historical correlation with other asset classes. Correlation measures the strength of the relationship between two asset classes, where the value can range from +1 (perfectly correlated) to 0 (no relationship) …
Collecting Social Security While Working
According to a 2018 report prepared by the Stanford Center on Longevity, most American workers have not saved enough to allow them to retire at age 65 while maintaining their current standard of living. In 2019, a record number of American workers have lost their jobs, further diminishing their likelihood of a fully funded retirement. Many senior citizens are forced to seek employment in order to supplement their social security benefits which alone are unable to sustain them. This report will examine the implications of working while collecting social security, and what you can do to minimize the impact to …
529 Plans
A 529 Plan could be the answer for parents concerned over college tuition costs and financial assistance.
Michael in the News: COVID-19 & Addiction
I’m excited to be mentioned in the July 2020 INDY magazine article entitled “Will the Coronavirus Create the Next Generation of Addicts?”. I am deeply concerned that COVID will only exacerbate a problem the health system cannot adequately provide for. Articles like this help break the stigma of substance abuse and encourage families to seek the help they desperately need. Click below to read the article.
VIDEO: Prepare for the Long Road
Preparing for the long road
VIDEO: Creating a Financial Dream
The power of creating a financial dream
VIDEO: Financial Strength is Long Term
Financial Strength Comes from a Long Term Vision
VIDEO: For Loved Ones In Crisis
A financial plan grounds you when you feel helpless for a loved one in crisis
VIDEO: A Life Unchained Interview
Tutor Financial’s Michael Lewis CFA, MBA takes part in a webcast interview with Garret Biss, host of A Life Unchained.