Smaller Investors Can Go to the Head of the Class with Institutional Shares

Along with fund performance and risk ratios, expense ratios are a critical factor in determining the potential of funds to outperform the indexes and their peers, but they are easily overshadowed by robust returns in strong markets.  Now that the market is settling in, and fund returns are reaching relative parity with the market, expense ratios become even more important.

We have Nothing to Fear

A thoughtful client expressed concern recently because of a CNNMoney article titled “‘Extreme Fear’ is Back for the Stock Market”.

To which my initial response was:  So What?

Follow the Money

Early in my financial planning career, I learned the first obligation of a true financial advisor:  Protect your clients from the financial services industry. 

The Importance of an Investment Philosophy

If you listen to any of the world’s leading investors they will tell you that nothing is more important to long-term investment success than a clear investment philosophy. Investment strategy, while important, is nothing more than a manifestation of an investment philosophy.

Planning for the New Retirement

The need for retirement planning didn’t really exist until well into the 1970s. Up to that point, people worked until age 65, spent a few years in leisure through their life expectancy which was about 69. Many retirees of that era were able to coast into retirement with a cushy pension plan.

If Only They’d Tell You

I think all advisors have a list of things that we wish that product salespeople would tell their clients.  When they come to us, we get to tell them the “bad news”.  And then they feel bad because they did something wrong (I’ve learned I never score bonus points with prospective clients by telling them they messed up).  Here are some of our most recent experien

Market Declines are Part of Long-Term Investing

The above chart teaches some great lessons on investing.  It shows two important data points per year for the S&P 500 Index from 1980 thru April 30, 2015.  Those two points are 1) the overall rate of return including dividends each year shown as the grey bars, and 2) the largest intra-year drop that occurred during the year noted by the purple dots (in other words, the largest pea

Choose Your Social Security Age with Care - It Could Cost you a Bundle

With more than 10,000 Baby Boomers crossing the retirement threshold every day, the Social Security check writing machine has kicked into overdrive.

Little Things Can Mean a Lot

While recently visiting four of my Exceptional Grandchildren in South Africa, I learned about a wonderful program that made me rethink my commitment to helping those with basic needs.  The KFC (aka “Kentucky Fried Chicken”) Add Hope Campaign raises funds for meals for children throughout South Africa.  Customers can participate by adding “Hope”

For Long-Term Investors Fees Really Do Matter

After costs, the return on the average actively managed dollar will be less than the return on the average passively managed dollar for any time period.
—William F. Sharpe, 1990 Nobel Laureate

Oct 01, 2016 by Spinnaker Financial Advisors, LLC

We have been hearing this question often in recent weeks, “How are the markets going to react to the presidential election?”  Although we tend to hear this question every presidential election, it seems to be coming up more often this time.  Perhaps that is because many people have strong negative views of one candidate or another, or both.  The latest Real Clear Politics average of polls shows Hilary Clinton with a -9.5 Favorable to Unfavorable ratio (43.6/53.1)...

Feb 01, 2016 by Spinnaker Financial Advisors, LLC

For Maximum Retirement Income You Need Tax Diversification

One of the most important tenets of investing for retirement is to diversify broadly for the best possible long-term returns in your portfolio. However, for the best possible outcome in generating maximum retirement income, special attention needs to be given to achieving optimal tax diversification. Conventional portfolio diversification focuses on blending together a mix of assets from across the spectrum...

Jan 21, 2016 by Spinnaker Financial Advisors, LLC

You may have noticed that the stock market has had a rough few weeks to start the new year.  Including yesterday’s (Jan 20, 2016) selloff, the S&P 500 Index is down 9% for the year and 11.9% from a recent high made in November.  To use some technical jargon, this means that we have reached a “correction” (a decline of 10% or more) but not yet a “bear market” (decline of 20% or more). 

Although market corrections and bear markets...

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