Articles on Wealth Management Topics

If recent conversations with clients are any indication, a primary worry out there is how to plan for, or guard against, the "inevitability" of higher interest rates, a.k.a. falling bond prices. Most of these discussions arise from genuine concerns about the future performance of fixed-income investments given this backdrop. Some arise from a touch of performance-chasing, i.e. "Stocks have done so well in the last few years, so why not allocate more of our portfolio to them at the expense of our bond allocation, which has been languishing?".

Clients who've endured conversations with me about their recommended asset allocation know how much I stress the importance of their investment time horizon. During a recent discussion about investment ideas, my dad suggested "What's your time horizon?" be my epitaph. Maybe so, but considering in advance when you will need the money you're investing can keep you from making the worst kinds of financial mistakes. And keeping your investment horizon in mind during periods of market turbulence should help keep you on course for attaining your financial goals.

If there is a Rodney Dangerfield of investments, it has to be Treasury Bonds. They always yield less than other taxable fixed-income investments with the same maturity, they don't get the airtime afforded stocks, and they don't have the mysterious allure of alternative investments. But in times of crisis, when other investments are withering under the pressure, Treasury Bonds usually step into the breach to provide a diversified portfolio with capital gains when they're needed most.

Stock markets can be characterized as being both consistently positive and eerily quiet in recent months. Volatility and trading volumes continue to be extremely subdued, but stock indices just keep grinding higher. A few factoids to underscore these points -