How to Check Out a Financial Advisor

Editor’s Note: Portions of this article were excerpted with permission of the publisher, John Wiley & Sons (www.wiley.com), from “Getting Started in Finding a Financial Advisor,” by Chuck Jaffe. Copyright 2010 by Chuck Jaffe. You would think figuring out who to turn to when you need financial help would be as simple as telling yourself,…

 

Insights From Conversations With Great Investors

Warren Buffett said that among the lessons he learned from Benjamin Graham was that “price is what you pay, value is what you get.” Though Buffett used the phrase in a discussion about bonds and stocks in his 2008 letter to Berkshire-Hathaway shareholders, the adage applies to many other objects. One such object is the…

 

What You Need to Know About Crowdfunding

Effective this week, just about anyone in the U.S. can play the role of venture capitalist. New crowdfunding rules went into effect on Monday that allow non-accredited investors to risk up to $2,000 or 5% of their annual income or net worth (whichever is less) in a start-up company during a 12-month period. Those with…

 

Qualitative Guidelines for Mutual Fund Selection

This article originally appeared in the June 2014 issue of the AAII Journal. Many articles exist on how to use financial data to pick solid mutual funds. But what comes after screening based on quantitative metrics? What about the other side of fund selection—the qualitative criteria that can help investors better understand and select investments to fill their…

 

Proxy Voting for Individual Investors

This article originally appeared in the July 2015 issue of the AAII Journal. Contrary to what many believe, significantly increasing the proxies voted by informed individual investors would appreciably improve the corporate governance landscape. Why not just sell shares of poorly governed corporations? Selling the “bad” stocks may help with individual investments in the short-term, but…

 

Researching Your Advisor

Most investors won’t buy a stock or mutual fund without doing some level of analysis or research beforehand. Yet, surprisingly, there are those who will follow the advice of a financial planner, insurance agent or other money professional without doing some type of background check. In a recent AdviceIQ article, Sterling Raskie offers some suggestions…

 

Possible Changes Coming to Accredited-Investor Standard

InvestmentNew reported that the House Financial Services Committee House committee approved a measure that would expand the kind of investors who can purchase unregistered securities. The measure would expand the definition of “accredited investor.” Currently, that designation is limited to people who have $1 million in net worth, excluding the value of their house, or…

 

How Risky are ETFs?

The August 24 “flash crash” has some industry experts questioning the safety of ETFs, according to a Wall Street Journal article. ETFs, or exchange-traded funds, offer investors the diversification of a closed-end mutual fund but differ in that they trade on exchanges all day like stocks. Beyond offering the ability to trade like stocks, ETFs…

 

FINRA’s Proposal to Halt Elder Fraud: Stop Withdrawals

The Financial Industry Regulatory Authority (FINRA) released a new proposal to protect seniors from financial fraud. The rules will allow financial companies to respond to situations in which there is a reasonable belief that financial fraud is occurring. If fully implemented, financial firms would be able to place a hold on the dispersal of funds…