Financial Matters

Tips and news from the financial experts at Attentive Investment Managers.
Sep
11

How to Respond to a Data Breach

data-breach

You may have read that hackers broke into the Equifax database and stole personal information tied to 143 million people. The hackers accessed people's names, Social Security numbers, birth dates, addresses and, in some instances, driver's license numbers. They also stole credit card numbers for about 209,000 people and dispute documents with personal identifying information for about 182,000 people. There is no reason to think that data is not for sale to criminals who can use it to open new lines of credit or file phony tax refund requests in peoples' names.

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Jun
06

Risk Management / Long-Term Investments

risk-management

What is your Risk Tolerance? Identifying and analyzing your preferred level of potential loss is essential in Financial Planning. Once you have saved toward any given goal, the idea is to leverage it so that you can gain more. Risk Management involves the trade off – how much you are willing to risk on the downside to potential gain on the upside.

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Dec
14

Mike's "Rule of Thumb"

Mike's "Rule of Thumb"
Creating an appropriate allocation in a portfolio can be difficult. Aside from utilizing a risk tolerance profile there are some other methods for determining an appropriate mix of stocks and bonds for investors. One we utilize is Mike's take on the standard "Rule of Thumb" – which uses a factor of 100 minus the client's age to determine the percentage that should be invested in equities (stocks). Mike's "Rule of Thumb" takes into consideration the fact that everyone now, for the most part, is simply living longer. With our longer lives, not only will we need to provide income for a longer period of time we will also have potentially more time to grow that money. With this in mind, Mike uses a factor of 120 minus the client's age to derive the equity allocation. This guideline creates an allocation that is slightly more aggressive to facilitate faster growth accommodating the need for the longer income needs. As an example, with a 48 year old individual&nb...
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Sep
08

Exit or Seek Opportunity

Exit or Seek Opportunity
Recent turmoil in financial markets, rising pessimism about Chinese and emerging markets growth and a renewed slump in oil prices have fueled fears that the global economic recovery is faltering. While the world economy does face several challenges, we remain convinced that the United States and Europe are on an upward growth trajectory. China is a wildcard, but while growth is slowing there, it should stabilize. We do not foresee current equity market weakness morphing into a bear market. Bear markets typically occur against a backdrop of recessions that produce significant declines in corporate earnings. Earnings have wavered this year, but we believe this is mainly due to a profit crunch in the energy sector and the sharp rise in the U.S. dollar. The negative impact of both of these factors should fade in the coming quarters, allowing earnings to improve. Additionally, monetary policy should stay accommodative even when the Fed starts raising rates. If the Fed were only focused on t...
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Aug
23

"Don't Panic"

"Don't Panic"
It appears as though the correction we've been anticipating and talked about for the last couple of quarters is now upon us. Since July there has been quiet erosion in the equities markets, becoming what many have called a 'landslide' or 'free fall'. As of Friday, the S&P was down 7. 7% and the Dow down 10. 3%. Although, we understand stock market declines are emotional and anxious periods of time we would like to remind you, this was expected. The market has gone 46 months without a correction which is substantially over the 18 month norm We urge you to not succumb to downside and sell, we have spent much time positioning your portfolio to mitigate the downside risk as much as possible based on your risk tolerance.We DEFINITELY don't think this is a prelude to another 2008-style market decline. Leading indicators are still positive and lower oil prices and interest rates should help stabilize growth. One key takeaway is that the downturn and the selling in the last 4+ days has res...
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Due to renewed State orders for shelter-in-place we will be modifying our office operations. We will be suspending services at our physical office for the public. However, we are available to you via web meeting (zoom), email and telephone (Phone lines have been forwarded to our personal cell phones) during regular business hours. We will be able to fully service all your investment needs with no interruption.

You may drop contribution checks at our office through the mail slot or they may be mailed directly to TD Ameritrade (address listed below). Please be sure to notate your account number on the check.

TD Ameritrade
PO BOX 650567
Dallas, TX 75265-0567

Rest assured that we will continue to monitor your investments and market conditions on an ongoing basis with no interruption. Should you have any questions or concerns please feel free to contact us.

We will navigate this crisis as best we can, coming together and making shared sacrifices. We hope that we can help to slow down the effect of this virus together and solve this swiftly. We also wish everyone well and would like to extend our gratitude for your patience during these trying times. Continue to watch for updates from us.