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1
What Is The Sharpe Ratio?
2
Common Estate Planning Mistakes People Make
3
Five “No Brainer” Moves to Strengthen Your Finances
4
What Is A “Risk-Free” Guaranteed Investment Return?
5
Protecting your “most” important number!

What Is The Sharpe Ratio?

The “excess return” is the expected return of an investment minus the expected return of a so-called risk-free, guaranteed investment return.

For example, if you expect an investment or a portfolio to have a mean return of 9% and a standard deviation of 12% in an environment where a so-called risk-free, guaranteed investment has a return of 3%, that investment or portfolio’s Sharpe Ratio would be 0.5. The calculation is simply (9% – 3%) / 12%.

The Sharpe ratio is a quick measure that tries to answer the question, “Am I getting enough extra return for my extra risk?”

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Common Estate Planning Mistakes People Make

“Mortality never prevented the majority of human beings from behaving as though death were no more than an unfounded rumor” – Aldous Huxley

A Rocket Lawyer survey in 2014 indicated that 64% of Americans did not have a will. If you’re one of them, then this is a must-read.

The most common way to transfer assets to your heirs is also the messiest: to have a will that is so out-of-date that it doesn’t even relate to your property or estate anymore, to have your records scattered all over the place, to have social media, banking and email accounts whose …

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Five “No Brainer” Moves to Strengthen Your Finances

by Eve Kaplan, Certified Financial Planner (TM)

 

Here are 5 “no-brainer” moves you can make before year-end to strengthen your finances:

  1. Taxes: NJ AND NY RESIDENTS ALERT: If Congress pushes through tax reform that eliminates state and local tax exemptions, many NJ and NY residents (along with MA and CA residents) will be hit with tax increases. One estimate says NJ residents, for example, will need to pony up an additional $3,500 per year in taxes. Look into prepaying a portion of your 2018 property tax by 12/31/17 and front load charitable donations intended for 2018 into 2017. Your
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What Is A “Risk-Free” Guaranteed Investment Return?

The Sharpe Ratio uses in its formula the return of a so-called risk-free, guaranteed investment. But what is a so-called risk-free, guaranteed investment and how would you calculate its investment return?

It is worth acknowledging that there is no such thing as a risk-free investment. Everything has risks, even cash.

What is generally used as a proxy for the return of a risk-free, guaranteed investment is the current return of the 3-Month (90 or 91 day) Treasury Bill.

The return of the 3-Month Treasury Bill has been as high as 16.30% (in May, 1981) and as low as 0.01% …

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Protecting your “most” important number!

What is the most important number you possess which is with you from birth to death?  Your Social Security number! Newborns receive their unique number within a few weeks of their birth, where it is used throughout their lives to be claimed as a dependent on their parent’s tax return, apply for that first job, to identify them for credit purposes and eventually to allow them to file for benefits based on their lifetime earnings.  Because of the importance of this number throughout your life, it is equally important to protect and review the information tied to it throughout your …

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