In a divorce, there can be countless issues to deal with. Parenting after the divorce, where to live, what friends side with which spouse, emotional turmoil with blame, guilt, fear and a sense of loss. And, of course, there’s the financial change. How each person deals with this is individual. And one of the first financial steps to take is to assume you’ll be all right. That might not sound like very sound or complex financial advice. But as a financial planner who deals with a lot of people during and after divorce, I can tell you that the people …Read More
FINRA’s warning highlights a point that I noted earlier: inverse and leveraged ETFs are designed to yield returns on a daily basis, but over longer periods of time, “their performance … can differ significantly from the performance (or inverse of the performance) of their underlying index or benchmark during the same period….” The notice demonstrated this effect using the performance of a couple of specific ETFs between December 1, 2008 and April 30, 2009. The Russell 1000 Financial Services Index fell 53 percent during this period. A leveraged ETF designed to give 3 times the daily return of the index …Read More
It should not come as a shock that there are certain costs involved in maintaining a…
- Remember that experience is better than lecturing. When your kids are ready to learn about money, start letting them make some financial decisions. It might be as basic as choosing between an ice cream treat and a soda, but let them decide and let them know it’s about deciding what to get, not getting everything they want.
- Start younger than you think you should. Many kids in pre-school can make the ice cream vs soda decision. Elementary school kids can have an allowance that let’s them buy some things that you used to buy for them. In late middle school
The Financial Times reported yesterday on a United Kingdom Financial Services Authority ruling that will eliminate commissions paid by fund managers and life insurance companies to financial advisors.
The change takes effect three years from now. The Financial Services Authority determined that commission-driven advice was closely linked with inappropriate product sales over a period of twenty years in Britain:
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“The watchdog said it would ban product providers from offering commission to secure sales and ban advisors from recommending products that automatically paid commissions.
Instead, investors will be told up front how much advice would cost and will be able