WrapManager's Wealth Management Blog

In their February commentary, Churchill Management Group explains why they reduced equity exposure in their tactical strategies. “Starting with the first trading day of 2014, the market began a sharp correction. While an accommodative Fed has continued to fuel the stock market, recent Taper-talk (the reduction of monetary stimulus added to the economy) combined with international currency worries gave the market brief concerns. At one point during January, the Dow Jones Industrial Average had fallen 7.5% off its highs. The market has regained footing since then, although volatility has also increased. Knowing that the market is forever cyclical, the question is whether the stock market is in a Topping phase or did it just need to catch its breath before continuing the long Bull Market that began almost five years ago?” [+] Read More

The market got off to a rocky start in 2014, with the S&P 500 declining by 4%.1 Between January 15 and February 3 alone, the S&P 500 fell 5.8%,2 and weakness was even greater in areas abroad like Japan3 and the Emerging Markets.4 Many investors were left wondering if the rough start was a sign of things to come. How did it make you feel? We think the recent volatility presents investors with an opportunity as well as a friendly reminder: it’s a good idea to regularly make sure your portfolio is allocated according to how comfortable you are with stock market declines and risk. [+] Read More

Total health care spending is expected to reach $4.8 trillion in 2021, up from $2.6 trillion in 2010 and $75 billion in 1970. As consumers of health care, it’s everyday investors that have to absorb these rising costs over time.1 What investors need to do: factor rising health care costs into your investment plan, so you can measure how these expenses could affect your retirement income and portfolio growth over time. An Investment Portfolio Designed to Keep Up With Rising Health Care Costs The simple fact is, most investors need growth in their portfolio to keep up with rising health care costs. This growth becomes even more critical as health care costs become a larger percentage of living expenses with age. [+] Read More

Money manager Federated Investors’ Strategic Value Dividend managed account strategy falls into this category, and has some of the qualities an income-seeking investor is after. The strategy’s objective is to provide a high level of current income, long-term capital appreciation driven by dividend growth, and lower downside risk.2 Why Does Federated Focus on Dividend Paying Stocks? Research conducted by Federated Investors shows that over the period from July 1, 1996 to June 30, 2013, a high dividend paying stock strategy generated an average annualized total return of 10%, which is 278 basis points higher than the 7.22% annualized return realized by the S&P 500. [+] Read More

Here’s a statistic that may catch your eye (or make it shed a tear): since 1980, total mutual fund assets have increased by 135 times, but the total expenses paid to equity mutual-fund managers has increased 141 times ($170.8 million to $24,143 billion).1 Have your investment fees, or the fees you pay to your financial advisor, been going up as well? 3 Actions You Should Take to Examine Your Investment Fees 1) Get a Clear Sense of What Your Investment Fees Actually Are Depending on what type of investments you have, the way you pay financial advisor fees can vary greatly. Mutual funds have “expense ratios” that might give you a good sense—but not always a clear picture—of what your fees are. [+] Read More

In order to build someone a comprehensive investment plan, a financial advisor has to understand some of the intricacies of that person’s financial life, risk tolerance and goals. If a financial advisor focuses on the investments without understanding a client’s full picture, it could result in a subpar investment plan. Here are seven questions your financial advisor should have already asked you: 1) How is Your and Your Spouses Health? This question sets the stage for the length of time that a retirement plan might need to provide for you and your spouse, and it also will spur a discussion about potential medical expenses that might need to be factored into the investment plan. [+] Read More

Financial Advisors should run a detailed analysis of your current financial situation before creating an investment plan for you. Part of that analysis includes taking a look at your portfolio’s asset allocation and examining each investment’s purpose, efficacy, and cost. When was the last time you asked a third-party investment professional to take a look at your portfolio, examine its investment fees, and offer their thoughts? Get a Second Opinion on Your Current Investment Portfolio Like going to a doctor for a second opinion, it makes sense to have an investment professional (other than the one that advises you) take a look at your current portfolio and provide you with an analysis of what you pay in investment fees. [+] Read More

A good financial advisor can help you choose smart investments, map out your income needs in retirement, give you advice on estate planning, and maybe even help you save some money in taxes along the way. In other words, he or she can help you form a solid investment plan that changes with you. A not-so-good financial advisor might not do all—or any—of those things well. Here are five signs your financial advisor isn’t doing a good job. 1) The Investment Strategy is the Same for Every Client If your financial advisor is applying the same—or even just a very similar—investment strategy for every client, then chances are your unique financial situation and goals aren’t being taken into consideration. Lots of folks have similar goals, but a one-size-fits-all approach indicates that pretty much everyone has the same financial objectives, which is usually not the case. [+] Read More

Here are three approaches to generating the desired amount of retirement income. When deciding which option – or combination of options – is right for you, we’d encourage you to seek the help of a financial advisor. 1) Get the Most Out of Your Social Security Retirement Benefits There are several strategies to consider when trying to optimize how you activate your social security retirement benefits. We’ve written about two methods in particular that may help you increase the size of your Social Security check, if executed correctly. The first is the Restricted Application for Spousal Benefits, and the other is the File and Suspend Strategy. [+] Read More