Money Matter$

The allure of variable annuities (VAs) capture many unsuspecting adults. With a VA, you get to participate in some of the upside of the investment markets with no downside; the insurance company ‘insures’ against losses. The problem with VAs are the complexity and costs. The typical VA costs 3% annually, and has steep “surrender charges” (15% is not uncommon!). What if you could have much of the upside of the S&P 500, with downside protection, no surrender charges, and daily liquidity—all for 0.8% per year?

December was the worst month for the stock market since February 2009, when the world still thought banks might become extinct. While we have no similar global catastrophe on our radar, there is definitely worry in the stock, bond and commodity markets. An upcoming recession is on everyone’s minds, and the two most disturbing market forces today are: 1. Rising interest rates 2. Tariffs & trade wars

We have an order of priority for most folks for how to save and invest. The following items have eligibility requirements, so are not “one-size fits all”:

In November, TD Ameritrade announced that they will now offer nearly 300 Exchange-Traded Funds (ETFs) on their commission-free list, up from the approximately 100 introduced more than five years ago. This was thought to be welcome news. However,

With the Dow and S&P 500 hitting all-time highs, is a bear market on the horizon? It’s an interesting question, and one that I’ve heard asked for the last four years, ever since the S&P 500 surpassed the 2007 pre-Great Recession levels. The Dow currently sits atop 22,000, hitting new highs nearly every day. Hence the million dollar question: When will it drop?

We had a client commit $10,000 to try out our Long/Short CEF-Arb strategy on March 28, 2016. One year later, on March 31st, their account was valued at $11,315—up over 13%, after fees. The biggest swoon the account experienced was a drop of 2.9% in October. That compares to the S&P 500, which saw a 17% return in the same 12-month timeframe, but experienced a drop of 6% in June. This is what the investment world would call a good upside/downside ratio. We captured 76% of the market’s move up, but only 48% of the move down. A golden goose? Almost!