March 30, 2015

Gallup: Over 50% of Investors could Sell Stocks if Interest Rates Rise

Gallup: Over 50% of Investors could Sell Stocks if Interest Rates Rise

Gallup recently released data from a survey of over 1,000 U.S. investors where findings reported more than half of polled investors have not ruled out the possibility of moving out of stocks if interest rates rise.

Survey respondents also largely believe the U.S. economy will see rising interest rates in the near future, and the vast majority believes this increase in rates will be modest.

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March 23, 2015

Indexed Universal Life Insurance Crediting Debate Update

Indexed Universal Life Insurance Crediting Debate Update

The debate over regulating indexed universal life insurance interest rate assumptions looks to be nearing an end and as the dust settles it appears as though the whole life insurance coalition won. Read More…

March 19, 2015

162 I do, I do, I do, I do

162 I do, I do, I do, I do
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You’re probably wondering, “what’s with the crazy title?”

Well, one of us getting married in a few months and is getting quite the education on weddings and I say “miscellaneous” costs that tag along for the ride.

But don’t fret, if that’s of little interest to you, we’ve got plenty more to discuss

Read More…

March 12, 2015

161 You Can Be Objective and Still Be Wrong

161 You Can Be Objective and Still Be Wrong
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Sometimes after we record the Financial Procast I realize that though we’ve discussed three or four separate topics with no apparent connection, a common thread emerges that ties them all together.

Today’s episode is one of those moments.

What is the obsession with “objective” financial advice? What does that even mean? And…more importantly, just because your advice comes from an objective source (for the purpose of this discussion that would mean someone with whom there is no financial incentive to provide advice that leans one way or another) does that necessarily mean it’s good advice?

We don’t think so. You can be objective and still be wrong.

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March 9, 2015

Whole Life Insurance Guaranteed Cash Value Gaffe: A Financial Planner gets it very wrong

Whole Life Insurance Guaranteed Cash Value Gaffe: A Financial Planner gets it very wrong

Normally we are fine with leaving minor mistakes people make regarding various financial products alone—long time readers of this blog know we’ve sure made our fair share of editing booboos among the nearly 500 articles we’ve written in the past three years.

Recently, we were called in to review advice (a second opinion) given by a financial planner that was so wrong I have to highlight it here. And I also realized something in correcting the misinformation that made me think this is a mistake some others might be making. So I did a little digging around the ye olde interwebs (looking at forum posts & financial blogs) and discovered it is indeed a common mistake.

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March 5, 2015

160 Are You Ducking Crazy?

160 Are You Ducking Crazy?
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Despite it being a bit of a slow week in the world of financial news, we managed to find a few nuggets that hopefully you’ll find interesting.

Today we are talking about President Obama’s proposed budget for 2016…well not really. But we are discussing some of his proposed changes to how IRA’s are taxed–both in regard to Roth IRA conversions and to the repeal of stretch IRA provisions. No doubt both will prove to lightning rod issues for many.

Also, we’re taking a look at a grand experiment that is being funded by Peter Thiel that pays kids to drop out of college and dive into the world of entrepreneurship. It started a few years back and we have an update on its progress.

Institutional bond investors have decided now’s the time to buy bonds? Seems like they’re late to the party…no?

Finally, we look at some common mistakes and misconceptions surrounding life insurance beneficiaries. Yes, we know it’s not terribly interesting but it is very important, be sure not to skip it as it could save your heirs a ton of trouble and money.

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February 26, 2015

159 This Episode Brought to You By Apple

159 This Episode Brought to You By Apple
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No today’s episode of the Financial Procast is not really sponsored by Apple, but if you listen closely you’ll get the joke. All I can say is thank goodness for the amazing battery life of my Macbook Pro Retina. We were able to record this hour long podcast with me only having about 25% of the battery life when we started.

But not to worry, this episode has nothing to do with that in particular, just a little humor to get things started.

No, there are much more pressing issues to discuss today…so let’s get to it. Read More…

February 19, 2015

158 You Are NOT Diversified!

158 You Are NOT Diversified!
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In episode 158 we were truly given the gift of awesome topics to discuss and we even get to reference some commentary from one of our favorite economists/financial commentators, Robert Shiller.

Today we’re discussing what Dr. Shiller thinks investors can expect in regard to asset returns moving forward, the rise of “roboadvisers” (and their insane valuations), millennials have discovered that you actually have to pay for stuff, and we think that most of investing world has the idea of diversification all wrong. Read More…

February 12, 2015

157 What It Takes to Become a 401k Millionaire

157 What It Takes to Become a 401k Millionaire
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Well, we’re back after I was gone on a little vacation last week. I know that many of regular listeners were shocked that we didn’t release an episode last week as it is customary for us to do so even when one of us is away. Alas, life happened and we weren’t able to record anything prior to my time away.

But never fear, we have a great lineup for you today.

Now, I will admit at least part of our episode is a bit self-serving but that’s only the first 15 minutes or so. If you don’t like to hear us gripe, we understand, just look at the time stamps provided below and skip ahead to the parts that interest you more. Read More…

February 9, 2015

Whole Life Insurance Company Investment Risk: Non-Investment Grade Bonds to Surplus

Whole Life Insurance Company Investment Risk: Non-Investment Grade Bonds to Surplus

Choosing a whole life insurance company’s product as a place to store cash requires a deeper understanding and trust in the company’s ability to care for your money. There are a multitude of metrics that we look at when we select a company for a client and these various metrics help us measure risk faced by a policyholder; this risk touches on multiple considerations mostly concerned with continued operational success.

Some of the metrics we use worry about continued success through mitigating the risk of negative economic considerations or operational losses be they business losses or investment losses. Today we’ll discuss one metric that focuses exclusively on investment risk loss.

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