Hire an Advisor, Not a Salesperson

A common misconception about the investment world is that the person giving you financial advice is either commission-based or fee-based. At The Asset Advisory Group we are neither. We are fee-only. This means that we do not receive any compensation from the investment companies whose products we use to implement our client’s financial plans. A commission-based salesperson will always have a temptation to make a recommendation based on what would be best for themselves or the company they represent, not their client. I’m not saying this is intentional, but I have seen it happen time… [read more]
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How Mutual Fund Managers are Like Cigarette Makers

(from Jennifer Saranow Schultz’s article on the New York Times’ Bucks Blog, 8/18/2010 – click here to link to the original post) Last week, my colleague Tara Siegel Bernard wrote about a recent Morningstar study that found that expenses were the most dependable predictor of fund performance and actually helped investors make better decisions than Morningstar’s star-rating system. Then, on Tuesday, Carl Richards wrote about how the study’s results stacked up with his own findings that the fund with the lowest expenses tended to win. So, we apologize for coming back to this study… [read more]
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Morningstar Says Fees Foretell the Future Better Than the Stars

Morningstar Inc., one of the most well known mutual fund evaluation companies, published a study on August 9th that concluded low fees were the best predictor of a mutual fund’s future success – even better than Morningstar’s own star-rating system. This is a big deal; because Morningstar’s business consists of looking at past returns of mutual funds using a complicated evaluation system, assigning a star-rating to each one, and selling this information to individual investors, libraries and the financial industry. Mutual fund companies take out full page ads touting their 5 star rating because they… [read more]
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5-Star Weekend

This weekend, I had the honor of joining my father for the Pro Football Hall of Fame induction weekend as a guest of one of the enshrinees, Emmitt Smith, the NFL’s all-time leading rusher. It was an amazing weekend with lots of legends of the game, family, friends and fans all celebrating the accomplishments of the new class and the sacrifices they made to achieve greatness. All weekend, I felt very much like an ad for a must-buy mutual fund in any number of financial publications. All sizzle and no steak, if you will. On… [read more]
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Hiring the “Best” Stock Pickers

This week, we thought we’d have a laugh via famed Dilbert cartoonist Scott Adams, a financial manager prior to starting the cartoon Dilbert that went on to earn him considerable fame and fortune. Adams, a noted fan of passive management, uses his character “Dogbert” to explain the logic, or lack thereof, of the brokerage industry. Enjoy your week! www.taaginc.com[read more]
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