Archive for August 2011
Tax Planning for College
Posted by: Michael Zhuang on: August 23, 2011
[Guest post by Jeremy Bendler] It’s back to school time! Many of our clients are wondering how to properly plan for higher education expenses. If your children are younger you may be wondering how to efficiently save for college. If your children are already college age, your goal is to pay for current or imminent [...]
Standard & Poor’s Downgrade Spree Hits Google
Posted by: Michael Zhuang on: August 17, 2011
Not satisfied with its downgrading of U.S. Treasury Debt and Fannie Mae, today S&P downgraded Google’s stock from “Buy” to “Sell,” sending GOOG tumbling by 3.3%. In case you don’t remember, yesterday Google announced that it would purchase Motorola Mobility for a whopping $12.5 billion in cash – a decision that prompted S&P’s downgrade of [...]
Trustee Powers
Posted by: Michael Zhuang on: August 13, 2011
[Guest Post by Christopher Guest] Last month, I discussed the questions a settlor, or creator of a trust, needs to ask before selecting a trustee. Once a trustee is selected, a settlor needs to determine the trustee’s powers with respect to the trust. The trustee is charged with caring for and managing the trust property. [...]
How can an investor prepare for market corrections?
Posted by: Michael Zhuang on: August 11, 2011
The common approach to dealing with a market correction is trying to get out of the way at the first sign of trouble before the big one hits, like getting out after a 5% dip before the 30% drop hits. This approach requires perfect foresight. God can do that, not you, and certainly not a [...]
US Credit Downgrade: Stock Market Panics, Bond Market Thumbs Its Nose at S&P
Posted by: Michael Zhuang on: August 9, 2011
On the first trading day after the US credit rating was downgraded, the markets seemed to suffer from bipolar disorder. The stock market was a bloody mess: the Dow Jones was off 634.76, its worst ever decline since the credit crisis in 2008! The bond market, especially the treasuries market, which was supposed to take [...]
How Often Do Market Corrections Happen?
Posted by: Michael Zhuang on: August 5, 2011
As of yesterday, the market had dropped more than 10% from its recent peak on 5/2. Many investors are very concerned. I am too. Whenever I find my emotions are unsettled, I study historical data. That has always given me a perspective unavailable from the tick-by-tick reporting of the real-time financial media. The following table [...]
Portfolio Rebalancing Returns
Posted by: Michael Zhuang on: August 5, 2011
In one of my previous posts, I showed how diversification across asset classes is superior to momentum and contrarian strategies. Today, I am going to show how disciplined rebalancing adds to returns. I will first demonstrate this using a stylized example and then through historical returns. An example of two asset classes
Assets without Physical Form
Posted by: Michael Zhuang on: August 2, 2011
[Guest Post by Anthony Carducci] Do you own a domain name . . . you know, a web address? How about a Facebook account? What about an easily recognizable email address or a Twitter handle? Are any of those things valuable and worth passing on to your loved ones? If so, have you made arrangements [...]
Top 10 Most Popular Wealth Management Posts in July
Posted by: Michael Zhuang on: August 2, 2011
10. Google’s Revenge: Morgan Stanley Downgrade Fiasco 9. America’s Top Financial Advisors: How Are They Made? 8. Italian Debt Crisis + US Debt Ceiling: Now What for Stocks? 7. Variable Annuity Fees You Don’t Know You Are Paying 6. The 2011 Estate Tax Changes 5. Why Asset Class Diversification is Superior 4. Taking Investment Risk [...]
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