Longboat Retirement Solutions LLC

Diversified Portfolio February 28, 2017

Over and over I hear the mantra “Diversified Portfolio” – but what does that mean?

Diversification means different things to different people.

Most however, think that it means they own stocks in several industries that counteract each other. In other words, they own two stocks – if one goes down, the other goes up. No two stocks are going to perfectly counteract the other, but a person can come close with lots of research.

Other people (including myself) contend that investment diversification must also include investment class diversification and international diversification. In other words, you should own things other than stocks, things like metals, currencies, bonds, real estate, and even international investments.

The argument could be made that a world wide downturn would hurt all of these things. Well….sure, maybe, but maybe not. Generally “safe harbor” investments and “contrarian” investments like gold, and certain currencies (Norway, Switzerland) tend to go up during world wide downturns.

Now, being a guy that does not give investment advice, I’m not going to advocate any particular investment, or even investment class, or even investment style….but do your research, and diversify…..and I mean really diversify, not just own a bunch of U.S. stocks.

 

Fiduciary August 3, 2012

BY: Lars Forsberg
Longboat Retirement Solutions LLC
http://www.myselfdirectedretirement.com

Ever wonder why your financial advisor sold a fund or bought a particular stock?

Have you ever looked at your portfolio statement from your advisor and scratched your head, thinking what the…?

I met with someone the other day who received his monthly statement in the mail.  Glancing at the statement, he noticed something odd;  his “fiduciary” investment advisor sold some shares to cover his monthly maintenance fee.  Looking further, he noticed that his advisor charged him a fee to sell the shares…..wait for it….wait for it…..that was greater than the monthly maintenance fee.

Therefore, this guy, we’ll call him Joe, was charged a transaction fee, larger than his monthly fee, to sell shares to cover his monthly fee!  Awesome.  Wow.

So now Joe has lost some value in his portfolio of essentially worthless stock funds, paid a monthly maintenance fee, and paid a transaction fee.

This was a good day for his financial advisor.  He collected two fees from his customer.

This allowed his financial advisor to make next month’s payment on his BMW.

Unfortunately for the advisor, Joe decided to break free of the scam and self direct his retirement with Longboat.

Joe’s former advisor will now have to find another sucker to soak for fees to cover October’s car payment.