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August 2011 Newsletter

Posted on August 4th, 2011 by summit

In this issue we spotlight:

  • Market Commentary
  • Estate Plans and Taxes
  • Art, Design & Antiques Market Speaker and Book Signing
  • Pelotonia 11: One Goal–End Cancer
  • App of the Month
  • Small Business Spotlight
  • Market Snapshot

Take a look!

 

8 Things Your Financial Planner Won’t Tell You

Posted on May 26th, 2011 by summit

There are hundreds of thousands of financial advisors in the marketplace.  Some deal solely with insurance, others only deal with retirement plans, yet everyone calls themselves a financial advisor.  This article, written by Liz Pulliam Weston of MSN Money, provides people with a list of 8 things an advisor normally will not tell a potential or current client.

http://articles.moneycentral.msn.com/RetirementandWills/CreateaPlan/8ThingsYourFinancialPlannerWontTellYou.aspx?page=all

A helpful hint in this article is the mention of the ADV, parts I and II.  The ADV provides many of the disclosures a potential client will want to know about a financial advisor without even needing to contact the advisor.  You can locate a firm’s ADV on the SEC’s website, www.sec.gov.  Above all, when interviewing a potential advisor, ask questions. If you don’t like what you hear, ask for further clarification or move on to the next advisor.  In a pool of hundreds of thousands of candidates, locating an advisor who is truly comprehensive, unbiased, fee-only and acts only in the best interests of their clients is sometimes hard to find.  With the proper tools and knowledge at your disposal, this doesn’t have to be the case.

Low Cost Mutual Funds

Posted on April 14th, 2011 by summit

What is the impact of mutual fund expenses on fund performance? Morningstar has released a study showing that lower expense funds outperform higher expense funds in every reported time period and in every asset class. Here is an example of the power behind mutual fund expenses as stated by the Department of Labor:
“Assume that you are an employee with 35 years until retirement and a current 401(k) account balance of $25,000. If returns on investments in your account over the next 35 years average 7% and fees and expenses reduce your average returns by 0.5%, your account balance will grow to $227,000 at retirement, even if there are no further contributions to your account. If fees and expenses are 1.5%, however, your account balance will grow to only $163,000. The 1% difference in fees and expenses would reduce your account balance at retirement by 28%.”
How Expense Ratios and Star Ratings Predict Success.
The Difference
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