Should You Avoid Bonds in Today’s Environment?

Should You Avoid Bonds in Today’s Environment?

FINRA, the Financial Industry Regulatory Authority, recently warned investors that in the event of rising interest rates, “outstanding bonds, particularly those with a low interest rate and high duration may experience significant price drops.” Why are bonds facing this risk today and what should investors do as a result? As I wrote last year, we…
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Another Hedge Fund Collapses Through Fraud

The San Jose Mercury News reported this week that a federal judge sentenced the manager of the Sunnyvale-based Asenqua Beta Fund and the Fireside LS Fund to 12 years in prison for defrauding local investors out of at least $6.5 million. Albert Ke-Jung Hu was found guilty in June of luring wealthy investors to his…
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Is It Better To Stick With CDs Than With Stocks Right Now?

Late in 2008, right after the market crash, I was providing financial advice to a woman as part of a free financial clinic put on by the Financial Planning Association.  We were discussing ways to preserve and grow her investments when she mentioned the approach taken by her 85 year-old aunt.  The aunt simply buried…
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Are Target-Date Funds A Good Way To Invest?

The percentage of 401(k) plans that offer target-date funds increased from 57% in 2006 to about 75% last year, with 39% of participants actively invested in the funds, according to a study by the Employee Benefit Research Institute and the Investment Company Institute. A target-date fund is a fund of funds that assumes you will…
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Is Crowdfunding a Good Way to Invest in Startups?

Crowdfunding (also known as crowd financing) describes the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations.  Originally used to support microfinance, non-profit organizations, and aspiring artists, crowdfunding became a source of funding for new businesses after the passage of the…
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Does Tax Gain Harvesting Make Sense for 2012?

You may be familiar with the term “tax loss harvesting.” Towards the end of each year, many investors routinely sell assets such as stocks or mutual funds with embedded losses in order to offset the current taxes they will have to pay on gains from other assets. This strategy generally works well during periods of…
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