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Accretive Wealth Blog

401(k)- A Path to a Healthy Retirement

Wednesday, July 31, 2013

Whether you’re thinking of retiring soon or whether retirement is way down on your list of your priorities, it’s never too late—or too early—to investigate your options. In this post, we discuss some of the ins and outs of one of today’s most popular retirement plans: 401(k)s.

The 401(k) plan is named after the section of the U.S. tax code that governs it. It is offered through your employer and can provide you with tax-deferred savings, lower taxable income, and, in many cases, matching, or “free,” money from your employer. Continue reading “401(k)- A Path to a Healthy Retirement” »

The Accretive Difference

Wednesday, July 24, 2013

These days, wealth managers are a dime a dozen (perhaps less, when adjusted for inflation).

So why should you turn to Accretive Wealth Management to meet your needs?

First, we pride ourselves on our independence. We answer only to our clients (and, oh yeah, to regulators) when determining financial plans and strategies. We are beholden to no large parent company, we have no ties to proprietary products, and we don’t make markets in stocks or bonds. So you have our complete attention. Continue reading “The Accretive Difference” »

Asset Allocation 101

Wednesday, July 17, 2013

This week we look at one of the key steps in building an effective portfolio strategy: asset allocation.

Allocating your assets effectively simply means building a portfolio across different types of securities in alignment with your situation, goals, and objectives. Investments are typically broken down into these asset classes:

  • Cash (including money market funds)
  • Equities (stocks)
  • Fixed income (bonds and notes)
  • Real assets (metals, commodities, real estate, collectibles, agricultural land, and oil)
  • Alternatives (such as private equity, hedge funds, and master limited partnerships)

Continue reading “Asset Allocation 101” »

Are Stocks the New Bonds?

Wednesday, July 10, 2013

Some of our clients and friends have asked us what strategy they could use in this market to generate income from their investment portfolios. Bond yields are low, and bond risk is rising as issuers take advantage of today’s low rates to extend duration. Fixed-income securities as a source of income don’t look very compelling. What’s an investor to do?

Luckily, there is an option that many investors find attractive: portfolios that focus on growth and income through high dividend yield (HDY). A manager selects the stocks in these portfolios by identifying high-quality companies that offer a higher-than-average dividend yield. An HDY portfolio is characterized by: Continue reading “Are Stocks the New Bonds?” »

Did the Markets Overreact?

Wednesday, July 3, 2013

This week, Accretive Wealth’s CEO Faraz Sattar asked Dan Kern to give us his take on what’s happening in the markets and what he expects in the near future. Dan is president and chief investment officer of Advisor Partners, which provides customized investment portfolios for many of our clients.

Faraz: A few weeks ago, you told us we might see a short-term drop in the market and a rise in Treasury rates, both of which have occurred. Would you discuss the causes?

Dan: We thought the markets were vulnerable to a short-term drop, which is what we saw after the Fed said that it would probably begin to normalize monetary policy as early as September. The Fed news came alongside a troubling spike in interbank rates in China (the rate banks charge each other for overnight funds). Usually the People’s Bank of China steps in to add liquidity when that happens, but they waited this time. We think that was a message telling Chinese banks to become more disciplined and reduce lending excesses. Continue reading “Did the Markets Overreact?” »