Thursday, May 26, 2011

IRS Scrutinizes Gifts of Real Estate

IRS Scrutinizes Gifts of Real Estate

The IRS is cracking down on gifts of real estate to family members. We often see situations where mom and dad put the kids on the deed, or outright give them real estate without realizing that this is a gift (or they realize it is a gift but figure nobody will ever know). Now the IRS is looking. With the lifetime exemption at $5mm there is no reason not to dot the i's and cross the t's.

Thursday, May 19, 2011

Does not correlate: Portfolio manager is short long-only portfolios

Does not correlate: Portfolio manager is short long-only portfolios

I agree that portfolio construction using just long only stocks and bonds does not work and not only do investors need to be more tactical they need to be completely tactical. However, how can you say that stocks over the next couple of years will be sluggish as a certainty? Nobody knows what the market will do, that is the point of being tactical, you don't need to guess, just react.

Portfolio management theory all wrong, claims economist

Portfolio management theory all wrong, claims economist

We have long argued that rebalancing based on the calendar and selling you winners to buy more of your losers made no sense. Rebalancing should only be done when market dynamics shift and should be done based on the direction of the underlying trend.

Tuesday, May 17, 2011

Pimco's 'new normal' missed out on 94% stock rally: Wharton's Marston

Pimco's 'new normal' missed out on 94% stock rally: Wharton's Marston


Bill Gross can't predict the market neither can Richard Marston or anyone else for that matter. Bill Gross is one of the smartest guys out there but he got it wrong in a big way. Will Marston be right? Who knows, you have a 50/50 chance when predicting what the market and economy will do, it will either be up or down. Pretty good odds for just about anyone to be right once in a while and look real smart but no way to manage your money.

Monday, May 16, 2011

Morningstar Adds New Alternative Categories

Morningstar Adds New Alternative Categories

This brings Morningstar's Alternative category to seven and gives investors a greater ability to compare apples to apples. Now if they would just come out with a tactical category that would be great.

Friday, May 6, 2011

Matthew Tuttle on CBS News

New Credit Card Rules

I was recently interviewed by NBC about the new rules that will be going into effect this year that will not allow stay at home spouses to use the working spouses income to qualify to get a credit card. This is one of the dumbest things I have ever heard. As a CFP I understand the pitfalls of too much consumer debt but the government cannot protect us from ourselves. This will also have way too many unforseen consequences.

Here is a link to a clip that was on a Colorado station

CBS came to interview me today about this for the 5pm news as well.

If you are a stay at home spouse and you don't have a credit card, get one before this law goes into effect.