Incorporating taxes with an investment plan is one area most investors want assistance with from a financial advisor. Lately, there has been a pitch from online investment firms (sometimes referred to as “robo-advisors”), which claim their technology automates a plan for maximizing tax-efficient investing. What they have to offer though, tax-loss harvesting, may really not be a benefit to the majority of their clientele. Tax-loss harvesting is the practice of selling investme

This article originally appeared at Forbes as It Pays to Diversify Beyond the S&P 500 by Robert Schmansky, CFP®. Investors often ask if an approach of including more small and value stocks in a portfolio than a capitalization weighted index involves more risk. If risk is measured by volatility, yes, a small and value portfolio will have more volatility. Volatility however can be useful in stock investing with a rebalancing plan and a longer time horizon. Going back to 1927, I

This article originally appeared at Forbes by Robert Schmansky, CFP®. Following a rigid ideology can present weaknesses in life and an investment plan. The more experience I have as an advisor the more I realize that rigid models, rules of thumb and hard beliefs often benefit from a little flexibility. While indexing is a great way to invest in the markets, is a straight market-cap weighted commercial index fund the best tool to use in assembling a portfolio? Or can we benefi

As an advisor who works in taxes, it is interesting, and at times infuriating to see the costs some brokers will impose on their client’s portfolios. The tax piece is important in any investment plan, and unfortunately I see many brokerage created investment plans that appear to be based on what is profitable and convenient, and not what is in a client’s best interest. The cost to one client in particular I met with were actually staggering given the relatively simple fix tha

With market volatility and real estate prices where they are today, many are wondering, “Should I invest in real estate?” Real estate can add dimension and diversification to a portfolio. It can provide an asset that should grow with inflation as the costs of materials increase; it can also provide an income stream that also overtime increases with inflation as a wages and the population grow. And, of course, when it comes to land we all know they aren’t making any more of it

The following article was written by Weston Wellington of Dimensional Fund Advisors and published on 11/29/2011. It discusses the fallacy in trying to pick managers to outperform the stock markets. Bill Miller is one of the most closely watched money managers in the industry, so it was big news when he announced his decision last week to step down as portfolio manager of Legg Mason Capital Management Value Trust (LMVTX) early next year. His departure also adds an intriguing

If your advisor invests in funds with names like Absolute Return, Active Opportunity, Opportunistic Preservation, or the like, this article by Ben Steverman offers plenty of reasons why you should re-consider. Despite my quote, I tend to agree that there are an extremely select few individuals who with a combination of skill and luck can pull off a strategy like this; however, the average multi-millionaire has no means of investing with those managers. #investing #gpsinvestin

I have a difficult time forecasting my preference for meals. At times (many times), it’s pizza; other times, it’s something a little healthier. This indecision about what I’ll want tomorrow causes me to not stock up on much, and I rarely shop too far out. Just as what you may want for dinner today may not be what you crave tomorrow, so it generally is with our preferences for investments. The volatility in the markets, combined with the rise in oil and commodity prices, and l

Last week a friend and I were catching up on life over lunch. This particular person happens to be an extremely knowledgeable investor, and he generally enjoys trying to pin me down on what may happen with the market, economy, interest rates, and the like. And while he knows my feelings about predictions, we went on to chat about what is going on in the world; and, what various circumstances may or may notmean for holding different investments. At one point I asked if he was

Originally published 5/24/2010 at the Financial Planning Association's All Things Financial Planning Blog Robert Schmansky, CFP(r) Receiving an inheritance can be one of the most emotionally charged situations concerning money. It is a memory of our loved ones, a symbol of their feelings for us, as well as their wish to enhance our financial security. In today’s volatile market and low interest rate environment, many people are conflicted about what to do with this gift. Leav