Dan Explains Investing at Investopedia

Investopedia, May 17, 2017: “For a Little Extra Green, Hire a Financial Advisor” by Dan Danford. The rich get richer. The poor get poorer. And the green get greener. Although there are many ways to care for your lawn, the two primary ways offer a helpful illustration. If you want a lawn to look nice and enhance the value of your home, you can do it yourself or you can hire a lawn service. Either approach can create stunning results, but that’s where the similarities end. Find out in this article how the D-I-Y approach may not work as well for investing as it does for lawn care. Read more.

Investopedia, May 18, 2017: “Determining a Financial Advisor's Value to You” by Dan Danford. What’s the biggest challenge facing investors today? Interest rates? Politics? High valuations in the stock market? None of these presents a bigger challenge than this: Who is the best advisor to help accomplish your financial goals? There are brokerages, insurance companies, banks, mutual funds managers, accountants and independent advisory firms. All of them employ charming people who would love to help. For an individual, the fee structures they encounter can seem almost random, dictated by who they ask to help and the provider channel. Read more here.

Investopedia, June 9, 2017: “Investment Performance is a Bad Measure of Advisor Value” by Dan Danford. Many investors believe that performance is the only measure that counts as they apply mental mathematics to evaluate advisory fees. The truth is that if performance was all that counted, everyone would be driving high-end muscle cars. Although performance does matter, so does safety, reliability, comfort and cost. When looking at various investment options, financial advisors can assist investors in handling risk while weighing everything else that goes into a diversified, healthy portfolio.

Investopedia,  June 12, 2017: “How Cutting Fees Boosts Returns for Nonprofits” by Dan Danford. For those who are community-minded and sit on the boards of their favorite charity, they have a personal interest in seeing the endowment of that organization succeed. Looking at fees involved in managing that endowment is therefore quite important. For example, when times are good and the endowment enjoys a 10 percent return on investments, fees seem like a small thing to worry about. However, when the economy takes a downward turn, as it is prone to doing, and the endowment sees only one or two percent returns, fees can be devastating. Keep an eye on the fees and see better returns.

Investopedia, June 15, 2017: “Budgeting? Go Ahead and Drink That Latte” by Dan Danford. Consumers today face a number of challenges when it comes to establishing long-term goals for their finances. However, many have a misguided belief that if they are to establish an investment strategy, it’s going to involve taking all the small yet enjoyable things in life out of the equation. The opposite is true. When the big decisions are made correctly, the smaller things can be enjoyed without interruption.

Nasdaq, June 16, 2017: “How to Create a Low-Risk, High-Return Portfolio” by Dan Danford. Any good recipe includes integral individual parts. However, when you taste each part on its own, the sensation is nothing compared to tasting everything as a whole. The same is true when it comes to investments. While a high-risk, high-reward investment might seem pleasing, it needs to be balanced out with low-risk, low-reward counterparts. A quality investment advisor will help investors create a diversified portfolio based on risk and return.

Investopedia, June 23, 2017: “The Importance of Understanding Family Net Worth” by Dan Danford. One of the most powerful finance tools a family has is their statement of net worth, or their balance sheet. Easy to compute and update, the balance sheet can offer a fact-based tool for evaluating decisions. This article outlines how to create a balance statement and how to approach making significant buying decisions.

Investopedia, June 29, 2017: “What Fund Managers and Fisherman Have in Common” by Dan Danford. Using the analogy of a fisherman with multiple choices for catching a variety of fish every day, Dan Danford lays out a scenario where financial advisors can assist investors in making sure their portfolios will cover them when some investments are looking down. Safety offers diversification, which is an integral part of the modern portfolio theory.