Author: Richard Archer

What Can You Do About the Equifax Data Breach?

Posted on December 21, 2016 by - Smart Money Tips

The recent Equifax Data Breach has compromised sensitive information for almost 150 million Americans. To see if you were affected, you can enter your information here. If you have been affected, it’s important to be proactive to protect your credit. Here are some steps I recommend.

For those who believe their data was compromised, the free credit monitoring that Equifax is providing could be a good start: Equifax Security 2017.  

Instead, I pay for the credit monitoring service from Zander Insurance Group to help protect my family: Identity Theft Protection by Zander Insurance

Another option is to potentially pay and get a freeze put on your credit for one year. You  can visit the following two websites of the other two credit reporting bureaus as well to sign up:

1) TransUnion: Place a Credit Freeze

2) Experian: Five Things to Do After Your Information Has Been Stolen

Also, here’s a free website I use to personally monitor and improve my annual credit report , you can set up proactive alerts to warn you if there’s a big change on one of your credit reports by selecting ‘Profile & Settings’, then ‘Communications & Marketing’, and checking the ongoing alerts you would like to receive.

If you don’t wish to use CreditKarma.com or a similar site, you can also visit https://www.annualcreditreport.com/index.action and obtain your credit reports for free from each of the credit reporting bureaus.

THE DAY MY IDENTITY WAS STOLEN

It was a seemingly ordinary day when it happened. My phone rang and, when I answered, I heard the voice of an unknown man.

“Hello, is this Mr. Richard Archer? This is John from Neiman Marcus in Atlanta. We’re just calling to confirm that you were just in our mall location and applied for a new store credit card.”

These three sentences commenced my unfortunate identity theft journey. In the next few days, I came to learn that a man had my Social Security number and full name and had created a fake driver’s license with my correct home address alongside his picture. He walked around the Atlanta mall impersonating me, moving from store to store trying to open credit accounts. So far, he had succeeded at Neiman Marcus, Best Buy, Toys ‘R’ Us, and several times at Verizon. Before we were alerted, he’d run up more than $1,000 in cell phone charges.

HOW DID IDENTITY THEFT HAPPEN TO ME?

Some people might wonder how I, a financial planner, could become the victim of identity theft. I’ve helped multiple clients get through identity theft, and I know what a mess it can be. Hoping to avoid it happening to me, I shred account statements religiously, watch my credit score online, consistently update my passwords, use a locked mailbox, and never click on suspicious links online. So what went wrong?

I thought long and hard about it and then I remembered notices from my alma mater and TJ Maxx. Both had suffered huge data breaches in the past two years, and they had each notified me that my personal information might have been compromised.

Here’s the truth: identity theft can happen to anyone — even to a financial planner and even to people who proactively safeguard their personal information. If you’ve ever had a bank account, credit card, shopped online, or included your Social Security number on an application, your identity could potentially be stolen.

WHAT TO DO ABOUT IDENTITY THEFT

It was in the evening when I received that call from Neiman Marcus, and it was hard not to panic at the thought of everything I was going to have to do to get this fixed. I knew I needed to cancel my credit cards, change my account passwords, and notify my bank and credit agencies. I had read stories about others who had their identities stolen and it had taken them, on average, a year and 200+ hours to get to a point where they could use their rebuilt credit again.

But then I remembered I had purchased ID Theft Concierge Protection from Zander ID Theft Solutions. I found their hotline number and called them, crossing my fingers that their office wouldn’t be closed at this time of night. My anxiety was high as I pictured a crook walking around Atlanta ruining the good credit I had worked so hard to build.

Luckily, a professional from Zander was available and immediately helped by placing a freeze on my credit and requesting me to send in everything I could to help him fix this problem. Over the next four weeks, I scanned and sent copies of all related correspondence I received regarding my many new credit accounts while the folks at Zander personally contacted and cancelled each new fake credit request. They had to contact several companies multiple times because the companies really wanted to get paid the thousands of dollars they were owed. 

Three months later, Zander had my entire credit report back to normal, and within four months my credit score was restored. 

LESSONS LEARNED

Experiencing this process firsthand, I learned the value of having expert help. It was such a relief not having to figure out all of the ins and outs of rebuilding my credit by myself. The professionals at Zander were faster, more persistent, and more successful than I could have been while also trying to run a business and spend time with my family.

Based on the amount of information my identity thief knows about me, I am positive it will happen again in the future. However, I have alerts set now that tell me when anyone requests new credit and a special verbal password to use with the credit agencies and my banks. I continue to do everything I can to protect my data myself, but a lot of it is out of my hands since I’ll frequently have to share my Social Security number, date of birth, name, address, driver’s license number, or other information. Furthermore, data breaches are becoming more common, so it’s just a matter of time before it happens again.

However, I feel more confident and at ease knowing someone else is also looking out for me. These are the feelings I hope to provide my clients. By serving as a family’s financial professional, I am there to provide a second set of experienced eyes on their strategies, offer guidance, and take some of their responsibilities off their plate so they can focus on their family.

Whether you have questions about protecting your identity in the wake of the Equifax Data Breach or seek advice about other elements of your finances, I’m here to help and am available to chat. You can easily book an appointment with me online here.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com. 

How To Have A Sustainable Home In Austin For Under $100

Posted on December 20, 2016 by - Investment

For most of us, one of our biggest investments is our home. As such, we often want to improve it, making it the best it can be with the hope of seeing a significant return when we sell. 

One of the big buzzwords in the homeownership world right now is sustainability. People are becoming more aware of how their lifestyles affect the environment and want to do their part to address climate change. One way to do this is to power your home with 100% renewable energy. But how can you do this without breaking the bank? Is it a worthwhile investment? 

WHAT IS RENEWABLE ENERGY?

First, a definition is in order. Simply put, renewable energy is electricity generated from renewable sources such as wind, sunlight, biogas, and tidal energy. Energy from these sources is limitless and clean and it does not add pollution to the atmosphere. Non-renewable energy sources like coal and natural gas have environmental costs, such as emissions into our air and water.

Is It Worth The Cost?

One question many people have is whether or not switching to renewable energy will save them money down the road. I recently had a financial planning client asking about this exact topic. They wanted to do their part to address climate change by powering their home with 100% renewable energy and asked if they could afford a large solar array on the roof of their home.

The problem was that a solar array big enough to completely power their home was going to cost almost $20,000. When we crunched the numbers, we realized it might take about ten years for them to recoup the upfront costs. Instead of the high initial investment of a solar array, I suggested another solution that would upgrade their home to 100% renewable energy sources for less than $100 extra per year. At that price, my client was intrigued. Are you?

The Power of Wind

Currently, fossil fuels make up 81.5% of U.S. energy production and about 40% of total US energy consumption is from the residential and commercial sectors. (1)  However, renewable energy production was at record highs in 2016. From a local perspective, Austin Energy generates about 30% of its energy from wind, solar, and biomass. (2)

Wind power is a net zero energy source, meaning it has zero fuel cost, produces zero emissions, and requires zero water use for production. If you live in Austin, you have the opportunity to take advantage of the GreenChoice program, which allows you to support renewable energy by ensuring Austin Energy purchases Texas wind energy to match 100% of your usage instead of energy produced with fossil fuels. (3) When you subscribe to GreenChoice, you make a lasting contribution to Austin’s quality of life and take a leadership role in moving Austin toward its community goal of 55% renewable energy by 2025 and 100% by 2050.

Subscribing to GreenChoice means that Austin Energy can purchase wind energy to meet your needs instead of electricity produced from natural gas or coal-fired power plants. Relying less on fossil fuel combustion for energy means less air pollution and less water wasted in drought-prone Texas. Your purchase of GreenChoice energy supports the growth of the renewable energy industry in Texas, which creates new jobs in the state and produces new revenues for school districts.

In 2016,  Austin Energy GreenChoice customers invested in more than 719 million kWh of renewable energy. This translates into reduced carbon emissions equivalent to the impact of more than 11 million trees. If that isn’t enough to entice you to make this change, the average Austin residential customer can switch to wind energy for about an additional $6.70 per month with no contract, no subscription fees, and no penalty for unsubscribing.  Additionally, new and existing Archer Investment Management clients who switch to Austin’s GreenChoice program before the end of 2017 will receive a one-time $100 discount off our fees.

IS RENEWABLE ENERGY RIGHT FOR YOU?

As with any financial decision you make, it’s important to do your research and talk to experts in order to make an educated decision. At Archer Investment Management, we ascribe to a disciplined, unemotional, and highly diversified investment approach, favoring objective and time-tested advice to “trendy” stocks. If you want to invest into companies that further the social missions that you value, reach out to us for a complimentary portfolio review. Click here to schedule a phone call.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com. 

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(1) https://www.eia.gov/tools/faqs/faq.php?id=86&t=1

(2) http://austinenergy.com

(3) http://austinenergy.com/wps/portal/ae/green-power/greenchoice/greenchoice-renewable-energy

Socially Responsible Investing: Doing Well While Doing Good

Posted on December 19, 2016 by - Investment

Have you ever considered the impact your investments make? Have you looked at the companies in which you’re investing and considered how they contribute to global problems or solutions? If you’ve wanted your investments to align with your values, you’re not alone. You just might not realize there’s a way to do so.

THE GROWTH OF SOCIALLY RESPONSIBLE INVESTING

Socially responsible investing (also known as sustainable, ethical, or conscious investing) is an investment strategy that aims to consider both financial return and social good to inspire social change. Think of it as an opportunity for doing well while doing good. Socially responsible investing, or SRI, has increased in popularity over the years, growing 76% between 2012 and 2014 from $3.74 trillion to $6.57 trillion assets, according to Envestnet PMC. 

Particularly since the Trump presidency and a slew of government policy changes, demand for SRI has continued to steadily increase. Additionally, Millennials have shown significant interest in SRI, which has contributed to the growth. Investors want to be able to invest in companies that support issues they care about, whether that’s social programs, education, or the environment. Individuals investors can essentially target their concerns through their investment behavior and consumption decisions.

DOES SOCIALLY RESPONSIBLE INVESTING MAKE SENSE FOR YOU?

Investing in companies that support causes you care about while also generating returns is appealing to many investors, which is likely why SRI has steadily increased. However, opinions are still mixed about the impact of SRI strategies on performance. Some studies claim that socially responsible investments don’t perform as well as traditional stock market funds. Additionally, some of these investments come with higher annual fees. And, depending on the type of company in which you wish to invest, such as wind, solar, or other alternative energy funds, you may face more volatility.

Morningstar reports that the average U.S. SRI mutual fund trails the benchmark S&P 500 index, but many funds that don’t fall into the SRI category have also fallen behind the market. As you can see, the jury is still out on whether or not sustainable portfolios experience a performance penalty.

Generally speaking, professionals recommend identifying reasons to invest in a stock, rather than focus on avoiding ones you don’t align with. Instead of focusing on stocks you don’t want to invest in, research those that you want to support. 

FINDING BALANCE

Like any financial strategy, balance is key. Depending on your specific goals, you can incorporate SRIs into your portfolio. This gives you the opportunity to generate returns and save for your future while also supporting companies with social missions that align with your values.

The first place to start is to speak with a financial advisor and discuss your investment goals, your social values, and how they can integrate. At Archer Investment Management, our investment approach is disciplined, unemotional, and highly diversified and we favor objective advice to “hot stocks” of the moment. The philosophy we follow is based on the science of investing that drowns out the noise of the media and focuses on time-tested and thoroughly-researched strategies that have been proven to drive returns, reduce volatility, and simplify the investment process. 

Providing comprehensive investment guidance, we can help you evaluate your SRI opportunities. For a complimentary portfolio review, contact our office at 800-840-5946 or click here to schedule a phone call.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com. 

What are the Most Common Problems Couples Face Concerning Money?

Posted on December 18, 2016 by - Smart Money Tips

heart-money

It’s nearly impossible to ignore the statistics on love and money. An AICPA study shows that money is the most common reason married couples fight, with couples averaging three arguments per month about financial issues. Furthermore, arguments about money are the most common predictors of a future divorce.

What makes money and love so difficult to peacefully coexist? Let’s look at three common money issues couples face.

1. DIFFERING SPENDING PERSONALITIES

Even among a happily married couple, differing financial philosophies can clash and cause tension. It’s natural that some people are spenders and others are savers, but it’s important for a couple to be on the same page regarding their finances. Establish and agree upon a few basic guidelines and structure for how you will spend and save money. For example, how much can be spent per month on non-essentials?

2. DISPROPORTIONATE DEBT BETWEEN SPOUSES

When a couple marries, there’s a chance one spouse has more debt than the other, whether it’s school loans or credit card debt. Even if you both consider your assets and debts to be shared and split 50/50, arguments tend to ignite when there’s a disproportion of debt between a couple. To reduce stress and potential disputes, work together to find ways to tackle your debt before making other financial moves, such as investing or buying a first or second home.

3. A LACK OF UNIFIED FINANCIAL MANAGEMENT

In many relationships, one spouse often takes on the role of their family’s CFO, paying bills, monitoring expenses, and making financial decisions. But as a result, the other spouse is left out and isn’t aware of what financial goals they’re pursuing or what their finances look like. While some people prefer to manage their family’s money, it’s still important for both partners to work as a team and make financial decisions together.

Although the topic of money can occasionally cause concern among couples, money doesn’t have to become a source of strife in a relationship. Invest the time to address spending habits and savings goals, and communicate effectively.

As an independent financial advisor, I enjoy working closely with couples and helping them identify and pursue their lifelong objectives. If you have questions about your financial situation or have yet to get started with financial planning, I’d be happy to help. To learn more, call 800-840-5946 or visit www.archerim.com.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com. 

5 Best Practices for an Organized Financial Life

Posted on December 17, 2016 by - Smart Money Tips

laptop-phone-backdrop

Imagine laying out all of your bills, account statements, insurance policies, and loans and trying to make sense of them all. Pretty overwhelming, isn’t it? That’s why organization is so foundational. You cannot succeed in your financial life without being organized. Here are 5 steps to get your finances in order.

1. SIMPLIFY

Look at the big picture of your finances. Are they complicated? Do you have too many credit cards, accounts that go unused, or 401(k)s from past employers? Make a list of all your accounts and prune them back. The fewer you have to manage, the easier it is. Even better, keep all your financial dealings in one place in our online client portal where you can access your investment accounts, see the current value of each of your assets, and review your debts.

2. SAVE A TREE

Clutter is one of the enemies of organization. Unless you’ve created a streamlined system, paper documents often pile up and can be difficult to track down when you need them. Instead, go paperless by enrolling in electronic delivery wherever possible. Then, all you’ll need to stay on top of things is a list of your usernames and passwords.

3. ORGANIZE YOUR PASSWORDS

Speaking of, find a method of keeping all of your login information in one place.

Find a password manager that will keep your information safe and help you generate many different and complex passwords.  Also, regularly update your passwords so your account details are protected from hackers and identity theft.  

4. KNOW WHERE TO LOOK

Despite how digital our lives are becoming, there are still times we need physical documents. Find a system that works for you, whether it’s a binder, a locked filing cabinet, or an in-home, fireproof safe. Gather everything together neatly and store it in one place that is easy for you to access.  Buying a crosscut shredder to dispose of older documents is also a must.

5. CREATE A MASTER LIST

Develop a master directory that lays out all your financial information to help you manage your affairs and serve as a guide to your family members if they ever need to assist with your finances. Be sure to include account numbers and logins, and keep this document password-protected or under lock and key.

It’s impossible to make wise financial decisions if you don’t know what you have to work with. If you’re ready to organize your finances or aren’t sure how strong your foundation is, we encourage you to schedule a phone call with us today.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

Want to Buy Happiness? Spend Your Money Wisely

Posted on December 17, 2016 by - Smart Money Tips

pay-here

Can money buy happiness? You may think the answer is no, but maybe it’s not about the balance in your accounts and more about how you choose to spend your money. In their book “Happy Money: The Science of Happier Spending“, Elizabeth Dunn and Michael Norton delve into the research linking money and happiness.  Here are five ways they found money can “buy” happiness:

1. FOCUS ON “DOING,” NOT “HAVING”

The joy of having “things” fades quickly, whereas experiences have a lasting effect. If you’re going to spend money, choosing to go on a vacation or attend an event can lead to far more happiness than purchasing that new big-screen TV.

2. KEEP THINGS FRESH

If something is always available, it often loses its luster. If you buy a pastry every time you get coffee, it stops being a treat and becomes a dull routine. But if you only treat yourself once a week, you will have something to look forward to and will appreciate it more.

3. BUILD ANTICIPATION

Have you ever planned a trip months in advance, creating itineraries and researching restaurants? If so, you know that one of the best things about taking a vacation can be the waiting period, the build-up to the day you get on the plane or pack up the car. The anticipation of what’s to come intensifies the emotional experience.

4.  BUY TIME

Many people sacrifice valuable time to save a bit of money. But time may be more valuable. Try paying for a housekeeper, having your groceries delivered, or splurging on a direct flight instead of a cheaper indirect one. One way to save time that I’m particularly fond of (warning, shameless plug ahead) is to invest in a financial advisor to simplify your financial life. In all seriousness, by streamlining your finances, you can free up time and mental energy so you can focus on what’s important to you.

5. GIVE FREELY

We often think that spending money on ourselves will bring happiness. But in reality, one of the best ways to create fulfillment is to spend our money on others. Have you ever bought the perfect gift for someone and experienced joy at how much they appreciated it? It’s a win-win.

Having more money doesn’t guarantee happiness, but being intentional with your money can bring you fulfillment. I’d love to help you simplify your finances so you can find even more happiness in life! Click here to schedule a phone call.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

Is It Better to Rent or Own in Retirement?

Posted on December 17, 2016 by - Smart Money Tips

You’ve probably had it drilled into you since you were young that owning a home means that you are on the road to success. For generations, buying a home was considered the cornerstone of the American dream, but is that still the case? Is buying really better than renting in retirement?

You may be surprised by this, but the Harvard Joint Center for Housing Studies tells us that the majority of renters are 40 or older and that there has been an increase in the number of renters in their 50s and 60s. This shift shows that more people are questioning whether to rent or own in retirement.

Questions to Consider When Deciding to Rent or Own

When it comes to retirement, here are some questions to ask yourself when making the decision to rent or own your home:

Is Your Home Providing a Return on Investment?

A common cliché is that your home is an investment. But despite the benefits of homeownership versus renting, owning a home can be a considerable drain on your resources. It’s true that you can gain from owning a home. If you bought when the housing market was low, you may have amassed a large amount of equity. But that equity only serves you well if you are planning to sell. Unless you downsize or move to a cheaper area, anything else you buy will be a similar price; therefore, the equity you gain will just be going towards your new home.

But what if you feel like you are throwing away money on rent? While rent payments only go into the hands of a landlord and don’t increase your net worth, there are additional hidden costs that come along with homeownership that you might be forgetting. If you own your home, you need to budget for property taxes, maintenance, and insurance. Not to mention the time and effort required in keeping up a home. This makes the decision of whether to rent or own in retirement more complex.

If you are in it to invest, let’s consider an example. Say your mortgage interest rate is 5%. If you estimate that, based on your risk tolerance and time horizon, you can expect an investment return of 4%, it would make more sense to pay down your mortgage. Otherwise, you’re potentially throwing away 1%. However, if you are an aggressive investor and believe you could earn 8% on your investment, it would make more sense to invest. Or, think of it this way: if your ownership costs total $2,000 a month and you could rent your ideal property for $1,800 a month, you have $200 to invest. Use a calculator to compare the potential investment growth with how much equity you could gain.

Is the Tax Benefit Worth It?

If you enjoy benefitting from the tax deduction that home ownership offers, renting won’t look enticing. But remember that in order to receive the deduction, you must itemize your taxes. Depending on the value of your home, the standard deduction might be more than the interest rate deduction. Also, as you pay off your mortgage, the amount you dedicate to interest decreases each year, meaning you will receive a small deduction. And if you have already paid off your home, you can only deduct your property taxes. These factors might influence whether it is better to own or rent in retirement.

What Can You Handle in Retirement?

As you age, you might realize that you can’t handle the upkeep of your home. Even if you previously enjoyed puttering around with tools and landscaping the yard, your health might prevent you from continuing these activities. Take a look at your lifestyle and make an informed decision. If you would gain peace of mind with someone else maintaining your residence, you might want to rent.

You may be drawn to the amenities that come with renting and want to be part of a community with others who are in the same phase of life you are. Even if you enjoyed living in the suburbs or country as an empty-nester, you may be drawn to a more urban setting with more transportation options.

Is it better to own or rent in retirement? This depends on your personal circumstances, and considering the convenience of renting might sway your decision. Retirement is a completely new season of life, so you need to evaluate how you want it to look instead of relying on old ways of thinking.

Are You Planning to Leave Your Home to Your Heirs?

If part of your estate plan is to have your children inherit your home, it makes the most sense to stay put as a homeowner. According to a Trulia study, it’s only worth it to be a homeowner if you are going this route. Otherwise, it’s always cheaper to rent than own in retirement. One of the most important benefits of owning a home is building equity. If your children sell the home when you pass, the equity becomes their inheritance. But again, you need to weigh the pros and cons of the potential growth of that equity. If you sell now when the market is up and rent for considerably less, you could invest the equity you gain from the sale and use that money as an inheritance.

Do need more convincing that homeownership may not be the best financial decision for your golden years? Take the time to watch this video to get a thorough picture of why homeownership might not be your wisest choice.

Making the Decision: Rent or Own in Retirement?

Whether you rent or own in retirement is a personal decision you must make based on your unique set of circumstances and values. Do you own your home outright? How much equity do you currently have? Does your home require minimal upkeep? How are the advantages and disadvantages balancing out for you? Is it time to reevaluate your situation? I would be happy to help you think through your options and make a decision that will benefit you for years to come. Click here to schedule a phone call.

About the Author: Richard Archer

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client.

Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

Richard Archer Receives the Five Star Wealth Manager Award

Posted on December 17, 2016 by - Smart Money Tips

five-star-professional

The Five Star Wealth Manager Award honors professionals in the financial services industry who are committed to excellence, aiding consumers as they decide who can best help them meet their financial goals. Candidates are screened for client complaints, retention rates, status as a Registered Investment Adviser (RIA), years as a RIA, and credentials such as Certified Financial Planner (CFA) and Chartered Financial Planner (CFP).

Archer is thankful to be recognized for his extensive post-graduate work, outstanding client relationships, and the decision to build his fee-only RIA business in the way he knew would most benefit his customers.

“After college, I studied for another seven years to obtain my CFA & CFP designations and my McCombs MBA. It was a lot of work, but I felt I needed to not only be able to deeply understand the investment universe and portfolio construction, but also be able to address wide-ranging financial planning issues such as insurance, estate planning, and taxes. Additionally, I wanted to be able to understand my clients who own their own businesses and to help them be even more successful. At the end of the day, the most important thing to me is to be useful and valuable to my clients. The more I know, the better I can help them achieve their dreams.”

The award is a great starting point for clients when looking for financial advice, but Archer suggests that consumers screen to make sure fees charged are commensurate with the services provided and that a potential adviser is a good fit.

“No matter the awards or designations a financial advisor has received, a client should look for someone who truly listens to them and understands their needs.”

AWARD DETAILS

To receive the Five Star Wealth Manager award, a wealth manager must satisfy 10 eligibility and evaluation criteria.

  1. Credentialed as an investment adviser representative or a registered investment adviser.
  2. Actively employed as a registered investment adviser representative or as a principal of a registered investment adviser firm for a minimum of five years.
  3. Favorable regulatory and complaint history review.
  4. Fulfilled their firm review based on internal firm standards.
  5. Accepting new clients
  6. One-year client retention rate.
  7. Five-year client retention rate.
  8. Non-institutional discretionary and/or non-discretionary client assets administered.
  9. Number of client households served.
  10. Education and professional designations.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

Investment Shock Absorbers

Posted on December 17, 2016 by - Investment

stock-market-tracker

Have you ever ridden a touring bicycle down a mountain? I wouldn’t recommend it. Touring bikes are designed for paved roads, so shock absorbers are eliminated to make them lighter and pedal more efficiently.

If you took a touring bike down a mountain, you would end up in a lot of pain. For something like that, you need a mountain bike. They are designed with shock absorbers to cushion the impact of the rocks, logs, ditches and other obstacles you will inevitably confront on the trails.

CAUSES OF A BUMPY INVESTMENT RIDE

Sometimes investors feel like they are riding a touring bike down a rough mountain. Every bump in the markets makes them want to cry out in pain, and they wonder if they’ll ever make it to their final destination. Why is this?

One thing that can make for a really jarring ride is having an undiversified portfolio. If your investments are highly concentrated, every little dip in the markets will be magnified and leave you reeling.

Another thing that will make for a really choppy ride is constantly changing asset allocations based on short-term rough patches in the markets. If you let every market pothole throw you off your bike, you’ll never get anywhere.

HOW TO SMOOTH YOUR INVESTMENT RIDE

So, how can you smooth out your ride? What shock absorbers can you add to your bike to get you down the investment mountain in one piece and enjoy the ride?

Diversification. Spreading your portfolio across different securities, sectors, and countries will even things out and make for a much more comfortable, safe, and enjoyable ride. You will need to identify the right mix of investments, like stocks, bonds, or real estate, that align with your risk tolerance. This will keep you on track toward your goals no matter the obstacles that crop up.

You may not end up with the top performing portfolio, but you definitely won’t have the worst either. This strategy isn’t about being the best, it’s about creating a smooth enough ride for you to hang on until you get to the bottom of the hill. Without these shock absorbers, you are likely to quit halfway down.

IT’S IMPOSSIBLE TO SWERVE AROUND EVERY BUMP

Just as you would try to swerve around everything possible if you were riding a touring bike down a mountain, people with concentrated portfolios resort to market timing and constant trading in an attempt to anticipate the top-performing countries, asset classes, and securities.

This is nearly impossible. Here’s an example of just how unpredictable the ride can be. Among developed markets, Denmark was number one in US dollar terms in 2015 with a return of more than 23%. But if you had bet big on that country the following year, you would have ended up in a ditch. In 2016, Denmark slid to the bottom of the table with a loss of nearly 16%.

Even the US stock market, which is the world’s biggest, can throw you for a loop. It has been a strong performer in recent years, holding the number three position among developed markets in 2011 and 2013, first in 2014, and sixth in 2016. But a decade ago, in 2004 and 2006, it was the second worst-performing developed market in the world.

Trying to predict which part of a market will do best over a given period is also challenging. For example, while there is a plethora of evidence to support why we should expect positive premiums from small cap, low relative price, and high profitability stocks, these premiums are not laid out evenly or predictably across the map. US small cap stocks were among the top performers in 2016 with a return of more than 21%. A year before, their results looked relatively disappointing with a loss of more than 4%. International small cap stocks had their turn in the sun in 2015, topping the performance tables with a return of just below 6%. But the year before that, they were the second worst with a loss of 5%.

If you’ve ever ridden down a mountain, you know to expect the unexpected. There may be a rut or rock pile hiding just around the next turn. It’s important to have a bike with proper shock absorbers to handle whatever may come. Diversification isn’t some kind of magic that will make everything a perfectly smooth ride. But, it does smooth things out so that no individual investment will throw you off your bike. There will still be bumps along the way, but nothing that will keep you from reaching your goals.

DOES YOUR INVESTMENT BIKE NEED A TUNE UP?

Take a look at your portfolio. Does your investment bike need some shock absorbers? You’ve come to the right place because I’m an investment mechanic! With sufficient diversification, the jarring effects of performance extremes level out. Then, you will be able to hang on and enjoy the ride all the way to your investment destination. Click here to schedule a phone call, and we can get your portfolio ready for whatever lies around the next turn in the trail.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.