Very often individual investors choose mutual funds based on the historical performance of the fund. To many individual investors it seems logical that past great performance would only indicate a tendency for future great performance. According to a July 2013 report from S&P, this may not be the case.
Twice a year S&P Dow Jones Indices releases its Persistence Score Card. This reports tracks the consistency of top mutual fund performers over yearly consecutive periods asking the question, does past performance really matter?
The latest report shows that picking a fund purely based on performance is statistically a losing game as very few funds can consistently stay on top. Out of 703 funds that were top performers as of March 2011, only 4.69% managed to stay on top over three consecutive 12-month periods. Looking longer term, only 2.41% of large cap, 4.65% mid cap and 4.65% of small cap funds were able to stay in the top half of their peers over five consecutive years.
So what is an investor to do? When picking a mutual fund you are really picking a fund manager. This fund manager is usually actively trading your money to beat his or her assigned index. They will have good years and bad years but statistically they will not beat their assigned benchmark over the long-term. I recommend that investors look at investing differently.
Here are some keys to a good investment strategy foundation:
Keep your investment cost low - stay away from commission-based mutual funds and those advisors that sell them. Focus more on index mutual funds and or Exchange Traded Funds (ETFs) that many independent advisors use, or if you are a do it yourself kind, consider using Vanguard funds. Make sure that you also understand how and what you are paying your advisor. Fee structures and the amount that you pay an advisor can vary greatly. All fees lower your return. You will have to decide what is fair for your situation.
Ignore the short-term focused news cycles. If you are investing long-term, remember that the financial news media is focusing on today or tomorrow. You should not be worried about the next 2 years if you have a 20-year time horizon. Build a portfolio that focuses on long-term healthy asset classes.
When building a portfolio make sure the portfolio is diversified. Very often we see individuals hold three different large cap mutual funds. They think they are diversified but really they basically hold the same stocks in three different mutual funds. You want to create a mix of bonds, large company, medium company, small company and international stock. How you allocate to these categories will depend on your age or your tolerance for volatility within your portfolio.
The most important aspect in investing is your financial behavior. Don’t try to time the market or make decisions based on how you feel. Focus instead on the long-term success of investing over any time period. For those still saving, by adding money to your portfolio each month you get the advantage of dollar cost averaging. This allows you to buy in the low times making that money work harder for you over your lifetime.
Wiser Wealth Management, Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Your Medicare premium is affected based on which tax bracket you fall within after age 63. IRMAA is your income-related monthly adjustment amount. Watch today's video to learn more about how IRMAA works.
I have been with Wiser Wealth Management for over 10 years and they have done a great job for me. They are always available to answer questions and give advice. I love that they are a fiduciary organization. That said, I think they are the best!
Casey and his team truly listen to and address your financial goals and concerns and put together solid financial plans that are conservatively tailored to helping you achieve financial security. Thank you to them.
Super nice people to deal with they really care about their customers have been with these guys for five years could not talk me to go anywhere else ,you dont havemany co's with customer service like wiser ,take your money there you will not be disappointed ,thanks bill
Our yearly meeting with our Wiser Wealth Management team went well, as usual. Our finance strengths and balances were discussed. We asked questions that were answered to our satisfaction. We enjoy working with Casey and feel that he has our best interests at heart.
I am very satisfied with the level of expertise and service I receive at Wiser Wealth Management. They are very concerned with making the right decisions with my retirement account an answering questions that I have with the market and funds. Casey has stuck with me during the Highs and Lows to help me out. I cant ask for much more than that. Its a pleasure to work with them and have a great sense of security for tommorrow.
Our advisor is Casey Smith. Casey thoroughly understands our retirement funds as well as our SEP IRA's. He has invested our money wisely and with very little risk involved while still producing income. If anyone ever asks me to recommend a fiduciary fee only financial advisor, I would highly recommend Casey and his company.
These folks are professional. They listened to our shot term and long term goals. Developed strategies to address challenges in reaching these goals. They have worked with us to monitor progress. They have been accessible for questions and concerns. We have been considered as people not just accounts.
I have only been with Wiser Wealth Management for a month and in that time, they have been exceptional! I had an initial consultation at no cost, had a 2nd phone meeting at no cost, they provided superb financial advise, are a fiduciary company, and their fees are completely reasonable. As if that isn't enough, in the short space of time that I have been with them, my investments have grown considerably. Highly recommended!
Casey is a principled man who both lives his life AND runs his business accordingly! Honest, straight forward, professional and extremely competent! You can't go wrong by choosing Wiser Wealth Management to protect and grow you personal wealth!
My wife and I would recommend the team of Wiser Wealth to any of our friends and family. They are very responsive and have directed our resources in a way that my financial goals for retirement are in place.
We have been with Wiser Wealth Management for several years now and are extremely happy with the handling of our financial investments. Their office is always professional and responsive to our needs. We highly recommend their office!
My wife and I have been clients with Wiser Wealth Management for several years. We met with and had several communications with Casey and his team before deciding to use their service. They have always been very welcoming to all of our questions and concerns. It is comforting to know that Casey and his team are looking out for our best interest.Owen and Claire Kirkpatrick
We found Casey on Facebook. Knew nothing about him. And while we aren't millionaires, he treats us as if we were. And his investment strategy has worked really well for us. Could not be happier we found him.
I cannot say enough great things about Wiser Wealth. My wife and I have been a client of theirs for over ten years. The staff are extremely professional and knowledgeable. Casey Smith has always been accessible and honest regarding our finances. I can honestly say that I would not trust anyone near as much with our financial security more than I trust Wiser Wealth.
WISER WEALTH MANAGEMENT IS AN ABSLUTLEY OUTSTANDING FIANCIAL AND WEALTH MANAGEMENT FIRM. OVER THE YEARS WE HAVE HAD DIFFERENT FINANCIAL PLANNERS INCLUDING VANGUARD AND OTHER LOCAL FIRMS. - WISER FOLKS HAVE ABSOULTELY TARGETED OUR PLAN AND MONEY MANGEMENT TO OUR SPECIFIC NEEDS. THEY DO NOT GIVE A GENERIC OR COOKIE CUTTER APPROACH. THEY MONITOR IT REGLARLY AND ADJUST AS IS APPRORPIATE.. i CONSIDERER THEM TO BE NOT ONLY ETHICAL AND RESPONSIBLE TO THEIR CLIENTS BUT ALSO INCREDIBLY FINACNIALLY JUDICIOUS, REALISTIC AND SAVY ABOUT THE ECONOMY. AND MARKET. WE WANTED TO STOP WORRYING ABOUT OUR FINANCIAL SITUATION AND FUTURE. WE WHOLE HEARTEDLY RECOMMEND THEM. DEMI ND kEVIN DOYLE
My spouse and I have been associated with Casey and his team for about eight years now. What led us to Wiser - I've always felt we had the discipline to save for what was then our upcoming retirement, but recognized we lacked the financial savvy to properly manage and grow our portfolio. This is where Wiser comes into play. We did our due-diligence, meeting others but the comfort factor (professionalism, knowledge, and trust) was there with Wiser. Now that we're retired, we are comforted by the fact that Casey and team are always available to help us with our financial planning and assist in the continuing growth of our funds and our future. We feel a comfortable yet professional relationship with the Wiser team. Reaching out to Wiser those eight years ago was the appropriate step in securing our future.
Very professional and superb quality of service! In a testament to their commitment to long-term planning, I have been a customer of Wiser's since Casey assumed leadership. The professionalism and expertise of Casey and his team, in their management of my portfolio, and guidance for estate, tax, risk management planning have helped me get my family to a much more confident financial posture.
It has been our pleasure working with the team at Wiser Wealth Management. I first can to know Casey when he worked at the airlines as a pilot. His interest in helping his fellow employees lead him to share his knowledge of financial management, at 401k workshops. I knew my husband and I could work with him, he laid everything out in layman’s terms, and was patient answering all questions. We live in North Carolina, and have looked at finding someone closer, but it was not the same feeling of trust, and ease of working together, so we stayed with Casey.
Great to work with and always available for my random questions. They treat you like you are one of their own. Very helpful in all aspects of financial planning, especially if you are part of the Aviation community as they understand the idiosyncrasies of the business and can point you in the right direction. The financial planning was invaluable and being a fiduciary business always what is best for you.
Personal. Treated like their own family. It’s a hard thing to take all you have and entrust it to someone. Yet this business is all about helping you reach a goal of “financial peace of mind”Give them a chance. A look. A sit down. You won’t be disappointed that you gave them a little bit of your time.Their time is YOUR time
I first met Casey Smith in 2005 when with his help I created my Estate Plan. He appeared to be a bright and personable young man and his advice fit my hopes for my financial future. I decided to have him manage my portfolio.I have not been disappointed. I live in Rhode Island but in today's electronic age the distance is not a problem Casey reviews my holdings and makes the changes to keep my portfolio in the agreed balance. I find his fee schedule appropriate. He has my complete trust. He is responsive to every request and has a professional office staff to meet every need.I recommend Wiser Wealth Management anyone needing sound financial advice.
Working with Wiser Wealth Management, Matthews Barnett and Brad Lyons, has been a life changing experience. They have assisted me with becoming debt free with a solid plan for retirement. I highly recommend.
Casey and his entire staff provide outstanding service. They are always available for any questions or concerns that I may have and handle my requests promptly and accurately. During the three years that I have been associated with them I have never had a problem. I would recommend them to anyone in need of a financial advisor.
This a wonderful company to do business with. Casey and his team have gone out of their way to help my family. If you are in need of financial assistance in any way,this is the company you want to have on your side.
Casey is amazing!! He has literally saved us financially. I cannot sing his praises enough. He advised and walked us through a series of unexpected expenses and losses and informed us of options we were unaware of. Despite the insanity of 2020, we are now in a good position thanks to Casey, adding to our retirement accounts and have gotten our savings back to where it needs to be. I trust Casey and his team to make the best decisions for us, and perhaps best of all, Casey is extremely ethical and I fully trust him with our best interests. I also love that Casey makes himself available to his clients and establishes great relationships... I can and do reach out to Casey when I have financial questions!
I have been a client @ Wiser Wealth Management for more than 6 years. They work for the benefit of their clients and are respectful and friendly. I have always known they are working in my best interest. I would definitely recommend their services to anyone desiring a trustworthy financial planner.
Wiser Wealth Management has been my Financial advisor for the last 15 + years. Casey and his staff has been honest, trustworthy and have done a great job for me and my family! I would recomend them for anybody that is looking for financial advise. Chris Watson