Rick Kahler's Financial Awakenings

I was surprised this week to learn that a February 25 article in The New York Times by Paul Sullivan included some comments from me. He had interviewed me for an earlier story, but then used comments from my co-authors Drs. Ted and Brad Klontz instead. Apparently he was just saving mine for later.

The article is an interesting look at “the new austerity.” To read it, click here.

The Wall Street Journal recently published a great article explaining why several of our asset class “pistons” have locked up and are now moving in tandem. To read the article click here.

BusinessWeek recently named Rick as one of the most experienced planners in the US. The list of 14 is featured in the magazine’s recent online edition.

Wrote BusinessWeek, “When it comes to selecting a financial adviser fancy academic degrees, posh offices, and a big client portfolio may be impressive, but knowledge and skill are what distinguish an outstanding adviser from a good adviser. ‘Anybody who claims to be an expert in investing had better have a lot of experience,’ says Jack Waymire, founder of the Paladin Registry, a service that ranks financial advisers for individual Continue Reading »

This is not a “happy talk” column, suggesting all you need to do is hold on and things will be back to normal in 12 months. This is “real talk” on what you can be doing now to make sure you weather the coming years in as good shape as possible.

As summed up by my good friends and colleagues, Dick Wagner, CFP®, and Mike Haubrich, CFP®, what we need to do is simple: earn more, spend less, save more, and not do anything stupid.

These are simple concepts, but that doesn’t mean they are easy to follow. Most Americans have found these ideas to be profoundly difficult to practice. Here are a few suggestions that might make it easier. Continue Reading »

This is the best perspective I’ve read on the current situation and addresses what I’ve been noticing in my research: it’s possible to have good yields and returns even in bear markets. For example, a diversified portfolio over the past 10 years has had a 6% to 9% total return, even though the markets are flat to negative over that time.

Also, the article points out that rebounds from bear markets to pre-crash levels usually happen within five years after the market bottoms. Read this and take heart!

Based on the phone and email response to my recent article on annuity abuses, I am a hero with the Joe the Plumbers of the world and something worse than a goat with many annuity salespeople. A number of them suggested my exposé of one company’s terrible annuity product was representative of every annuity product and put all annuity salespeople in a bad light.

I can see their points on both issues. So let me say it now: not all annuity salespeople are uninformed on their products or disingenuous in their attempt to push any product they think they can sell on an uninformed public. Not every annuity is bad, either. Continue Reading »

Peter Hardy, CFA, Vice President and Client Portfolio Manager for the American Century REIT fund, was our guest speaker for our teleclass last Thursday. He spoke to us about the current economics affecting real estate investment trusts (REITS).

Peter represents portfolio management in communicating investment strategies and results to clients. Prior to joining American Century Investments in 2008, he was director of institutional client service and consultant relations at Morgan Asset Management, the investment management subsidiary of Regions Financial. Peter also was chief financial officer for Regions Financial Benefit Plans. Previously, he was vice president and equity portfolio manager at Trusco Capital Management and portfolio manager at STI Capital Management. Peter earned a bachelor’s degree in business administration from Furman University. He is a CFA charterholder and a member of the CFA Institute. Continue Reading »

Those who are the hardest hit by the market losses of the last few months are retirees. For many investors, there is time to recover from these losses. In five or ten or fifteen years, the markets should have come back and their nest eggs should have regained their value.

Those counting on their nest eggs for today’s omelets, though, don’t have that kind of time. For them, losing 25% or 35% of their investments isn’t a matter for the future. It’s a frightening reduction in the source of their current income.

What we’re seeing right now, in unpleasantly dramatic fashion, is the strongest argument anyone could make for being conservative in the amount you withdraw from your investments in retirement. Continue Reading »

The markets responded today to the passage of the stimulus plan, backed by the President and majorities in Congress, and the Obama Administration’s bank bailout plan with a complete lack of confidence, falling 5%. Many investors fear that President Obama and Congress are simply capitalizing on the current recession as a way to pass the largest spending bill in history under the disguise of “stimulus.” One investor today reminded me what the President’s Chief of Staff, Rohm Emanuel said in October, “Never let a good crises go to waste.” While President Obama campaigned on the platform of “Real Change,” investors apparently feel that it’s really ‘business as usual” in Washington DC, at best. Continue Reading »

For all you early risers, you may want to watch Rick tomorrow on KNBN’s Morning Show. He will be discussing how you can bypass Congress and set up your own personal stimulus plan and some of the top money scripts he’s encountering today and what to do about them. Rick will be on twice during the hour, once at 6:13 am and at 6:43 am. Those of you that know Rick understand that he is not a morning person, so arriving at the studio by 6 am is a bit of a change in his usual daily routine. And, having given up caffine last September, his staff is wondering if he will even be awake during the first segment!