Happy One Year Anniversary!

March 9th, 2010

It was a year ago today the markets hit absolute bottom.  Things were incredibly dismal, and it seemed all hope was lost - or at least that’s what the popular media would have had you believe.

The fact is we’re a year removed from one of the worst bear markets in history.  The markets are up nearly 70% plus or minus from a year ago today (depending on what market you look at and how you calculate it).  When everything was at it’s worst, was one of the greatest buying - SCRATCH THAT - INVESTING opportunities of a LIFETIME!

But you wouldn’t have known that then…

It’s ironic that the popular media shows the market prognosticators who “called” the market bottom on TV today.  Their interviews put them up on a pedestal just as a year ago they had interviews with the prognosticators who “called” the market top.  The fact is, statistically speaking, there will always be those who “get it right”!

But in reality, banking on statistical luck is no way to invest your nest egg… And those who get lucky once, rarely if ever repeat that performance!

So enjoy our one year anniversary, it was a rough bear market - challenging at best to endure.  Just remember, difficult times will come again!

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Income Investing For Total Return In A Low Interest Rate Environment

March 8th, 2010

With the lowest interest rates in decades, many investors are now coming to the harsh realization that re-investing their fixed income securities as they mature means a substantial reduction in investment return (the interest rate earned from a specific debt security).  Rates just aren’t where they were even a couple years back, and if you’re relying solely on fixed income to retire on (which isn’t a recommended strategy) it’s disappointing at best - and financially devastating at worst.  Financially devastating - primarily because you either have to suffer with a dramatically reduced retirement income, OR extend out your fixed income maturities to pick up a bit of yield (a VERY risky and in my opinion poor strategy in this low interest rate environment).

Even worse - these low rates lead many retirees to search for higher yield. There is no free lunch… higher yields mean higher risk to your principal AND/OR if it’s in the form of an annuity can completely lock up your funds in high commission-based insurance products (not that all annuities are bad, for example they’re perfect for a spendthrift who can’t control their own financial plan).  Chasing yield is a mistake, but many retirees incorrectly think it’s a low risk strategy to bolster their retirement income.

So just what is a retiree to do in this low interest rate environment?  Invest for total return through a diversified and balanced portfolio. The fact is, most investors think they need bonds and other fixed income investments to live off of the interest during retirement.  That’s just not the case and really couldn’t be further from the truth.  Retirees can benefit from a diversified blend of income sources.

Just what do I mean by a diversified blend of income sources?  Most certainly the fixed income component is a must.  Your portfolio needs bonds to produce interest and reduce your personal investment volatility and risk.  That’s a given.  How much to allocate to fixed income in your portfolio is a factor of your financial risk tolerance for portfolio volatility to a point, but it’s also a factor of how much income you need!

Many retirees don’t fully understand the planning factors that go into a retirement lifetime.  Some investors think a portfolio allocation is solely based of some risk tolerance profiling questionnaire - that may be the case for PART of your investment portfolio planning.  But it’s also based on your current and projected financial income needs.

For example, some clients need to be coached and educated on the financial costs of having too much fixed income.  Too much fixed income will lower your overall long term investment returns, putting your retirement nest egg at risk.  Not necessarily loss of principal, but loss of effective principal due to a reduction in purchasing power from inflationary pressures.  Let’s face it, a stamp is 44 cents today.  Stamps were 3 cents in the great depression, and it takes well over $16 today to buy what $1 did in 1933!  If you’re not keeping pace with inflation, you’re falling behind financially.

Yet other investors need consultation and education on reducing their equity exposure because it’s not needed to achieve their retirement income goals.  Many clients have conservative retirement budgets, and live off less income from their portfolio than they could.  In this case, it may not make sense to allocate a greater portion of a portfolio to equities for growth - as it’s not financially necessary!

There is FAR MORE than simply a risk tolerance profile to consider when creating an investment portfolio suited to your specific financial needs, goals and risk tolerance!

Assuming you fall somewhere in the middle of an extremely conservative all income producing fixed income portfolio and an all equity aggressive growth portfolio - you’ll experience “income investing for total return”. Income doesn’t need to be generated solely from portfolio interest.  Rather you can experience longer term higher returns to help offset inflationary pressures, as well as a solid current income through a diversified portfolio of equity, fixed income, and alternative investment assets.

Total return income investing means your income will be derived from interest payments, dividend payments, capital gains and other distributions (such as return of principal for example).  The key is to consider ALL sources of distributions and income that your portfolio generates when creating your investment portfolio allocation.  Focus more on total return, rather and interest income!

To be successful at income investing for total return however, you must be absolutely prepared for the inevitable market downturns. The worst possible time to liquidate portfolio assets to create cash flows for your retirement income is in a bad market environment - such as the one in 2008 and early 2009.  There is no catch-up for liquidating principal investments at lower levels during retirement.  The fact is, in retirement you’re not typically adding to your investment portfolio, you’re utilizing it for income.  Selling shares of anything at lower prices can’t be recovered from.

An effective and well-constructed retirement plan is far more important than the investments you choose to allocate the plan with. Missing something simple like leaving enough reserves in short term fixed income investments and money market type instruments means more of your balanced portfolio is at risk for liquidation at lower values if the market turns sour again.  It’s pretty clear - have enough liquidity on hand to cover a reasonable amount of monthly income cash flows or risk your portfolio to the whims of the capital markets!

I typically recommend anywhere from 9 months to 1 year of income on hand and accessible in money markets or highly liquid high quality ultra short duration fixed income funds or securities.  This depends on the client, on their plan, and on their personal risk tolerance of course.  There is no clear cut answer for the masses in retirement.  But enough liquidity to help you weather a typical 12 to 18 month bear market is a great starting point, after which the amount becomes a factor of how aggressive or conservative the remainder of your portfolio balance is, and your personal risk tolerance.

Managing income investing for total return in a bear market presents it’s own challenges.  It brings on a whole new set of decisions, for example when to re-balance your portfolio and does it make sense to shorten the amount of cash reserves in order to maintain your core long term retirement strategy.  These decisions should be monitored and managed closely with your financial advisor.

If you’re a fixed income investor, think carefully before you choose to chase yield.  Think even more carefully before you choose to extend your bond or CD maturities.  And most importantly think carefully before locking up any of your retirement in an annuity.  While annuities may be right for some investors, they’re typically not highly efficient retirement planning vehicles.  I’m sure that assessment will draw substantial criticism from the ranks of those in insurance sales - but I’m not paid commissions to sell investment products - I’m compensated to develop a sound retirement income strategy for those who need it!

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Paladin’s Financial Advisor Due Diligence (FADD) Certification Service

February 27th, 2010

As a follow up to the “Shiny SilverStar Analytics Super Special Advisor Award”, I’m now going to illustrate what a real certification service is.  As mentioned, the sad thing about the Shiny SilverStar Analytics example is that it not only exists in the financial services industry, but it’s promoted heavily in MAJOR financial publications.  Granted - if you look hard enough at their promotions in these major financial periodicals you’ll eventually find somewhere the words “This is a paid advertisement” or something similar.  Why???  Because the award is bogus.  The award means little to you more than the financial advisors listed actually pony’d up the several thousands of dollars to have their name mentioned with a pretty logo in a major magazine.

The truth is there are quality services out there designed to protect the financial services consumer.  The most notable to me is the Paladin Registry’s new Paladin’s Financial Advisor Due Diligence (FADD) certification service.  For the FADD certification, I paid $500.  The money didn’t go to some fancy advertising firm, but rather it paid for the Paladin Registry to actually have a person research my credentials and experience.
The FADD certification goes so deep for instance, that I received a call from a Paladin agent asking what my dates were for attending college.  That was a long time ago - I think I “ballparked” it!  But the point is this is a REAL certification service, not just a pretty shiny logo in a fancy financial magazine.

The FADD process verified every aspect of my Paladin Registry profile here.  It ensures what I represent in my background, experience and credentialing are factual.  If you haven’t learned anything from 2009, please take away the Maddoff story and insist on full due diligence done on your financial advisor!

You can learn more about the FADD Service here.  I highly recommend EVERY consumer of financial planning and investment services expect more from their financial advisor.  Being listed in the Paladin Registry with their challenging registry acceptance hurdles is a great first step, but the FADD certification is far an away the only thing out there in the financial services industry truly designed to dig deep into your financial advisor’s background and make sure what they represent to you is indeed accurate!


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UNLV REBELS Basketball

February 20th, 2010

My twin 6 year old boys, my wife and I just left Thomas & Mack where we watched the Runnin’ Rebels crush Colorado St. What a game!

This puts the Rebels at 20 wins and 7 losses overall, including 8 wins in the Mountain West Conference (5 losses) in dominating fashion (in the case of today’s drubbing of the Rams).

So you’re probably wondering why the subject of local college sports warrants a blog post? (and yes, I do know I said my next post would be on the Financial Advisor Due Diligence from Paladin Registry, but that post needs a bit more thought and detail…). It does for many reasons - it’s local, it’s economic, it’s exciting, and it’s a departure from our everyday lives which is a nice escape!

The driving reason behind this posts relevancy however, is technology. I’m posting just minutes after a strong and decisive Rebels victory from my iPhone.

Yes, technology is wonderful. Pull up an “app”, and start typing. Next thing you know you’re reading my thoughts on ANY subject matter in an amazingly timely fashion!

Technology drives our economy now just as industrialization did in years past. Industrialization made us stronger, more productive, and gave us a better quality of life overall. Technology does the same for us now. Technology will drive our economy into an amazing level of productivity exponentially more than it has in the last two or three decades.

Why is this important to you as a consumer, as an investor, as a retiree? Progress and productivity drive profits and economic expansion. Profits and economic expansion drive your personal investments over long periods of time. It’s just that simple…

So, GO REBELS, and GO TECHNOLOGY! Let’s hope both drive us into a prosperous and peaceful future!

Greg

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Shiny SilverStar Analytics “Super Special Advisor”

February 18th, 2010

DISCLAIMER: THIS IS NOT A REAL DESIGNATION, AWARD, OR QUALIFICATION. “SHINY SILVERSTAR ANALYTICS” IS NOT A REAL COMPANY. NEITHER RED ROCK WEALTH MANAGEMENT, LLC NOR IT’S PRINCIPAL OWNER GREG PHELPS MAINTAIN OR CLAIM TO MAINTAIN ANY SUCH AWARD OR DESIGNATION. THIS BLOG POST IS PURELY FICTITIOUS (and hopefully humorous) AND THIS INFORMATION IS MEANT FOR ILLUSTRATIVE PURPOSES ONLY AS A FOLLOW UP TO THE BLOG POST “MAKING SENSE OF DESIGNATIONS”. THIS INFORMATION IS NOT TO BE RELIED UPON IN THE DECISION TO HIRE RED ROCK WEALTH MANAGEMENT, LLC OR ANY FINANCIAL ADVISOR PROFESSIONAL. IN FACT THE ONLY THING REAL ABOUT THIS BLOG POST IS THE FACT THAT THIS BUSINESS PRACTICE DOES IN FACT EXIST IN THE FINANCIAL SERVICES INDUSTRY.

The Wall Street Machine and the financial services industry (in it’s quest for infinite wealth) has mastered marketing. They’ve succeeded beyond all imagination at completely confusing the investing public. One way in which they’ve done so is to put labels, credentials, and titles on financial advisors. Such labels, logos, or credentials as mentioned in the prior blog post Making Sense of Designations may mean little to you - if anything at all!

So, to illustrate my point in an effort to promote consumer awareness I thought I would create my own fictitious credential. I’m going to call it the Shiny SilverStar Analytics “Super Special Advisor” award!

silverstar1

For grins, let’s lay out the criteria for this amazingly prestigious (and totally fictitious) award.

  1. Shiny SilverStar Analytics will have a team identify potential award winners, mainly by searching for any company which might possibly fit the criteria through the internet, phonebook, and other sources.  Once identified, Shiny SilverStar Analytics will invite said financial advisor firms to participate in an interview to learn more about their firm.
  2. Shiny SilverStar Analytics will then interview potential award winners in the primary areas of Professionalism, Ethics, Being a “Great” Firm, and Track Record.  Granted, the criteria are vague, I understand this - yet it’s a starting point right?  After all, if a firm principal says they’re a professional, ethical, great firm with an excellent track record what reason would they possibly have to mislead our crack research team at Shiny SilverStar Analytics?
  3. Shiny SilverStar Analytics will then check to make sure prospective award winning financial advisor firm is actually licensed to do business in the capacity they represent themselves (to verify just about any credential, disclosure, registration, insurance, or licensing status on just about any financial advisor or firm just visit the Red Rock Wealth Management FAQ page here, after all - shouldn’t you really check for yourself anyway?).  So for example, if prospective firm claims to be licensed to do business in the sale or management of securities or insurance products, Shiny SilverStar Analytics will spend a couple minutes pulling up the licensing of prospective award winning company through the SEC/FINRA (those links are on the FAQ page also!).
  4. Shiny SilverStar Analytics will then determine if prospective firm exceeds a set of benchmarks which Shiny SilverStar Analytics sets.  I know, vague again, yet at least there’s a benchmark (no matter how low the bar is set) right?  Since there’s absolutely NO possible way to benchmark prospective award winning firm’s investment performance record (outside of the very few largest firms which pay to have their track records monitored and analyzed), and of course there’s really no way to benchmark prospective firm’s client satisfaction (no client testimonials unless performed by an outside analytics company, audited, and EVERY client must be contacted to use this information publicly per the SEC meaning NO cherry picking!), and there’s really no possible way to benchmark a prospective firms financial planning capabilities - well… I guess we’ll just adjust the benchmark as we go.
  5. Shiny SilverStar Analytics will then decide whether or not to award prospective firm with their “Super Special Advisor” credential.

Of course the decision to award the Shiny SilverStar Analytics “Super Special Advisor” would NEVER be based on the financial advisor PAYING for this award (there would be a conflict of interest).  But, in order to do all this of course, Shiny SilverStar Analytics will need some form of revenue to maintain a profitable business.  But we will NEVER charge prospective award winning firms a fee for certification - that would put far too much legal risk on Shiny SilverStar Analytics, and we certainly wouldn’t want the perception that a prospective firm could just “buy” their award!

    Rather, we’ll do advertising of our prestigeous “Super Special Advisor” award winners IN MAJOR FINANCIAL PUBLICATIONS and allow them to use our “Super Special” logo pictured above on their website and marketing material.  Of course we’ll have to pass along the advertising costs plus our business expenses, plus our “researchers” expenses, and make a profit.  So we’ll have to charge for use of our “Super Special Advisor” award and the associated advertising that goes along with it.  After all - even if a firm qualifies for the “Super Special Advisor” award they should help bolster Shiny SilverStar Analytics balance sheet so we can continue to find other “Super Special Advisor’s” right?

    So what did we really learn from this exercise in futility?  Don’t believe the “prestige” factor of every credential, logo, or award your financial advisor promotes.  The fact is there are specialty credentials offered by educational institutions which should be researched by each investing consumer - some which mean your advisor has chosen to be among the very best in the financial services industry, and others which mean little if anything more than a “Shiny SilverStar”.

    Next blog post - the Financial Advisor Due Diligence study performed by the Paladin Registry and why it DOES make sense for excellent financial advisors who care enough to truly have effective due diligence performed on their firm.

    Greg

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    Making Sense of Designations

    February 16th, 2010

    This is a modified post from 2/16/10 due to legal threats from certain parties.

    Rather than going into detail on my personal experiences with a “research” firm, I’m adjusting my post to focus on the credentials and qualifications which an investor or financial planning consumer should research carefully and understand thoroughly before hiring a financial advisor based on letters or impressive looking logos.

    There are many financial organizations out there today which promote certain designations. Some of them have alterior agendas such as corporate profits or other business motives. The average investor many times doesn’t grasp this fact, and many times they’re lulled into a false sense of security from fancy titles, letters after a name on a business card, or pretty logos and pictures.

    Take for example some of the lesser known credentials - I even have one of them - the AAMS (Accredited Asset Management Specialist). After going through the CFP (R) and CLU programs, I decided to pursue the AAMS on a whim for fun.

    The AAMS was simple to obtain when compared to the CFP (R) or CLU programs (coincidentally, the CLU designation is primarily for those advisors who sell insurance - I obtained it solely to be able to ADVISE my clients in those financial aspects, and do not sell any form of commissioned product like insurance). I earned my AAMS through the College for Financial Planning, which charges a fee for obtaining the designation and a renewal fee periodically. I’m not saying it’s without any merit - just that there are only a few designations that are really difficult to achieve and challenging to maintain.

    Those designations in my opinion are the CERTIFIED FINANCIAL PLANNER(TM) designation, the Chartered Life Underwriter designation, and the Chartered Financial Consultant (ChFC) designation (in the order of most difficult to not quite as difficult to obtain, but all three are highly challenging!). Those three designations have earned and deserve industry respect more-so than for example my AAMS designation (which I think I completed in a weekend or two, it’s hard to remember it was so long ago).

    Keep in mind, I’m focused on comprehensive financial planning and wealth management which includes investment management - and that’s the subject matter of this post. For a true investment manager not focused on other aspects of individual financial matters, the CFA(R) designation is by far the most respected in the industry and substantially more challenging to obtain over the aforementioned three. The CFA(R) designation however is typically obtained by professional investment managers such as mutual fund managers, hedge fund managers, investment analysts and the like.

    All of that being said, there are numerous other designations or labels out there which may or may not mean much to you, if anything at all. They may or may not mean your advisor has truly been scrutinized or passed rigorous testing and examinations. They may mean little more than a fancy star by their name on their marketing materials.

    For these reasons, consider carefully the branding or designations your financial advisor promotes or includes in their marketing material. Do your own research and due diligence. After all - it’s your financial future that you’re entrusting to the advice of a financial advisor. Shouldn’t you expect credentials and qualifications that really have substance and mean something to you and your personal financial goals?

    Greg

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    Deposit $25,000 or more, 1.50% APY CD available

    February 10th, 2010

    Through TD Ameritrade Institutional (Red Rock Wealth Management’s custodian of preference) you now have the opportunity to get a great rate of 1.50% Annual Percentage Yield (APY) - and FDIC protection up to $250,000 with a new deposit of $25,000 or more with a 3-month High Yield CD.

    Did you know the average American holds 10.8 jobs in their lifetime? You do not have to leave your retirement savings behind; consider offering a high yield CD as part of a Rollover IRA for their retirement assets.

    Of course - this is only ONE small part of a long term diversified investment plan. If you’ve ever wanted to work with Red Rock Wealth Management, now’s the time! TD Ameritrade is offering this very attractive CD rate for a three month deposit while we work through your planning, retirement, and financial issues in greater detail on the way to creating and implementing a successful diversified and risk-managed investment strategy for the LONG term!

    Access to this special offer CD is available for a limited time only and will expire 2/26/10. Special 3-month CD rate of 1.50% APY was current as of 01/20/10 and is subject to change without prior notice.

    If you’re stuck in .50% bank rate CD’s, or just plain don’t know what to do in this volatile market environment - consider this a great opportunity to pick up some extra yield while beginning a relationship with Red Rock Wealth Management!

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    Investment Management Fees - Tax Deductible???

    February 9th, 2010

    Around this time of year things start hopping in my office. Working with so many accountants, it’s clear it’s “busy season” yet again!

    One of the main questions I get from clients (which ties right into busy season), is “are the investment management fees paid to a financial advisor deductible or not?”

    While there’s no cut and dry answer for tax-preferenced accounts such as IRA’s, there is for taxable accounts.

    Investment management fees assessed to taxable accounts are tax deductible to a point. They fall under the “miscellaneous itemized deductions” section of your tax return. Miscellaneous itemized deductions are things such as financial advisor fees, tax preparation fees, unreimbursed job related expenses, and subscriptions to newspapers or periodicals.

    Under the miscellaneous itemized deduction section, total miscellaneous itemized deductions MUST exceed 2% of your adjusted gross income (AGI) to have any deductibility whatsoever. For many of my clients (retirees), this does become a potential tax deduction as their AGI is lower during retirement typically.

    Miscellaneous itemized deductions are however a “tax preference item” for purposes of calculating whether the alternative minimum tax (AMT) applies or not. In some cases, if you’re subject to the AMT - miscellaneous itemized deductions may in fact be NON-deductible or “disallowed”.

    For IRA and other tax-qualified accounts, the deductibility of investment management expenses isn’t quite so clearly defined, and in fact is highly debated by CPA’s. Some tax professionals lean towards the “it’s deductible just as it is with a taxable account” argument, while still others insist it’s deductible only if the IRA generates taxable income for the year in which the fee was assessed.

    Perhaps the most effective way to handle the fees in these situations is to pay them for both taxable AND IRA/qualified plan accounts from a taxable account (or paid directly). Red Rock Wealth Management provides basic financial guidance and planning in the course of portfolio and investment management, and for some clients extensive retirement planning as well. While the fee is paid quarterly based on a percentage of the investment portfolio typically - the service provided is greater in scope than solely the investment management services, making the fees deducted from a taxable account all-encompassing (rather than investment account management specific). It then becomes a “financial service” fee more-so than an “investment management” fee.

    In addition to increasing the potential to deduct financial advisor fees, it keeps more of your hard earned nest egg working for you in a tax-preferenced account - your IRA or other qualified plan!

    For more questions, please contact me directly at (702) 987-1607.

    Greg

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    Welcome to 2010!

    January 28th, 2010

    After a wild couple of years and an amazing 2nd, 3rd, and 4th quarter of 2009 - we’re finally in 2010. This alone seems like a milestone achievement of epic proportions considering where we were not more than a couple years ago.

    2008 was nothing more than wealth destruction at it’s finest, in more ways than one. Real estate values plummeted, equity markets sank, jobless numbers rose, GDP shrank, the dollar became weak, and commodities were highly volatile to put it mildly! 2008 marks a year of despair and discontent.

    2009 started off the same, people continued to make the wrong decisions at the wrong time. Average investor mentality prompted selling at what we look back now as the bottom. I know, there were investors who couldn’t remain grounded in their financial plans. Fear took over, greed was long gone, and a return of principal was all they wanted even if it meant abysmal interest rates and locking in paper losses. That proved to be an incredibly detrimental decision for the masses of individual investors throughout the world who made similar decisions.

    What proved to work, which has proved to work time and time again for decades, is staying grounded in a solid plan. Those with near term cash needs separated in conservative money market and CD type of investments were able to weather the storm. In fact those same clients were able to re-balance their portfolios on the way down into first quarter 2009, and subsequently later at much higher levels later in 2009. For investors who stayed focused on their plans - the gains were tremendous as portions of equity positions were bought at depressed levels, and subsequently portions were sold later in 2009 at higher levels. All along, maintaining enough cash and CD investments to cover near term cash liquidity needs.

    A bad year(s) coupled with bad decision making can lead to a lifetime of lost net wealth…

    After nearly 15 years as a financial advisor (March 15 marks my 15th year since starting with then “Dean Witter Reynolds” and subsequently “Morgan Stanley” - as an advisor) 2009 will go down in the history of my career as one of the most successful advising experiences ever. In the grand scheme of things - I will always look back on the focus and fortitude it took my clients to endure the most difficult and challenging period for net wealth volatility since the decade of the great depression.

    The trust clients placed in the process and long term focus I provided them is unequivocally my Firm’s most valuable asset.

    That leads me to today, WELCOME TO 2010!!! Remember, we are investors, not speculators. We implement and manage focused and concise plans to achieve goals over long periods of time while reducing risk and volatility to a level each client is comfortable with. We CAN NOT predict the market movements, we DON’T try to manipulate investments to take advantage of “what we think will happen”. Truth is, no one knows.

    Here’s the hook though, as Americans IT IS IN OUR BLOOD to think we know better, to think we can predict what investments or managers or assets will outperform. We ARE the greatest nation on the planet, if this drive to always outperform WASN’T in our persona - we wouldn’t be the greatest nation on the planet!

    So, I propose to you NOT to try and guess where the markets are going. DON’T let fear and greed lead your investment decision making. ABSOLUTELY NEVER deviate from a solid long term plan UNLESS your financial situation changes. TURN OFF THE NEWS and the “talking heads”. For every analyst who says we’re going down, there’s another saying we’re going up. They don’t know anymore than you or I do.

    What we DO KNOW HOWEVER, is that in the context of a well thought out longer term financial and investment plan (as you all know I share the mantra 5 years, 5 years, 5 years with many of my Fee-Only advisor counterparts), the strategies of minimizing costs, taxes, and turnover, consistently re-balancing at opportune times, monitoring your financial situation for adjustments to your longer term plan, updating your financial plan regularly, and staying focused on what works IS THE BEST WAY TO ACHIEVE FINANCIAL SUCCESS!

    So prepare for a drop in your account values, prepare for another rocky year. I don’t know where we go from here, up, down, or sideways. I do know that we have a strategy in place based on you and your financial needs that is solid (if you question that statement to the slightest degree call me IMMEDIATELY so we can review your plan in person together AS SOON AS POSSIBLE!).

    Now that you’ve had a chance to review your year end performance reports, please contact me at 702-987-1607 or greg@redrockwealth.com if there have been any changes to your financial situation I should be aware of OR if you have any questions we haven’t covered in your financial and investment management reviews.

    Welcome to 2010!!! A year I hope to be filled with peace and financial prosperity!!!

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    FDIC Insured Money Market Option

    October 21st, 2009

    TD Ameritrade is now offering an FDIC insured money market option which is yielding (albeit abysmally low!) a substantial amount MORE than the US Government money market option (which most Red Rock Wealth Management clients have). For this reason I’m moving all client money market options into the FDIC Insured Money Market account.

    The FDIC Insured Money Market is a sweep fund, meaning money automatically flows in and out of the fund to earn maximum interest by keeping your money working for you.

    It’s a good option to have and all clients will be taking advantage of it. You may notice some changes on your statements referencing this fact, please don’t hesitate to call or schedule a meeting to review.

    Greg

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