innovative advisory group

Inflation Monitor – January 2015

 

inflation monitor
 

Inflation Monitor January 2015 – Introduction

I hope you had a pleasant holiday season. Now that the eggnog has run out (although probably more likely the rum), your trees and menorahs have been put away until next year, and you are getting back to work in this cold weather (what else is there to do when it is this cold except work). Lets see what the new year has brought for us as a present. In this month’s issue I will mainly be discussing oil prices and the US Dollar. The two areas which are generating the most interest.

To start the year I am going to play around with the format a bit to see what works best for people. In this months issue I am planning on breaking the bottom section of the Inflation Monitor into separate excerpts through out the month based on thoughts or ideas that I have had rather than wait until the end of the month. I will try to spread this out a bit more a see if this is a more desirable setup. While this might be a bit scatterbrained, it might get back to what this section was supposed to be: inflation monitor data, then some ideas, not a lengthy dissertation. This month was difficult to focus on much else since oil has played such a large part of the public’s interest. So we will focus more on oil and the US Dollar.

This is the first issue of the Innovative Advisory Group Inflation Monitor in 2015. We continue to receive a lot of positive feedback on our first few issues of the Inflation Monitor. As you will notice, we have taken some of this feedback and make some minor adjustments to our issues each month. As always, please contact me to send your feedback on how I can make this monthly Inflation Monitor a better tool or resource for you.

Thank you for reading and I hope you enjoy this month’s issue – Inflation Monitor January 2015.

Kirk Chisholm

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Worried About Fraud with your Self Directed IRA? SEC says, Ask a Financial Advisor

self directed ira fraud

In their September 2011 Investor Alert, Self Directed IRAs and the risk of fraud , the SEC outlined typical fraud risks when using a self directed IRA.

If you are worried about the risks of fraud when using a self directed IRA, then do as the SEC recommends in their Fraud Alert, “Ask a professional”.

The top three fraud risks with self directed IRAs that they focus on are:

  1. Misrepresentations regarding custodial responsibilities
  2. Exploitation of tax-deferred account characteristics
  3. Lack of information for alternative investments

While these may be common fraud risks that the SEC sees with their enforcement efforts, the risks attributable to alternative investments inside self directed IRAs expand beyond just fraud risks. There are other risks which are important to consider when using a self directed IRA. Investors should also consider:

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Who is Your Financial Advisor?

 

financial advisor
 

Professional titles are a great way to distinguish professionals from one another. You wouldn’t confuse Dr. John Smith with John Smith D.M.D., or Col. John Smith with Lt. John Smith. The financial advisory profession is much the same way. However it is a little more cryptic to the investing public as to what the different titles mean in the financial advisory profession due to their lack of uniformity. I hope to dispel some of this confusion right here.

Job “Title” vs Designation

Financial advisors use titles and designations to communicate to their clients and prospective clients who they are and what they do. While titles are a way to communicate to people what their role is, a designation is a way to show people that they have received additional education in certain areas. Unfortunately there is very little regulation or oversight in using different titles or designations from the industry regulators.  This has actually been one of the main causes for the lack of clarity among the investing public along with the rampant creation of designations for different specializations. The Wall Street Journal recently listed 208 designations for financial service professionals on their website.1

This list of 208 does not include designations which are internally given by companies to their brokers or advisors for passing an advanced education exam. For example, I received a Financial Planning Specialist (FPS) designation when I worked at Smith Barney. However, when I left the firm, I could no longer use the designation even though I passed the test. If you see the list, you will realize the runaway problem the financial services industry faces in further confusing the public. Some of these designations are monitored by FINRA and some are not.

How popular is your financial advisor?

As a professional financial advisor with over 15 years of experience, I have spent a lot of time over those years trying to craft the appropriate title to describe my profession, while at the same time trying to distinguish myself. One type of competition I have is with other people who have services which closely mirror my own. The other type of competition is from people who are from a different profession, but use the title of financial advisor. People from other professions who also use this title include: insurance salespeople, mortgage brokers, tax preparers, and more. This leads to a consumer who ends up being confused, and potentially does not get the help they are looking for.

Popular financial advisor designations

As an example of some of this research, I have illustrated the investing public’s levels of interest in the following four designations…

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Inflation Monitor November 2014

inflation monitor

Inflation Monitor November 2014 – Introduction

This is the second issue of the Innovative Advisory Group Inflation Monitor. We have received a lot of positive feedback on our first issue of that Inflation Monitor. As you will notice, we have taken some of this feedback and made some minor adjustments to our issue this month. As always, please contact me to send your feedback on how I can make this monthly Inflation monitor a better tool or resource for you.

This month I have added the following indicators:

  • The Rogers International Commodity Index®,
  • US 10 year TIPS,
  • Personal Expenditure Consumption Index,
  • Real median income to the list for reference.
  • US Debt as a percentage of GDP

In this month’s issue I will be discussing Japan, Deflation, US Oil production, Gold and Silver. Given the most recent US market sell off, I think it would be a good time to discuss the other side of inflation… Deflation.

Thank you for reading and I hope you enjoy this month’s issue – Inflation Monitor November 2014.

Kirk Chisholm

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My Story: How I Learned About Self Directed IRAs

 

self directed ira

 

Self Directed IRAs are not a widely known or understood area in the investment community. The term is typically used to describe what an IRA is, an Individual Retirement Account, which is self directed by the account owner. Most people know that this type of account can be used to invest in stocks bonds and mutual funds. What is not widely known is that this type of account can also be used to invest in real estate, tax liens, private mortgages, private businesses, medical equipment, horses, gold and silver coins, and more.

Most people who know me have been aware of my interest in investing in alternative assets with a self directed IRA for many years. What they may not be aware of is…

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Timeless Wall Street Wisdom

By: Kirk Chisholm

Wall Street Wisdom

Timeless Wall Street Wisdom

Wall Street is steeped with wisdom by learning from another’s folly. While no one wants to be held out as an example of what not to do, it is inevitable that someone makes the mistake. Human psychology is interesting in that what should be a valuable lesson to the rest of us, is squandered away by attempting to do the same thing over and over again. Fortunately many investors have come to the table before you and me and have left a valuable trail of lessons to learn from.

I am writing a category of blog posts with valuable Timeless Wall Street Wisdom. Anyone who cares to read it will be able to learn something new. These are lessons which I have learned over the years either through my own folly or by observing others… mostly through observing others. There is one certainty on Wall Street: if you think you are the first to make this mistake, you are not. There are no new investing paradigms, there are no new ideas, and when you hear the words, “but this time its different”… you should know that it never is. I hope you enjoy my Wall Street Wisdom…

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