Independent Registered Investment Advisor
AF Capital Management
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5 Tips to Diversify
One of the easiest steps to help lower the volatility in your portfolio is the power of diversification. Along with diversification among asset classes (i.e. stocks, bonds, cash, precious metals) the types of stocks and bonds an investor owns should be diversified also. Stocks within each sector and industry tend to move in step with each other outside of micro-economic…
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Are Stock Options Risky?
As an advisor who specializes in using options to grow and protect clients’ assets I’ve been asked by a few clients if using options in their accounts is too risky of a trade for them since they want to keep any losses to a minimum. In each instance I’ve easily been able to reply that when…
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SEP-IRA Pros and Cons
A SEP-IRA is a Simplified Employee Pension plan in the form of an IRA (Individual Retirement Account). A SEP-IRA allows employers a easy way to contribute to their employees’ (and their own) retirement. To fund a SEP-IRA, an employer contributes directly to an IRA for each employee in an equal percentage basis (See IRS Publication 560). The…
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10 Reasons Why the Strength of the Dollar Matters
Whether a strong dollar is a good or bad change for the economy all depends on your perspective. Different industries do better under different conditions. Here are 10 reasons why the strength of the US Dollar matters. Strong Dollar Imports cost less when the dollar is strong which reduces costs of good purchased from overseas. Domestic manufactures…
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Understanding Risks in Investing
Understanding the risks of your investment choices is a key element in planning. Risk is not limited to how much one might lose in the markets. That’s only downside risk. Risk also includes opportunity cost or upside risk. While most investors think of an investment’s risk in relation to how much they might lose if it goes down after they buy it, upside risk…