Category Archives: Financial Adviser

WealthManagement.com Advisors with Heart Awards

Posted May 4, 2015 by paragon. tags:
Advisors with Heart Awards

From: WealthManagement.com

This year, we pored over nearly 150 nominations for REP.’s 35th annual Advisors with Heart Awards, which honors advisors who put sweat equity into philanthropic and charitable causes. There were so many outstanding advisors in the bunch that it was hard to narrow the list down to just 10, but by April 6, we made our final selections.

These FAs go beyond just writing a check or serving on the board of an organization. And each one brings his or her unique skill set to the table when serving others. Take Russell Redenbaugh of Kairos Capital Advisors. Blinded at the age of 16, he used his skill as a juijitsu champion to launch a self-defense program for young children, among other projects. Edward Jones advisor Ryan Harman learned to fly-fish when he was a teenager in the mountains of West Virginia, and now he teaches fly-fishing to disabled veterans as part of a rehabilitation program.

“I have a chance to share something that’s been really important in my life with some truly deserving soldiers,” Harman says.

Click here to check out their stories.

What To Ask When Hiring a Financial Adviser

Posted February 14, 2013 by admin. tags:
Hire a financial advisor

Written by Dave Young, President & Founder of Paragon Wealth Management

For some
reason, it has always been easier to lose money than it is to make it and keep
it.

Managing
your own investments can be done successfully, but it is not easy. First, it
requires a time commitment to research and track your investments. Second, it
requires discipline to stick with your strategy through challenging times.
Third, and most difficult, it requires you to remove emotion from your
investment process.

Studies
have shown that most investors would be better off with the help of a financial
adviser. Unfortunately, finding the “right” adviser is difficult. Most
investors hire someone they “trust”. However, “trust” is very intangible and
difficult to quantify. Also, the size of the firm or familiarity of the brand
name does not indicate the quality of the advice provided.

To make
sure you don’t get stuck with a salesperson when you are really looking for an
adviser, make sure you ask these four questions:

  • Fiduciary?
    Fiduciary advisers have a legal obligation to put your
    interests ahead of their own.  A minority
    of all financial advisers actually meet the fiduciary requirement.
  • Experience?
    How many years have they been managing money? Ideally, your
    adviser has experience investing in both good markets and bad markets. In the
    final analysis, you are paying an adviser for their experience.
  • Track
    record?
    Legitimate
    advisers will be able to show you a clear report of what they’ve done for their
    clients over the years. Any adviser who refuses to show you their past performance
    should be crossed off your list.
  • Conflict
    of interest?
    By
    working only with advisers who are paid through management fees and not
    commissions you can make sure their interests are aligned with yours.You
    should never own a product with a surrender charge.
As I mentioned, it has always been easier to lose
money than it is to make money. Implementing these tips will help you find a
great adviser.
Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

Olympic Investment Advisors

Posted August 9, 2012 by admin. tags:Tags: ,
London Olympics


Written by Dave Young, President of Paragon Wealth Management

When I think of olympians, I think of the best of the best. The best track stars, the best gymnasts, the best swimmers (Michael Phelps), etc. To become the best it takes a lot of training, dedication and motivation.

Most people don’t see what these athletes experience behind the scenes to become olympians. They only see the result of what they’ve become.

This is true with investing. To become an “olympic” investment advisor, it takes a lot of training, dedication,  motivation, and years of experience. A person can invest in the stock market on their own, but usually they won’t get the “olympic” results they are looking for unless they put in an “olympic” type of effort.

That’s why most investors who want “olympic” results hire a professional or an “olympic” advisor to manage their funds. It’s important to find someone who is capable of managing your funds to receive the best performance results. There are many advisors that you can trust and become friends with, but they may not be the best people to manage your life savings.

It is uncommon for an Registered Investment Advisor to post their performance results, especially online. There are many reasons for this, but poor performance is the primary one.

Simply posting our performance numbers is one area that sets us apart from other advisors. Posting our performance numbers “net of all fees” is another way in which we are unique. We post our portfolio performance numbers, net of all fees” on our website each month. That way an investor can see our actual net results generated on an ongoing basis.

Our performance numbers  are on our website and are updated regularly.

Next time you think about investing, and hiring an investment advisor, look at their performance record, net of all fees, to see if it is “olympic” material.

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

Advisers urge Bond Investors to Abandon Ship in Face of QE2

Posted November 18, 2010 by admin. tags:Tags: , , , ,
Sailing Ship


Photo by kevincole

Quantitative easing causing plenty of unease among clients; interest rates are harder to pick than stocks.

Interview with Nathan White, Paragon’s Chief Investment Officer
Taken from Investment News
Written by Jessica Toonkel
November 16, 2010

Financial advisers are using the unexpected jump in interest rates to persuade clients that it’s time to get out of long-term bonds.

Last week, the Federal Reserve commenced its second round of quantitative easing in a bid to push mid-and long-term interest rates lower, and thus boost lending and spending. Instead, interest rates have spiked over the past few days, as the Fed has been forced to entice hesitant institutional buyers into purchasing government paper. Nevertheless, prices on longer-term bonds have continued to sag, boosting yields in the process. Indeed, the yield on the 10-year Treasury hit 2.91% yesterday, the highest since Aug. 5.

“Interest rates are harder to pick than stocks,” said V. Peter Traphagen Jr., an adviser at Traphagen Investment Advisors LLC, which has $240 million in assets under management.

Many advisers have been trying for months to persuade clients to bail out of long-term bonds. But investors, still shellshocked from the 2008 market crash, believe long-term bonds means safety.

But with QE2, clients are asking what they should do.

“I just had a conversation with a client the other day about what they should do in response to the Fed’s move,” said Nathan White, chief investment officer of Paragon Wealth Management.

“I told them that I would rather own a stock where I know the risk I am taking can be higher, but at least I am knowingly taking that risk,” he said.

Paragon has been shifting clients from long-term bond ETFs, like iShares Barclays 20+ Year Treasury Bond ETF (TLT), into dividend-paying equity ETFs like the SPDR S&P Dividend ETF (SDY).

Similarly, for the past few months Traphagen has started to move its clients’ fixed-income allocations from 10-year durations to four- to five-year durations. “We felt that clients were not rewarded enough to go out further on the yield curve and there was a potential that rates may move higher at least in the near term,” Mr. Traphagen said.

Paragon cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results. Investments in securities involve the risk of loss. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjuction with his/her advice.

If it sounds too good to be true…

Posted June 18, 2010 by admin. tags:Tags: , , ,
Amazing Ocean Sunset


photo by Mundilfari

Written by Nathan White, CFA

I’ve had a few people lately inquiring whether certain annuity investment products that have been presented to them are a good deal or not. In light of the recent market volatility this product seems appealing. The conversation usually starts with a statement like this “I’ve had someone tell me that they can get a guaranteed fixed return or most of the gains if the market moves up.” This seems like a no brainer – all upside and no downside!  Who wouldn’t want such a deal? When evaluating products like these keep in mind the old saying “if it sounds too good to be true then it probably is.”

Because equity-indexed annuities (EIA) may seem so appealing, many fall victim to the sales tactic and then later feel significant buyers remorse when they experience the reality of these products. These annuities use complex formulas to determine what your gain is – if the market goes up, you actually end up getting significantly less than what it looks like on paper. In the end, no matter how much the market improves, all you may end up getting on average is a little more than what your minimum guaranteed return is. To make matters worse your money is locked up for years and the only way to get it out is to pay a hefty fee.  You basically get locked into a low returning investment. If a low return is all you need then maybe it is something worth considering, but you could probably buy a bond with a similar return and still have access to your investment should you choose.

Remember, beware of the investment advice from anyone selling you a product and get an objective opinion from an advisor with a fiduciary standard.

Click on the link below for more information on the pitfalls of EIAs.

http://www.guardingyourwealth.com/annuities/Equity-Indexed-Annuities.htm

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions.  Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy.  All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice.  This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.  Past performance is not a guarantee of future results.

 

Selecting a Financial Advisor

Posted October 22, 2009 by admin. tags:Tags: , ,

Finding a financial advisor can be daunting. This is because the title “financial advisor” is not regulated, and advisors range from annuity sales people, to insurance agents, to registered money managers.

The video  below explains what to look for in a financial advisor and how to quickly identify a financial advisor who is competent and offers you the best service for your money.

For more information, download “How to Select a Financial Advisor: The Top Seven Questions You Should Ask” on Paragon Wealth Management’s website.

Why Financial Advisors have no Confidence in Washington

Posted May 14, 2009 by admin. tags:Tags: , , , ,
The White House

Written by Dave Young, President of Paragon Wealth Management

 photo by Seansie

Smoke and Mirrors…

Politics and religion are two subjects we try not to discuss on this blog because we realize they are often more emotional than fact based and can be offensive to some of our readers.

Avoiding politics has been difficult this year because it seems that the center of the financial universe has recently moved from Wall Street to Washington. The continuous daily news updates from Washington have had much more impact on our financial markets than ever before.

I find it interesting that while 60% of Americans approve of how Obama is doing, a recently released poll of financial advisors showed that only 36% of them approve of his performance so far. Even worse, 68% said they have no confidence in his ability to “fix” the ailing economy.

Why is there such a difference between the ways that most citizens see the new president versus most financial advisors? In part, I believe, because financial advisors base their perception more on “the numbers” than “the personality”.

For example, last week President Obama held a press conference on the U.S. budget that was recently passed by Congress.

The budget was 3.6 trillion dollars.

Since one trillion (1,000,000,000,000) equals one million times one million — 3.6 trillion is beyond the grasp of most people’s understanding. So they ignore it.

As last week’s budget press conference, President Obama’s entire focus was that he is taking us into a NEW ERA OF RESPONSIBILITY. That is what they have named this massive spending bill. To make his point, he spent the entire press conference focused on the 17 billion dollars he was going to save through his new polices. No mention was made of the 3.6 trillion dollar budget or the 1.2 trillion dollar deficit that it would create.

The 17 billion dollars in savings that was the focus of the press conference is equal to one half of one percent of the entire budget. That would be like buying a car for $100,000 and then getting excited about saving $500. Never mind that the car cost $33,000 more than you had available to pay for it.

This is why financial advisors, (people that work with numbers) don’t have a lot of confidence in what the President is doing. What he does compared to what he says just doesn’t add up.

Sources:  May 8, 2009 Investment News, and www.whitehouse.gov.

Are you Happy with Your Financial Adviser?

Posted May 27, 2008 by admin. tags:Tags: , , , ,
Cartoon of a financial loser

Written by Dave Young, President of Paragon Wealth Management

For some reason, it has always been easier to lose money than it is to make it and keep it.

According to the Utah Division of Securities, during 2007 alone, they filed enforcement action on 63 cases. Within those cases, 727 investors lost over 77 million dollars.

Managing your own investments can be done successfully, but it is not easy. First, it requires a commitment of time researching and tracking your investments. Second, it requires discipline to stick with your strategy through challenging times. Third, and most difficult, it requires you to remove emotion from your investment process.

Most successful people recognize the need for a relationship with an accou ntant and lawyer. Many haven’t yet discovered the benefits of working with a financial adviser.

Based on the variety of investment options and the myriad of people that call themselves financial advisers, it is easy to understand why. Often figuring out who to work with is so confusing that people give up and opt to manage their money themselves.

Studies have shown that most investors would be better off with the help of a financial adviser. Unfortunately, finding the “right” adviser is much more difficult than most people realize. Most investors hire someone they “trust”. However, “trust” is very intangible and difficult to quantify. Also, contrary to popular belief, the size of the firm or familiarity of the brand name does not indicate the quality of the advice provided.

Part of the problem is that titles for financial sales reps are completely unregulated. This means that brokers, annuity salesmen and insurance agents are free to call themselves advisers, financial consultants, financial planners or whatever else they prefer.

To make sure you don’t get stuck with a salesperson when you are really looking for an adviser, make sure you ask yourself these five questions.

Fiduciary?

Fiduciary advisers have a legal obligation to put your interests ahead of their own. Sales reps selling insurance, mutual funds or other financial products are most likely not fiduciaries. A minority of all financial advisers actually meet the fiduciary requirement. Registered Investment Advisers and Investment Adviser Representatives are fiduciaries.

Experience?

How many years have they been managing money? Markets are difficult to navigate and constantly changing. Ideally, your adviser has experience investing in both good and bad markets. In the final analysis, you are paying an adviser for their experience.

Track Record?

Legitimate advisers will be able to show you a clear report of what they’ve done for their clients over the years. Showing you the track record of a mutual fund, a hypothetical model, or anything else that they have recently started selling does not count. They need to show you their own track record, which would be a composite of the results of their previous clients’ investments. Any adviser who refuses to show you at least a five year track record of their performance should be crosses off your list.

Conflict of Interest?

Many commission based salespeople are honest individuals. However, in the financial services industry, the worse the product the higher the commission. The easiest way to avoid those “bad products” and to eliminate potential conflicts of interest is to avoid salespeople who receive commissions. By working only with advisers who are paid through management fees and not commissions you can make sure their interests are aligned with yours.

Surrender Charge?

If there is a surrender charge then that means there was a commission. If there is a commission then you are not dealing with a fiduciary adviser. You should be free to move your money out of an investment if you are dissatisfied. This means you should never own a product with a surrender charge.

As I mentioned at the beginning…

It has always been easier to lose money than it is to make. Implementing these tips will help you keep your money and find a great adviser.

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