Daly Investment Management
President, Wealth Manager
John has been providing sound financial advice to individuals, families, and small business owners for over 17 years. John started his career as a financial advisor at Morgan Stanley in Scottsdale, AZ where he earned the Nation Directors Award his first two years. Upon moving back to his home town of Chicago, John joined Charles Schwab & Co as a Vice President-Financial Consultant. At Schwab, he provided fee based investment advice to high net worth individuals. After spending 10 years at two of the country's largest brokerage firms, John realized there were too many roadblocks on that side of the business and clients were getting the short end of the stick. Corporate conflicts of interest, firms trying to sell proprietary products, third party kick backs, and high fees were all hurting the end client. He knew there was a better way to help people achieve their financial goals. In 2009, John opened Daly Investment Management LLC to offer investors a true fiduciary option for their wealth management needs; to have someone who looks out for their needs, not the needs of big corporate brokerage firms. John believes his greatest responsibility is to provide objective and prudent investment advice to help clients reach their goals.
John is graduate of Arizona State University where he majored in Finance. He is also a graduate of the College for Financial Planning. After which he went onto earn his Certified Financial Planner designation.
John lives in Mount Prospect, IL with his wife Laura and their two daughters. In his spare time John enjoys golfing, fishing, coaching his daughter's basketball team, and mainly spending time with his family. John is also a member of the Mount Prospect Chamber of Commerce. You can find him volunteering at many events throughout the community.
BS, Finance, Arizona State University
As explained in the other answers, a negative rate of return means that your investment is worth less now than what you paid for it. That can and does happen during periods, especially with riskier assets. However, you do not want that to be a long term trend. Compare your investment to an appropriate benchmark to see how it compares and evaluate how your investment is performing. For example, if you bought an emerging market stock fund last year, you would most likely have had a negative return. And if you looked at the overall emerging market category last year, it was negative as well. So, your investment was in line with the benchmark. Negative rates of return can and do occur. Always reevaluate and review your investments to make sure they are still appropriate for the future.
You need to consider more than just who had the better return. Risk is an overlooked factor of investing. For example, if one of your portfolios returned 10% and the other 12% - you might automatically take the 12% portfolio. However, if the 12% return portfolio had a standard deviation(risk) of 18% and the 10% return portfolio had a standard deviation of only 9%, I would prefer the 10% return portfolio for the better risk adjusted return. Also ,the 1-2 year time horizon is too short of a period to account for any consistent performance. The NASDAQ was the best index to be in for about 5 years in the late 90’s, however it had a blow up and took almost 15 years to get back to its high water mark from early 2000. I would recommend that you go with the portfolio that is in line with your goals and risk tolerance. Try to keep fees low, diversify across multiple asset classes and you will do well in the long run.
You’re doing the right thing by setting up a scheduled savings plan. However, you have to be careful investing those funds if you need them in such a short time horizon (2 years), especially in risky investments like stocks. Volatility in stock prices is normal, you don’t want to be in a position where your savings are down 10% – 15% (or more) when you need it for your down payment. You can consider less risky investments like bonds, but remember those are not risk free either. If you do invest in bonds, make sure you stick with high quality and short maturity bonds to minimize any loss of your principle. Keeping your money in a money market account is not a bad option either. You won’t get great interest, but you will be protected from loss. Remember, risk and return are related – if you are going for a return greater than cash – you need to be prepared for the extra risk associated with that return.
It depends on how much you earn. Social Security takes your highest 35 years of earnings and averages them as part of their calculation of benefits. If you go back to work and earn more than one of the 35 years you had on your record previously, then yes your benefit can go up. Also, keep in mind that zero's do count in the calculation. So if you only worked 30 years, you would have 5 zeros in your calculation. Working would replace those zeros.
First off, great job on saving for your retirement. You CAN still contribute to your IRA, even after maxing out your 401(k) contributions. You will get tax deferred growth within that IRA, so keep making those contributions as long as you can.