Sound Asset Management Inc.
Russell Wayne is a Certified Financial Planner and President and Chief Investment Officer of Sound Asset Management, Inc., an independent financial advisor based in Weston, Connecticut primarily serving clients in the greater New York tristate region and throughout New England.
Russell began his career with Arnold Bernhard & Co., Inc., the parent company of Value Line, Inc. Positions he held while associated with Value Line included Managing Editor, The Value Line Investment Survey; Portfolio Adviser, The Value Line Mutual Funds; Executive Editor, The Value Line OTC Special Situations Service; Business Manager, Value Line, Inc.; Portfolio Manager, Value Line Asset Management; and Director of Investment Software, Value Line Software.
From 1991 to 1995, Russell was Vice-President and Chief Investment Officer with Heine Management Group. He was also Vice-President and Secretary of the LMH Fund, Ltd. Clients for whom he has managed portfolios include Xerox, Texas Utilities, National Maritime Union, and United Cerebral Palsy Association.
Russell has been a featured guest on television, including CNN and the Bloomberg Network. He has been quoted in leading business print periodicals and well-known websites, including The Wall Street Journal, Barron's, BusinessWeek, The Wall Street Transcript, The New York Times, Investment News, MSNBC, Yahoo! Finance, NASDAQ, and Facebook.
Russell earned his B.A. and M.B.A. at Hofstra University. He earned his Certificate in Financial Planning from Florida State University and has pursued postgraduate studies at New York University School of Law. He is listed in Who's Who In The East, Who's Who In Finance and Industry, Who's Who In America, and Who's Who in the World. Russell has contributed to a number of published works. His own published works include Markets, Myths, and Memories (2010) and Live Well and Sleep Well With Your Investments Now and When You Retire (2016).
Russell is a proud member of the National Association of Personal Financial Advisors.
M.B.A. (Finance and Investments). B.A., N.Y.U. Law, Hofstra University
Certified Financial Planner, Florida State University
Assets Under Management:
From the standpoint of preparing for the future, you're certainly thinking the right way. The sooner you begin, the better off you will be. Although many folks wait until the years before retirement, it's much more helpful to get going now and take the long view. With that said, however, you would be well advised to consider making regular contributions, however small, to a broadly diversified investment vehicle rather than what amounts to the highly risky practice of buying a few stocks and keeping your fingers crossed. May I suggest a combination of two exchange-traded funds: VTI, Vanguard Total U.S. Stock Market ETF, and VXUS, Vanguard Total International Stock Market ETF. They are about $125 and $52, respectively, so you could buy 1 share of VTI and 2 shares of VXUS to get started. The trades can be done through online brokerage houses (Schwab, TD Ameritrade, etc.) for $5-7 each. As funds are available, you can add to these holdings.
I applaud your decision to start investing early. Since you are currently working in an internship, you may want to consider opening a Traditional IRA or Roth IRA account. The Traditional IRA is funded with pretax money. Contributions are deductible from your gross income and it grows tax-free until funds are withdrawn. Upon withdrawal, taxes are payable.
A Roth IRA is funded with aftertax money. Contributions are not tax-deductible, but the funds contributed grow tax-free and no further taxes are payable upon withdrawal. Either type of IRA would be appropriate for you.
If you are investing on a regular basis, you might begin with approximately equal contributions to VTI (Vanguard Total U.S. Market exchange-traded fund) and VXUS (Vanguard Total International Market exchange-traded fund). These would give you exceptionally broad diversification as well as the opportunity to participate in the investment benefits of worldwide economic expansion.
Vanguard's telephone number is 877-662-7447.
At the end of 2016, there were 4,779 ETFs. The most widely traded ETFs such as XLF, SPY, EEM, QQQ, and EFA would certainly be considered liquid from the standpoint of trading, but even though they could be sold and settled into cash within three trading days they would not be considered liquid assets. Indeed, although open-end mutual funds settle into cash in only one day, they too would not be considered liquid assets. Neither would be shown together with cash and cash equivalents on a balance sheet.
You have a very long time horizon, which means that you should focus your investments exclusively on equities. Having said that, it is essential that you investigate the choices in your 401k plan. Some plans have broad choices; others are quite narrow. If your plan has a broad range of choices, I suggest that you make sure to include both U.S. and international holdings.
Starting out, I suggest you consider a total U.S. market index fund as well as a total international market index fund. If the available funds do not fit those descriptions, try to find those that have a wide range of holdings in the regions they are focused on. This kind of approach will serve you far better than trying to cherry pick large, medium, and small cap funds and hoping this will give you an advantage. It won't. Since the U.S. markets are currently quite richly valued, you might be better served by having at least half of your account in international, both developed and emerging markets. At this point in your career and probably for several decades, there will be no good reason to include bond funds in your account.
Assuming that you are referring to commissions for transactions involving the buying and selling of stocks, a commission is due on each transaction. If you buy 10 different stocks, that would be 10 different transactions and a commission would be due on each. If the commission for each transaction is $10 and you were trading 10 different stocks, that would be 10 x $10 for a total of $100.
To save costs, you may want to consider exchange-traded funds, which can be highly diversfied. A number of major brokerage houses have lists of exchange-traded funds that can be bought or sold without commission. In addition, some will offer a sizable number of free trades when you open a new account.