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.
If these are traditional IRAs, they should be combined. Since your mother is 74, you need to be aware that Required Minimum Distributions begin at age 70 1/2. With six separate IRAs, I am wondering whether the RMDs have been made or overlooked. If the latter, there is a 50% penalty due to the IRS. I would check that first since it's quite serious.
Once the IRAs are consolidated, you will want to make a proper asset allocation, which will depend on other assets you mother has as well as other considerations such as need for current income. It sounds like you certainly do need an advisor for this situation. You should consider going to findanadvisor.napfa.org for a listing of those who could help in your area. That's the website for the National Association of Personal Financial Advisors, probably the best qualified people available.
The average annual return from the S&P 500 from inception about 90 years ago until the present time is about 10% a year. That includes a combination of 7% real return and 3% from inflation. Keep in mind the fact that there have been decades along the way when the return was negative. Even so, over periods of 20 years or longer equities have always provided the highest returns.
If you become a stock broker, you will become a sales person authorized to execute trades on behalf of your clients. Although clients will have assets deposited in their accounts, you will need their authorization before you make any trades. The only way you would be able to trade without further authorization would be to have them give you full discretion over their accounts.
Financial advisors come in a variety of forms. These include stock brokers, insurance agents, and accountants, among others. If this is the direction you are considering, you should seek to become a Certified Financial Planner, which requires 6,000 hours of experience, a bachelor's degree, and successful completion of a seven-hour exam with 170 multiple-choice questions. It's a demanding program, but one that will place you among the most competent financial advisors.
To get 10% growth in income from dividends, assuming there's no change in principal, that would depend on the ongoing action of the companies held in your portfolio. It would mean that the companies are raising their dividends at an average rate of 10% per year. That's unlikely. At best, the typical annual growth rate of public companies is in the single digits and few are consistently raising dividends at a 10% annual pace. For those steadily raising dividends, I suspect that a 5% pace is more likely. Even so, it's entirely possible to get a total return of 10% on average per year from a combination of capital gains and dividends. In that case, however, the capital gains part will rarely be consistent. Not every year will be up. So the bottom line is that 10% every year from dividends alone is unrealistic.