Revere Asset Management
President & CIO
Daniel Stewart is President & CIO of Revere Asset Management and has been providing financial services and portfolio management for over twenty years. Revere Asset is a Fee Based RIA which Always Acts as a Fiduciary in the Best Interest of its Clients. Prior to joining Revere Asset Management, Dan advised on investment portfolios exceeding $200M. He is also well versed in comprehensive planning including corporate, individual, and estate planning.
Dan joined the NorAm Capital team in 2010 to create and manage their Private Wealth Management firm. This eventually led Dan to buy the business and rename it Revere Asset Management. He graduated from The University of Texas at San Antonio with concentrations in Finance and Accounting. Dan has passed the CPA Examination on the first attempt and subsequently earned his CFA® Charter (Chartered Financial Analyst).
Dan, a native of San Antonio, Texas, is married with 3 children. Dan played NCAA tennis on a full scholarship at Vanderbilt University. He played professional tennis on the United States and European circuit and was then the Head Tennis Professional at both the Retama Polo & Tennis Club and Thousand Oaks Indoor/Outdoor Racquet Club, in San Antonio, Texas.
Chartered Financial Analyst (CFA®), BBA in Accounting
Assets Under Management:
Fee Based Only - Fiduciary with No Conflicts of Interest
#Yes Primarily Term
No information presented constitutes a recommendation by Revere Asset Management, to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities by Revere Asset Management. Revere Asset Management does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.
This all depends on the strategy, level of aggressiveness, and return you are seeking. But if you are asking how many stocks for a diversified portfolio, studies have shown that if you want to replicate the return on the S&P 500, then you need between 14-22 stocks.
You would use a matrix (grid) of the various sectors of the S&P 500 so you own around 3 stocks in each major sector. This gives you enough diversification without too much tracking error while keeping transaction costs down.
If you are trying to be more aggressive and this is your more speculative money, then I would say around 8 stocks. But you need to monitor them closely.
Hope this helps. Happy Holidays, Dan Stewart CFA®
The biggest mistake I see investors make is putting all of their savings into retirement plans. Then they are paralyzed due to the lack of liquidity. I see people all of the time with 90% inside retirement plans and only 10% outside. A good rule of thumb is to have a balance between 70% inside retirement plans and 30% on the outside. This way, you can invest in assets not usually offered inside conventional retirement plans like real estate or physical precious metals.
That said, a Roth IRA is a slightly different animal. You can always take out contributions any time at any age penalty free. So, if you contribute the max $5,500/year, you can always remove that portion free of any tax or penalties. If you did that for 10 years, you could access $55,000 easily and without penalties or taxes.
But your thinking is correct. Hope this helps, Dan Stewart CFA®
That would really depend on your loan balance, the interest rate you are paying, and your market expectations. And the decision may not be mutually exclusive. You may be able to pay your regular loan payments and additionally pay down some principal while also putting a portion in the markets. The student loan interest rate would be the key factor. The higher the interest rate, the more the necessity you aggressively pay off the student loan first because that is the hurdle rate you must exceed to make your investments worth while.
At least you are hitting this head on and asking the right questions. Best of luck,Dan Stewart CFA®
Rising interest rates will generally strengthen the value of the currency. More investors will want to invest in a country's currency and bonds with higher rates if their currency is deemed stable. Emerging market currencies demand a higher rate due to their higher perceived risk. Investors demand a higher interest rate (return) to offset their risk taken, so higher rates attract money. But if the currency is not deemed stable, however, even higher rates may not attract money. With a stable currency like the U.S., higher rates will almost certainly make the currency appreciate, especially with such low rates in Europe and Japan, the other major currencies. It is all relative. Where can you get the highest rate without getting paid back in depreciated currency? Because if you receive a higher rate, but the currency depreciated by a bigger percentage than your interest rate, you actually lost money in terms of purchasing power. This is why interest rates and currency differentials are important.
Hope this helps, Dan Stewart CFA®
It really depends on what type of bonds they are and what the interest rate, stated or coupon rate, is on the bonds. And there are certain types of government bonds, like Series EE Bonds, that after a long time period, no longer pay interest. If they are no longer paying interest, then you should cash them in, but if they began in 2006 through 2009, odds are they are still paying interest and haven't matured.
If they are still paying a decent interest rate, the decision is tougher and may be a value judgment. This would depend on the stocks she owns, your feeling on the direction of interest rates, etc. It is not as cut and dry if the bonds are still paying interest and it may not be mutually exclusive. You could use some of each portfolio.
I will say that while your mother is still "somewhat lucid", you should get a Power of Attorney (POA) and Durable Medical Powers if you haven't already done so. This way, if she does become incapacitated in any way, you are ahead of the game and can only focus on taking care of her and not paperwork.
Hope this helps and Best of Luck, Dan Stewart CFA®