Emerging Markets Opportunity

Presented by Mark Phillips
October 3, 2016

While a particularly unattractive period for US Equity (stocks), during that period Emerging Market Equity performed admirably. The question is: “Is that it? Is it done?”

Perhaps the other way to see this question is: “Has Emerging Market (EM) investment opportunity been neglected?”

How long can we expect that the portion of the global economy with 84% of the population, 66% of the foreign Exchange Reserves, and 51% of the worlds per person economic output will only garner 10% of the total of all global stock value?

Perhaps something will need to move (up or down) to bring these into alignment. I wonder which?

This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation. Emerging market investments may involve higher risks than investments from developed countries and also involve increased risks due to differences in accounting methods, foreign taxation, political instability, and currency fluctuation.

Beyond Credit Scores: 7 Factors That Affect a Loan Application

Written by Maryalene LaPonsie for U.S. News & World Report Money

http://bit.ly/1WwzvxS

What criteria do lenders consider when it comes to approving—or denying—your credit card, auto loan, or mortgage application? From proof of income to recent payment history, here are seven factors that can affect your loan eligibility: 

When it comes to good finances, credit scores get a lot of press. Based on a formula incorporating loan and repayment history, credit scores are often touted as the reason someone gets approved for a credit card, auto loan or mortgage – or denied one.

However, some financial experts say the role of credit scores may be overblown. "It is a very useful tool, but it's just one tool," says Kathleen Lindquist, a certified financial planner with San Diego Wealth Management. In addition to credit scores, lenders may look at everything from your housing history to your social media presence and credit decisions.

Mortgage and subprime borrowers may be subject to even greater scrutiny. That isn't to say credit scores aren't important, but their role may vary significantly depending on a lender's three-digit number. "If your score is greater than 750, the decision is made primarily on your credit score," says Rich Hyde, chief operation officer of Prestige Financial, which specializes in auto loans for buyers with subprime credit.

People with lower numbers may find lenders begin asking for more documentation. However, that isn't necessarily a bad sign. "We're in the business of loaning money," Hyde says. "We're looking for the good things."

Mortgage lenders also tend to have more stringent requirements, Lindquist says. Beyond a credit score, they also look for details regarding income and assets to determine whether a borrower will have the means to pay off a large loan with a long term.

7 Other Factors Lenders May Consider

All lenders have their own criteria, but here are seven commonly considered factors that can play a role in a credit decision.

1. Proof of income. It's not enough to simply state your income. Some lenders want to see proof, either in the form of pay stubs, bank statements or even old tax forms.

2. Investment statements. Some lenders may also want to see 401(k) or IRA statements, "particularly for those who are retired and don't have an income," says Mikel Van Cleve, director of personal finance advice for USAA Bank.

3. Employment history. Hyde says subprime lenders often look for a stable employment history when weighing the likelihood of a borrower being able to pay back a loan.

4. Housing history. As with employment, lenders are looking for stability when it comes to housing. Frequent moves could indicate money management problems or increase a lender's chances of not being able to track down a borrower who defaults on a loan.

5. Debt-to-income ratio. Sometimes broken down as a payment-to-income ratio, this factor calculates debt as a percentage of your income. "It's a good idea to keep that debt-to-income ratio below 36 percent," Van Cleve says. However, a higher ratio may not automatically disqualify someone from a loan.

6. Recent payment history. If you have past bad credit, a lender may consider when that occurred. Missed payments from three years ago may not be a concern, but missed payments from last month could sink someone's chances for a loan.

7. Social media. "Data companies are continuing to look for new ways to help lenders," Van Cleve says. That includes surveying social media sites for signs a potential borrower may be irresponsible with their money. Van Cleve is quick to note this is a new strategy of evaluating applicants and not one used by USAA Bank.

Surprisingly, a bankruptcy may not mean you will automatically be denied a loan. "A recent bankruptcy means you don't have other debt we have to compete with," Hyde says.

Don't neglect your credit score. While checking your credit score every day isn't necessary, borrowers should still be aware of their number. By paying on time and keeping credit card balances low, you can boost your score and minimize the need for your entire financial life to go under a microscope.

Presented by Mark Phillips    Check out our website!

The Big Mistake Investors Still Make

Presented by Mark Phillips

Investors still buy funds and sell at the wrong times, especially in volatile markets

By
JOHN COUMARIANOS

Volatility has taken hold of the financial markets, and it’s likely to bring out the worst in investors.
This year, the S&P 500 index swooned nearly 5% in January, remained flat in February, and surged more than 6.5% for the month of March. That’s after erasing last year’s August-September 8% drop with an 8.4% October gain.

Moreover, smaller-company stocks, represented by the Russell 2000 index, were down more than 20% from their late-summer peaks in February, before storming back more than 10% since then.

Moves like this drive investors crazy, often causing them to trade their holdings in damaging ways.

Here’s how investors hurt themselves, and what they can do to stop it.


The Big Mistake Investors Still Make, continued

Our Blind Spots Cut Retirement Savings

Presented by Mark Phillips

Reprinted with permission of the Squared Away Blog at Boston College’s Center for Retirement Research.   Note that I’ve embedded the link to our blog in “Squared Away Blog” and here it is again – so people can find us and read more:http://squaredawayblog.bc.edu/  

Our personal biases can play havoc with how we handle our finances.

Two such biases have long been suspected as obstacles to saving for retirement. The first is a tendency to procrastinate on decisions that may benefit an individual in the long run, but also involve short-term costs, like saving for retirement – economists call this “present bias.”

The second bias is a failure to perceive the power of compounding investment returns and how this can build wealth over decades of saving.

Our Blind Spots Cut Retirement Savings  click to read more

Phillips Wealth Management

Our Biggest Financial Challenges Are Often Self-Inflicted

Presented by Mark Phillips on April 13, 2016

In many respects, people can be their own worst enemies in their quest for financial security. When you consider that our lives are nothing more than a culmination of the decisions we make each day, if we tend to make more bad decisions than good decisions, or worse, if we can’t make decisions at all, it’s should be no surprise when financial security  remains elusive.

When it comes to finances and investment decisions, many people are not wired to be able to make decisions dispassionately, without emotions clouding their reasoning; and that’s when people tend to make the most behavioral mistakes with their financial decisions. Understanding these behavioral mistakes and how to avoid them is crucial to achieving financial security.

How many of these behavioral mistakes have you made?

Impulse purchases – We’re all prone to an impulse purchase now and then, but for some people, it’s more of pattern than a one-off indulgence; and when these purchases add to debt, the damage is compounded.

Using bonuses or salary increases to add to lifestyle and not savings – When people lack a goal, or a vision or a purpose, they are more likely to want more lifestyle than savings.

Trying to pick the winners – When investing, do you spend your time looking for the top performing mutual funds in hopes of jumping on the train to riches? Very rarely does a top performing mutual fund repeat its winning performance.

Following the herd – In investing, many people have a fear of being left behind, which is why the human tendency is to follow the herd in times of stock market exuberance or panic. Almost invariably, this leads to buying near the top of the market or selling near the bottom.

Procrastinating – Procrastination, typically brought on by the inability to make a decision, is one of the primary causes of financial distress.

Trying to avoid risk – Many of the behavioral mistakes people make is a result of their lack of understanding of the role risk plays in investing. Without risk, there are no returns; and, without returns, achieving financial security is almost impossible. If you think you are avoiding risk by avoiding the stock market, you are actually inviting other, more corrosive forms of risk, such as inflation risk, longevity risk, and interest rate risk.

These common, costly behavioral mistakes typically result from a lack of planning, with no clear vision or purpose to guide decisions.  Instead, decisions become reflexive responses to emotions that are allowed to dominate our thought process in the absence of the discipline, logic and reasoning that a well-conceived plan can engender.

Studies indicate that people who have well-defined goals, a clear purpose in life, and a thoughtfully prepared plan in place, are better able to check their emotions and muster the necessary discipline to follow their plan. In doing so, they are more likely to avoid many of the behavioral mistakes that can cost them their financial security.

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2016 Advisor Websites.

Five New Ways We Could Use Credit Cards In The Future

Presented by Mark Phillips

Tired of pulling your credit card out of your wallet every time you want to make a purchase?  What if you only had to use your hand?  Or maybe instead of going to the grocery store, you could order groceries right from your refrigerator!  This article shares some possibilities for the future – that may or may not make life easier.

http://qz.com/609642/refrigerators-bots-and-cars-nine-ways-you-can-use-your-visa-card-in-10-years/