Active Strategic Management
Management / Financial Planning
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services. Contact a Paisley Financial Associate to learn more about how we can provide for you.Learn more
401 K Plans
A 401k retirement plan is a special account funded through pre-tax payroll deductions. Funds in the account can be invested in stocks, bonds, mutual funds or other assets, and are not taxed on any capital gains, dividends, or interest until withdrawn.Learn more
An IRA is an Individual Retirement Account, and provides either a tax-deferred or tax-free way of saving for retirement. There are many varieties of IRA's please read more on the link below to see which is right for you.
A 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary. Many different plans exist. Learn more to see which is right for you.
Alternative investments are instruments such as physical gold or other commodity based ETF's such as oil or lumber which can be used as a hedge or inflation hedge against an overall portfolio.Learn more
Paisley Financial provides timely and accurate research on markets, companies and industries. Our team offers more than three decades of experience as well as time held relationships with industry experts that will bring the highest quality of knowledge to our customers.Learn more
Investors in fixed-income securities are
typically looking for a constant and secure return on their
investment. For example, a retired person might like to
receive a regular dependable payment to live on, but not
consume principal. This person can buy a bond with their
money, and use the coupon payment (the interest) as that
regular dependable payment. When the bond matures or is
refinanced, the person will have their money returned to them.
There are also inflation-indexed bonds, fixed-income securities linked to a specific price index. The most common examples are US Treasury Inflation Protected Securities (TIPS) and UK Index Linked Gilts. This type of fixed income is adjusted to a Consumer Price Index (in the US this is the CPI-U for urban consumers), and then a real yield is applied to the adjusted principal. This means that these bonds are guaranteed to outperform the inflation rate - (unless the government defaults on the bond). This allows investors of all sizes to not lose the purchasing power of their money due to inflation, which can be very uncertain at times.
Historically, bonds have returned more than cash investments, and exhibited less volatility than stocks and because if that reason fixed income investments are usually a necessary component of a portfolio that is diversified across different asset classes. In addition, the return on bonds has often offset the negative return on stocks during periods of market downturn. As a result, adding bond investments to an all-stock portfolio generally lowers the risk of your overall portfolio. Keep in mind that even within asset segments, like stocks or bonds, an investor should have some diversification through many individual securities or through mutual funds.
Bonds are typically considered a safe income generating investment but there are inherent risks that need to be understood before investing. Risk such as inflationary risk, interest rate risk, currency risk, default risk, credit quality risk, liquidity risk & even event risk as seen in 2008 are a few things you need to understand before choosing a bond or income generating investment.
The bottom line is that bonds and cash equivalents can play an important role in your portfolio depending on your objectives, age and risk you are willing to accept. If you have any questions in regard to risks of investing in bonds please give us a call and we would be glad to help you out with your questions.