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in stocks, bonds, mutual funds or other assets, and are not taxed on any capital gains, dividends, or interest until withdrawn.Learn more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
Mutual Fund Assistance
Many investment advisors choose mutual funds based solely on the funds' past performance. However the advertised stellar performance is not a guarantee of future success, especially when it comes to relatively new or small funds.
Beyond the performance of the fund many people are not aware of the costs each fund charges just to own it. There can be backload fees, frontload fees, sales fees, known as 12b-1 fees and of course just the residual fees of the fund itself. All these costs can add up to a hefty sum over time, especially if the performance of the fund lags.
FINRA, the Financial Industry Regulatory Authority has a Fund Analyzer that can compute your annual cost to own the fund as well as cost over time. The following example, starts with $100,000.00 and purchases the Ivy Balanced Fund (IBNBX). If you anticipated 5% annual growth you would end up with a net loss at the end of Year 1 of $2,366.00 by paying $7,309.96 in fees. At the end of 10 years you would have made $32,089.49 and paid $23,744.87 in fees. As you can see, it's always important to understand all the costs associated with Mutual Funds. (the above calculations were done on 08/02/2010 from the FINRA website)
One of the values of Mutual Funds is the offering of being able to control an interest in a diversified basket of stocks for a low entry price. Some funds allow you to invest with as little a few hundred dollars. This can be beneficial to those with initial capital, but is this the best option for those with larger initial capital?
There are many dynamics to take into consideration when making that decision and there is also the fact that Mutual Funds offer very little downside protection. Only about 30% of mutual funds are active enough that the manager has the latitude to move completely out of an asset class in decline, which is why many investors look to an Active Management program like Paisley Financials' to protect their investments.
We feel that there is a time to be more weighted to Bonds and a time to be heavily weighted in Stocks or other instruments and then there times to be in Mutual Funds. These times are best when market risk is lower than that of the cost of fees. In short, the start of a bull market.
If you would like to learn more or have any questions about Mutual Funds, please give us a call and we would be glad to take the time to answer your questions. You can also read more about Mutual Fund investing here.Back