17 02, 2016

KOM February Financial Blog

By |February 17th, 2016|Financial Planning, News|Comments Off on KOM February Financial Blog|

Hooray, Stock Markets are Crashing!

By: Jack Strada – KOM Financial Planning

The title of this blog is not a headline you will read in any financial publication. Instead, you are more likely to read headlines screaming about how many billions of dollars of value has been erased from the markets. A google search on “Stock market crash” brought up the following gems:

Are Stocks 80% Overvalued? New Evidence Shocks Wall Street

​Analyst: Here Comes the Biggest Stock Market Crash in a Generation
​Famed Harvard Economist Predicts: “The Greatest Stock Market Collapse since the Great Depression”
​This plays upon people’s fears and often leads to knee-jerk reactions from individual investors. In fact, this has been happening as can be seen from the data published in Bloomberg on January 9th:

​As I have written before, this is exactly the behavior you want to avoid. Better to think like Warren Buffett, who has been quoted to say:

“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” ~ Warren Buffett

​So when stock markets drop, you need to look at it as if one of your favorite products is on sale. This is difficult to do, especially when you see the overall value of your investments has dropped dramatically. If you have a diversified portfolio of stocks and bonds; however, you can re-balance your portfolio and take advantage of the stock market ‘sale’. These are themes I repeat often in my blog: 1) don’t let your emotions influence your investment decisions, 2) market crises come and go, but in the long run, equity markets have provided a return greater than inflation, and 3) avoid market timing; rather, maintain a diversified portfolio and [...]

12 11, 2015

KOM Financial Blog – Are You Type E?

By |November 12th, 2015|Financial Planning, News|Comments Off on KOM Financial Blog – Are You Type E?|

By: Jack Strada – KOM Financial Planning

I was recently in the US enjoying the UCI Road World Championships (more on that in a future blog) and took notice of a new ad campaign by E*Trade. Let me first say that E*Trade has been a fantastic development for individuals that want to grow their net worth. I am old enough to remember the days before online brokers and trading costs were much higher than they are today. So low-cost platforms have enabled more and more people to become investors, and that is a good thing. The flip side of this ease and low cost is that people may tend to become too active and trade too much.

This advertisement implies individuals can spot opportunities and profit from this. First, let’s look at a few facts: In 2014, the average business day saw 60 Million equity trades take place with a total of $302 Billion of value changing hands. The majority of these trades were executed by experts with deep knowledge of the business’s they are buying and selling. In my view, it is unlikely an individual walking down the street will spot an opportunity that has not already been identified, and profited from, by a professional analyst. In addition, the more an individual trades, the higher their trading costs will be. Every time you add costs to your portfolio, the better your portfolio must perform to overcome these costs. So please think twice before acting on impulses, and do seek advice on your investments.

For the individual, I recommend to focus on what you can control: staying disciplined, diversifying, keeping your costs under control, and letting markets work for you.

For a free risk Risk Tolerance [...]

12 09, 2015

KOM Financial Planning

By |September 12th, 2015|Financial Planning, News|Comments Off on KOM Financial Planning|

The WCA is pleased to welcome new partner, Jack Standa and KOM Financial Planning!

“Ride as much or as little, or as long or as short as you feel. But ride.” ~ Eddy Merckx

I founded KOM Financial Planning because I believe everyone has the ability to take control of their financial future, and I use the Eddy Merckx quote as an analogy. It doesn’t matter how much or how little you have to start with, the most important thing is to start saving now. My role as a Financial Advisor is to coach and teach my clients how to create a financial plan that meets their goals and matches their risk appetite.
Unlike traditional investment firms that are product focused, KOM Financial Planning is a client focused, fee only advisory that believes peak performance is best achieved with the help of a coach. In much the same way world class athletes continue to use coaches to improve performance, KOM provides financial coaching to help individuals achieve their savings and retirement goals.

At KOM Financial Planning, we believe the attributes that make great climbers also make great investors. That is, the ability to think long term, having a strategic plan that suits your abilities, and not panicking if you struggle in certain segments. I also believe that having a good coach, especially in difficult times, is critical to long term success.

My love affair with the bike came at an early age. I am a natural introvert, so my normal routine in elementary school was to come home and read JRR Tolkien, Isaac Asimov, Ray Bradbury, and Arthur C Clarke novels. After an hour or so I would go out and hop on my [...]

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