HFG Perspectives: February

February 5, 2014

We all know by now that bull markets tend to take a few steps forward and then give a bit back. While it’s never enjoyable to watch our account balances decline over the shorter term, stock markets gave back a bit in January. While the talking heads on TV might attempt to make us think that the next crisis is at our doorstep—that’s just how the media business works—the decline we’ve been witnessing for the last month has been, if anything, average. (more…)

The Best Way to Save for Retirement

January 30, 2014

Retirement+Blog+Image-l32dmThere are two rules of thumb that are often preached by Financial Professionals when advising clients about retirement savings. The cardinal rule seems to be saving as much as possible in qualified retirement plan accounts, which are generally exempt from tax. Also, the interest earnings and compounding in these qualified retirement accounts are exempt from further government taxation, allowing these plans to generate more return compared to traditional investment vehicles. Investment professionals further advise that retirees delay the withdrawal from these qualified accounts, in order to benefit from the much higher rate of compounding as no taxes are deducted until withdrawals are made. (more…)

Lack of Personal Finance Education Is a Major Issue in America

January 10, 2014

Jan+Blog+1+Image-npngoPersonal finance education has always been ignored in the classrooms of America. Math, English, History and other subjects are utterly important, but personal finance is an essential subject that we all need to learn about. The lack of education in this area is the root cause of the rampant credit problem in American households. As personal finance will have an effect on everyone regardless of geographic location, profession or political views, it is high time teachers educate Americans about personal finance. This subject needs to be incorporated into the core curriculum. (more…)

Permanent Life Insurance vs. Term: Which One’s the Better Deal?

January 8, 2014

term-vs-permanent-thumb-articleSome experts recommend people to buy term life insurance saying it is a rather inexpensive solution compared to permanent life insurance. While the savings from purchasing term life insurance can be invested and yield better returns over the short term, this strategy may not be as sound as it is being propagated. As people have different financial situations, and plans; it is very important to understand the key differences between the two types of life insurance in order to distinguish the benefits and pitfalls of picking one over another. (more…)

The 4.5 Percent Retirement Withdrawal Rule May Not Be Viable Anymore

December 18, 2013

Retirement planning has always been more personal than financial planning. However, there has always been a certain consensus among financial planners regarding the acceptable rate of withdrawal from retirement portfolios.

Two decades ago, William Bengen, a certified financial planner published a series of papers on the topic of the sustainability of a retirement portfolio based on safe withdrawal rates. (more…)

Only A Balanced Budget Stimulus Can Create Sustainable Economic Growth

December 16, 2013

Tighten the budgetEarlier today, the United States Department of Labor released the weekly unemployment claims figure, an increase of 68,000 unemployed people compared to last week. Surely, the continuous government stimulus in terms of quantitative easing (QE) and various other “fiscal stimulus” isn’t helping the U.S. economy to get back on its feet at a pace that some economists would like.

Robert Shiller, the distinguished economics professor from Yale University, believes that the U.S. economy desperately needs more government stimulus. However, doing so will result in an unacceptable increase in the national deficit, and the political system is simply not ready to afford that. According to him “the very term ‘fiscal stimulus’ has been tainted.” While the monetary policy based stimulus (QE) reflects the overdose of a drug in terms of “cheap money,” the fiscal stimulus represents mounting national debt. (more…)

Europe Must Secure Cleaner and Cheaper Energy for Global Competitiveness

December 12, 2013

Shale Gas Blog ImageThe future energy security of Europe seems as gloomy as its current economic problems. While the need for affordable energy is mandatory for ensuring a flourishing economic climate, government think tanks across Europe have failed to outline a plan to source Europe’s future energy needs thus far. The ones who wheel the economic prosperity, manufacturers and their government partners, as well as various consumer groups are becoming concerned regarding securing the European common market’s future energy needs.

Take the United Kingdom’s case, for example. The British public opinion was in favor of clean energy, and they got it at an unsustainable cost. According to Stanley Reed, the New York Times columnist, Britain couldn’t secure a deal to establish any new nuclear power station for over the last two decades. On the other hand, Spain, who advocated strongly about moving to clean energy once, is abandoning plans for its own wind and solar power projects across the country. (more…)

HFG Perspectives – December

December 5, 2013

The slow and steady advance continues, as does slow and steady economic improvement. Broad market stock indexes in the U.S. as well as bond yields were up marginally in November, and international markets were mixed.

Little changed on the economic front. Labor markets, the consumer, manufacturing and the economy as a whole continued to show improvement in the U.S. Developed international markets produced no major news, and emerging markets continued to slow but in a relatively stable manner. (more…)

True Wealth Management: Your Next Steps

November 16, 2013

This post wraps up our blog series “Intelligent Investing: Five Key Concepts for Financial Success.” Today, we look at the attributes of a true wealth manager. We’ll also discuss in detail the consultative approach that’s at the heart of a wealth management approach.   

As we discussed at the beginning of this guide, taking a comprehensive approach to achieving all your financial dreams requires wealth management. This means more than just taking care of your investments. It also means addressing your advanced planning needs, including wealth enhancement, wealth transfer, wealth protection and charitable giving. (more…)

Concept #5 for Financial Success: Crafting an Efficient Portfolio

November 8, 2013

The fifth and final concept in our blog series “Intelligent Investing: Five Key Concepts for Financial Success” focuses on efficient portfolios. We’ll look at how the concepts behind Modern Portfolio theory can help design portfolios that seek to achieve maximum return for minimum risk.

Concept Five: Design Efficient Portfolios

How do you decide which investments to use and in what combinations? Since 1972, major institutions have been using a money management concept known as Modern Portfolio Theory. It was developed at the University of Chicago by Harry Markowitz and Merton Miller and later expanded by Stanford professor William Sharpe. Markowitz, Miller and Sharpe subsequently won the Nobel Prize in Economic Sciences for their contribution to investment methodology. (more…)


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Copyright © 2017. HFG Wealth Management, LLC. Investment advisory services offered through HFG Wealth Management, LLC – An independent Registered Investment Advisory firm registered with the SEC. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Therefore, any information presented here should only be relied upon when coordinated with individual professional advice. [ more disclosures ]