HFG Perspectives – November

November 5, 2013

October was a strong month for stocks despite Washington’s best efforts to further put a drag on the economy. The threatened debt default was averted, and the federal government was reopened, as the proverbial can was kicked down the road…for about three months. Hopefully, we won’t do it all over again. (more…)

Concept #4 for Financial Success: The Asset Class Attraction

November 3, 2013

For our fourth concept in our blog series “Intelligent Investing: Five Key Concepts for Financial Success,” we dive into the topic of asset class investing. We’ll look at what makes asset class funds the right tool for your investment toolbox and discuss the four key attributes that make them attractive.

Concept Four: Employ Asset Class Investing

It is not unusual for investors to feel that they could achieve better investment returns, if they only knew a better way to invest. Unfortunately, many investors are using the wrong tools and put themselves at a significant disadvantage to institutional investors. It’s often the case that using actively managed mutual funds is like trying to fix a sink with a screwdriver when you really need a pipe wrench. You need the right tools, and we believe that asset class investing is an important tool for helping you to reach your financial goals. (more…)

Concept #3 for Financial Success: The Value of Global Diversification

November 1, 2013

The third concept in our blog series “Intelligent Investing: Five Key Concepts for Financial Success” looks at global diversification. We’ll discuss how this investment strategy can add long-term advantages to your portfolio, including a smoother pattern of risk-adjusted returns.

Concept Three: Use Global Diversification to Enhance Returns and Reduce Risk

Investors here in the U.S. tend to favor stocks and bonds of U.S.-based companies. For many, it’s much more comfortable emotionally to invest in firms that they know and whose products they use than in companies located on another continent. (more…)

Concept #2 for Financial Success: The Case for Low Volatility Investing

October 30, 2013

This blog post examines the second concept in our series on “Intelligent Investing: Five Key Concepts for Financial Success.” Here we make the case for low volatility investing as a way to reduce risk without sacrificing return. We’ll discuss a few examples that show why this concept is a fundamental part of our investment approach.

Concept Two: Seek Lower Volatility to Enhance Returns

If you have two investment portfolios with the same average or arithmetic return, the portfolio with less volatility will have a greater compound rate of return. (more…)

Concept #1 for Financial Success: It Starts with Diversification

October 25, 2013

Before you can determine which institutional investment method is right for you, it’s useful to take a step back and examine the concepts that will empower you to achieve consistent, long-term investment success. These are the concepts that will guide you regardless of which institutional approach you select.

While investing can at times seem overwhelming, the academic research can be broken down into what we call the Five Key Concepts for Financial Success. If you examine your own life, you’ll find that it is the simpler things that consistently work. Successful investing is no different. However, it is easy to have your attention drawn to the wrong issues. These wrong issues—the noise—can derail your journey.

As part of this series of blog posts, we’ll walk through these five concepts and then explain how institutional investors incorporate each of these into their investment plans, no matter which direction the markets are going at that moment. These plans both meet their fiduciary responsibilities and achieve their financial goals. You owe yourself and your family nothing less than what the institutional investors have. (more…)

Rising Above the Noise

October 23, 2013

Hear that? It’s loud, persistent, and distracting. It’s the noise created by the investment world, and it’s enough to muddle any investor’s decision making process. This noise is the subject of today’s post, the second in our series: “Intelligent Investing: Five Key Concepts for Financial Success.” 

In our last blog post, we talked about what makes a true wealth management approach (investment consulting + advanced planning + relationship management).  In this post, we’ll look at the emotional curve of investing. We’ll also balance the discussion with two other methods of investment decision-making: strategic and tactical. 

Some investment professionals work hard to make their work confusing. They believe they have a vested interest in creating investor confusion. They use jargon that can intimidate and make it difficult for you to understand relatively straightforward concepts. (more…)

Taking a Comprehensive Approach to Your Financial Life

October 18, 2013

We’re kicking off a series of blog posts based on a piece that’s been very popular and educational for our clients and prospective clients. Below is the first installment of “Intelligent Investing: Five Key Concepts for Financial Success.” In this post, we’ll discuss the key components that make up true wealth management. We hope that this overall series will provide you with a solid framework for making wise decisions about your money and all that is financially important to you.

Money means different things to different people. Each of us has different dreams. You may want to achieve financial freedom so that you never have to work again—even if you plan on working the rest of your life. You may want to make a top-flight college education possible for your children or grandchildren. You might want to provide the seed capital that will give your children or grandchildren a great start in life, whether that’s with a home or a business. You may dream of a vacation home on the beach or in the mountains. Or you may have achieved tremendous success throughout your career and want to leave behind an enduring legacy that will enable your favorite charity to continue its work. (more…)

HFG Perspectives – October

October 3, 2013

Nothing happened on the policy front in September, and markets seemed to think that was just fine. There were two major government actions that investors were looking forward to seeing resolved in the month, and as has too often been the case in Washington, nothing at all was resolved.

The first issue was the Federal Reserve’s expected taper of quantitative easing. Though economists widely expected the Fed to announce that it was going to begin to reign in its unprecedented monetary stimulus program, it didn’t. With subpar economic growth, low inflation and slower than hoped for improvement in the labor market, the Fed decided that the current level of stimulus was still needed. U.S. markets rallied strongly. Broad international and emerging markets were even stronger. (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 ]