'Robo advisers' may be all the rage, but they can't offer life coaching
'Life coaching' is something robo advisers can't offer (Reuters)
More and more clients have been moving away from the traditional financial adviser in favor of robo advisers. However, one thing robo advisers can't offer is life coaching. Reuters notes, "Although advisers cannot solve serious problems, they can use their networks to help clients find experts for everything from substance abuse treatment to cancer support."
Four indicators for when the Fed will raise rates (Bloomberg)
The US Federal Reserve removed "patient" from its Statement, but now must feel "reasonably confident'' in order to hike the Federal Funds Rate. While Chair Yellen was unable to give an exact meaning of what "reasonably confident" means, she did provide indicators that she will be watching. They include: jobs, core inflation, wage growth and inflation expectations.
A look at negative interest rates and the strong US dollar (Charles Schwab)
The presumed divergent paths of the US Federal Reserve and central banks from much of the developed world have made for some volatile times in financial markets. Negative interest rate policies of some central banks, and the expected Fed rate hike, have run the US dollar to an 18% trade-weighted gain over the past 10 months. Charles Schwab believes the strong dollar is likely to last for at least the next year, and says clients should position their portfolios by "reducing exposure to international bonds and/or considering strategies that hedge your currency exposure." They continued, "We would also reduce exposure to emerging market bonds, both those denominated in the U.S. dollar and in local currencies."
Newlyweds should do these 5 things when planning their estate (Financial Planning)
Shortly after marriage, newlyweds should plan their estate to protect both themselves and their finances. Financial Planning outlines how young, first-time married couples should begin their financial lives together. First, newlyweds should speak to the human resources departments at their employers and update beneficiary designations on all life insurance and retirement accounts. Then, a couple should review their life insurance needs. Next, newlyweds should execute their wills and power of attorney directives. Finally, look into home ownership documents and homestead laws.
High school 'hedge fund trader' may face wrath of regulators (Value Walk)
Between juggling school work and sports, high schooler Jacob Wohl also runs a hedge fund that has returned 22.8% year-to-date for his 20 investors. Wohl's fund, Wohl Capital has $200,000 in assets under management and is said to follow Warren Buffett's "value investing strategy." However, the 17-year old may soon find himself under investigation by the Securities and Exchange Commission as he targets middle class investors, but doesn't appear to provide audited results. Both the National Futures Association and the Commodity Futures Trading Commission may also find themselves involved due to the firm's mention of derivatives on its website.