Weekly Clarity Coaching

Hidden Fees! They are all over the place when it comes to investing.

At least once a month, an investor tells me that another advisor offered managed accounts where the one and only portfolio cost would be the advisor's fee. Often the fee quoted would be somewhere between 1.25% and 2.25%, plus or minus a little bit. That other advisor would say that there are no other costs and that everything else is free or all inclusive and that absolutely no other expenses would apply.

As we look at the 2011 year in review, remember that "this too shall pass". New Year's Resolutions are about to begin and as we look forward to 2012, make a New Year's resolution as it relates to your finances. Take the 30 day challenge, look at income needs vs wants and get a "real" budget in place.

Last week, the Wall Street Journal ran interviews with four financial advisors soliciting their outlooks for 2012. Specifically, the Journal asked these sages to forecast which sectors had the most promise and which ones investors should avoid next year.

Last Friday marked the 10 year anniversary of Enron Corporation going bust.

On December 2, 2001, Enron filed for bankruptcy. In the late 1990's and the very early 2000's, you could hardly find a growth or a high tech mutual fund that did not list Enron as one of its top 5 holdings. Yes, it was sad when the company tanked, but it was devastating to the thousands of Enron employees who's 401(k) Retirement Plans were brimming with shares of Enron Stock.

At the time, a little over 60% of Enron employees' 401(k) accounts held the company stock. About 11% of that was the "company match" portion, but the rest was selected by the employees as a retirement plan holding. And essentially overnight, their plans for a peaceful retirement were shattered.

The holiday season is upon us, which means gift shopping, visiting family members and planning for end of the year events. It’s easy to get caught up in the holiday mayhem year after year, and before you know it too many years could pass while you put off planning for your financial future.

We live in a fast-paced, high-energy society that is constantly on the move and always looking for shortcuts. As a result, certain aspects of our lives are often put on hold until a more convenient time when life isn't so hectic. The fact of the matter is that life is always busy and sometimes we have to force ourselves to pay attention and take care of the important things now, so that we won't pay the price down the road.