INVESTMENTNEWS by Lisa Shidler People in their career-building years face more financial stresses than their elders, poll finds.  "Thirtysomething" adults are stressed about their finances and worried about how to pay down debt, while saving for retirement and their children's college education.  According to an online poll conducted in January and released last week by St. Louis-based Scottrade Inc., people ages 27 to 42 constituted the age group most worried about their finances. When asked to give one reason for their stress, 61% said they are worried about paying for unexpected major expenses, 60% cited managing day-to-day expenses, 57% too much debt, 52% paying off credit card balances and 52% having no income or a reduced income due to a job loss. Of the 270 in the age group who responded, 52% have saved less than $25,000 for retirement. This marks a significant increase from last year, when 40% reported having less than $25,000. At the same time, 63% said that the value of their accounts has plummeted, perhaps because they had invested more aggressively than older investors who are closer to retirement. "They've taken a hit," said Chris X. Moloney, Scottrade's chief marketing officer and executive director of customer intelligence. Worse, the study found that 15% of the 27- to 42-year-olds took out loans from their retirement accounts in the past year. Although this age group isn't typically sought by advice professionals, Mr. ..... read more

WWW.MSN.COM  by Katherine Reynolds Lewis Mention " college savings " to a financial professional and you'll likely be steered to a 529 plan. In the decade since these investment accounts were created, they've become practically synonymous with college savings. Savingforcollege.com and the College Savings Plan Network are exclusively focused on 529 plans, for instance. But many parents who have invested in 529s, counting on the market to help cover the soaring costs of college, would've been better off putting the money under their mattresses. The plummeting stock market has erased many if not most gains. The balance could be less than the parents have contributed. And parents of older children, in particular, don't have much time to make up losses before they need to pay tuition. Margot Black, a Los Angeles writer and publicist, put $15,000 into a 529 plan for her toddler son, only to see the account lose 40% of its value in less than a year. "It was heartbreaking to watch," Black said. "The 529 plan is sold to parents as the no-hassle investing fund. . . . I honestly thought we had done such a good job upfront that we could relax." Simply put, 529 plans don't live up to the hype. Though they remain a good choice for some, you should understand the trade-offs and alternatives before putting your college fund into one of these heavily marketed plans. "People like to think they have a college savings account that will solve their ..... read more

CHARLOTTE OBSERVER by Kirsten Valle kvalle@charlotteobserver.com A handful of students crouched over their computers at the Online Trading Academy one morning last week, studying stock prices and exchanging buzz words: “ideal entry points,” “maximize profits,” “who's hot?” Their instructor, Robert Dunn, a seasoned trader with a Chicago accent and thick gold necklace, pointed to the peak of a graph on a projection screen. “Some sucker was over here buying at this price,” he said. “We don't want to be that sucker.” Interest in day trading, or buying and selling stocks within the same trading day to reap quick profits, has climbed 20 to 30 percent at the academy the past few weeks, staffers say – part of a growing number of amateur investors who are actively managing their own portfolios. Financial planners, however, say day trading is a high-risk strategy. They emphasize a far different approach: holding stocks for the long term, even when the market falls. The stock market's recent drop – 19 percent this month – has heightened many investors' fears. But people who actively trade stocks see the recent roller-coaster swings in the market as an opportunity to salvage retirement accounts or even make a living. “As a trader, it doesn't matter whether the market goes up or down,” said Dunn, who's spent 25 years on the trading floor in Chicago. “You can make money either way.” Day trading was once dominated by financial firms and professionals but has ..... read more

CHARLOTTE OBSERVER  by Lauren Berry CHARLOTTE - Wachovia's move to nearly eliminate its dividend means a big change for its stock.Although it's bound to be less attractive to investors looking for reliable and lucrative payouts, the moves the Charlotte bank announced Tuesday provided encouragement to some local investors and financial experts."I could see yield-conscious investors walking away or looking for something else," said John Gugle , a certified financial planner with Alpha Financial Advisors in Charlotte . "But these are good moves if I'm an investor that's looking for confidence in the long term."Wachovia's stock soared 27 percent on Tuesday's news, which included layoffs and a shakeup of its mortgage unit.Along with a huge quarterly loss and layoffs, Wachovia announced it will cut its quarterly dividend to 5 cents a share from 37.5 cents, its second dividend cut this year. At the beginning of the year, the bank paid 64 cents a share.Slashing the dividend will be a blow to older, retired stockholders for whom dividends are a source of income, but it is a sign of necessary change for long-term investors, Gugle said."I think what it signals to investors is, 'Wow, they're really serious about this,' " Gugle said. "But some yield-focused investors are definitely going to get hurt."Although financial planners said bank stocks are normally a safe bet for short-term yield, banks have been hit by a ..... read more

WWW.BUSINESSWEEK.COM by Ellen Hoffman   Before you make retirement decisions, make sure you understand the lingo Do you speak Retirement? Every field, whether it's sports or information technology, has its own lexicon. The language of Retirement has been around for years, mostly spoken by academics or people in financial services. But now that millions of boomers are starting to confront decisions about their future, the jargon of retirement and financial planning seems to be surfacing all around us, in everything from the Social Security statement we receive annually to TV commercials hawking financial products. Understanding these terms can be crucial to your future. In the worst case, making a financial decision based on misunderstanding some of the jargon could detract from both your retirement income and the lifestyle you've dreamed about. A competent financial adviser will explain retirement planning terms to a client. But if you don't have a financial adviser, or if your eyes glaze over after encountering three or four of these unfamiliar, technical-sounding terms, take the time to look them up. (You can find explanations, as well as definitions, of most of them by surfing the Internet.) Or find another adviser who will make sure you understand not just the dictionary meaning, but also the implications of some of these important retirement terms. Different Scenarios Here are some examples. Currently, my favorite ..... read more

WWW.INDEXUNIVERSE.COM by Murray Coleman If there's a group of financial advisors who are bigger fans of exchange-traded funds than the 550-plus field meeting this week in southern California, John Ritter says he'd be very surprised. The co-chair of this week's National Association of Personal Financial Advisors convention figures most of the attendees use passive strategies to manage client portfolios. "I'd be shocked if less than 50% aren't using ETFs, DFA [Dimensional Fund Advisors] or Vanguard funds," said Ritter during a break Thursday at the NAPFA event in Long Beach, Calif. "The concentration of advisors using passive strategies here has to be higher than any other professional organization in the country." Ritter, a Cincinnati-based advisor, says that's because NAPFA—unlike other trade groups—only allows fee-paid members. Those selling financial services on a commission basis must go elsewhere. "We feel that operating on a fee-only basis eliminates most of the conflicts of interest that commission brokers face," Ritter added. "We like to ask a lot of questions about fees and expenses when dealing with mutual funds and ETFs. That demands a certain amount of objectivity." Transparency Is King Full disclosure is the key, says John Gugle , a Charlotte, N.C.-based advisor. "ETFs can be very misleading if you don't understand what you're buying," he said. "The people here are analysts as well as financial planners." ..... read more

CHARLOTTE OBSERVER by Nancy Stancill When Jim McGehee went straight from college to graduate school in 1991, his parents said they would loan - but not give him - the money.  His folks feared he was hiding from the real world. So he borrowed $45,000 for grad school at Stetson University in Florida.  Now a Certified Financial Planner in Charlotte, McGehee was able to pay back his parents in four years. Most parents McGehee counsels at his firm, Alpha Financial Advisors, plan to cover their children's undergraduate college education.  But grad school? For a variety of reasons, he says, that's where many parents draw the line. Should parents finance grad school for adult offspring? Or should young people learn to fend for themselves? Should parents instead hold their money for retirement? These are questions hitting home for my family. Our only child is going to grad school this fall. For the next four or five years, he plans to work on advanced degrees in microbial ecology at Virginia Tech, his alma mater. Jeff, 25, has worked for two years as a lab tech at a biotechnology firm in southwest Virginia.  He earns a modest salary.  But he found his passion in the microscopic "bugs" he grows for his company's antibacterial products.  He's hoping for a career in microbiology research and college teaching. We thought he'd go to grad school after he saved more money.  But on his salary, saving came at a snail's ..... read more

WEALTH MANAGER MAGAZINE by Bruce Fraser If you haven’t formed a client advisory board by now—or at least had fleeting thoughts about creating one—you could be missing out on an elegantly simple way to improve your firm’s fortunes. Client advisory boards (CABs) have been gaining momentum with RIAs, independent wealth managers and financial advisory firms. And it’s easy to see why. Comprising some of your key clients, they provide an opportunity to gain valuable insights into their concerns, they foster stronger client bonds and they often lead to referrals and new prospects. Indeed, a CAB can be a win-win both ways—for your firm and the board. The Financial Planning Association reports that more firms are forming and benefiting from CABs. “They are incredibly valuable—not only for increased referrals, but for ‘wallet share,’ determining what position of your client’s business you want and actually get. It can be a build-on of your clients’ relationship and loyalty to you,” says Bruce W. Peters, president and CEO of CABHQ in Pittsford, N.Y. (www.cabhq.com), who has helped scores of firms design CABs and facilitate group meetings. “Most of the time my clients look at it as a marketing/referral. It’s all that, and more,” he adds. “It can involve transitioning issues, service issues and marketing and strategy concepts.” Basically, there are several reasons for wealth managers and advisors to form client advisory boards. Many are looking for guidance and ..... read more

CHARLOTTE BUSINESS JOURNAL John T. Gugle, CFP® of Alpha Financial Advisors, LLC was selected by the Charlotte Business Journal as one of their 40 Under 40 winners for 2006. The 40 Under 40 program was started in 1994 to annually honor 40 men and women under the age of 40 based on outstanding achievements both in business and community involvement. The award identifies people who are making major strides in their careers and impacting their communities. read more

CHARLOTTE BUSINESS JOURNAL by Bea Quirk The adviser you choose should be able to coordinate all your firm's financial needs while also maintaining a high level of trust As a small-business owner, running your business is your first priority and what you do best. But don't forget about financial matters such as managing your investments, planning for business succession and creating a 401(k) plan for your employees. A financial adviser can handle those tasks and more. The key, experts say, is to find one who can be the point person for a team of professionals, each with a specific expertise, such as an accountant, portfolio manager and attorney. Some financial advisers may be more knowledgeable about business matters, while others will be better suited to handle your personal finances. "You need a cadre of professionals behind you with a financial adviser acting as a quarterback to coordinate everything, " says Michelle Maidt, principal of Carnegie Capital Advisors, a Charlotte-based wealth-management firm in Charlotte. "If you're a business owner, you're busy running your business, so financial matters often take a back seat, and you don't do what needs to be done. So you need a team of experts to run those other pieces for you." But the team members need to act in tandem. "There should be a relationship between them -- they call each other and talk when the need arises," says Al Winget, senior vice president of Wachovia Securities' ..... read more