Corporate Bonds versus Treasury Bonds

While corporate bonds have had slightly better returns than Treasuries, it is important to consider all the historical evidence before adding them to your portfolio.


Do You Own Too Much Company Stock?

A number of public companies operate here in El Paso, Texas. Employees at those companies are often compensated with company stock. However, is keeping that stock a wise investment decision?   


Sun Bowl Art Exhibit at the International Museum of Art

We would like to congratulate Berenice Perea, wife of Miguel Gomez, our Marketing Associate, for winning the Best of Show Award at the Sun Bowl Art Exhibit hosted by the International Museum of Art. Her piece is going to be purchased by the museum and will be part of its permanent collection.


Weekly Update: The Big Short

In today’s weekly update, we present Larry Swedroe’s review of The Big Short, the controversial book by Michael Lewis that narrates some of the trickery that Wall Street did in the last few years that ultimately led to the the largest financial crisis since 1929. The book ranks #76 of the 100 top-selling books on Amazon as of October 29, 2010.

Book Review: The Big Short, from Larry Swedroe’s Wise Investing Blog.

As always, if you have any questions or comments, please Contact Us.

Weekly Update: Diversification & Looking from Space

On today’s weekly update, we have two articles, one about investing, and the other about wisdom and life.

If you have any questions or comments, please let us know.

Diversification is Still Alive and Well, from Larry Swedroe’s Wise Investing blog.

After the market crash, many talking heads proclaimed the death of diversification. Further review shows that’s simply not the case.

Look Down from Space, from Simon Sinek.

Simon Sinek, author of “Start With Why: How Great Leaders Inspire Everyone To Take Action” recalls a recent conversation he had with a couple of former astronauts and how changing your perspective can help you achieve peace of mind.

You can learn more about Simon at this page.



How to Know When You Have Enough

How do you know when you have enough? It’s a different answer for everyone, but not knowing can put your investments (and your peace of mind) in jeopardy.


Coupon Rate, Yield and Expected Returns on Fixed Income Securities

Currently, rates in the fixed income market are very low. As of September 13, the yield on the five-year Treasury note was close to 1.5 percent. In a low-rate environment in particular, it is critical to understand the differences between and the concepts of coupon rate, yield and expected return on fixed income securities.


Weekly Update: “Sure Things”, Morningstar and Index Funds, Dollar Cost Averaging

We believe that an educated investor is a better investor; and even with a well designed financial plan, investors are constantly receiving mixed messages from numerous places.  With that in mind, starting today we’ll publish weekly updates with articles from various sources to help you make more informed investment decisions and to ignore the noise that surrounds the investment world.


Announcement: New Rules on Cost Basis Reporting

One of our goals at Lauterbach Financial Advisors is to keep you informed about changes that may affect your accounts. To that end, we want to inform you of a change in IRS reporting requirements for Form 1099-B that begins in 2011.

The 2011 1099-Bs that you will receive in early 2012 from any custodian (for example, Schwab, Fidelity or TD Ameritrade) will report the cost basis and gain or loss on the sale of equity securities. This applies to equity securities that were purchased in your account after December 31, 2010 and then sold on or before December 31, 2011.

Some of our custodians will soon begin to publicize this topic via supplements included in your monthly statements. We are working closely with them and from time to time will provide you with more information on these changes. If you have any questions, please contact us.

Stock Pickers are Having a Bad Time Picking Stocks. Why We are not Surprised.

One of the most common questions at the beginning of the financial planning process from prospects in El Paso and elsewhere is: what are your favorite stock picks? Our response is that stock picking or market timing doesn’t work, and we’re backed by decades of research. However, the hype and noise of Wall Street keep trying to persuade investors by pouring millions of dollars a year in advertising to showcase their “super star” managers and their latest “hot” stock picks.  

Here’s further evidence that supports our belief that active management doesn’t work.