Robo-advisors make investing seem quick and easy as if they are bringing the convenience of Amazon to investing. However, convenience in investing merely does not exist. There is no one size fits all. Each person has a unique financial situation which requires different investment strategies. An advisor has the background and knowledge of identifying shifts and trends in market conditions, a skill that takes time to develop. Investing takes time, it takes learning from mistakes and knowing the psychology of human tendencies. Although investing through robo-advisors might seem like a smart idea at first, their computer automated algorithms do not take into account variables in your life, for instance, illness or divorce, the same way a financial advisor would. These life changes can greatly affect your investment strategies and a robo-advisor lacks the capability to understand your personal situation to pivot your financial plan.

Here at Fogel Capital Management, we understand the importance of having a financial plan that is personalized to each client. Our team is dedicated to learning about your financial situation and understanding how we can help you reach your financial goals. With the help of our constantly improving technological resources, we can ensure a full understanding of data and research that bolster the financial services we offer. This technology, coupled with our commitment to research allows us to make the best investments possible for our clients. We do the hard work for you so that you can have peace of mind about the future. Call us today at (772) 223-9686 for a free consultation.

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At Fogel Capital Management, we research data on investments and markets every day in an ongoing effort to create actionable information. The investment data can range from company-specific news and historical balance sheet data to estimates of earnings, dividends, and growth. Evaluating this data to generate actionable information in the investment process requires the use of sophisticated software, computer systems, and talented staff. Using these tools to verify every data point, our team can accomplish the goal of creating meaningful, actionable information.

The first step in creating actionable information is to eliminate issues that detract from our research. Some of these issues which are overlooked by individual investors include oversight, misinformation, misunderstanding, and impulse. By verifying and comparing the information to historical events, we eliminate oversight and misinformation, which gives us a deeper understanding of the data. Mike Myatt, discusses this idea of making better investment decisions by transforming data into knowledge in his article 6 Tips for Making Better Decisions. Although creating actionable information is a time-consuming process, we develop the knowledge needed to make better investments.

Through analysis, we have uncovered products which pay dividends larger than expected. We have found rates of return that are above what most investors think the company is capable of generating. Over the years, we have uncovered markets that have been oversupplied in oil and undersupplied in information technology, leading to substantial investments in Microsoft, Google, and Intel. This constant review of data created great investments at Fogel Capital Management including selling all of our oil limited partnerships in 2014 before the drop in oil (read more here). Knowledge is power, and we strive to create that power from our actionable information every day.

Fogel Capital Management utilizes this method of analyzing data and creating actionable information to hone our knowledge of markets and individual investments. By removing the uncertainty from information, we enhance the quality of our expertise. Our refined market knowledge allows us to make better investment decisions, which is a priority for us at Fogel Capital Management, Inc. If you would like to see this process at work, we will review your portfolio, and you can look at the results first hand. Please call Michael Fogel, President of Fogel Capital Management, Inc. at (772) 223-9686.

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A yield curve, a graph of a bond over different maturities, shows that interest rates are lower on bonds with shorter maturities and higher on those with longer maturities. There are many different scenarios that can occur when there are movements in the yield curve. In some cases, returns can be more profitable if the right maturity bonds are purchased before interest rates decrease. This means prices go up or stay the same relative to bonds that mature differently.

For example, a flattening yield curve causes a short-term bond’s yield to go up, which causes the prices of short-term bonds to go down. The interest rate on the longer maturity bonds stays relatively the same, so the prices of the longer-term bonds are more likely to have preserved your investment.

At Fogel Capital Management, we see changes in interest rates like this as an opportunity. Back in 2009, we saw a flattening of the yield curve, so we positioned ourselves in bonds that would have the best price increase due to the falling rates. Our expertise and analysis go a long way in determining what future performance can be like. Every portfolio is unique and can be looked at by one of our in-house professionals. Call (772) 223-9686 to get a consultation or schedule an appointment online.

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Retirement planning for many sole practitioners and business owners often means investing profits back into their companies. By investing back into the business, they are attempting to grow at a faster rate to increase their business’ value. However, did you know that 55 percent of business owners are forced to leave earlier than expected? The unexpected can arise from changing technology or health-related incidents. When an unexpected exit happens, all of the wealth that has been created in the company essentially disappears. Another option is to pass on the business to either a family member or key employee. As it turns out, many family members don’t want to join the family business, or they are unfit to properly run a successful company. Creating a retirement plan allows you to slowly pull value from the company, invest that money into other companies and get growth side by side with your firm.

I always receive the same question when discussing the corporate 401(k) plan: Where will I get the money for the plan? Most of the money will come from your tax bill. That’s right, instead of paying Uncle Sam you can pay yourself in a tax-deferred retirement plan. It has two fantastic features. One, the majority of the money put into a plan comes from reducing your tax bill. Two, it grows tax-free in your investment account until you or your employees retire.

The primary benefit is that you build wealth outside of your business. You will be shocked at how fast you can save. You can offer a retirement plan to your employees, which helps attract better talent with little to no extra cost to the business.

Creating a retirement plan is easy today, there are five necessary steps:

1. Contact Fogel Capital Management to set up a meeting and discuss all of the advantages of implementing a retirement plan
2. You will need an employee census; this is easy to get from the payroll report.
3. Review the report FCM creates for you, highlighting how much you’ll save on taxes.
4. Put us in contact with your accountant to make sure all documentation flows to them.
5. Open up a corporate retirement investment account to be funded.

The best time to start saving is now, you will be amazed at the wealth you can build. I look forward to helping you implement a new plan or reevaluate an old plan. If you would like to discuss this article further or set up a meeting, feel free to call me at (772) 223-9686 or email Michael@FogelCapital.com.

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In 2007 through 2008, the inventory of homes available for sale in the US continued to grow while the number of homes sold continued to fall. The two pieces of data were moving in opposite directions, creating a massive divergence between the supply and demand of homes. This divergence indicated that the price would have to move lower as there were more homes for sale than there were buyers. The result was that banks began to fail as individuals couldn’t sell their homes for the price they paid. Using the data for supply and demand could have allowed one to avoid the housing market during this time.

When evaluating the stock market using Divergence Analysis, you will find the advance/decline line to be extremely useful. Between January of 2000 and March of 2001, the advance/decline line was moving increasingly lower, while the Dow Jones Industrial Average did not move below ten thousand. Some particularly strange behavior; stocks were moving lower and the overall market was not. This divergence between the number of stocks moving lower and the average staying high should lead us to say “what is going on here?” and take money out of the market. The Dow Jones ended at 7,197 in September of 2002, which was an astonishing decline of 36% from its peak to its lowest point.

Adding a third indicator to our growing list of Divergence Analysis allows for an even deeper understanding of the market. A good indicator can be found by looking at the relationship between Dow Jones Industrial Average and the Dow Jones Transportation Average. Dow Theory suggests that if business is good, then the transportation average should be doing well too. This concept makes sense as most products and services require the use of transportation to their locations for distribution or sale. However, there are times when these two indicators diverge and create opportunities for the astute investor. In November of 2016, the Transportation Index made a new high while the Dow Jones Industrial was falling. This divergence has led to a positive market that is up approximately 26%.

Using Divergence Analysis can improve your investment performance and make you feel more comfortable with markets and their values. Adding the above three indicators together would be a great start to watching the markets and reviewing for yourself what the economy is really saying. At Fogel Capital Management, Inc. we consider this type of information daily and implement these investing theories for our clients. If you would like to discuss this article further, feel free to call me at (772) 223-9686 or email Michael@FogelCapital.com

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A true investor is not concerned with making money, income, or produced gains today. They already have a source of income to maintain their lifestyle which is separate from their investment portfolio. Therefore, they can afford the opportunity to look at the world, sit back and say “Oil is cheap, I will buy some”, or “the Art market is depressed, I will buy some”, “The banks are depressed because of a global recession, I will buy some”, “Gold has collapsed, I will buy some”. In other words, they don’t force investments and hope markets will produce for them. They purchase inexpensive assets which have value and take advantage of the market.

To highlight the complexity individuals face today, assume you need interest income for your retirement. You search out investments with consistent interest income, historically considered safe investments. The difficulty comes from the risk associated with these investments today. The fact that interest rates are low and the Federal Reserve is increasing them causes these investments to be risky. As the Federal Reserve increases rates, interest-bearing investments go down in value. The only reason the Federal Reserve increases rates is that of a strong economy, hence the complexity of requiring something safe which performs poorly as the economy improves.

A true investor lets the market dictate where they should invest. Sell-offs in the market only predict a recession 53% of the time. That means purchasing cheap assets when the market is down 15% creates a risk similar to a coin toss that a recession might happen. This is a low chance; the true investors purchase these cheap assets because they are collecting earnings on their investments. These earnings may not be interest payments large enough to support your mortgage payment today, but they are substantially good enough to offset any chance of the market moving lower. The true investor purchases these cheap assets and waits to reap their rewards when the market figures out that the world will continue progressing forward.

Use the mindset of a true Investor and invest in the “perceived danger” of a recession. Although this is contrary to human nature, it creates an opportunity to invest. Act like a true investor and buy cheap assets when available and invest where the market allows you. When are the best investments available? When everybody else is running away from the perceived risks. If you still are unsure, just remember to buy low and sell high. If you would like to discuss this article and your particular situation, feel free to call me at (772) 223-9686 or email Michael@FogelCapital.com.

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For example, you have excess cash in the bank and need your assets to grow more than what you would earn in a savings account in order to support your lifestyle. Let’s examine if you were investing in the stock market at the absolute worst possible time, for instance, right before the 2008 housing crash. We can also look at a longer time period, the technology bubble of 2001. By investing in the Dow Jones Industrial Average just before the fall in the market of 2001, you would have a compounded rate of return of more than 6.93% today with dividends reinvested. The investment would include the drop in 2001 and 2008, not a bad return for bad timing. Looking at the week before the market fell in 2008 and investing in the Dow Jones would have produced about 7.53% through July 31st, 2017. Both of these returns are significant and in line with the expected return of equities over long periods of time.

Creating a sound strategy is complex as we need to review your goals and objectives. People always say “I want to make money and not lose any.” Well, welcome to the club! What Fogel Capital Management can do is develop a personalized strategy that weathers the storm. How do we accomplish this task? First, we look at the income you need to support your expenses. We generate income by using extremely predictable and tax efficient securities, as we build a portfolio of investments that are bulletproof from market corrections. By adding investments inside and outside the U.S., the portfolio can grow in various market conditions. By diversifying, the portfolio can chug away turning out dividends and growth. When the market is happy and moving higher, your portfolio shines away. When the market is sad and moving down, your dividends and income support the investment process allowing you to sleep at night, not worrying about your investments.

Through our examination of investing at the absolute peak of a market, we find that returns are still superior when planning a strong strategy that lets you stay invested for long periods. By utilizing Fogel Capital Management, Inc. I will personally build a strategy that executes an investment portfolio that will weather the storms ahead and protect you for the future. Investing is fun and rewarding when executed property. If you would like to discuss this article further, feel free to call me at (772) 223-9686 or email to Michael@FogelCapital.com

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Part 36 does a lot to monitor the guardianship legal industry but what does it do for the incapacitated person? To answer this question, we must revert to what is known as fiduciary responsibility. When a trustee/guardian is appointed or requested by an incapacitated person, that trustee/guardian has a legally binding duty to act in the best interest of the incapacitated person and to help them by any means. This fiduciary responsibility is what differentiates trustees/guardians whose profession resides in the legal industry such as attorneys, from trustees/guardians who are responsible for taking care of the incapacitated person’s money such as investment advisors or trust companies. This is where Fogel Capital Management stands out in comparison to other guardians. What makes Fogel Capital Management special besides the fact that we are appointed to Part 36 is that we act in accordance with both, our fiduciary responsibility to the incapacitated person and with the SEC to ensure that the client is getting our full attention regarding their personal, legal, and financial concerns. Whereas other investment advisors who act as trustees/guardians solely act in compliance with the SEC and the New York State Supreme Court, but we go a step further. With our fiduciary aspiration, we help the incapacitated person in any way possible and make sure that they are as well off as possible following the tragedy they experienced. No person should have to deal with the unnecessary hardships and liabilities that occur after a misfortunate event and for this reason, we at Fogel Capital pride ourselves on doing as much as possible to ensure that everything is made as easy as possible after a tragedy. Being a part of Part 36 is significant but what is more important to us is that we have a greater ability in helping incapacitated people and their families have a better experience with the burdensome problems that arise after the case has been settled.

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Heading into 1929, production slowed and unemployment was rising. Companies were left overvalued and large bank loans could not be liquidated. Individuals were forced to sell their life savings to pay back loans they had taken out to buy stocks, and businesses were closing. Confidence in the market was at an all-time low, and you cannot have a healthy economy without the confidence of consumers.

Following the biggest economic downturn of the century, the Securities Act of 1933 was created with the goal of ensuring more transparency in financial statements so investors can make informed decisions while also establishing laws against misrepresentation and fraudulent activities in the securities markets. This was the first major legislation regarding the sale of securities. The legislation addressed the need for better disclosure by requiring companies to register with the Securities and Exchange Commission. Registration ensures companies provide the SEC and potential investors with all relevant information by means of the prospectus and registration statement. Investors who purchase securities and suffer losses have important recovery rights if there was incomplete or inaccurate disclosure of important information.

Managed investment portfolios are governed by the Securities Act of 1933, whereas annuities are exempt from this law, also known as the “Truth of Securities Act.” It is actually against the Securities Act of 1933 for insurance companies to state that their annuity products are guaranteed. The guarantee that these companies state is based solely on the integrity of the individual company, and following the recession of 2008, these insurance companies are rated below an AAA rating of high credibility.

Fogel Capital Management, a Registered Investment Advisor, is held to the highest degree of integrity by the SEC and the Securities Act of 1933. Serving also as guardians and trustees on part 36 of the New York Supreme Court, our fiduciary responsibility to our clients falls in line with the same accountability we are held to with the Securities Act of 1933.

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One market that possesses key indicators of carrying a false sense of security is fixed annuities. These structured settlements are backed by the State Insurance Fund which suggests that the Life Insurance Company Guaranty Corporation of New York would back a portion of the annuity if a company were to go bankrupt. While this has all the signs of a guarantee, in reality, it is anything but that.

In 2008 Fannie Mae and Freddie Mac were unable to bail anyone out as the entire industry collapsed around them. If a similar meltdown were to occur to the annuity market, the Life Insurance Company Guaranty Corporation of New York would have no chance of guaranteeing anyone’s annuity. In other words, if you are not getting paid your annuity because of a market downturn then the State Insurance Fund becomes useless. During a major failure, the insurance industry would not have any money, and the guarantee would be worthless. Simply put they can’t bail everyone out.

At Fogel Capital Management we are doing something simple that most others aren’t, we look. We invest in United States Treasuries and municipal bonds which are guaranteed by the federal and state government respectively. The municipal bonds carry credit support, a third-party insurance policy. If New York State were to go bankrupt, this municipal bond insurance will pay the bondholder when the issuer fails to do so. Annuities, on the other hand, are backed only by privately owned insurance companies none of which are AAA rated.

It is wrong to assume that your annuity is secure just because the Life Insurance Company Guaranty Corporation of New York has the word “Guaranty” in their name. In fact, it is so wrong to make the assumption that New York State law[1] actually prohibits the use of this “guarantee” for marketing purposes and advertising of any kind.

Investing should be treated with the same care and diligence that we apply to the rest of our lives. The dangers of annuities can be summarized perfectly by a quote from the opening scene of The Big Short, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so”.

[1] New York State Insurance Law Article 77 Section 7718

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