Should You Invest in Cryptocurrency? Dunston Financial Group Featured in CNBC

Should You Invest in Cryptocurrency? Dunston Financial Group Featured in CNBC

“Last spring, a man walked in to Dunston Financial Group in a jubilant mood. He told the firm’s founder, Lynn Dunston, that he’d put all of his savings and retirement funds into cryptocurrency, the digital tokens that can be traded from person-to-person anywhere in the world. ‘It’s a real concern when you hear about anyone putting all of their money into highly speculative investments,’ Dunston said.” Read the rest of the story and our thoughts on bitcoin and other...
Should You Invest in Digital Currency?

Should You Invest in Digital Currency?

I recently spoke with someone who told me that he removed all of his cash from the bank and 401(k) and invested it in digital currency. Indeed, some are finding that investing in digital currencies such as Bitcoin and ether can earn a high rate of return. But before you join the stampede into the world of digital currency investing, consider this recent news excerpt from Seeking Alpha: Cryptocurrencies took a beating this past weekend. Bitcoin traded as low as $1,836, down about 8% on the day, and almost 40% from its high of $3,018 on June 11, while ether plunged almost 20% to $155, knocking off about 60% from its high of $395 on June 13. The selloffs are yet another stark reminder that digital assets remain highly speculative trading vehicles. Moreover, the co-founder of ethereum network recently told Bloomberg News that the digital currency ether is “a ticking time-bomb.” “There’s an over-tokenization of things as companies are issuing tokens when the same tasks can be achieved with existing blockchains. People are blinded by fast and easy money.” Ah, yes. “Fast and easy money.” Digital currency investing may be the sexiest investment that’s come along in a while, but the allure of fast and easy money has been around for millennia, and there’s no shortage of people who have been devastated in their pursuit of riches. Of course we’ve seen this before. One might recall the late ’90s when high-tech mutual funds were creating nothing short of a feeding frenzy on Wall Street. But one also shouldn’t forget the countless people who lost everything after they made huge bets in technology only to watch many of their investments go bankrupt. The...
Study Finds that Most Investor Portfolios Have Significant Shortcomings

Study Finds that Most Investor Portfolios Have Significant Shortcomings

Dunston Financial Group recently attended the National Association of Personal Financial Advisors (NAPFA) annual conference in Seattle. As expected, we were not disappointed by the quality or substance of content. We are honored to be a part of such a collegial and intellectually stimulating community of fee-only financial planners. Several things stood out at the conference. One of which was a set of findings put forth by BNY Mellon. In an attempt to ascertain the health of investor portfolios, BNY Mellon studied a large sample size of portfolios and found that most portfolios had significant shortcomings: 89% of investor portfolios were missing asset classes 89% were lacking an overall portfolio plan 86% followed or fled a trend too late 83% of portfolios were subject to sector bets that the investor did not know were taking place 78% of portfolios didn’t have enough or held too many holdings 78% of investor portfolios had unnecessary or unknown portfolio risk 75% had little to no tax management 68% of portfolios were subject to hidden costs We weren’t surprised when we heard this given that we regularly encounter such findings when analyzing portfolios on behalf of our own clients. Such shortcomings can have serious consequences for investors’ goals, including goals related to retirement and long-term wealth accumulation. When was the last time you had a portfolio checkup? It’s always better to catch such issues sooner rather than...
Dunston Financial Group in The Wall Street Journal

Dunston Financial Group in The Wall Street Journal

Dunston Financial Group is excited to share that we were featured in yesterday’s edition of The Wall Street Journal. The title of the article is “How Entrepreneurs Can Use IRAs to Finance Startups,” and it’s about how one can use IRA/401(k) money to fund a startup venture. Known as ROBS (Rollover for Business Startups) transactions, they definitely are not right for everyone, and they carry a unique set of risks. Nevertheless, in the right circumstances, ROBS transactions can be an effective business funding...
Hedge Fund Titan’s Surefire Bet Turns Into a $4 Billion Loss – via NY Times

Hedge Fund Titan’s Surefire Bet Turns Into a $4 Billion Loss – via NY Times

Every week at our firm we sit down with clients who 1) Have made speculative investment bets and lost, or 2) Want to make speculative investment bets because they have yet to lose. For those who want to play this game, you might be interested in reading about Bill Ackman, a New York hedge fund manager who recently lost, and lost big. I love the way the authors of The New York Times piece begin their story: A little over two years ago, William A. Ackman, one of Wall Street’s brashest and most self-assured hedge fund managers, was on top of the world. A billionaire before he hit 50, he was generating double-digit gains for his investors and raking in hundreds of millions in fees for his firm and himself.   Hailed as a master investor, he clinched his highflier status in the fall of 2014 by paying $90 million with some friends to buy the penthouse at One57, a 13,500-square-foot aerie in Midtown Manhattan overlooking Central Park. He didn’t plan to live there — it was an investment property — but until he sold it, the apartment would make a good party space, he told The New York Times. I think it might be this image—that of one sitting on top of the world and enjoying the perks of one’s investment brilliance—that often leads one to such speculative investing in the first place. The story goes on, however, and it’s a clear example of what we regularly tell our clients: For every speculative investment success story you hear, there are at least ten more failures about which you likely...