Archive for the ‘Stock Market’ Category

Today many investors look for financial planners or stock brokers to perform investment advisor services. Investment Management firm or Investment Advisers perform these functions as part of there daily service to individuals or institutions. If you have money in the stock market, bond market, bank account or CD’s you should consider using a firm like Fogel Capital Management, Inc.  to help with your Financial Planning. Financial Planning is only one component of Investment Management or Wealth Management. Please give us a call we can improve your return.

Why Fogel Capital?

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Fogel Capital Management is a full service Registered Investment Advisory firm with a traditional approach to money management. We provide investment services for family offices, individuals, corporations, trusts, guardianships and Native American tribes, as well as 401(k) and other employee benefit plans – with special experience in managing court appointed custodial accounts. Fogel Capital Management, Inc. is regularly appointed by the New York State Supreme Court for the management of trusts and guardianships.

Annuity Vs- Managed Portfolio’s

In this current economic environment we are seeing many investors looking at the insurance companies and the banking industry’s annuity products. Over the years some of these products have been one of the beneficiaries of the “flight to safety” by many frightened investors. Just because it is popular does not mean it is the best option.

At Fogel Capital Management we believe the advantages of a managed portfolio of stocks and bonds with the ability of the investor to withdraw funds on demand, or when economic circumstances dictate, are more suitable vehicles for long term investments than are annuities.

At our firm we have managed many settlements which have resulted from lawsuits. Through dealing with the day to day administration of these funds it became apparent to me that the most important element for the efficient management of these monies is portfolio flexibility. The reason we did not favor annuities for this situation was the fact that once an annuity is purchased it cannot be changed without penalty.  Additionally, restructuring an existing annuity is cost prohibitive. Basically the annuity takes all control of the investment away from the investor.

Annuities forever freeze in time the investment process and do not allow for changes in financial markets or the economy. If you are truly unsure about the future, why would you lock yourself into an unforgiving investment? When interest rates increase the ability to earn higher yields are not available to the owners of annuities. Interest rates are at the lowest levels in 60 years! Annuities lock in the current rate. To accommodate future unforeseen economic conditions, the holder of an annuity will have to absorb significant costs in converting the annuity to pay for changes in their financial requirements.

Additionally, the fees associated with the annuities are significant. Personally I have seen up front commissions on index annuities as high as 8%, which is literally eight times the amount we would charge to manage a portfolio for a year. In many cases the fee structure of an annuity makes the investment noncompetitive with municipal bonds, which are also tax free.

Prudent portfolio management provides a better investment without the negative cost associated with annuities. Balanced investment portfolios provide greater freedom of choice for the investor when encountering changes in life style requirements or market economics.

Author: Michael Fogel, Chief Portfolio manager @ Fogel Capital Management, Inc. a registered investment advisor. Fogel Capital has offices in Stuart Florida and

New York New York. 772-223-9686

This article appeared in a special section of The Palm Beach Post called “Financial Sense” on February 28, 2009

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Equities are share interests in traded individual stocks and mutual funds. Screening a wide variety of equities is a daily function of the investment manager. It enables ongoing comparison between current portfolio positions and securities under consideration for subsequent purchase. Selection criteria include free cash flow, expected earnings, current-to-historical price, and the use of dividend discount models and industry forecasts. Other characteristics considered are:

• Out of favor stocks which may have been Wall Street favorites but are now neglected by analysts despite sound financial performance and growth.
• Special situations where new management, change in product lines, reorganization, or engagement in merger or acquisition signal positive appreciation.
• Continuous valuation of your selected securities ensures that these meet the criteria of valuation, performance, and position size.