With current interest rates low and corporations profits under pressure, it is time to look at high yield corporate bonds.  These securities pay higher rates of interest. These higher rate give your portfolio some  protection from interest rate increases. Ask us at Fogel Capital about our high yield portfolio.

Michael Fogel – Fogel Capital Management, Inc. will be at the Boca Raton Resort & Club Private Wealth Management Summit June 14-16th. All our products from Equities to Private Partnerships will be available.  Please ask to speak with Michael about our Falcon Performance Fund, LP

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

At Fogel Capital Management we provide all guardianship accounts with annual accountings, which are ready for submision to the court system.  With a very quick review you can eliminate all of the detailed accounting work associated with being Guardian.  We will customize your report to meet the standards of any court system or examiner.

Our management fees are tax deductable and for fixed income portfolios we implement a strategy of purchasing bonds that have a high probability of being pre-refunded. This strategy allows us to sell these securities when they do become refunded and add performance to the account. It also allows for greater flexibility and liquidity in the account. This strategy harnesses the true aspect of investment management.