Short-term advisor relationships do not tend to be very productive, and can sometimes be counter-productive, but advisors may still be useful for one-time consultations when an investor just wants an opinion on a specific issue.
A long-term relationship with one advisor is preferable to many short-term relationships. Meeting with a new advisor will usually be part of a transition period where an investor is looking to try something new. The advisor may start out with some preliminary planning but the investor may jump to the next advisor before the former advisor could really shape the plan he or she was seeking to build.
The investor may lose out on compounding effects or the benefits of long-term asset allocation strategies by making too many short-term changes. Of course, a permanent relationship with an advisor means that the client is paying fees to the advisor in some way, and most of the readers here at Tickeron are the type to ask if it’s worth it.
If your portfolio is large, complex, and hard for you to keep up with, you may benefit from paying someone to do that for you for the foreseeable future. An advisor in this situation is most likely to charge a fee as a percentage of assets under management (AUM), which is usually 1-2%.
A covered call is when the writer or seller of a call option either owns the underlying security, or has a guarantee
Face Value is the nominal value of a security or currency as written/stated by the issuer. It may vary from market price
Minimum margin is the minimum amount needed to open a margin account. The broker typically sets the minimum margin
The High-Low Index is an observation of the number of stocks which hit 52-week highs or lows in the current day
Current Assets are items on a balance sheet that are either cash or are going to be cash in the near future
Cash collateral is liquid cash and cash equivalents designated as collateral for loans and debts of various sorts
Account history is a term for investment accounts, where transactions beyond a current month are useful for reference
Times Interest Earned is analysis that compares the pre-tax earnings of a company to the total amount of interest payable
Total Return is the measure of all appreciation & interest as well as dividends & other distributions from an investment
Mortgage life insurance is any life insurance policy which covers the life of the borrower in a mortgage loan