What Peterson Wealth Advisory Provides

When deciding whether or not to work with Peterson Wealth Advisory individuals should remember what we do and what we don't do.

What we do:

• Provide advice that is in the client's best interest. This means that if a client comes to me with an idea that doesn't make sense for their situation I have a duty to tell them so and not follow them blindly.
• The heart of what we do is create and implement comprehensive financial plans so client's are prepared to handle all of life's financial needs.
• Challenge you to think about and answer tough financial questions.
• Have you complete a budget.
• Invest your money in low cost exchange traded index funds.
• Use highly diversified asset allocation models with the goal of managing risk and providing returns without extreme ups and downs.
• Evaluate all of your insurance policies to make sure you are protected and possibly save you money.
• Look for ways to limit taxes.
• Consult with the client's CPA, estate planning attorney and other advisor's to make sure we are trying to accomplish the clients goals.
• Be your advocate
• Remind you when you are straying from your goals.
• Help you allocate all your investments including 401(k)
• Meet with client's children and grandchildren to teach them about money.
• Help you make decisions about home financing, car purchases, business succession.
• Set up individual and business retirement plans.
• Establish 529 college savings plans.
• Disclose all conflicts of interest.
• Disclose all costs.
• Free to use investments that we believe are best for the client.
• Fee-only compensation paid directly by the client.

What we don't do:

• We don't offer hot stock picks.
• We don't sell insurance or products.
• We don't deviate from our chosen investments. If we are evaluated based on performance then we are going to invest in what we believe in.
• We don't day trade.
• We don't work for a brokerage firm or a bank.
• We don't hide fees.
• We don't receive kickbacks.
• We don't work with one fund company.
• We don't buy stocks or funds based on TV personalities recommendations.

Bonds: Index Funds beat Active Managers

Mutual Fund companies spend millions of dollars trying to convince you that they have the smarts to beat the market and earn more money for you. Another blow to active fund managers performance was announced last week, this time to bond fund managers.

A study by Standard & Poor's found that on an asset-weighted basis (calculated on a equal money basis) index returns beat beat actively managed fund returns in all 13 fixed income categories over one and three year periods, and in 11 of 13 categories over five years.

Over five years, average annualized returns for investment grade long term bond funds lost to the benchmark index by 2.7%. Similarly, each year high yield bond funds lost to the benchmark index by 1.9%.

For mortgage backed securities funds, 98% lagged the benchmark over five years. Long term investment grade corporate bond funds lost to the benchmark index 92% of the time over 5 years.