The process of selling the upside potential of an asset in exchange for downside price protection. For example, a wheat farmer may use the futures market to hedge or protect against future adverse price movements (e.g. prices for wheat being lower in the future when it is time to harvest and sell the wheat).

NAPFA Provides Consumers with Quality Control while Maintaining Flexibility for Financial Advisors

NAPFA is the National Association of Personal Financial Advisors.

NAPFA membership consists of financial advisors who provide comprehensive...


Hedging Regulatory and Tax Risk through a Roth IRA Conversion

Income limits on Roth IRA conversions are set to go away in 2010. This opens-up an opportunity for many to benefit from the tax advantages associated with the Roth IRA. Conversion may also make sense as a hedge against the distinct possibility of tax increases and higher tax brackets for future retirees. That said, the Roth IRA also happens to be an enormously efficient vehicle if there is a bequest motive or desire to pass assets to heirs: "if you want to leave a legacy to your heirs, a Roth...

Large Pension Funds Decrease Equity Holdings

Some of the world's largest pension funds are decreasing the amount of funds dedicated to stocks. Included among the list of pension funds adjusting asset allocations are well known names such as The California Public Employees' Retirement System (Calpers), The California State Teachers' Retirement System (Calstrs), the Dutch government retirees fund, and the South Korean private sector employees fund. Painful and persistent equity losses over the past decade have prompted many of these large...
Key Phrases: 
Key Phrases:
Key Phrases: 

An Interview with Retirement Planning Expert Henry Hebeler


Henry "Bud" Hebeler is a former Boeing executive who has been running a retirement planning...


Ordinary Investors Can Outsource their Hedging and Derivatives Management through Annuities

Concerned about the possibility of another market swoon?

Take a look at some of the...