Curtis Lyman with HighTower Advisors

Curtis Lyman, a partner at HighTower Advisors, knows that picking an investment strategy can be a daunting task. There are many options available, each with benefits and drawbacks. That is why it is so important to consult with a professional financial advisor when considering your choices, some of which are outlined below.

“Buy and hold” or indexing is an option with a low-risk, long-term return approach. The indexing strategy is simple: buy a broad range of stocks from a market index and sit on them. Despite market fluctuations, over an extended period, the overall value of the index will show steady growth. On the other hand, immediate returns may be low.

The “top quality” approach involves investing in large-cap stocks, such as AT&T, that pay dividends and show consistent, long-term health. These stocks tend to be reliable even in uncertain times, and are often easy to sell because of their popularity. However, they can be risky in the short term, and are not as reliable in the long term as index fund options.

Another option is investing in the markets of developing areas like southeast Asia. These “emergent markets” have been growing very quickly over the last few years, and as such, their potential for a good short-term return on an investment is high. Because emerging markets are inherently unstable, though, investments made there are much riskier than those made in domestic markets.

These are just a few of the many investment portfolio options available. With so many choices, it helps to get expert advice. Curtis Lyman has more 30 years of experience helping clients choose strategies that are right for them. Visit the HighTower website at www.hightoweradvisors.com to learn more about his services.

Q&A with Financial Services Professional Curtis Lyman

A partner at HighTower Advisors, Curtis Lyman has been a financial services professional for over 30 years. In this interview, he shares his perspective on the concepts of custody and clearing.

How do you define custody and clearing?
Custody is a service provided by a financial institution. Literally, the institution takes custody of assets on behalf of its client. A successful custody service ultimately protects one’s assets. A cleared trade demarks a successful trade. It means that a buyer and seller have exchanged funds and securities and that the transaction has been completed.

How does HighTower Advisors provide unique custody services?
We create relationships with carefully vetted independent custodians—thereby eliminating potential conflicts of interest between HighTower, the custodian, and our clients. HighTower does not act as a custodian. Through the use of an independent, third-party custodian, HighTower clients enjoy greater control over their assets. This arrangement enhances HighTower’s ability to provide unconflicted and independent financial advice.

Which independent custodians do you work with?
HighTower Advisors works with several trusted financial service companies, including Fidelity Investments, J.P. Morgan Clearing Corp., and Charles Schwab & Co. Inc.

Riding the Rockies: Trading Update: February 15, 2012

Build America Bonds have been a good performing component of many of our portfolios, as you can tell from the annual performance, shown above, of the BoA ML Build American Bond Index, which BAB attempts to replicate.

While I’ve been tempted to sell or reduce the BAB position, I’ve held off and it’s benefitted most of our clients. Why did I wait? First, the yield is healthy and rates are not increasing so the net asset value of the portfolio has remained predictable and consistent. Second, the current rate of distribution, well in excess of the 10 year U.S. Treasury bond, has been very good. Third, the supply of Build American bonds is diminishing and I believe that there may be some more premium in this unique class of bonds, to squeeze out. So, for the moment, we’re holding our Build America Bonds.