Sound Financial Advice by David McPherson, founder of Four Ponds Financial Planning LLC, Falmouth and Mansfield, Mass.

Lessons for investors one year after Madoff arrest

A column I wrote a year ago for ABCNews.com on the Bernard Madoff scam led to my appearance on the public radio program Marketplace Money this weekend. The show's producers -- who read the original column -- asked me to discuss lessons individual investors should take away from the biggest Ponzi scheme ever. Here's a link to the interview.

Marketplace Money airs at various times on the weekend at various public radio stations around the country. In the Boston area, it airs at 4 p.m. on Sunday at WGBH 89.7 FM. If you have a chance tomorrow, tune in, and then let me know what you think.

Time to dump that fund?

This week for ABCNews.com, I consider a reader's question about when is it time to dump a lousy mutual fund. The answer, in part, is to be sure you're making the right comparisons. 

Worried investor? Start with bonds

Today for ABCNews.com, I suggest that investors who remain frightened by the stock market consider investing in bonds to start. The idea is to build up their investing confidence and then move slowly into stocks.

Current stock market: Approach with caution

This week for ABCNews.com, I take a look at the six-month rally in stock prices and whether that means it's "safe" to invest in the market now.

My bottom line advice ? Approach with caution.

New GI Bill kicks in

In my latest column for ABCNews.com, I take a look at the benefits available to vets under the Post-9/11 GI Bill that took effect Aug. 1. That means its earliest beneficiaries will be starting their academic careers this fall semester.

The benefits may not be as extensive as the original GI Bill, but they are certainly worth utilizing. One nice feature is the ability for current active duty personnel to transfer their benefits to a family member such as a spouse or child.

The previous week, I wrote to warn small investors against investing in shares of the old General Motors that now languishes in bankruptcy court. Despite what I think was a pretty clear warning, some readers emailed asking about how to buy the old GM stock, which is almost certain to be worthless when the bankruptcy case closes.

Stopping debt collector harassment

This week's ABCNews.com column addresses a reader's question about how to halt harassing telephone calls from a debt collector. The answer: learn your rights under the Fair Debt Collection Practices Act (or your own state's equivalent).

Last week, I offered suggestions for skittish investors who wonder about investing in stocks again. My friend Mr. Panicked makes a return appearance.

TIPS for inflation

This week's ABCNews.com column explained the pros and cons of buying Treasury Inflation-Protected Securities (TIPS) as one way to battle inflation. I wouldn't devote an entire portfolio to TIPS, but they certainly deserve a spot, particularly if you believe higher inflation is on its way.

Last week's column suggested utilizing total market funds as an easy way to get started building a broadly diversified portfolio. I dubbed this strategy the "Two-Fund Solution, a simple yet elegant way to construct a portfolio that can overcome the forces of procrastination and indecision." 

Four Ponds in the news: 401(k) investing

The Cape Cod Times yesterday featured my comments on 401(k) investing for a Sunday story on the front of the business section. One line from the article:

“It’s the perfect time – you’re buying shares at a very low price,” said David McPherson, owner of Four Ponds Financial Planning in Falmouth. “When there’s a rebound, you’ll benefit greatly.”

Click here to read the article in full. 

Study those account statements

Today's ABCNews.com column responded to a reader question about how to read investment account statements. The reader's question came in response to an earlier column about fraud allegations made against two financial planners.

Last week's column featured a "Financial Checkup" for a Michigan couple worried about their job security.

Even in tough times, index funds beat actively managed

Here's one more reason I favor index mutual funds and exchange traded funds over actively managed funds: Managed Funds Take Beating from Indexes (Wall Street Journal, April 22, 2009). The evidence is overwhelming, yet investors are always searching for the minority of managers who can beat the indexes for even just a few years.