What the experts say

Have international funds peaked?

“If you loaded up on international funds to boost your returns, you might want to trim back a bit,” said John Waggoner in USA Today. Over the past decade, American investors have shifted billions of dollars into international funds. You can’t blame them. The MSCI Europe, Australasia, and Far East index shot up 121 percent over the past five years, and returns have been even sweeter for U.S. investors who’ve ridden the rising euro. Now, however, “the bear market has taken a bite from international stocks.” Many analysts forecast that the dollar could be poised for a rebound, “which would mean smaller gains from international funds.” Consider bringing some international holdings home, but don’t dump all of your foreign funds. They’re “still a good diversifier for your portfolio, if only because so many companies are based abroad.”

Options aren’t for everyone

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“Gyrating markets and eager brokerage firms” are driving small investors to consider complex options trades, said Eleanor Laise in The Wall Street Journal. Options are contracts to buy or sell a stock or other asset if it hits a set price during a specific time frame. Used by traders to “hedge against stock-price swings, generate income, and boost overall returns,” options typically have been seen as too complex for most individuals—and rightly so. But that’s been changing as brokerage firms cut commissions and roll out tools to help “neophytes” understand how options work. Small investors should be warned that options often carry hefty tax bills and high transaction costs, not to mention a whole lot of risk. “Think of options as fire,” says Rudy Aguilera, principal at investment advisory firm Helios LLC. “They can warm your house or they can burn it down.”

Brady Bunch economics

When single parents “join forces” and remarry, money matters can get complicated, said Jane Bennett Clark in Kiplinger’s Personal Finance. It’s impossible to anticipate every discussion over what’s yours, mine, ours, or theirs. “Still, you have the best shot at meshing families and finances if you talk through the plan before the wedding and revisit it regularly.” For many, that means starting with a prenuptial agreement. “A prenup can help you sort out your finances regardless of whether your marriage ends in divorce.” After laying out the big picture, be prepared to go over everything from doling out allowances to divvying up college costs. Only by talking frankly about money histories, according to financial planner Tim Maurer, can couples come up with a plan that everyone—even moody teenagers—can live with.