facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog external search brokercheck brokercheck
%POST_TITLE% Thumbnail

Another Reason to Avoid the Latest Investment Fad

Investment

I’m not a fan of following the latest investment fad. It was a bad idea with tulips in the early 1600s and with Bitcoin approaching the end of 2017. The latest investment fad seems to be cannabis stocks. You can buy stock in cannabis companies (mostly foreign companies) in the US Stock market. That could be a bad idea and not just because of the risks in chasing investment fads.

Military Officers Could Lose Their Security Clearance

The DoD has determined that owning stock in companies that produce cannabis is involvement in drug-related activities. And, as I’m sure you know, involvement in drug-related activities will prevent you from getting a security clearance and could also cause you to lose the one you have.

Not only does the rule apply to DoD members, but it also applies to DoD contractors. So it could apply to retired military officers too.

What to Do

If you decided to chase the fad and buy stock in cannabis related companies, I’d get rid of them now. And if asked, disclose.

What is a little harder to determine is what to do concerning your investments in mutual funds and ETFs. There is at least a chance that some of them could own stock in cannabis related companies. If you know that a security you own holds cannabis stock, then you might want to get rid of the fund or ETF. What is unclear to me is the level of research the DoD expects before you invest in a security. That is up to the policy makers…

Financial Planning for Military Officers is Different

Military Officers have unique benefits, tax rules and limitations that other Americans don’t have. If you’re going to work with a financial advisor, make sure you work with one that understands the differences. If you’re doing it yourself, then you’ll need to spend some time making sure you understand the differences too.


If you enjoyed the article, you might like the following blog posts:

Military Finances 101: What are REITs and How do they work?


5 Areas to Review to Assess Your Risk Tolerance


6 Books Junior Officers Should Read to Learn About Investing




Disclaimer
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.