Payne Points of Wealth

When You Hit A Portfolio Home Run Are You Smart Or Are You Lucky?, Ep 21

Welcome to episode 21 of Payne Points of Wealth! We are having a phenomenal start to 2021. Markets are going through the roof, interest rates and oil prices are going up. The “cyclical stocks”— those reopening stocks that we told you about— are starting to move. So the question is... how do you position your portfolio in 2021 to win? We're going to address that. We are also going to talk about some of the big questions that you probably don't have the answers to when it comes to your financial plan and things you need to address to make sure you're on solid footing in the year to come. 

 

You will want to hear this episode if you are interested in...

  • Tesla: Sell or hold on? [1:38]
  • Are you lucky or are you good? [3:20]
  • What’s time tested, affordable, & pays well? [6:37]
  • The Tipping Point [8:30]
  • F.E.A.R. [9:44]
  • You can’t ignore taxes [14:04]
  • Hidden Facts of Finance [17:24]

A fool and his money were lucky to get together in the first place

Investing is counter-intuitive. You want to own more of what's going up right now. That's what your brain screams. But the real way to create wealth is to put your dividends, interest, and savings into other asset classes when they are out of favor. For example, small company stock returns come in big at 6% for the first two weeks of 21’. Whoever had the most shares made the most money. 

However, when you hit a home run, like with Tesla. How was it that you decided on that investment? What's the next one based on your strategy. You have to ask yourself when hitting a homer in your portfolio, are you lucky or are you smart? The good news is you don’t have to be lucky or smart. You just have to be in! The better news is you can choose to be smart with the winnings and you’ll learn more about that when you check out the episode!

This week on the tipping point: Issues to address to build a solid financial plan

The acronym for fear— false evidence appearing real— applies here. When the market pulls back, we have this irrational fear that the market is going to drop to zero, so we make irrational decisions. We take our unrealized losses and we make them real rather than focusing on why we're investing in the first place. Which is, of course, our financial goals for the future, whether that's retirement or something else. The reality is if you own an all-weather portfolio, you can weather these crashes pretty well and ignore the noise. 

We waste so much time worrying about a market crash. Over the last decade we’ve had clients call saying, “Well, I think this is it. We're finally going to have another great financial crisis.” The irony is we finally did get a market crash last year and it was something nobody could have predicted. We were completely blindsided! Who could have predicted we would have a global pandemic, that the global economy would shut down. NO ONE figured that out. So the idea is, you always want to be prepared for a crash in your portfolio, have that protection in place because when the next crash comes, no one's going to know ahead of time.

This week’s hidden facts of finance

Since 1948 the S&P 500 index has returned an average of 14% a year when Democrats have controlled Congress and the White House. The S&P is already up over 2% in 2021 so we're already ahead of the game, only 12% to go. Wait a minute. Democrats aren't even in power yet. Why is it going up? Because at the end of the day as long as there is SOMEONE sitting in those chairs in the White House, Congress, and the Senate the stock market is going to go up. At least that’s what history has proved over the last 200 years. 

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2020 Lessons That May Keep Your 2021 Asset Allocation From Getting Out Of Whack, Ep 20

Happy New Year on this 20th episode of Payne Points of Wealth. Things are getting interesting. Wall Street all of a sudden has rose-colored glasses. Goldman Sachs came out and was looking for a 15% return this year on the S&P 500 as the world has apparently become more bullish overnight. The questions… Will it be a good year in the stock market or a bad year? How do you allocate your money? Last year was a crazy tumultuous year in the markets, and probably a tumultuous year for your financial plan too. So, we're going to break down what lessons we can learn and we're going to talk about how we can carry those lessons over and apply them to 2021 to make it a great year. Join us!

You will want to hear this episode if you are interested in...

  • Goldman Sachs predictions… are they even worth reading? [1:10]
  • FAT MAG doesn’t represent a reopening economy [4:15]
  • Big cap tech is hot right now but will it stay that way? [5:57]
  • The Tipping Point [8:11]
  • What to do when your asset allocation gets out of whack [11:02]
  • The financial Goldilocks of the emergency fund [13:59]
  • The importance of legacy planning [15:24]
  • Hidden Facts of Finance [18:40]

FAT MAG or FAT GAM which is your favorite acronym?

Ryan is pleased with his creation of an acronym for the S&P’s big 6— Facebook, Apple, Tesla, Microsoft, Amazon, and Google— but he can’t seem to settle on an order. What do you think… FAT MAG or GAM? 

In any case, you’ve got a lot of money concentrated in a very small pool of stocks. Stocks that don’t exactly represent the economy reopening either. This could potentially lead to an ironic trade where the S&P 500 actually underperforms this year even though the economy is rockin’. It's one of the reasons why you want to be diversified. We are already seeing other sectors like small caps and energy that are outperforming. Check out the episode to learn more!

This week on the tipping point: Lessons Learned

Staying invested, rebalancing until you don’t have to, optimistic retirement planning, having the right amount in your emergency fund, and the importance of having a legacy plan BEFORE it’s needed are some of the key lessons we took away from 2020. Join us for this episode’s tipping point to hear the meat and potatoes from each of these valuable lessons. They are definitely some you don’t want to miss!

This week’s hidden facts of finance

An investor who put $10,000 into the S&P 500 index fund at the start of 1980 and missed the market's best five days through the end of August 2020— just 5 days over a 20yr period— would have a return of almost 40% less than an investor that just remained invested. That's insane. The market does that though, it pushes you to the point where you can't take it anymore. You get tired of it going down so your get out until it's done going down and just like that you can miss the BEST days! Check out the episode for more hidden facts!

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Rotation, Rotation, Rotation!, Ep 19

In this episode, we’re going to talk about the reopening of the economy and those big mega-cap tech stocks that are now going to be part of the S&P 500. Additionally, we will discuss products Wall Street loves to sell to scam you and what to avoid at all costs so you can create a portfolio that will give you better odds to win long-term and create your wealth. We’ve got a great show for you. Let’s get to it!

 

You will want to hear this episode if you are interested in...

  • Money moving from big tech to value stocks [1:30]
  • What is a small-cap value stock? [4:00]
  • The sucker trade of the year [6:44]
  • The Tipping Point [9:04]
  • Can I put my entire net worth into Apple stock? [11:31]
  • Should high yield bonds be in your portfolio? [12:59]
  • Whole life insurance policies [14:31]
  • S&P 500 stocking stuffers [16:39]
  • Hidden Facts of Finance [18:37]
  • The new second richest man in the world [19:35]
  • TV blues [23:09]

What does rotation even mean?

It’s Wall Street jargon! When we're talking about rotation it means money has been moving out of these big tech names and moving into other stocks like value stocks. Value stocks such as financials or energy stocks. And we talk about the proverbial reopening of the economic trade like money going into cruise stocks, airlines, hotels, or pretty much anything but tech. These small-cap stocks outperform larger companies and they are less expensive and inexpensive stocks outperform expensive ones. Why is it that investors miss the fact that there are all these other great opportunities out there when they're investing money?

 

This week on the tipping point: This season’s financial stocking stuffers

Here are a few financial instruments that you may want to have in your stocking this year...and maybe some you don’t. First up are annuities, which can be very appropriate for some of you but should not be the only thing in your portfolio. They often come with an income stream for life, and who’s not attracted to THOSE words! However, that can come at a cost. All annuities are not all created equal so know what you’re getting before you stuff this into your stocking. Check out the episode for the rest of this story!

This week’s hidden facts of finance

Airbnb shares more than doubled on their market debut on the NASDAQ stock market two weeks ago, and DoorDash certs, 86% all in its first day of trading. Is this a bubble? Anything that goes up 86% in its first days is more than likely being very overinflated. So we would say yes.

The sale of Bob Dylan’s songwriting catalog to universal music publishing group was announced last week, the price wasn't disclosed, but it said it was sold between $300 and $400 million. There may be a lot of people excited to hear those songs sung by someone other than Bob. We’ve got some more facts for you so be sure to tune in to hear them!

Resources & People Mentioned

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From Fear of Losing Money to Fear of Missing Out, Ep 18

Fear of losing money has been replaced by FOMO as investors are now plunging into the markets, putting more money into ETFs than we've seen over the last 12 months. With Coronavirus cases on the rise, hospitalizations on the rise, and mortality rates on the rise what's going to happen next? Has the market come too far too fast? Should investors wait for a big dip? We're going to break that down for you. We'll also be talking about getting good financial advice versus getting bad advice. How do you know if you’re working with a true financial professional? Our hope is that after this podcast you’ll have those answers so make sure to tune in! We've got a great show for you!

You will want to hear this episode if you are interested in...

  • Are the buy signal wires crossed for average investors? [1:11]
  • The Santa Clause Rally [3:19]
  • Thinking like a corporate CEO [5:46]
  • The Tipping Point [9:33]
  • Examples of naughty vs nice financial advisors [10:04]
  • What an advisor on the nice list looks like [14:07]
  • Hidden Facts of Finance [19:05]
  • Why having a global portfolio now can pay off in the future [21:39]
  • Getting Tesla stock for a premium [24:17] 

Is the doom & gloom media striking fear into would-be investors?

We had $81 billion pour into the equity market in the month of November alone. That means that 32% of all the money to flow into the market came into play last month. We wonder if the signal to buy for the average investor is the market being at all-time highs. Why didn’t they buy in October when the market was on sale? There's a reason why people are fearful of the market, why they don't like to buy when the market's going up. Because even though they see it's a booming bull market all you see are the headlines that are dire and negative. We get pounded every day with news of COVID deaths rising, the spread of the pandemic, and political drama but there's a lot of good news that's happening it’s just not making the headlines. Hear more when you listen to the episode! 

This week on the tipping point: Has your financial advisor been naughty or nice?

Example: My financial advisor is very good at talking about all different types of investments. She's a very astute investor. However, I don't see any credentials after her name so she's definitely not a CFP. She doesn't offer any advice on the planning side of my life, only on what to buy and what to sell. Naughty or Nice? This is definitely one that goes on the naughty list. Any advisor that gives investment advice without coming up with some kind of a financial plan is definitely a big no-no. 

Example: My advisor says I'm not paying any fees and I don't see any fees coming out of my portfolio. Is this too good to be true? Naughty or Nice? I don't know about the advisor, but this is the naughtiest way you can possibly invest. It’s very likely you’re getting gouged in fees and just don’t realize it. More detail on this in the episode, go check it out!

Example: My advisor calls me every quarter checks in on me personally, reviews my portfolio, and proactively discusses financial issues outside the realm of just my investments. For example, she helped me refinance my mortgage this year and I'm now saving $1500 a month. Naughty or Nice? Well, not only is this advisor on the nice list but she probably works for Payne Capital Management!

This week’s hidden facts of finance

The worst days for the market are usually followed by the best days. Since the 1930s, if an investor sat out the best 10 return days for each decade, their returns would be just 19% compared to 16000% had they just stayed invested. If you need an example of how important it is to stay invested last month small company stocks went up 20% in 30 days. That's two years’ worth of return in basically 10 days. If you need a good example of why you need to be invested, look at what happened last month. November was a great case in point of why market timing is just treacherous. For more on this hidden fact and others check out the episode. 

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A Portfolio With Deeper Breadth, Ep 17

November showed off with one of the best months on record with the Dow, S&P 500, and NASDAQ all up over 10%. In fact, the Dow had its best month since 1987. And speaking of big numbers, Tesla is valued at over $537 billion— as much as Warren Buffet's company Berkshire Hathaway— and is the largest company ever to enter the S&P 500. The question becomes, where do you put your money now as the market continues to go higher with the S&P stuffed like a pinata with Mega Cap companies? Can this sustain through the new year? We're going to break it down for you today. We've got a great episode. Let's check it out.

You will want to hear this episode if you are interested in...

  • Small Caps making a big splash [1:24]
  • What is true diversification? [2:51]
  • Good news in the global economy [5:14]
  • The Tipping Point [7:43]
  • Smart 2020 tax moves [8:16]
  • Giving $300 to charity [11:10]
  • Hidden Facts of Finance [15:39]
  • Stock ownership stats [17:18]
  • Investment equality [19:24]

You can’t win trying to time the Market

With an election at the beginning of the month, all the uncertainty, and with a pandemic, who could have predicted that just like that you'd see stocks go up between 10 and 20%. You just can't predict those things ahead of time, and that’s why we always say you can’t time the market. 

Let's face it, this stock market, any market, the world markets are the most humbling places in the universe. There are smarter people than us-- smarter people than the analysts who are trying to figure it out--all trying to gain something that can't be gained, something that can't be predicted. It's too complex, and lesser men than economists have tried to beat or predict what's unpredictable and what's unknowable. The only real winners are long-term investors with patience, fortitude, and a plan. 

This week on the tipping point

I thought we could discuss some of the financial issues we are addressing for our firm's clients before the end of the year. Not that anybody's going to be unhappy to see 2020 in the books; 2021 can't come too soon enough. Unfortunately, going into the new year means it’s time for taxes. You’ll want to make sure you don't pay more in taxes than necessary. There are a lot of smart moves you can make right now to finish up the year, so be sure to check out the episode to learn more.

This week’s hidden facts of finance

Historically, gold has been the preferred way to hedge against inflation, and the value of gold still dwarfs Bitcoin with above-ground gold reserves worth more than $10 trillion and the Bitcoin is $320 billion; however, gold and Bitcoin aren't great inflation hedges. The best inflation hedge in history has been good old equities. Stocks that pay dividends because dividends are increased, and that increases the value of your investment against the cost of living. We're not talking about Tesla here, for the record, we're talking about a diversified portfolio of stocks to pay dividends. Dividends are the key.

Resources & People Mentioned

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If it’s in the Press, it’s in the Price, Ep 16

We basically have the same story over and over again, pundits are concerned about the second wave of the Coronavirus and as we’re recording this, we have a change of regimen of government, and a new president starting in January. What does that mean for the markets? The concern is abounding and there is record cash, yet the market continues to go higher just as we predicted on this podcast weeks ago. So the BIG question is… where do we go now? That's what we're going to dissect on today’s show! Don’t miss it!

 

You will want to hear this episode if you are interested in...

  • Record highs [1:14]
  • Impossible timing [2:47]
  • Economic data -vs- the news [4:44]
  • Handling a downturn [7:01]
  • The Tipping Point [8:59]
  • Fear around investing in the market [10:33]
  • Too much risk [12:40]
  • Millennials aren’t 20 anymore and they’re playing catch up [14:31]
  • Hidden Facts of Finance [17:03]
  • What creative destruction is around the corner? [18:43]
  • Finding a needle in a haystack [20:42]

Embracing a history that creates wealth

If we know about it— if it's in the press, it's in the price— the market knows about it too, it's not ignoring that. It's the difference between being an informed, educated investor and just waking up every day and making it up as you go. When you look at the historical returns of the market and you look at the history of our economy, it always grows. 

If you make a projection of where the S&P, Dow, Russell 2000 or Ethereum Indexes will be in the next 10 years, we'll tell you one thing we know— it's going to be higher. We don't know when it's going to go higher, but it will be higher. It's just a matter of educating yourself on the history of the market. Understanding how the market is always discounting future revenues and future earnings and looking at volatility differently. People shouldn't be afraid of it, they should be embracing it because that's how you create wealth. Interested in hearing more? Check out the episode to see all the brilliant things we have to share! 

This week on the tipping point: managing risk

Managing risk is one of the most crucial elements of a successful wealth plan. So we thought we’d break down what risk really means to your portfolio. How do you really manage it? Risk is something that's only truly recognized in hindsight. When you think about risk, it's the possibility of something bad happening. No one likes bad things, right? If you're always avoiding something bad then you’re sitting on your hands and inertia causes you to do nothing. But risk does cut both ways so if you're sitting on your hands, in this case, you're sitting in cash. That insidious tax inflation's going to eat away at your purchasing power and you probably won’t be able to retire as early as you’d like. Check out the episode to hear about the flip side of that when you take too much risk!

This week’s hidden facts of finance

Every week Ryan goes out of his way to make a point that investing in the S&P 500 is not a one-stop-shop when it comes to investing. The detail that a lot of investors are missing is that it's a global economy and China is coming on strong. Right now there are 119 homegrown electrical vehicle companies in China. They have 1.4 billion potential customers that might be buying upcoming Chinese cars over Tesla cars. Just like Yahoo fell victim to a better search technology being developed by a little known startup called Google back in 2000, you never know what kind of creative destruction's around the corner that will change everything. For more fun facts be sure to listen to the show! 

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The Mother of All Stock Rotations, Ep 15

We told you that you could see a stock melt-up going into the end of the year, and now we're here. Money's come off the sidelines in droves! Money managers are getting reinvested, and the big question comes: Is this it? Have we gotten the melt-up? We are also going to hit on what you should be doing with your wealth plan right now and how you should be setting that up. We're going to break it down for you, so be sure to check out the episode!

You will want to hear this episode if you are interested in...

  • Revenge of the nerds! [1:13]
  • Growth that’s made everything else pale in comparison [3:04]
  • Don’t get tricked into thinking you’re diversified [5:13]
  • The market doesn't care about valuation...until it does [6:08]
  • The Tipping Point [9:05]
  • Knowing what you own and why you own it [10:45]
  • Taking money from your portfolio [12:42]
  • Something more important than just a good stock idea [16:02]
  • Hidden Facts of Finance [17:36]
  • Lending money where you’re guaranteed to lose [19:02]
  • ETFs cross a milestone for the second time ever in 2020 [21:33]

Tech’s outperformance has “normal stocks” paling in comparison

We’ve made a killing in tech stocks over the last 10 years. Its growth has way outperformed what it does historically. Historically, it’s been normal to average about 10% per year. We've seen 18% per year for the last 10 years even though the rest of the value and small-cap companies have done about average. It's not that these small-cap companies are horrible performers, it’s that growth has been so ridiculous over the last 10 years, it makes everything pale in comparison.

This week on the tipping point...knowing what you own and why you own it!

Up until the pandemic hit back in March, many people would ask why they own bonds? They don't pay very much. It costs a lot to buy them. However, as the pandemic hit, bonds were the only thing in their portfolio that was profitable, and now you have the ability to take some profits from the bonds and buy back into the market when it's low. A bond is something that is negatively correlated. That just means it goes up and down differently than the rest of your financial assets. For more on this check out the episode!

This week’s hidden facts of finance

It may surprise you that when a Democrat takes over the presidency from a Republican (which, for the record, we're NOT saying has happened yet) the average cycle return has been 43.6%. What usually shocks everyone to find out is that a market under a Democratic president historically has done better than a market under a Republican president. Just so you don't get too concerned, it doesn't matter if it's a Democrat or Republican because historically the market's always going up as long as SOMEONE is sitting in the oval office! Check out the show for more hidden facts of finance!

Resources & People Mentioned

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What are you doing with your money that can get in the way of good investing?, Ep 14

Today, we're talking about AFTER the election, we’ve talked about the election for the last couple of weeks and we warned you not to let the election get in the way of making good investment decisions. The economy is recovering. And what do you know, the Payne’s were right. The market has been straight up since the election. Well, it's theoretically over, right? We're not 100% sure, but it looks like Biden will be in the White House come January. With elections over and the economy starting to recover the question is... What do you do with your money now? What strategies do you utilize? What should you be looking for? We're also going to talk about other things that can get in the way of good investing and things you need to watch out for in your portfolio to make sure you get on YOUR path to financial independence. Let's hit it. Let's get into it. We've got a great show for you this morning so don’t miss it!

You will want to hear this episode if you are interested in...

  • The economic recovery that’s being missed [2:01]
  • Is it a matter of change or waiting on the rules? [3:42]
  • American’s finding a spend save balance? [5:46]
  • Economist still casting doubt about spending [7:08]
  • The Tipping Point: overconfidence in your ability to manage your portfolio [9:09]
  • The Market is the most humbling place in the Universe! [10:52]
  • The flip side...lack of confidence [13:27]
  • Good investing’s just not sexy [15:48]
  • Growth vs value [17:42]
  • Hidden Facts of Finance [19:47]
  • Cash is trash [22:19]

Mind-blowing recovery and the why behind uncertainty 

Unemployment today is where economists thought it was going to be at the end of next year. We're there a year ahead of schedule. Historically the stock market makes about 10% after net of inflation you're about 6-7%. In the last two weeks, the market went up almost 14%. So that's like two years’ worth of return in two weeks! How’s that for recovery!

Are the political leaders on Capitol Hill smarter than the captains of industry that run our biggest companies? We think companies just sit back and say, okay, what are the roadblocks they're going to create in Washington, DC. They wait until the rules are set so that they can figure out how to maximize profit margins based on their new rules. That's why there's so much uncertainty around elections. It's not a matter of if it’s going to change things. It's a matter of the captains of industry, the companies that you all invest in and that we all own, are waiting to see what the new rules are so they can figure out how to get around them to make the most money for their shareholders and for themselves.

This week on the tipping point

We've talked about this a lot in the past, but your ego and overconfidence can get in the way of a solid financial plan. We've seen many cases that have led to destruction in people's financial life because their ego and their overconfidence in their abilities to manage a portfolio made them blind to real holes or issues within their financial plan. Today, we will break that down so that our listeners don't make the same mistakes with their portfolios. If anyone can see holes in portfolios, it's the three of us so tune in to get the goods!

This week’s hidden facts of finance

Vehicle sales have experienced a V-shape recovery, increasing 36% from the 2nd to 3rd quarter of 2020. Auto manufacturing contributes more jobs than any other industry when you take into account all the parts, and suppliers, aftermarket servicers, replacement parts suppliers, and support services for a major auto plant. In hindsight, it's not surprising that car sales went up. Who wants to ride the subway during a pandemic! 

We've seen more New York license plates in New Jersey than ever before. People are coming out of the cities. They're buying in the suburbs of New Jersey and the subway doesn't get you there! So car sales are increasing. Not a shock in hindsight, but who could have predicted that last March. It’s definitely one of the reasons why the unemployment numbers have come down so much over the course of the last couple of months. Check out this segment for more hidden facts of finance!

Resources & People Mentioned

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Connect With Ryan, Bob, and Chris

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On Apple Podcasts, On Google Podcasts, On Spotify

Trading One Uncertainty for Another, Ep 13

We are finally past the election so we can put that worry behind us... and pick up a new one. As the economy continues to open we’ve seen reports of a spike in Coronavirus cases. Reports have come in about countries in Europe, like France and Germany, starting to lockdown again. The uncertainty has shifted to how we are going to keep reopening the economy. However, if you look PAST those headlines of “Europe Shutting Down” you will see that schools are still open, you can still get a haircut, it’s not the kind of lockdowns we faced in March, it’s more like lockdown lite! Listen to the episode for the full story and loads of other great info!

 

You will want to hear this episode if you are interested in...

  • The news in plain sight [0:33]
  • The certainty of uncertainty [1:46]
  • Necessity is the mother of invention [3:23]
  • What’s going to drive stocks higher? [5:12]
  • Dividends are going up! [6:40]
  • The Tipping Point [8:53]
  • How do you get money in the market without being all or nothing? [11:23]
  • Have a trusted advisor to rebalance your portfolio [14:03]
  • Building your Arc before the flood comes [16:16]
  • Hidden Facts of Finance [18:21]

 

More signs of a recovering economy 

Stock dividends are going up. Income's going up. It’s like every company is saying, “Hey, our picture looks good for next year. We're comfortable paying out some of our profits now.” They weren't comfortable with that just a couple of months ago. We think that's a vote for the future! If you're comfortable paying out your profits, that says your future looks pretty good. 

A stat we came across recently shows 1.5 million businesses formed in the last quarter. That’s 80% quarter over quarter. That means that as we're coming out of this recession, businesses are getting started. People are looking for opportunities and they're doing it on a huge scale and that has to bode well for the economy next year, and just looking forward to it in general.

 

This week on the tipping point

Trying to pick individual stocks is like trying to pick the winner in a beauty contest. Your definition of beauty doesn't determine who the winner is. You may think that one candidate is better looking or more talented than another candidate but only the judges’ opinions matter. If you're going to pick the winner of a beauty contest you have to figure out what the judge's view of beauty is. Figuring out what the judges think is the same thing as picking stock in the market. It's not about picking good companies, it's about figuring out what the judges— the people that are buying stocks— want and what THEY consider good companies. And you know what, unless you can read people's minds, you might as well just go to the racetrack. Check out this awesome episode to hear more!

 

This week’s hidden facts of finance

US online holiday shopping is expected to grow 33% this year up $189 billion! Amazon plans to hire 100,000 temporary workers for the holidays. That’s a good reminder job growth follows economic growth. Amazon tripled their profits last quarter and based on their conference call, they expect the fourth quarter to be even bigger. It just goes to show, you can never discount the American consumer. The sun rises in the East—mom and American spend. Listen to the segment for more interesting facts!

 

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Connect With Ryan, Bob, and Chris

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On Apple Podcasts, On Google Podcasts, On Spotify

Market Change is No Respecter of Election Results— It’s Coming Regardless, Ep 12

Maybe it’s time to get into cash, wait this thing out, see what happens. Then when cooler heads prevail make some investment decisions later...what do you think?

By the time you listen to this, the election will have taken place but it may not be over. The volatility caused may still be lingering as well. We just hope you aren’t sitting around— in cash— waiting for the perfect time to get back in the game only to miss the biggest melt-up of the decade! We hope you’ve been listening as we’ve told you to stay in so you don’t miss the big move. It can happen in an instant and if you aren’t in when it comes you’ll never make it up! You have to keep the long term goal in sight. Join us this week as we talk about this and more and perhaps have a few (much needed) laughs along the way. 

You will want to hear this episode if you are interested in...

  • Have we been wrong all along? [0:46]
  • Where’s the bigger risk? [2:38]
  • Things people aren’t paying attention to [4:22]
  • Something we hear time & time again [6:22]
  • Investing in next year...today [8:06]
  • 5 days equals 30% of a 50 year period [9:26]
  • The Tipping Point: Now or Later? [10:11]
  • Have your people talk to...YOUR people [12:30]
  • To debt or not to debt [14:28]
  • Are you up to date? [15:56]
  • The perfect estate plan [18:05]
  • Hidden Facts of Finance [19:33]
  • We HAVE been here before and it led us to the roaring ’20s [21:27]

Sometimes you don’t see things you aren’t looking for

There are some things happening that aren’t getting attention. Everyone is really hot on the Teslas of the world but they aren't talking about things like small caps— which have started to do really well. There many things in different areas in the market that are improving and people aren't paying attention. A lot of people don't realize that China made a new high last week. The focus is on the S&P 500 and there’s a recovery happening around the world that’s being missed.

This week on the tipping point

When it comes to making decisions on your financial plan, sometimes it's more beneficial to defer action other times it's critical to address something right away. How do you know when to do what? In this episode, we discuss some different financial matters and decide if it's good or bad to put them off. 

One example. If you're saving in your retirement accounts— your 401ks or 403B's— you're putting money in pretax, so you are deferring taxes. The problem is eventually when you're 72 you have to start taking it out THEN it becomes what we call a ticking tax time bomb. Those required minimum distributions could potentially push you into a much higher bracket making it a very tax-inefficient portfolio. If you're a younger investor, you might want to look at that Roth 401k option where it's after-tax. The beauty in a Roth 401k, or some other Roth account, is that all that growth is tax-free later. Listen to the episode for more examples! 

This week’s hidden facts of finance

You’ve probably heard people voice concern about this pandemic because we've never in history had to deal with something like this. However, the fact is we have! We had the Spanish flu in 1918, 1919, & 1920, last checked— there's NO vaccine for the Spanish flu. How did our economy recover then? How did the world recover from the Spanish flu? We don't really know, but we do know it recovered, we know we have been here before. To top that off the 1918 Spanish flu was followed by the roaring ‘20s, one of the greatest economies in the history of the planet! Something to look forward to? We think so!

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