Payne Points of Wealth

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

November 5, 2020

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 [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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