Simple, Underrated Philosophies You Can Use, Ep #67

What's up! It's episode 67 of Payne Points of Wealth, and the FED is going to release its triple threat as they taper their bond-buying. As they're going to start to unload their balance sheet and raise interest rates, maybe four times this year, it looks like the world has changed. What do you do now? We’ve got the market going up. We’ve got strategists telling you that we're going to get a big correction in the stock market. Are you going to get it? We'll unravel it for you, tell you exactly what we think about this year, and what you should do with your portfolio. On the Tipping Point today, we're going to give you some of our more common sense, practical philosophies that you need to be applying to your financial plan right now.

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

• Resigning to the fact that things are going to cost more [1:53]
• Dividend yields [5:58]
• The Tipping Point [9:32]
• Are you set up to weather the storm? [12:34]
• Hidden Facts of Finance [16:56]

What year are we in?

Inflation is the highest it has been in 40 years, oil is through the roof, we have a Jimmy Carter-like president in the White House, it’s like we’re in 1982! Here's the thing you have to remember, back in 1982 when we had this high inflation rate, inflation started to go up and we had the beginning of the greatest bull market in history, the S&P and the Dow. Let's say the Dow was at 800 it's now closing in on 36,000. Just keep that in mind, things looked really dire in 1982 and if you sat on the sidelines, you missed out on one heck of a move!

This week on the tipping point: Underrated, simple philosophies you can use

At our firm, Payne Capital Management, we have a mantra we have used for years: simplicity over complexity. We know we're in an industry that loves to sell products that are complicated, financial strategies that are high in fees that no one even understands that don't even end up working out that well.

The number one rule we have with every portfolio, whether it's a 401k, IRA, joint account, you name it, we want every single investment in that portfolio to be liquid. So liquid that you can call any day and we can have all of your money in your checking account the next day. 

Knowing what you own is as important as being able to access it! You have to put your portfolio into the stress test. It's not about when things are good. What you always have to think about is when things go bad, and they will, is am I set up to weather the storm. When the getting is good it’s hard to see those pitfalls. Check out the episode for more simple underrated philosophies you can use with your wealth plan. 

This week’s hidden facts of finance

• The US suffered three periods of hyperinflation in the 20th century. One following each world war and then the great inflation in the 1970s.
• Evercore ISA calculates that the US M2 money supply has increased by an astounding 41% over the last two years.
• Warner Music just bought David Bowie's songbook for a reported $250 million.
• S&P 500's top 10 holdings represent nearly 1/3 of the index's return last year, even though the fund has 508 holdings.

Resources & People Mentioned

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