Payne Points of Wealth
 

Payne Points of Wealth

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Welcome to the Payne Points of Wealth: The podcast that addresses all the pain points that come with creating your wealth, growing your wealth, and sustaining your wealth. Hosted by the Family Wealth Experts of Payne Capital Management, Bob, Ryan & Chris Payne. On a weekly basis, they deliver timely strategies and solutions for the pain points that come with building, preserving and managing your wealth.

Episodes

Volatile Markets Make Bad Decisions Seem Rational, Don’t Fall For It!, Ep #83

Wednesday May 18, 2022

Wednesday May 18, 2022

What's up! It's episode 83 of Payne Points of Wealth and volatility is insane right now. We're teetering on a bear market, crypto markets have melted down. Meanwhile, all of those disruptive technology stocks are down 70-80%, and you've got more recession talk with every passing week as pessimism rules the day. What's really going on in the economy and in the stock market? We're gonna give you our view on how to play it. We've got the plan you just have to listen to it. On the Tipping Point today, we're going to talk about all those burning questions you have right now. Questions that we get from our clients that are also applicable to you so that you can get the best plan for financial independence. 

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

  • Has the FED done a good job? [3:09]
  • Volatile markets make bad decisions seem rational [7:20]
  • The Tipping Point [10:14]
  • Why are stocks and bonds down at the same time? [10:47]
  • Is this a correction or the beginning of a big bear market? [13:04]
  • What influence will change of the majority party have on the stock market? [15:38]
  • What percentage should be in a conservative vehicle if I retire in a year? [17:21]
  • Hidden Facts of Finance [20:36]

Rationally irrational 

The whole problem with these volatile markets is it feels so rational. It sounds rational to sit in something that doesn't go down until the volatility is over and then you can just kind of work your way back in. That sounds so rational but you know what? It's irrational. It means you have to make two perfect timing decisions. Just think about it guys, a week ago we had a market that was up 900 one day and down 1000 the next. Are you going to tell me that somebody is smart enough to time that perfectly? I don't think so. 

This week on the tipping point: Conference call Q&A

We did our conference call for clients recently (we will drop the link down below so you can check it out if you'd like) and we had a lot of questions come in. We have over a thousand clients and a lot of them had the same concerns so in this episode we will discuss some of the bigger concerns that they had that most of you probably have too.

Here are some of the questions we got. The first question that came in was why are stocks and bonds both down right now at the same time in this crazy market? Should we maintain a 60% stock, 40% fixed income/bond ratio, or move to a 70/30 ratio or something else?

The next question that came in was assuming a global recession is inevitable does it make sense for a retiree to sell stocks in advance of the train hitting the wall, in other words, is this a correction or the beginning of a big bear market?

Another good question that came in on our conference call was as the midterm elections approach, what influence will the change of the majority party in the House and Senate have on the stock market? 

Another question was at 64 years old and retiring in another year, what percentage of my portfolio should be in a very conservative vehicle? 

If you’re curious about our take on any of these questions check out the episode!

This week’s hidden facts of finance

  • From 1965 to 2021 Berkshire Hathaway shares generated a compound annual return of 20.1% vs the S & P 500's 10.5% a year return.
  • Some forecasters look for gold to reach $3000 an ounce in the next two years.
  • …Baby, One More Time by Britney Spears has now sold 25 million copies around the world making it the biggest selling album ever recorded by a teenage girl.
  • The Reddit crowd who jumped in when the lockdown began have now given back all their once tremendous gains.

Resources & People Mentioned

Check out the conference call we talked about here.

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


Subscribe to Payne Points of Wealth
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Are You A Do-It-Yourself Investor Or Is It Time To Go Pro?, Ep #82

Friday May 13, 2022

Friday May 13, 2022

What's up! It's episode 82 of Payne Points of Wealth. Another day and more of the same issues. Major volatility in the stock markets as interest rates continue to go higher. The FED continues to tighten monetary policy. In addition to that supply chains are still an issue as China is on some sort of lockdown. In addition to that, we still have war in Eastern Europe. What do you make of everything? More economists every day calling for a recession. We're gonna give you our view on exactly what's going on right now in the economy and what you should be doing with your investment portfolio. On the tipping point today, are you a do-it-yourself investor? We're going to talk about the pros and cons of running your money by yourself. Is it a good thing or a bad thing? Is it for you? We're gonna get into it today. 

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

  • Going into recession? [2:48]
  • Bond fund news [5:01]
  • The Tipping Point [8:46]
  • Are you living in an echo chamber? [10:29]
  • What if something happens to you as a DIYer [13:17]
  • Having an accountability partner [16:06]
  • Hidden Facts of Finance [18:59]

Pent up demand is keeping the economy growing

We have this pent-up demand of people who have been trying to buy homes but there's been a shortage. Prices are going up and housing is still strong and there are still a lot of potential buyers out there. People are still trying to buy cars. There are still vehicle shortages. Companies are trying to expand but they can't find the workers. This pent-up demand is going to continue to keep the economy growing in spite of this inflation. In spite of all the negativity that's out there right now. 

When you're going into recession you're past pent-up demand. Right? You have demand actually starting to dial back. That's been the argument of all these economists that with inflation so high the consumer is just about to pull back. Well, we've been waiting for that be we are not seeing that. There's no consumer right now that's starting to pull back, no matter how high inflation is. This is more indicative of when you come out of a recession not when you are headed into one.

This week on the tipping point: Are you a do-it-yourself investor?

We have a very special guest on our show today financial advisor at Payne Capital Management Francesca “Frankie” Lagrotteria. We have been talking about the differences between investing on your own and using a financial professional. For this episode we thought we could discuss some of the pros and cons of running money on your own and whether it makes sense to make that transition from being a do-it-yourself investor to working with a financial professional. 

Frankie calls it being a self-employed investor. She says there are definitely some benefits to both, but there are, more importantly, some heavy risks, especially with the self-employed investor. When you do things yourself, you start to live in an echo chamber and have an advisor you have that third party, someone to bounce those ideas off of. Check out the episode to determine if DIY’ing is best for you or if it’s time to hand things over to the pros!

This week’s hidden facts of finance

  • Is the U.S. dollar getting a little stretched? 
  • Flexibility has become the top worker demand. In the U.S. 2 in 5 workers desire control over their own schedules and nearly half would be willing to accept a 5% or more pay cut to get it.
  • Apple marched into 2022 as the first company to reach a $3 trillion market value making its market cap larger than all but 4 countries.
  • Mariah Carey insured her legs and vocal cords for $35 million each totaling $70 million together.

Resources & People Mentioned

Meet Francesca “Frankie” Lagrotteria

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


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4 Paynes in a Pod with Charles Payne, Ep #81

Wednesday May 04, 2022

Wednesday May 04, 2022

What's up! It's episode 81 of Payne Points of Wealth and we have a very special guest for you today, Mr. Charles Payne, from Making Money with Charles Payne on Fox Business. He is also the Founder and CEO of Wall Street Strategies, Inc., an independent stock market and equity research company. Charles talks about his life philosophy, his journey to success, and the state of Wall Street today. 

We're also going to talk about all the volatility in the market. We've got a recession potentially on the horizon, negative GDP growth in the first quarter, and earnings coming in strong. What does it all mean? We're going to give you our viewpoint on the stock market and the economy. Don’t miss it!

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

  • Living two childhoods [1:57]
  • The transition from the Air Force to Wall Street [7:17]
  • What should you study today to prepare for a career on Wall Street? [14:08]
  • Charles’ view on financial security [21:57]
  • Back to our regularly scheduled program…Wall Street is a zoo! [27:48]
  • Getting past the noise [31:55]
  • Hidden Facts of Finance [36:06]

Making Money with Charles Payne

Charles’ childhood was his driving force behind wanting to be in the financial industry. He had two very different childhoods, he tells us about them in the episode so be sure to check it out. At 14 he told his mom he was going to work on Wall Street and at 17 she co-signed so that he could buy his first mutual fund. After four years in the Air Force Charles started his career on Wall Street at E. F. Hutton. His exceptional people skills seem to be a running theme found throughout his success. Charles loves what he does and can’t imagine retiring. You can find him weekdays on his show Making Money with Charles Payne on Fox Business. 

2022…The year of going nowhere FAST!

It seems like we're back to where we were in January. We had an all-time record high the first week of January, then we had a big correction. Rallied back up but now we're back down to where we were corrected. It seems like we're standing still, but meanwhile, lots of economic numbers are coming in. We just had a very negative GDP down 1.4%. I say negative when you say it in the context of what the last quarter was, which was up 6.9%. Meanwhile, earnings are good, unemployment numbers are dropping, and margins are improving. 

We're going nowhere fast. There's been tons of volatility, but if you look at it over the last 10 months, unless you're talking about growth or disruptive technology, the market's been sideways. The hawks are getting more hawkish because the FED is tightening financial conditions. The bears are getting more bearish. Wall Street is a zoo!

This week’s hidden facts of finance

  • Computer-driven trading accounts for 65-70% of daily equity activity
  • More than 4.3 billion people spend about four hours a day on mobile devices.
  • Russia's economy is smaller than New York's and technologically way more backward.
  • More than 70% of Americans don't know what an NFT is. However, 23% of millennials in the U.S. collect NFTs

Resources & People Mentioned

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

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What You Need To Think Of At Each Stage Of Your Financial Journey, Ep #80

Wednesday Apr 20, 2022

Wednesday Apr 20, 2022

What's up! It's episode 80 of Payne Points of Wealth and inflation is now officially at a 40+ year high! The highest level since December of 1981! Are we finally there? Is the economy going to go off a cliff or is the fact that you couldn't get a ticket to Miami to go for the weekend say that the economy's in really good shape? We're gonna explain that for you today. We're going to talk about every stage of your financial life, whether you're 20, 30, 40, 50, 60, 70, or 80 and what you need to be thinking about right now to make sure you're going to be completely financially independent. We're going to give you our playbook so go check it out!

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

  • Inflation hurts! How do you offset inflation? [1:56]
  • What you DON’T want in your portfolio [3:55]
  • With all this horrible news why is the market going up? [7:16]
  • The Tipping Point [10:23]
  • 20’s [10:51]
  • 30’s [12:33]
  • 40’s [14:33]
  • 50’s [16:01]
  • 60’s [18:03]
  • Hidden Facts of Finance [22:06]

This week on the tipping point: What you need to think of at each stage of your financial journey

What should you be thinking about at 20, 30, 40, 50, 60, 70, maybe even 80, when it comes to your financial journey? 

In your 20s: The best thing you can do in your 20s is to save every penny you can because compounding works best when you start early. The earlier you start the more money you'll make. Use a Roth account if you can so that your money grows tax-free for life. 

In your 30s: This is the stage where you want to start to consolidate and bring everything together into what I would call a more concerted effort, as opposed to just having a hodgepodge of investments in different places. You should also start building an estate plan and your health savings plan. 

In your 40s: When you get into your 40s, hopefully, you've listened to our advice and you have accumulated wealth, and you're at a point where you have to get serious about the savings, especially college funding. Do this with 529 plans. 

In your 50s: This is when you realize that you may not be working with the right financial advisor. If you take a look at your financial plan and realize you don't have one but instead, you have a collection of investments that were either bought or sold to you in mutual funds, annuities, stocks, and bonds. Make sure that you make those course corrections before it's too late. You can also make catch-up contributions at this age. Start looking at long-term health care as well.

In your 60s: This is when you decide when to retire, look at how much money you'll need in retirement, and how you'll draw on your portfolios to get it. This is where you have to get really strategic in your planning because now you're there.

This week’s hidden facts of finance

  • As of 2020, it's estimated that Americans saved over 60 million commute hours per day with remote work.
  • The electronic system was 5% of the cost of a car in 1970, it's expected to be 50% by 2030.
  • Monte Python And The Holy Grail's budget was 200,000 pounds and was raised by 10 investors contributing 20,000 each. Three of those investors were Pink Floyd, Led Zeppelin, and Genesis. 
  • In 1994 Jeff Bezos famously spotted that the internet was growing at 2300% per year. That made him leave his high-paying private equity job to start Amazon.

Resources & People Mentioned

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

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Do You Have An Emotionally Damaged Portfolio?, Ep #79

Wednesday Apr 13, 2022

Wednesday Apr 13, 2022

Hey, what's up! Welcome to episode 79 of Payne Points of Wealth! Markets are going crazy! They’re going up, they're going down, they're going sideways! There has been a lot of volatility going nowhere fast as interest rates continue to climb higher. On top of that, we've got two-thirds of economists talking about a potential recession. We're going to tell you what we think about a recession and what we think the economy is going to do over the next 12 months. On the Tipping Point, we'll talk about investing with your emotions. Are your emotions are holding you back from making good investment decisions? Listen now to hear our advice on how to fix that!

 

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

  • Are things worse than they’ve ever been? [1:19]
  • One thing we see lacking in portfolios [5:20]
  • The combination you want for a healthy economy [7:56]
  • The Tipping Point [10:17]
  • The biggest overweighting culprit [13:13]
  •  When it’s appropriate to factor in emotions [15:42]
  • Hidden Facts of Finance [18:45]

Do you have a pro-inflation portfolio?

One thing we see lacking more than anything else when we look at portfolios right now is that most of them don't have what we would call a pro-inflation portfolio. There aren't enough inflation hedges in the portfolio. There are too many assets that are reliant on low-interest rates and low inflation. We're probably not going back to less than 2% inflation like we saw the last decade and interest rates aren't going back to under 1% anytime soon. It's like just not happening. 

A lot of investors still want to hold onto what did well in the last 10 years. They're still on that growth trade. They still want to own all those large mega-cap stocks like Amazon, Google, Facebook, and Apple. Those stocks could go up, it's possible, but if we learned any lesson from the great tech bubble back in the late 90s’-00s’ it’s that a lot of these big companies like Microsoft can have a whole decade where the revenue continues to go up, the company does well, but the stock does nothing. That's one of the risks you have with a lot of these hot names. It's not that they get crushed. It's just that they don't do anything. 

This week on the tipping point: Bad emotional decisions

There are two huge emotions in investing. Fear and greed! Any decision made on either one of them has always historically been wrong. When it comes to making decisions about investments, it's extremely emotional. 

A lot of times when you make decisions, you think you're being logical but you're actually being emotional. When you act emotionally you end up making bad decisions about how to allocate your capital. So in this episode, we talk about some of the bad emotional decisions we can make and how to protect ourselves from...well...ourselves. Removing emotion will help you make good, pragmatic, long-term decisions to create wealth over time and reach financial independence. Go listen now to see if maybe you are allowing emotions to damage your portfolio, and what to do if you are!

This week’s hidden facts of finance

  • From 2000 to 2010 emerging markets appreciated more than 16% a year. Whereas commodities returned about 6% a year and the NASDAQ only returned 1.6% a year. Fast forward from 2010 to now, the NASDAQ has returned 17% a year and emerging markets have only returned 3% a year, and commodities -0.15% a year. How times change!
  • Archeologists discovered prehistoric human remains, ceremonial artifacts, and possibly the footprint of an ancient dwelling on the site of a planned 75 story residential condo tower in Miami. Talk about holding back project deadlines!
  • 55 years ago, the photo session for the Beetles. Sgt Pepper's album cover took place. It cost nearly 3000 pounds, which was a huge sum at the time when album covers typically cost around 50 pounds.
  • Over the long term, history shows the stock market has returned about twice as much as residential real estate. The S&P 500 returned, 12.47% annually from 1972 to 2021 vs only 5.41% for residential housing.

Resources & People Mentioned

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

Read more

False beliefs that could be ruining your financial life, Ep #78

Wednesday Apr 06, 2022

Wednesday Apr 06, 2022

What's up! It's episode 78 of Payne Points of Wealth and markets have sparked a huge rebound over the course of the last couple of weeks. Ending the quarter, just down a little bit for the year. So what's the deal? Is this just a dead cat bounce? Markets are ready to fall off a cliff, we're going into recession because of high inflation, or is this beginning of a huge booming bull market as the economy chugs along? We're going to give you our thoughts on that, our viewpoint on where things are going today. And on the tipping point, we're going to talk about all those false notions that you have when it comes to your financial independence plan that you need to eradicate from your brain to make sure that you can be financially free.

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

  • Dead cat bounce? [1:09]
  • What will the market do with the federal reserve raising interest rates? [3:52]
  • Concerns about open-ended bond fund [6:07]
  • The Tipping Point [8:45]
  • The proverbial magic retirement number [10:13]
  • You’ll spend less money in retirement [11:53]
  • No need to plan [14:45]
  • Hidden Facts of Finance [17:57]

Are rate inversions an indicator of looming recession?

What is the market going to do with the federal reserve raising interest rates? We're already starting to see some inversions in rates in that shorter-term rates are higher than longer-term rates. Every headline this week says that's a precursor to a recession. 

It's a bunch of BS. It's a terrible indicator because there have been so many times that the curve was inverted and we didn't go into recession. But economists and the talking heads on TV love to talk about this. The other part you have to think about is that the government has manipulated the curve. They have this 900 trillion dollar balance sheet where they bought all these long-term bonds, which is keeping rates artificially low. Now it's getting a little wonky, but the point is, it's a BS indicator. They always roll it out every couple of years and it doesn't necessarily mean we're going into recession. In fact, it's been disproven over and over again many times. 

This week on the tipping point: False beliefs

Clients have a lot of big misconceptions or beliefs when it comes to what it means to be financially independent. Things like how much money you should have or you know what it should look like to be financially independent. We thought we could talk about some of those false beliefs that you have that are dangerous and are probably ruining your financial life. 

It's as dangerous when you build a house without a foundation as it is to build a financial plan without a foundation of a plan. If you're just sitting there arbitrarily coming up with some number, the goal post will keep moving. Check out the Tipping Point segment in this episode to hear about the false beliefs we have come across over the years. 

This week’s hidden facts of finance

  • Southeast Asia is ditching pandemic restrictions at last! Promising an economic rebound for 650 million or so citizens. There are opportunities in Southeast Asia right now.
  • The ProShares Ultra QQQs that's three times leverage on the NASDAQ is the most actively traded exchange-traded product this year. 
  • Limited supply is helping home values. 2022 home price appreciation is estimated to hit 12%. Supply is a problem. 
  • ESG ratings - don’t base your investment picks on a rating especially when Wall Street can charge you a higher percentage on products that they say are “ESG” 

Resources & People Mentioned

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

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Finding Forgotten Assets Are Better Than Finding $$ In Your Pants!, Ep #77

Wednesday Mar 30, 2022

Wednesday Mar 30, 2022

What's up! It's episode 77 of Payne Points of Wealth and the market's finally finding some footing. We're getting some big up days. Is this just a bear market rally—a fake out—or is this the real deal? Are we're going to see all-time highs this year? We're going to talk about that along with the fact that we have interest rates...going up, oil prices...going up...inflation…going up! Are we going into a recession? So many economists are talking about it for 2023. We're going to tell you what we think you should be doing right now. On the Tipping Point today we're going to talk about those financial nuggets out there, those assets you forgot about long ago that you need to readdress to make sure your financial independence plan is in order. You don’t want to miss it!

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

  • Interest rates up = stock prices up [1:11]
  • What the market is starting to tell us [3:13]
  • Meanwhile on the inflation front [6:29]
  • The Tipping Point [9:16]
  • Multiple 401Ks does not make you diversified [13:29]
  • Hidden Facts of Finance [17:59]

It’s not about what’s going on with inflation…today

What’s happening with inflation today isn’t what the market is pricing today. What the market is going to start pricing in today is what inflation looks like in 12 or 24 months. The truth is, no matter what the media tells you, inflation is very likely going to be lower. That's what the market is starting to tell us right now. At this point, we’ve already gotten past the fact that the FED is going to raise interest rates. It's not going to be a surprise. They have pretty much telegraphed what this year looks like with interest rate hikes. There's nothing shocking about that. What you have to ask yourself as an investor is what will the world look like 12 to 24 months from now? What will the Payne's be saying on their podcast then?

This week on the tipping point: Forgotten assets

At our firm, Payne Capital Management, we do a lot of financial projections each year. We have three certified financial planners on our staff and we do everything from a planning-based approach. One of the parts of our process—which we think is very powerful— is a financial audit. We tally up everything you have and build a financial portal so that you can get a bird's eye view of everything you're holding. A lot of times people have assets they have totally forgotten about. 

Rediscovering forgotten assets is way better than slipping on an old pair of jeans and finding $20 in the pocket! 

A common forgotten asset we see, especially with millennials and even baby boomers, are old 401Ks from past jobs. A 401K is a great tool but it's a lousy place, a terrible platform, to invest your money. When you have multiple 401Ks in your portfolio you are paying multiple fees, have limited investment options, and you won’t be nearly as diversified as you think. Check out the episode to hear all the reasons we think this is a bad idea and what a better option is for that money. 

This week’s hidden facts of finance

  • Andy Warhol’s silkscreen portrait of Marilyn Monroe will be put for auction this Spring with an asking price of 200 million. That will be the highest asking price for any piece of art at auction in history.
  • U.S. office occupancy is still just 40%, despite the phasing out of mask and vaccine mandates for 98% of the country.
  • Happy 75th birthday to Elton John this month! With 300 million records sold, 59 billboard top 40 singles, nine #1 singles, seven #1 albums he is Billboard's greatest solo artist of all time.
  • Foreign investors have dumped a record 6 billion Chinese shares in the first three months of 2022 due to fear of new coronavirus outbreaks and the risk that Western countries will sanction Beijing as it supports Russia's war in Ukraine. That might be the counter-trend. It might be time to buy Chinese stocks.

Resources & People Mentioned

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

Read more

We’re In An Economic Boom, No Matter What Strategists And Economic Gurus Tell You, Ep #76

Wednesday Mar 23, 2022

Wednesday Mar 23, 2022

What's up! It's episode 76 of Payne Points of Wealth and we are wondering if every strategist and economist will be wrong. Probably! Today we're going to talk about what the sentiment is on Wall Street and what investors are thinking right now. Hint, hint...they're very negative on the economy and the stock market. We're going to give you our contrarian view of what we think is going to happen over the course of the next couple of months, especially with interest rates going up now that the FED is officially raising interest rates for the first time since 2018. 

The conflict in Ukraine continues to go on. 

We're going to unpack a lot for you today and talk about some old-school wisdom. Bob's going to go back to the 70s’ at Merrill Lynch (when he had long hair and listened to Led Zeppelin) and tell you exactly what you need to think about philosophically when it comes to the markets. Let's hop to it. We got a great show today. 

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

  • Geopolitical conflict is not as damaging to the market as you’d think [1:23]
  • We are in an economic boom [3:19]
  • The psychological aspect of inflation [6:54]
  • The Tipping Point [9:26]
  • Markets return to the mean [10:31]
  • The public buys the most at the top and the least at the bottom [13:31]
  • Fear and greed are stronger than long-term resolve [16:19]
  • Bull markets are much more fun than bear markets [18:10]
  • Hidden Facts of Finance [19:58]

Abundant Americas -vs- Negative Networks

The one thing that we've been stating every week is that we're in an economic boom, no matter what those strategists and economic gurus tell you. At the end of the day, we have an abundance of jobs, and wages are going higher. People are NOT dialing back their spending. Even with oil prices skyrocketing it's not going to stop them from spending, especially now that the economy is full-blown reopened. No one cares about COVID anymore or at least not enough to stop them from living life. We've learned to live with it. These are all big, big drivers for economic growth.

We should write an article every week, "If things are so good, why do I feel so awful?" Because after you look at the media or watch the news you're like, oh my gosh, things are so bad. But meanwhile, the US house's net worth is 150 trillion with a T. We're the wealthiest we've ever been in the history of the country. 

This week on the tipping point: Bob Farrell’s rules of investing

Here’s a list of Bob Farrell’s 10 rules that are still true today. Check out the episode to hear a breakdown of our favorite ones!

  1. Markets tend to return to the mean over time
  2. Excesses in one direction will lead to an opposite excess in the other direction
  3. There are no new eras — excesses are never permanent
  4. Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways
  5. The public buys the most at the top and the least at the bottom
  6. Fear and greed are stronger than long-term resolve
  7. Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names
  8. Bear markets have three stages — sharp down, reflexive rebound, and a drawn-out fundamental downtrend
  9. When all the experts and forecasts agree — something else is going to happen
  10. Bull markets are more fun than bear markets

This week’s hidden facts of finance

  • John Templeton following Bob-isms he didn’t even know about!
  • Ukraine raised 63 million in crypto donations and people were scammed out of just as much. How’s that for secure currency?
  • The metal nickel spiked to 100,000 per metric ton on the London metal exchange
  • The asset manager’s $140 billion Pimco Income Fund held $1.14 billion worth of Russian government international bonds as of the end of 2021. 

Resources & People Mentioned

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

Read more

Getting Your Mind Right When Setting Realistic Goals For Financial Independence, Ep #75

Wednesday Mar 16, 2022

Wednesday Mar 16, 2022

What's up! It's episode 75 of Payne Points of Wealth and the war is intensifying in Ukraine. Interest rates are moving higher. Markets are all over the place. Volatility is insane right now. There are lots of questions about the economy, the price of commodities, the price of oil. Is it going to put us into a recession? We're hearing a lot of talk about that. We're going to give you our vantage point today. How to play it, how to invest your portfolio. We're also going to talk about how you set goals for your financial independence? What do you need to be thinking about psychologically and how to put that plan in place? How do you start to think about what goals are realistic and unrealistic? Listen and find out!

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

  • Investing is so counterintuitive [2:38]
  • The Tipping Point [8:26]
  • What you can control [10:05]
  • What’s your number? [12:29]
  • Are your goals realistic? [13:43]
  • Hidden Facts of Finance [17:18]

Why is investing so difficult?

Investing is so difficult because the market's always climbing this wall of worry. The headlines are NATO. The headlines are Ukraine. Headlines are inflation. Once everybody feels good about that, they're not going to wave a flag saying it's safe to invest because there will be new concerns. That's why it's so difficult to stay invested and to invest in the face of all this trouble. 

We have an inflation number that's close to 8%. You can't sit in cash. I don't care what the conventional wisdom is. It's more critical than ever that you get a return on your money. For all the volatility right now, the question is always what market is getting hit? Not all markets are getting hit. Technology, growth, all of things we warned you about on this podcast are getting decimated right now. However, if you look at old school value stocks... Berkshire Hathaway is up this year, it's in positive return. Our value portfolios are barely down for the year and of course those commodities are finally going through the roof. What it comes down to is you've got to have a portfolio that addresses a lot of issues and cash just doesn't do that. 

This week on the tipping point: Setting goals

We spend a lot of time helping people with their goal setting. We also spend a lot of time thinking about how to help people articulate and envision what they want for their life and their financial independence. Today we will talk about psychology and what you want to think about when it comes to creating your own realistic and achievable financial goals. We will share the process that we use to help our clients come to the conclusion of what they want financially. 

When it comes to pain points, this is absolutely the most important one there is, and that is achieving financial independence. 

It's a very personal thing. It's something that you have to understand what it looks like for you. It's not a rule of thumb and it's not what your neighbor is doing. It's your unique financial independent picture. Do you know what it looks like?

This week’s hidden facts of finance

  • Russia is the world's third-largest producer of oil. Who’s #1?
  • 35 years ago this month U2 released Joshua Tree
  • Longest closing of Wall Street on record
  • Who showed up 12 days late to the 1908 Olympics in London?

Resources & People Mentioned

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris

Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

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Annuities As Inflation Hedges?…NEVER!!!, Ep #74

Wednesday Mar 09, 2022

Wednesday Mar 09, 2022

What's up! It's episode 74 of Payne Points of Wealth, Russia is moving further into Ukraine and markets are going haywire. The volatility's extreme right now. We know the FED is raising interest rates next month but what does this mean right now? Is it time to go to cash or is it time to take advantage of the volatility to create your wealth long term? We're gonna break it down for you from our vantage point. We're also going to talk about annuities today. Annuities aren't bought they're sold. Is it a good investment or a bad investment to have in your portfolio for your path to financial independence? We'll give you our thoughts on that as well.

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

  • It's the surprises that you don't anticipate that move everything [1:48]
  • The tech wreck [5:03]
  • Why we are so optimistic [7:11]
  • The Tipping Point [9:27]
  • To get something you have to give something [12:14]
  • Annuities are horrible inflation hedges [15:24
  • Hidden Facts of Finance [19:40]

Why we're so optimistic

Look at what happened in New York this week. They said no more masks and no more Vax ID cards! You're allowed to live your life again. The economy is going to boom. People are flush with cash and they're tired of being stuck in. People are going to get back to traveling. The economy's going to keep booming. The supply chains will eventually become unclogged and what happens is the market looks forward. 

When you look at prices going down right now, it's what I call price adjustment. It's a math problem. Interest rates are going to be higher, inflation's higher. You put that into the equation. You get a different answer. It's lower. But you know what we don't hear on the financial news at all? The PE ratio on the S&P 500 is very reasonable right now. NIt's a good time to be buying. Not panicking. 

This week on the tipping point: Annuities

We're going through a period now where it's very different, the last 40 years have been low inflation, actually a deflationary environment but now we're seeing inflation. Hopefully, we don't go back to the hyperinflation of the 70s. It was horrible, you can't imagine how bad it was, but we just had a 7.5% year over year rate on the CPI. That could see 8% on the next report and inflation is the biggest issue. It's the biggest risk every investor has in their portfolio right now. Annuities are horrible in terms of inflation hedges. 

Once you get that fixed income and you give up your principle, you get the same amount every single year. Yet your cost of living is going up every year. That means the amount you're getting each month $5,000, $10,000, whatever, in tomorrow’s dollars it's like getting half because it doesn't adjust with inflation. 

Meanwhile, a diversified portfolio with bonds, dividend-paying stocks, the cash flow over time is increasing exponentially to keep up with inflation. In fact, if you look at stock dividends, they've increased over the inflation rate since 1950. So annuities don't solve for the most important, most critical aspect of your financial independence plan and that is inflation.

This week’s hidden facts of finance

  • The 15 managers with the highest performing funds in 2021 raked in a collective 15.8 billion last year!
  • The global value of crypto grew by nearly 1.5 trillion last year, compared with the S&P 500’s rise to nearly 9 trillion market value.
  • 75% of 2020 SPACs traded at or below $10
  • 25 years ago Bowie bonds were issued on the US Stock Exchange

Resources & People Mentioned

See if you qualify for a complimentary financial review from the Paynes

Connect With Ryan, Bob, and Chris


Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify

Read more
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