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
Wednesday Mar 02, 2022
Wednesday Mar 02, 2022
What's up! It's episode 73 of Payne Points of Wealth and the sky is literally falling, as we're recording this Russia is invading Ukraine. We've got financial conditions tightening as global banks around the world are raising interest rates. Is this the end? Are we going to a big, BIG bear market? Are we going into recession? Or is this the buying opportunity of a lifetime? We're going to give you our 2¢ on that. We're also going to tell you exactly what to do with your money.
On the tipping point today, we have a special guest, Frankie Lagrotteria, and we'll talk about almighty income. You need income for your financial independence plan but how do you create that income? How do you create an income plan where you don't run out of money? We're going to give you our playbook. Check it out!
You will want to hear this episode if you are interested in...
- Will the Russian invasion of Ukraine affect the market? [1:08]
- The gift that keeps on giving [4:36]
- Living through the manias [8:15]
- The Tipping Point [10:52]
- The biggest challenge with creating income [12:58]
- Sweat equity vs passive income [14:23]
- Hidden Facts of Finance [20:25]
Bear market or a correction
The best thing in the world is that we live in the great old US-of-A! Look at the people in Ukraine being subjected to this aggression from Russia. As investors we have to look at what's going to happen to the markets as a result of this. History tells us that regional conflicts, unless they end up turning us into a world war, do not bring us to a bear market.
This is a correction, not a bear market. We didn't go to a bear market after Afghanistan, or Iraq, or Korea, or Vietnam. Only after World War II started. It is a regional conflict. If you look at the GDP of all of Russia, it's about the size of Texas and Ukraine is even smaller than that. At the end of the day, if you look at these geopolitical issues that we've had in the past, usually things work themselves out and eventually investors start looking at what's going on in the economy. And right now the economy is good!
This week on the tipping point: Income
One thing we've found at our firm Payne Capital Management, with the thousand or so relationships we have, is that one of the most critical components to your financial independence plan is income. You hear a lot of talk about income. How do you generate income? What's a good income? What's a bad income? How do you equate for inflation?
The cornerstone of any financial independence plan is that you're generating enough income that you can live on it. So in today's episode with special guest Frankie Lagrotteria we will do a deep dive today into understanding what kind of income you can produce on your portfolio to give yourself that freedom that we're all thinking about when we're investing our money. Check out the episode for all the tips!
This week’s hidden facts of finance
- Fights to space booking now! Check it out here!
- New movies, Jack Ass & Scream, killing it at the box office!
- Pink Floyd’s album Dark Side of the Moon has been on Billboard's Top 200 Album chart for 962 weeks! More than any other album ever!
- Did you know Google was not the original name for Google?
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Feb 23, 2022
Wednesday Feb 23, 2022
What's up! It's episode 72 of Payne Points of Wealth and we have the three R's right now, 'Russian', 'Repricing', and 'Rates', you’ll want to listen to hear what that’s all about. The market isn't going anywhere fast as it's trying to find its footing. We're going to give you our outlook for what we think is going on right now and how you should position your portfolio. On the Tipping Point today, I know you're not watching the Olympics—nobody's watching the Olympics, but we're gonna talk about the Financial Olympics to make sure that you can be financially independent. Go check it out!
You will want to hear this episode if you are interested in...
- The 3 R’s [1:04]
- Investors fear uncertainty [5:51]
- The Tipping Point [9:26]
- Inflation marathon [10:47]
- Recession hurdles [11:29]
- Hidden fee toss [13:21]
- Portfolio balance beam [16:30]
- Synchronized planning [18:54]
- Hidden Facts of Finance [21:48]
Value trumps growth in the current market
Investors fear the uncertainty of what can happen in the future. They price in more of a pessimistic outlook and once that fear is realized, they say, "oh wait, that wasn't so bad. The economy's still booming. I'm still living my life. I'm still spending." So inflation is something that we're fearful of because it's skyrocketing right now. But remember the biggest cure for higher prices is higher prices.
The market isn't selling off. One specific market is selling off. It's those growth stocks and if you look at growth specifically right now, that's taking the brunt of any selling. Value stocks, any company that has pricing power in this new environment of higher prices where they can raise their prices and their customers are willing to pay those higher prices, their earnings look awesome!
This week on the tipping point: Financial Planning Olympics
Viewership for the Olympics is down big right now but I thought we could talk about something more exciting than the Winter Olympics and that's the Financial Planning Olympics and how we can equate the Olympics to some of the financial planning issues that we've come across in our firm. A lot of managing money or getting people to financial independence is similar to being in the Olympics.
When we think about the summer Olympics and running we think about the inflation marathon. That's the thing about inflation, it's like death by a thousand cuts. If you look at it historically every 20 years, your purchasing power is cut in half, every million dollars you have today is only worth half a million dollars over the next 20 years. That's very problematic when you're trying to be financially independent.
Another event in the Financial Olympics is the recession hurdles. It's those blocks that the economy puts in your way, on the way to making your free financial goals. Things like recessions, bear markets, hyperinflation, all those things can disrupt your portfolio if you're not properly invested.
Check out the episode to hear about some of the other Financial Planning Olympic events like Hidden fee toss, Portfolio balance beam, and Synchronized planning.
This week’s hidden facts of finance
- Median housing price between 2006 and 2021
- 35% of the stock bought by Robin hood users are concentrated in 10 companies compared with at least 24% by retail investors
- Queen’s greatest hits collection was so popular in the UK that one in every three British families now owns a copy
- Prosecutors charged a New York couple with conspiring to launder proceeds of 119,000 Bitcoin valued at 4.5 billion
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Feb 16, 2022
Wednesday Feb 16, 2022
What's up! It's episode 71 Payne Points of Wealth and markets are trying to find their footing as unemployment is coming down. More people are getting jobs, labor participation rates are going up. The FED? We have no idea what the FED is going to do. They're keeping it a secret. All the while we're seeing wages go up, we're seeing productivity in the economy go up, and we're seeing pessimism amongst investors. What does it all mean? We're going to break it down for you today and we're going to talk about one of our favorite Americans Ben Franklin. A Great Philadelphian. What he said back in the day that you can apply to your finances to make sure you're on track for your plan for financial independence.
You will want to hear this episode if you are interested in...
- How tough is the FED going to be on inflation? [1:07]
- The cure for higher prices is actually higher prices [3:31]
- One end of the Seasaw goes up, the other end goes down [5:54]
- The Tipping Point [9:20]
- A penny saved is a penny earned [12:18]
- He that lives upon hope will die fasting [14:30]
- There are no gains without pains [16:24]
- Hidden Facts of Finance [21:32]
The cure for inflation
The cure for higher prices is actually higher prices. Right now the consumer doesn't seem to care about price. You're paying $3.50 a gallon at the gas pump, depending on what state you live in, but it's not hurting demand. As a percentage of income, it's not as bad as it's been in the past. We still see that demand. But if prices keep spiraling higher, people are going to stop spending. If it gets too costly, they're going to tell you, they're going to let the retailers know, no more. Right now what I think you are going to see happen is you have inflation, especially price increases. Higher prices will take care of themselves. Inflation will take care of itself. And because we have productivity, this economy will continue to rock because companies are being very innovative.
This week on the tipping point: Ben Frankiln{isms}
Investment in knowledge pays the best interest. Know what you own and why you own it. You should be able to explain each and every investment to your grandchild in less than five seconds. And if you can't, that means your portfolio is too complex and you better have a financial advisor you can trust.
Another Benjamin Franklin quote is a penny saved is a penny earned. You can apply this to a lot of you that are looking to retire probably sooner than later. The best time the start investing and saving is when you start making any money at all, it doesn't matter what age you are.
He that lives upon hope will die fasting. This goes to that whole mindset that hope is not a strategy. Basically, it means is that you don't want to just wish your portfolio to do well. You have to make good conscious decisions about how you're investing your money.
Another great Ben Franklin expression is there are no gains without pains. You have to suffer some volatility, there's no reward without risk.
This week’s hidden facts of finance
- Taylor swift has 8 different albums charting on the Billboard 200 album chart, a huge amount for any artist. but Prince holds the all-time record.
- Global oil demand is fully recovered, nearing a hundred million barrels per day.
- The probability of success when day trading is only slightly better than flipping a coin.
- Hackers targeted two firms that thousands of public companies use to make electronic filings with us securities and exchange commission.
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Thursday Feb 10, 2022
Thursday Feb 10, 2022
What's up! It's episode 70 of Payne Points of Wealth. The year is starting off with lots of uncertainty about the Fed. What are they going to do with interest rates? You've got every firm out there predicting that it's going to be apocalypse now with interest rates being hiked seven, eight times, heck even nine times! Who knows! But what does that mean for the markets? Is the economy slowing? Is it slowing too much? Are we going to see that recession that we're hearing about every single week? We're going to tell you exactly what our playbook is to invest and what you should be thinking about, and how to allocate your portfolio. On the Tipping Point today, we're going to talk about a lot of things that we hear you say, (that you shouldn't be saying) when you're trying to be financially independent. We're going to point it out and get you on the right path to financial independence.
You will want to hear this episode if you are interested in...
- No one wants to catch a falling knife [1:17]
- Short term volatility doesn't equal what's going on in the economy [5:24]
- The Tipping Point [9:07]
- It comes down to having the right financial advisor [12:22]
- If I just had a million dollars [15:23]
- Hidden Facts of Finance [18:45]
Keep your eye on the long term prize
Keep in mind that correction is merely that, it's not a substantial change in the direction of the economy. We just had really good numbers come in from November and December in housing and retail sales. About 170 companies have reported earnings so far for the quarter and 77% have beat analysts' expectations. That GDP number came in a lot higher than anybody anticipated. So the economy is still very, very strong. Short-term volatility doesn't necessarily equal exactly what's going on in the economy. Keep your eye on the prize. Don't let all this noise get you out of your long-term portfolio.
This week on the tipping point: Phrases people say
We probably look at over 50 portfolios a month. It's very typical to hear people say a lot of the same things. “When will I be in good enough financial shape to retire?” “Can I afford this?” “If I only had a million dollars I’d be able to retire comfortably.” Are these phrases right? Are they wrong? Part of it is probably that people just want to hear someone say that it looks okay because when it's just you, left to your own devices self-talk sometimes can you put us in a really negative place and we don't see the big picture.
People are afraid to sit down and do planning because they don't want to know that the answer is bad. More than not, even if you're not there yet and you can't be financially independent tomorrow if you just start you're going to get there sooner than you think.
This week’s hidden facts of finance
- The median home price in 1960 was $11,900. In 2021 the average new home price was $453,000!
- The cost of acquiring the rights to use the Beatles music in the film Yesterday was around 10 million, 40% of the total movie cost.
- In 1932 wooden bills were temporarily made and used in Tenino, Washington because there was a major cash shortage at the time and wood was readily available.
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Feb 02, 2022
Wednesday Feb 02, 2022
It's episode 69 of Payne Points of Wealth and markets are literally falling apart right now! Are we going into a bear market? Is this the end? There are a lot of economists calling for a recession.
We went through a period in the last couple of years where the hottest stocks in the market were something called pre-revenue companies. In other words, they weren't making any money, but they got all the money from newbie investors, investing in innovation and disruption. Well, we are seeing disruptive technology getting destroyed, whether it's Bitcoin, Peloton, or Tesla it’s getting destroyed. The lesson learned… invest in companies that make money and better yet pay dividends.
Are you afraid of retirement? Do you think you can retire? Are you afraid that you can't be financially independent? What do you do with your money now? Should you be sitting in cash? We're going to address all of those issues in this episode! Check it out!
You will want to hear this episode if you are interested in...
- The tale of two markets [2:05]
- Tightening and loosening conditions in overseas markets [6:53]
- The Tipping Point [11:07]
- Being bored in retirement [13:47]
- Lack of confidence in your ability to retire [17:43]
- Hidden Facts of Finance [20:49]
Monday morning quarterbacks of the market
It sounds so sexy, right? The market's selling off, you're getting to cash, you think you're being proactive and protecting yourself. Markets change on a dime. Markets can rebound very quickly too and if you're sitting in cash, you missed the boat. That's why timing the market, in general, is treacherous! It's the worst thing you can do.
Then there are these pundits on Wall Street, these economists, they were so rosy with their outlook coming into the beginning of the year. All of a sudden the market sells off over a two-week period and we're hearing we're going to a recession. We've been talking about how tech stocks make no money and they're gonna go down. They're always playing money morning quarterback. They don't say this stuff before it happens. They always tell you after it happens, which has no value.
This week on the tipping point: Why do we say we don't want to retire when (maybe) we actually do?
When doing financial planning for clients we have found that when we hear “I don’t want to retire” it doesn’t always mean clients don’t actually want to retire. Sometimes it means you love your job and don’t want to go from 100 to ZERO. Other times it means you don’t know if you can afford to retire. The fear of being without a paycheck is very real for many people. There are also a lot of things that can happen that can take the choice away. Our solution is to not talk about the “wanting” to retire but setting your financial independence date. That point when you can decide to do whatever you want and your paycheck doesn’t get a vote!
The stress and anxiety of worrying about money leads to other health issues so knowing that you're financially independent, knowing that you don't need to work is also a huge benefit in the long run and will promote even more longevity.
This week’s hidden facts of finance
- China racked up a record $676 billion trade surplus for 2021, a 60% jump from the pre-pandemic year of 2019.
- The average number of books read per year is down to 12.6, a drop from 15.2 in 2016.
- 44 years ago the Saturday Night Fever soundtrack started a 24 week run at #1 then went on to sell over 30 million copies worldwide, making it the best-selling soundtrack of all time.
- Wage inflation is real! CEO of Goldman Sachs says he needed to boost pay by 4.4 billion or 33% to remain competitive.
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Jan 26, 2022
Wednesday Jan 26, 2022
Here it is, mid-January 2022 and we’re watching the markets sell off and interest rates skyrocket. The big question on everyone’s minds: Will inflation cool off the market and the economy? As a result, will we go into a recession because the FED is becoming too aggressive, too late? This episode is going to give you our take on the state of the economy, the markets, and our recommended investment strategies in light of what’s going on.
And on our “Tipping Point” segment: We see lots of financial catastrophes in our line of work and we encourage you to ask this question, seriously: “Are you headed toward the rocks because you’re failing to plan appropriately?” We’ve got some important things for you to consider, so be sure you listen!
You will want to hear this episode if you are interested in...
- What a difference a year makes… the market is going down daily [1:22]
- The traditional hedge for inflation that truly works (it’s not Bitcoin) [5:09]
- The Tipping Point: Oversights that cause financial catastrophe [10:30]
- Hidden Facts of Finance [21:22]
The big correction never comes when people think it will
None of what’s happening this year in terms of inflation and economic strength is much of a surprise. Growth is still going to be solid, unemployment is going down and wages are going up, so the overall economy looks pretty good. But the market hates uncertainty. The FED is letting everyone else leak information about what the FED is going to do, and not saying anything themselves. As a result, the market isn’t responding well. Bob’s advice is that you shouldn’t trust the FED to do what’s in your interest. You can learn a lot from history. For example, old-school stocks and commodities are great options. Learn how to understand what’s really going on behind the scenes (listening to this podcast will help) and what history tells us, resist the urge to panic and cause yourself more trouble, and stick to the fundamentals.
This week on the tipping point: How Financial Catastrophe Occurs
Much of the time financial catastrophe during retirement happens because of things that are overlooked by those trying to plan for their financial future. What sort of things are overlooked?
INFLATION PLANNING: After doing thousands of financial plans for clients, with the average age of those clients being between 40 and 60 years old, so we have a couple of decades of inflation to figure in. At its long-term average, expenses double every 20 years. We see this missed quite often.
ASSUMING EXPENSES WILL GO DOWN IN RETIREMENT: Many of our clients are not worried about the impact of inflation because they assume their living expenses will go down during retirement, Worse, they assume they will be able to cut back on what they spend. But most people don’t and healthcare costs can often cause expenses to stay the same or even go up. This is a big oversight.
TAX PLANNING MISTAKES: The worst kind of “gifting” that you can do is when you gift Uncle Sam more than he’s owed through ignoring your tax situation. Every tax deferred investment you have (IRAs, 401k, etc.) is going to have a “Required Minimum Distribution” during your retirement years. If you don’t plan for that certainty, the income you receive from those RMDs could become a Weapon of Mass Destruction in your financial future because of how it impacts your tax liability through increased income.
RETIRING TOO EARLY: Many retirees are forced to go back to work after they retire because they’ve underestimated the cost of living during retirement. But with a financial plan that includes wealth projections, you can plan for potential shortfalls. Many Advisors out there are winging it, not giving their clients the tools they need to accurately plan for their future. It’s terrible to get to 75 years old and have to go job-hunting.
We have other tips to share with you on this episode, so be sure to listen. This could make the difference between a comfortable, appropriate retirement and one in which you struggle.
This week’s hidden facts of finance
- A otherworldly jewel will be auctioned next month ($6.8m compared)
- TikTok influencers are making bank. Compared to CEOs, it’s unbelievable
- The global value of equities is $121 trillion
- Touring artists are making incredible revenue
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
TODAY’S GUEST: CFP Aaron Dessin — follow Aaron on LinkedIn
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Jan 19, 2022
Wednesday Jan 19, 2022
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
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Jan 12, 2022
Wednesday Jan 12, 2022
As the new year comes in, the economy is FULL of economic news you need to know. The Federal Reserve is more hawkish than ever with some unprecedented moves, tech stocks are being hit hard, interest rates are soaring, and oil prices are rising — all things that we predicted were going to happen to a large degree.
How can you start the year off right with your financial plan? On this episode we’re going to tell you, including how to dig into your portfolio and assess how your biggest financial assets are likely being underutilized.
You will want to hear this episode if you are interested in...
- There’s been a lot of volatility in the markets as the year’s begun [1:20]
- The Tipping Point: The right decisions for your biggest assets [10:35]
- Hidden Facts of Finance [19:35]
As 2022 dawns our predictions are coming true
What we expected has come to pass here at the beginning of the year: The FED is playing catch up. It’s been announced that the Federal Reserve will continue to taper off its bond purchases. It’s also been announced that interest rates will be going up. One last thing, the FED will begin taking money from the balance sheet to sell bonds. We saw all of this coming and told you about it in previous episodes. What we didn’t see is that the FED is doing all of this at the same time. The job market is a mess as well. Many people don’t want to get back to work after the pandemic because they are still living on the government handouts that were implemented. Others who are in the job market are demanding incredibly high wages. The bottom line is that dynamics we’ve seen this past year are changing going into the new year.
This week on the tipping point: What assets are you taking for granted?
As you look at your portfolio here at the beginning of the year, you should consider your biggest assets in terms of whether you’re using them most effectively. One example is your 401(k) — it’s typically one of the largest assets in an investor’s portfolio and is not managed effectively. On top of that, 401(k)s can be cumbersome to manage, don’t provide all the tools or stock choices you need, and can also be designed with blatant conflicts of interest in them as companies use them to promote their own stock. You must be very strategic with your 401(k).
You should also consider whether your home (real estate) is doing everything it could for you, especially if you have two homes. Is it time to downsize or refinance that high-interest mortgage? It’s a seller’s market, so this could be the time. As well, look into the expenses required to maintain your home (or 2nd home). Could that money be put into better investments that can increase your cash flow or income?
Don’t miss this episode! We cover a lot of items you don’t want to be in the dark about.
This week’s hidden facts of finance
- Florida’s population has mushroomed
- NFTs (Non Fungible Tokens) have become a head-scratching asset class
- Traditional carbon-based energy use is already at 2019 levels for the year
- The S&P has no “in-between”
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Dec 29, 2021
Wednesday Dec 29, 2021
As we wrap up the year we’re seeing lot’s of interesting stuff… The FED Chairman is talking like a Dove but beginning to act like a Hawk. Is that a Dawk? Just watch, you’ll see that term springing up in common parlance and remember, you heard it here first! Inflation is running hot but it’s not going to stay that way. We’ll tell you why on this episode.
AND.. on this episode’s “Tipping Point” you’ll hear Bob and Chris explain which of my suggested “Financial Stocking Stuffers” go to those who are on the “naughty” list, and which go to those on the “nice” list.
You will want to hear this episode if you are interested in...
- CPI and PPI both well above the estimates [1:22]
- Trends can turn quickly and badly [6:47]
- The Tipping Point: Year End Stocking Stuffers [8:09]]
- Hidden Facts of Finance [18:54]
Inflation is high but is destined to drop
This past year we’ve had lots of issues in the market but none as big as the supply chain. It’s been a mess all the way around. Some of it has to do with the semiconductor shortage, there’s also the labor shortage sparked by the government tax credits, etc. Those are driving inflation higher, but we have to remember… As time goes on, many of those problems will be fixed. One example: Intel is building TWO semiconductor plants in Alabama over the next year. They are not going to be caught dependent on foreign manufacturing again. We’ve also got a big problem in the labor market. There are more jobs than can be filled (greatest gap ever) and many who are employed are switching jobs to get a better wage. But in time, all of this will settle down and we are going to see how those with truly diversified portfolios are going to weather all the weirdness just fine.
This week on the tipping point: Year-End Financial Stocking Stuffers
Gifts for those on the “nice” list
Fiduciary: Anytime a financial advisor is legally bound to work in your best interest as their client, it’s a winner. They won’t steer you wrong.
Long term care insurance: The cost of medical care becomes higher as you age. Long term care insurance isn’t a bad idea, if you watch your premiums and run the numbers to ensure you’re still getting the best deal. Premiums can increase astronomically the longer you hold them. You must run the math to ensure it’s to your benefit.
Gifts for those on the “naughty” list
An annuity: Any so-called investment that comes from an insurance company is not to be trusted. Most of the time the fees are too high and what you receive is not comparable to what you pay.
S&P 500: The S&P 500 is not what it used to be. Seven companies make up 25% of the index, which means you’re not getting true diversification if all you invest in is the S&P 500. And it’s a lot riskier than you think because you’re not getting full exposure to all 500 of the stocks.
High Yield Bonds: The main selling point is that these bonds pay a great rate of interest but because they are so risky, you may not get your money back. Think about it: companies that have to borrow at a high rate are unable to get financing at lower interest rates. That means they are risky.
Whole Life Insurance: Typically Whole Life works in reverse of what you really need. Don’t be fooled by the two-benefits-for-the-price-of-one sales pitch.
This week’s hidden facts of finance
- 26% of U.S. investors have Crypto holdings
- 48 top execs have collected more than $200M each from stock sales
- 45 years ago this month, “Hotel California” was released (7th biggest selling album)
- Apple: 44 years to reach $1T <> 2 years later, $2T <> 15 months later, zeroing in on $3T
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
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Wednesday Dec 15, 2021
Wednesday Dec 15, 2021
Is it possible we’re heading into the proverbial “Santa Claus” rally here at the end of the year? It’s crazy to consider given that we just experienced one of the biggest sell-offs in market history just last weekend. In this episode you’ll get all three of us weighing in on what’s going on as well as our thoughts about how Wall Street loves to gouge investors with fees of all kinds. We’ll educate you about how you can avoid as many of them as possible, so stick around and listen to this episode.
You will want to hear this episode if you are interested in...
- The markets are rebounding but the fundamentals remain the same [1:02]
- Unemployment is dropping, wages are going up, earnings are going up [3:53]
- What do most of us really care about when it comes to the market? [6:10]
- The Santa Claus rally is a real thing, let’s take advantage of it [8:03]
- The Tipping Point: Financial Services companies advise what benefits THEM [9:10]
- Hidden Facts of Finance [16:48]
With last week’s drop, should you be hesitant about the current rebound?
Lots of investors were shocked at the market drop last week and did what investors should never do… they moved their investments based on fear. But the reality is that your best bet is to BUY in times like that. You want to buy when prices are LOW and count on the rebound, which is what we’re seeing right now. We predict the rebound is going to continue, the so-called “Santa Claus” rally and beyond.
This week on the tipping point: Financial companies advise what benefits THEM
The Financial Services industry is not a non-profit. Everyone working in the industry is being compensated (and should be), but you want to make sure that the people working with you are actually working FOR you. Are they recommending what will make them money, or what will make YOU money? There are many internal costs that never show up on your financial report or statement. It’s hard to weed them out of everything else to know what you’re really paying. You want to make sure your financial advisor is a fiduciary — a person who is obligated to work in your best interest, not theirs. And also, watch out for the annuities pitch and the structured product or structured note. You’ll be missing a lot of data you need in that pitch, so listen to get the insight you need to make the best decisions.
This week’s hidden facts of finance
- Construction starts on new single-family housing will top $1M this year (and it’s not a bubble)
- The rally in industrial commodity prices is fizzling out (reflective of where inflation is going)
- COVID vaccination rates are higher in Brazil, the U.S. is in the middle of the pack
- The attack on Pearl Harbor instigated the Military-Industrial Complex
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify