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