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

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

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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

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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

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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

Read more

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

Generating Income with Frankie Lagrotteria, Ep #73

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

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

Read more

Financial Planning Olympics, Ep #72

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


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

Read more

Wisdom from Ben Franklin, Ep #71

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


Subscribe to Payne Points of Wealth
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The Truth Will Set You Financially Free, Ep #70

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


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

Read more
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