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

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

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What Do We Really Mean When We Say We Don’t Want to Retire?, Ep #69

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


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

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Is Your Financial Future Headed Toward the Rocks, Ep #68

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

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

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Simple, Underrated Philosophies You Can Use, Ep #67

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


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

Read more

How to Start 2022 RIGHT With Your Financial Plan, Ep #66

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


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

Read more

Why inflation won’t be sustained, Ep #65

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

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

Read more

Markets Rebound Hard and Wall Street’s Hidden Fees, Ep #64

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

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

Read more

The Worst Sell-Off Ever, What To Do Now?, Ep #63

Wednesday Dec 08, 2021

Wednesday Dec 08, 2021

 

Wow! Black Friday 2021 saw the worst stock sell-off ever! It came after the announcement of a new COVID variant that is supposedly sweeping the globe. But here are the facts most people don’t know about the stock market on Black Friday. It’s only open half of the day and computers are running the show based on algorithms. That means what you SEE happening in the market on that day isn’t a clear indication of what’s really happening. Everybody who knows what’s going on is out shopping and dealing with their turkey hangovers instead of working. We’ve got an assessment of the situation and some clear steps for you to take at year-end to move your wealth plan forward. It’s all on this episode.

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

  • What are we to think of the biggest sell-off ever, this past Black Friday? [0:58]
  • Coronavirus announcements have had an impact, but not in a lasting way [4:44]
  • Why it’s crazy to bet against economic growth right now [6:11]
  • The Tipping Point: The pro moves you can use at year-end [9:12]
  • Hidden Facts of Finance [17:44]

The Black Friday sell-off was going to happen, with or without a new variant

We’re all hearing that the announcement of the new COVID variant is what caused the sell-off on Black Friday, and sure, it has some influence on what happened. But in reality, here’s what history teaches us. Earnings seasons push a bull market forward and we were due for a pull-back anyway. When people are bullish the market tends to sell-off. But something else happens when people are bullish: the market goes up. The dynamics of our current economic situation haven’t changed, Our PMI numbers are good, consumer spending is good, and the economy appears to be going just as strong as it was before Black Friday. Betting against the market in a situation like this is not a good idea. People are going to figure out a way to thrive even when bad news comes.

This week on the tipping point: End of the year wealth factors

As the end of the year approaches there are a handful of things savvy investors do to save their hard-earned cash. 

  1. Harvest tax losses. Take profits if you are over-weighted in growth stocks. You can bank your losses against gains to save in capital gains taxes. Rebalancing your portfolio is important to do when the wind is at your back.
  2. Roth conversions are powerful for creating tax-free income. With 10 years of tax-free growth, you’ll break even on your money and everything that you earn on top of that goes into your pocket tax-free. Retirement accounts are a ticking time bomb. You have to pay taxes at age 72. If there’s a lot of money in those retirement accounts, that’s a lot of taxes. If you are in a low tax bracket now, pay the tax now on some of those retirement funds and put that money into a Roth to avoid higher taxes later.
  3. Take distributions from your retirement plan and give to the charities you care about directly from your IRA (up to $100,000). If you have appreciated stock, you can donate that to charity as well.
  4. If you are in a high-deductible health plan, look into health savings accounts. You can get triple tax-free benefits moving forward.

This week’s hidden facts of finance

  • Dec 2nd: the 20th anniversary of the Enron bankruptcy (the largest in history at the time)
  • Only half of Americans have the funds to retire at 70 and maintain living standards
  • Pfizer, Inc. was founded 172 years ago (a good example why you want to diversify)
  • The world’s youngest billionaire lives in Germany

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

High Earnings, Bond Rates Rising, & Inflation, Ep #62

Wednesday Dec 01, 2021

Wednesday Dec 01, 2021

To quote Led Zeppelin,”The Song Remains the Same!” This great earnings season we’ve been experiencing continues, with companies experiencing their best performance in 7 years. In addition,the status quo is likely going to continue as we see Jerome Powell renominated as the Federal Reserve Chairman. That means interest rates are likely to increase next year. And that will have an opposite impact on the bond markets. 

Going into the last month of the year, what does all this mean for your investments? We’ll break it down on this episode.

And in this episode’s “Tipping Point” segment… you’ve been saving your money diligently, but what are you doing with it? We’re going to outline the things you might be doing wrong when it comes to your savings, so be sure to listen! 

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

  • Jerome Powell is renominated: a hawk or a dove… or maybe a turkey? [1:16]
  • When the supply chain is repaired, inflation is going to go down [4:01]
  • Is gold really an inflation hedge? No, but there are other great options like oil [7:55]
  • The Tipping Point: Mistakes investors are making with their savings [11:59]
  • Hidden Facts of Finance [18:06]

Inflation is increasing while yields are low… how does that work?

The biggest math we’re seeing right now has to do with inflation. Inflation is running at 6% and yields are running at 1.7%. That can’t remain as it is. Interest rates are going to have to move higher, so we suspect there will be an increase in rates… so be careful with your bond portfolio because bond rates go down when interest rates go up. Historically, bond rates go up to keep pace with inflation but it’s trailing, so you need to be careful. In fact, Bob says the most important thing in your life as an investor is, “Don’t own a bond fund!” But that’s not the whole story… we’ve got more to say, so listen to get the full story. 

This week on the tipping point: Mistakes you’re making with your savings

Most of our clients and the people we talk to are diligent about saving, but are they doing the right things WITH that hard-earned money they’re stashing away? Not always. Here are the three biggest mistakes we see…

  1. Many savings plans include far too much cash. It’s a big problem because of inflation.
  2. Speculative investments are incredibly risky. Always have been, and always will be.
  3. Most people are not taking advantage of the tax benefits available to them.

This week’s hidden facts of finance

  • The National Retail Federation estimates a 9.5% increase in spending this Nov./Dec.
  • Gold is only a reputation hedge reputationally, not statistically.
  • Stocks deliver regardless of whether inflation is high or low (the real inflation hedge).
  • Chinese personal wealth is leaping 77-fold to $120 Trillion.

Resources & People Mentioned

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

Connect With Ryan, Bob, and Chris


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The Only Hedge Against Inflation, Ep #61

Wednesday Nov 24, 2021

Wednesday Nov 24, 2021

Inflation is hitting 40 year highs and investors are aggressively jumping into the market to make up for what they’re losing. But is that the best approach? Other investors are keeping their powder dry by holding cash… but history has proven that holding cash is a losing proposition from the start. How can you hedge against inflation effectively? This episode is focused on answering that question, and not based on opinion, but on facts that have come to light through the course of history. Find out what your only real hedge against inflation is, on this episode.

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

  • High inflation after a 40 year bull market… is this the new normal? [1:13]
  • Why stocks, equities, and dividends are the only hedge against inflation [4:26]
  • Diversification is the only way to succeed in long-term investing [8:19]
  • The Tipping Point: Proactively protecting yourself against bubbles popping [10:10]
  • Hidden Facts of Finance [19:29]

Inflation like we’ve not seen for 40 years, and bullish investors respond

After a season of all-time market highs we’re seeing inflation spike due to a number of factors. The response from investors is that everybody seems to be getting into the market, but is that wise? As Warren Buffet has been known to say, “Be fearful when others are greedy and be greedy when others are fearful.” It could be time for investors to heed his advice. What is a good inflation hedge? Stocks, equities, and dividends, with statistics as proof that it’s the right approach. Listen to hear the facts. 

This week on the tipping point: Proactively protect yourself against market bubbles

There’s only one thing in the stock market that doesn’t change: investor behavior. It’s always the case that people think they can correctly guess when stocks are going to continue to rise and when they are going to fall. That’s one of the main reasons why people become indignant any time you suggest that their favorite investment is a bubble. The insist they will get out before it crashes, but as far as we can tell, there’s still no reliable way to know when that is going to be. Everyone is afraid of missing out, so they ride those bubbles much longer than they should, fail to diversify and invest wisely, and lose a ton when the bubble pops. Boring investments are the way to go, because over time your portfolio will consistently grow when you keep your portfolio in solid, proven stocks.

This week’s hidden facts of finance

Rivian is one of the bright so-called stars in the electric vehicle industry and its market cap is an unbelievable $140 billion. It makes no sense.

Futures and options are proven ways to get burned for most investors.

The dollar compared to the S&P 500: the dollar has no leg to stand on.

Going to the mall is a thing again.

Listen to hear all the details on these topics. 

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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