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 Jan 19, 2022
Wednesday Jan 19, 2022
What's up! It's episode 67 of Payne Points of Wealth, and the FED is going to release its triple threat as they taper their bond-buying. As they're going to start to unload their balance sheet and raise interest rates, maybe four times this year, it looks like the world has changed. What do you do now? We’ve got the market going up. We’ve got strategists telling you that we're going to get a big correction in the stock market. Are you going to get it? We'll unravel it for you, tell you exactly what we think about this year, and what you should do with your portfolio. On the Tipping Point today, we're going to give you some of our more common sense, practical philosophies that you need to be applying to your financial plan right now.
You will want to hear this episode if you are interested in...
- Resigning to the fact that things are going to cost more [1:53]
- Dividend yields [5:58]
- The Tipping Point [9:32]
- Are you set up to weather the storm? [12:34]
- Hidden Facts of Finance [16:56]
What year are we in?
Inflation is the highest it has been in 40 years, oil is through the roof, we have a Jimmy Carter-like president in the White House, it’s like we’re in 1982! Here's the thing you have to remember, back in 1982 when we had this high inflation rate, inflation started to go up and we had the beginning of the greatest bull market in history, the S&P and the Dow. Let's say the Dow was at 800 it's now closing in on 36,000. Just keep that in mind, things looked really dire in 1982 and if you sat on the sidelines, you missed out on one heck of a move!
This week on the tipping point: Underrated, simple philosophies you can use
At our firm, Payne Capital Management, we have a mantra we have used for years: simplicity over complexity. We know we're in an industry that loves to sell products that are complicated, financial strategies that are high in fees that no one even understands that don't even end up working out that well.
The number one rule we have with every portfolio, whether it's a 401k, IRA, joint account, you name it, we want every single investment in that portfolio to be liquid. So liquid that you can call any day and we can have all of your money in your checking account the next day.
Knowing what you own is as important as being able to access it! You have to put your portfolio into the stress test. It's not about when things are good. What you always have to think about is when things go bad, and they will, is am I set up to weather the storm. When the getting is good it’s hard to see those pitfalls. Check out the episode for more simple underrated philosophies you can use with your wealth plan.
This week’s hidden facts of finance
- The US suffered three periods of hyperinflation in the 20th century. One following each world war and then the great inflation in the 1970s.
- Evercore ISA calculates that the US M2 money supply has increased by an astounding 41% over the last two years.
- Warner Music just bought David Bowie's songbook for a reported $250 million.
- S&P 500's top 10 holdings represent nearly 1/3 of the index's return last year, even though the fund has 508 holdings.
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Jan 12, 2022
Wednesday Jan 12, 2022
As the new year comes in, the economy is FULL of economic news you need to know. The Federal Reserve is more hawkish than ever with some unprecedented moves, tech stocks are being hit hard, interest rates are soaring, and oil prices are rising — all things that we predicted were going to happen to a large degree.
How can you start the year off right with your financial plan? On this episode we’re going to tell you, including how to dig into your portfolio and assess how your biggest financial assets are likely being underutilized.
You will want to hear this episode if you are interested in...
- There’s been a lot of volatility in the markets as the year’s begun [1:20]
- The Tipping Point: The right decisions for your biggest assets [10:35]
- Hidden Facts of Finance [19:35]
As 2022 dawns our predictions are coming true
What we expected has come to pass here at the beginning of the year: The FED is playing catch up. It’s been announced that the Federal Reserve will continue to taper off its bond purchases. It’s also been announced that interest rates will be going up. One last thing, the FED will begin taking money from the balance sheet to sell bonds. We saw all of this coming and told you about it in previous episodes. What we didn’t see is that the FED is doing all of this at the same time. The job market is a mess as well. Many people don’t want to get back to work after the pandemic because they are still living on the government handouts that were implemented. Others who are in the job market are demanding incredibly high wages. The bottom line is that dynamics we’ve seen this past year are changing going into the new year.
This week on the tipping point: What assets are you taking for granted?
As you look at your portfolio here at the beginning of the year, you should consider your biggest assets in terms of whether you’re using them most effectively. One example is your 401(k) — it’s typically one of the largest assets in an investor’s portfolio and is not managed effectively. On top of that, 401(k)s can be cumbersome to manage, don’t provide all the tools or stock choices you need, and can also be designed with blatant conflicts of interest in them as companies use them to promote their own stock. You must be very strategic with your 401(k).
You should also consider whether your home (real estate) is doing everything it could for you, especially if you have two homes. Is it time to downsize or refinance that high-interest mortgage? It’s a seller’s market, so this could be the time. As well, look into the expenses required to maintain your home (or 2nd home). Could that money be put into better investments that can increase your cash flow or income?
Don’t miss this episode! We cover a lot of items you don’t want to be in the dark about.
This week’s hidden facts of finance
- Florida’s population has mushroomed
- NFTs (Non Fungible Tokens) have become a head-scratching asset class
- Traditional carbon-based energy use is already at 2019 levels for the year
- The S&P has no “in-between”
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Dec 29, 2021
Wednesday Dec 29, 2021
As we wrap up the year we’re seeing lot’s of interesting stuff… The FED Chairman is talking like a Dove but beginning to act like a Hawk. Is that a Dawk? Just watch, you’ll see that term springing up in common parlance and remember, you heard it here first! Inflation is running hot but it’s not going to stay that way. We’ll tell you why on this episode.
AND.. on this episode’s “Tipping Point” you’ll hear Bob and Chris explain which of my suggested “Financial Stocking Stuffers” go to those who are on the “naughty” list, and which go to those on the “nice” list.
You will want to hear this episode if you are interested in...
- CPI and PPI both well above the estimates [1:22]
- Trends can turn quickly and badly [6:47]
- The Tipping Point: Year End Stocking Stuffers [8:09]]
- Hidden Facts of Finance [18:54]
Inflation is high but is destined to drop
This past year we’ve had lots of issues in the market but none as big as the supply chain. It’s been a mess all the way around. Some of it has to do with the semiconductor shortage, there’s also the labor shortage sparked by the government tax credits, etc. Those are driving inflation higher, but we have to remember… As time goes on, many of those problems will be fixed. One example: Intel is building TWO semiconductor plants in Alabama over the next year. They are not going to be caught dependent on foreign manufacturing again. We’ve also got a big problem in the labor market. There are more jobs than can be filled (greatest gap ever) and many who are employed are switching jobs to get a better wage. But in time, all of this will settle down and we are going to see how those with truly diversified portfolios are going to weather all the weirdness just fine.
This week on the tipping point: Year-End Financial Stocking Stuffers
Gifts for those on the “nice” list
Fiduciary: Anytime a financial advisor is legally bound to work in your best interest as their client, it’s a winner. They won’t steer you wrong.
Long term care insurance: The cost of medical care becomes higher as you age. Long term care insurance isn’t a bad idea, if you watch your premiums and run the numbers to ensure you’re still getting the best deal. Premiums can increase astronomically the longer you hold them. You must run the math to ensure it’s to your benefit.
Gifts for those on the “naughty” list
An annuity: Any so-called investment that comes from an insurance company is not to be trusted. Most of the time the fees are too high and what you receive is not comparable to what you pay.
S&P 500: The S&P 500 is not what it used to be. Seven companies make up 25% of the index, which means you’re not getting true diversification if all you invest in is the S&P 500. And it’s a lot riskier than you think because you’re not getting full exposure to all 500 of the stocks.
High Yield Bonds: The main selling point is that these bonds pay a great rate of interest but because they are so risky, you may not get your money back. Think about it: companies that have to borrow at a high rate are unable to get financing at lower interest rates. That means they are risky.
Whole Life Insurance: Typically Whole Life works in reverse of what you really need. Don’t be fooled by the two-benefits-for-the-price-of-one sales pitch.
This week’s hidden facts of finance
- 26% of U.S. investors have Crypto holdings
- 48 top execs have collected more than $200M each from stock sales
- 45 years ago this month, “Hotel California” was released (7th biggest selling album)
- Apple: 44 years to reach $1T <> 2 years later, $2T <> 15 months later, zeroing in on $3T
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Dec 15, 2021
Wednesday Dec 15, 2021
Is it possible we’re heading into the proverbial “Santa Claus” rally here at the end of the year? It’s crazy to consider given that we just experienced one of the biggest sell-offs in market history just last weekend. In this episode you’ll get all three of us weighing in on what’s going on as well as our thoughts about how Wall Street loves to gouge investors with fees of all kinds. We’ll educate you about how you can avoid as many of them as possible, so stick around and listen to this episode.
You will want to hear this episode if you are interested in...
- The markets are rebounding but the fundamentals remain the same [1:02]
- Unemployment is dropping, wages are going up, earnings are going up [3:53]
- What do most of us really care about when it comes to the market? [6:10]
- The Santa Claus rally is a real thing, let’s take advantage of it [8:03]
- The Tipping Point: Financial Services companies advise what benefits THEM [9:10]
- Hidden Facts of Finance [16:48]
With last week’s drop, should you be hesitant about the current rebound?
Lots of investors were shocked at the market drop last week and did what investors should never do… they moved their investments based on fear. But the reality is that your best bet is to BUY in times like that. You want to buy when prices are LOW and count on the rebound, which is what we’re seeing right now. We predict the rebound is going to continue, the so-called “Santa Claus” rally and beyond.
This week on the tipping point: Financial companies advise what benefits THEM
The Financial Services industry is not a non-profit. Everyone working in the industry is being compensated (and should be), but you want to make sure that the people working with you are actually working FOR you. Are they recommending what will make them money, or what will make YOU money? There are many internal costs that never show up on your financial report or statement. It’s hard to weed them out of everything else to know what you’re really paying. You want to make sure your financial advisor is a fiduciary — a person who is obligated to work in your best interest, not theirs. And also, watch out for the annuities pitch and the structured product or structured note. You’ll be missing a lot of data you need in that pitch, so listen to get the insight you need to make the best decisions.
This week’s hidden facts of finance
- Construction starts on new single-family housing will top $1M this year (and it’s not a bubble)
- The rally in industrial commodity prices is fizzling out (reflective of where inflation is going)
- COVID vaccination rates are higher in Brazil, the U.S. is in the middle of the pack
- The attack on Pearl Harbor instigated the Military-Industrial Complex
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
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.
- 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.
- 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.
- 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.
- 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
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Wednesday Dec 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…
- Many savings plans include far too much cash. It’s a big problem because of inflation.
- Speculative investments are incredibly risky. Always have been, and always will be.
- 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
- 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 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
- 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 Nov 17, 2021
Wednesday Nov 17, 2021
What's up! It's episode 60 of Payne Points of Wealth! Hard to believe we're 60 episodes in! We've got late nineties stock market fever. Literally, everything is going up right now. We've got a huge melt-up. It's starting to look a lot like the late nineties when those internet stocks were just rocking. We're going to tell you why we think this is a lot like the late nineties. We'll hit on what you have to be careful about because there are bubbles forming, what you need to avoid in your portfolio and inflation. On the tipping point today, we're going to talk about financial sabotage. What are you doing right now that's sabotaging your path to financial independence.
You will want to hear this episode if you are interested in...
- Never seen a market like this [1:43]
- As good as it gets [5:25]
- The Tipping Point [9:50]
- Don’t allow your risk tolerance to fluctuate with how well your portfolio performs [12:11]
- Greed takes over fear [15:15]
- Hidden Facts of Finance [19:29]
Could it get any better for the economy?
Profits are extremely strong right now. Look at the third-quarter earnings, it's just been through the roof. Next quarter’s earnings are going to be good again too. We've got a hiring frenzy going on. Unemployment's coming down precipitously. We have all these people that have come off unemployment benefits getting back in the workforce and wages are going up. What's better than that. You're getting a raise at work, you have more money to spend and the fed isn't raising rates anytime soon, they're going to keep the party going. This is probably as good as it gets when it comes to the outlook for the economy.
This week on the tipping point: Financial sabotage
One thing that we've found managing all the accounts that we manage is a lot of times people put themselves in a position of financial sabotage. They make decisions that hurt them on their path to financial independence. So in this episode, we talk about some of the things that we find that people do that you need to avoid so you don't sabotage your financial life.
Don’t stalk your portfolio. Investing is hard, it's counterintuitive, when there's good news sometimes the market sells off. If there's bad news, the market goes up. It doesn't seem to make sense. If you're watching every day, checking your portfolio balance every day, it's a recipe for disaster. I can't tell you how many short-term focus investors have failed in the long run because they couldn't handle the pressure.
Don’t allow your risk tolerance to fluctuate with how well your portfolio performs. The whole idea of diversification is that you're going to have something that's not working. If everything's working at the same time, then everything will also be NOT working at the same time.
This week’s hidden facts of finance
Cryptocurrency, an asset class (if we want to call it that) younger than the iPhone is closing in on $3 trillion in market cap. That’s equal to about a quarter of the world's mined gold or the entire money supply of the United Kingdom. That's insane.
The resulting labor crunch has boosted wages and emboldened workers to fight for a better deal. Work stoppages in 2021 have already surpassed last year's 10 and it may be the start of a trend reversal. Work stoppages numbered 145 in 1981 dropping to 5 in 2009, it looks like unions could be back.
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 Nov 10, 2021
Wednesday Nov 10, 2021
What's up? It's episode 59 of Payne Points of Wealth and supply chains around the world are easing up. COVID cases globally are going down and profits are at an all-time record high as stock markets around the world are hitting all-time record highs. The question is, is it all going to fall off a cliff? Is this all too good to be true or is the economy going to continue chugging along? We'll look at some long-term tailwinds that could keep this economy moving into the roaring twenties along with your financial independence plan. We're also going to talk about those specific variables that you need to address in your financial life to make sure you're financially sound. You don't want to miss it.
You will want to hear this episode if you are interested in...
- A rockin’ market! [1:11]
- Everybody is doing well [3:36]
- Tailwinds for the economy [6:43]
- Don’t confuse brains in a bull market [9:03]
- The Tipping Point [11:07]
- Having a tax-efficient portfolio [13:21]
- How long do you expect to live? [16:11]
- How lucky do you feel? [18:19]
- Hidden Facts of Finance [21:23]
Economic tailwinds
There’s all this talk about how we're going to have a big burst of spending coming out of the pandemic and then it's just going to cool off again. Well, millennials are 25% of the population and are essentially going into their peak spending and earning years. Historically, the ages 45-55 tend to be when you spend the most money. You have household formation, kids, and more big-ticket items that you're buying. With the largest cohort of any population in America going right into that, it’s like the baby boomers back in the 80s', it’s going to lead to a lot of spending. Then you have this huge infrastructure bill coming down the line and when that passes that will be even more spending. Top all that off with the massive amount of inventories businesses are trying to build back up...doesn’t sound like a slowdown is anywhere in the near future.
This week on the tipping point: Customizable variables
When it comes to building financial plans for the families we manage here at PCM everyone's situation is a little bit different. So in this episode, we discussed some of the variables you need to customize for your unique plan.
When it comes to financial planning and your portfolio, sometimes we become more enamored with the value of the portfolio. Especially with our 360 portal where you can see how much you're worth. It's kind of fun as the market goes up to check and see how you did each day, week, or month—but it's not just about appreciation—you've got to have the income.
How much does your principal generate in income after taxes and inflation? It's so important to sit down with your advisor every year and look at what's important to you. What are your variables? What do you want to accomplish this year? Do you want to take a big trip? Do you want to give money to your grandchildren's education plans? Backing into those numbers is the most important thing to figure out how much income you're gonna need. Listen to the episode to find out which variables you should address.
This week’s hidden facts of finance
In the most recent quarter, Spain added 5.6 percentage points to its headline growth. French household spending jumped a whopping 21.5% annualized contributing to 10.5 percentage points to their growth rate. In fact, third-quarter growth results for the entire Eurozone outpaced the good old USA, well maybe not outpace as much as they're finally catching up because they're now playing out of the same playbook. They realize they've got to open their economies. It's not the end of the world. Spain, France, England, Germany, are all full of ordinary people, just like our country, and they want to get out and spend again. They want to live life! Europe is booming. The global economy is booming. We're seeing stocks go up all over the world so make sure you don't have all your money just in the S&P 500 because there are plenty of opportunities outside the US. Go global!
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 Nov 03, 2021
Wednesday Nov 03, 2021
What's up it's episode 58 pain points of wealth and profits this earnings season are phenomenal! Companies are beating estimates by a landslide. It doesn't matter that supply chain issues or labor costs are going up. It's all inflationary. But guess what? These companies just keep raising prices on you and me, which is making their profits go through the roof. So what does this mean between now and the end of the year? As the market continues to go higher are we going to finally get that correction in stocks that big sell-off that Wall Street has been telling us about? We're going to give you our vantage point, exactly what you should be doing strategically between now and the end of the year. On the tipping point today we're going to drop some wisdom on you. When it comes to your financial independence plan, we're going to give you some insights that you can apply to your portfolio, your financial plan, to get you on track, to be financially independent.
You will want to hear this episode if you are interested in...
- When’s the big drop coming? [1:24]
- Pipeline conspiracies? [3:41]
- The faults in being priced to perfection [6:49]
- The Tipping Point [10:39]
- Crisis is opportunity riding on a dangerous wind [11:15]
- A feather in the hand is better than a bird in the air [13:05]
- Accept something you cannot change and you'll feel better [14:43]
- A foolish man listens to his heart [16:33]
- Don't let statistics do a number on you [17:26]
- Hidden Facts of Finance [20:14]
Pipeline conspiracies?
It's amazing how the world changes, all of a sudden, how do we not have enough oil supply? The world's been awash in oil then all of a sudden it’s not?. I love a good conspiracy, and a lot of people are saying, or the “experts” are saying that the Biden administration is limiting production. I have a different theory on this. Perhaps there's just worldwide collusion going on. All the big energy companies are saying "You know what? We make a lot more money when oil is over $80 a barrel. Let’s just chill out on the production side of things. We will slow down on producing oil right now because when the price is at $30, that's terrible for profits." So I suspect there is big manipulation going on and I think it's all of these global oil companies who are very happy to slow down the production and keep those prices up!
This week on the tipping point: Financial Fortune Cookies
When you go to the Chinese restaurant nothing's better than getting that fortune cookie at the end and reading the wisdom within. Let’s open up your fortune cookie and apply it to your financial life and goals to be financially independent because there’s nothing funnier than getting a fortune cookie to help you run your portfolio!
Crisis is opportunity riding on a dangerous wind. Sounds great but it reminds me of what Warren Buffet says, it is wise for investors to be fearful when others are greedy, and greedy when others are fearful. We're emotional human beings. It's so easy to panic when prices are going down or when you have that fear of missing out and overload your portfolio on what's going up the most.
A feather in the hand is better than a bird in the air. I think the point is it's better to protect what you have than trying to reach for the stars and putting everything that you have at risk.
Accept something you cannot change and you'll feel better. I think right now is a perfect example of that. We have so much uncertainty about our taxes going up. Are they going to pass another $2 trillion in stimulus? Is the dollar going to be worthless in a couple of years? Is inflation just going to destroy our purchasing power? Is the dollar going to be so weak that we can't afford anything? The list goes on and on.
A foolish man listens to his heart. Don't use your gut feelings when it comes to investing. It's never right.
This week’s hidden facts of finance
Home prices are up a record 19.5% in the past year, according to Case Shiller data. However, home prices were removed from the official prices index, owing to political and statistical issues. If they were still included, inflation would be running at a 10% clip rivaling the early 80s'. It just goes to show you real estate is really inflated right now. Inflation is real and not transitory and if you've been listening to the Payne Points of Wealth Podcast you have known that for a year!
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