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

Some Like It HOT...We Prefer Profitable!, Ep #33

Wednesday Apr 14, 2021

Wednesday Apr 14, 2021

What's up! It's episode 33 of Payne Points of Wealth and the economy right now is hot. Make no mistake, we've talked about it week after week and it's happening. Unemployment is coming down way faster than expected. Consumers are buying more goods than expected and supply chains are on fire! 

Today we're going to talk about exactly what you need to be doing in your portfolio, what you need to anticipate, and what this means for the global economy? On our Tipping Point segment, we're going to talk about conflicts of interest. Believe it or not Wall Street is not working for you. We're going to dig into all the dirty little secrets on Wall Street and the financial services industry that you need to be aware of so that you can make better decisions with your finances.

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

  • Everything is higher than expected! [1:18]
  • The Market is a slave to earnings [3:59]
  • A hot tip on Bitcoin [6:11]
  • The Tipping Point [8:41]
  • The cost of protection [10:48]
  • Structured products are only beneficial for the entity that’s doing the structuring [14:18]
  • Hidden Facts of Finance [18:12]

Wall Street strategist’s estimates are driving record highs in the market

The market is a slave to companies’ earnings and companies are going to make a lot of money over the next two years. As a result, you're seeing strategists on Wall Street increasing their estimates of how high those profits or earnings are going to be. Every time they do that it ratchets up the price in the market so we're seeing new highs every week. The S&P 500 reached over $4,000 for the first time in history and we're closing in on $34,000 on the Dow.

It seems that right now the bet is not on the future of profits for these big disruptive tech companies like Spotify, Zoom, or Tesla. It's more on the companies that are profitable now, those old-school stocks like banks and oil. That's been the theme here on our show week after week. It's about profits. All about profits! When you start thinking about your portfolio and you think about being strategic you have to think about what has the most benefits and what the losers are. The losers are going to be all these companies that have no profits.

This week on the tipping point: Conflicts of interest

The financial services world is riddled with conflicts of interest. We worked for one of the largest firms on Wall Street and spent a good amount of time just protecting our clients from the firm. It’s one of the reasons we started our firm Payne Points of Wealth. Check out the episode today where we will discuss some of the situations where the financial services industry might not be working in your best interest. 

The first red flag about the financial services industry is that our government has been trying to protect the consumer for a good 20 years now bypassing what they call the fiduciary rule. That's where the advisor or investment firm has to put YOU, the consumer, the investor, the client’s interest first. But guess what guys? They've been fighting it tooth and nail, they don't want to put your interests first. They want to make as much money as they can. 

This week’s hidden facts of finance

The real net public infrastructure investment has been cut by more than half since the early 2000s. The new proposed $2.3 trillion infrastructure plan is equal to all of the revenue generated by Apple over the past 18 years combined, including that from every iPhone, iPad, and iPod ever sold! That's a lot of stimulus into the economy. Just think if the federal government had gotten into the smartphone and tablet business 18 years ago we probably wouldn't have anything to worry about, but the problem is taxes will probably go up in the future because we have to pay for this infrastructure somehow. Eventually, taxes are coming, but also the economic boom. So you get two sides of the coin there.

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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Learning a Payneful lesson, there are no new eras in investing, Ep #32

Wednesday Apr 07, 2021

Wednesday Apr 07, 2021

It's episode 32 of Payne Points of Wealth, we’ve got the news in plain sight, you've seen the headlines, and we give you the real story. The real story is mean reversion! Investors are learning a "Payneful" lesson, a trend we identified on this show months ago, and that is technology stocks are starting to sell-off. You might be wondering what’s a mean reversion? How does it work? We're going to break it down for you and explain why it's so important to understand as you're building your investment portfolio. 

On the tipping point, we're going to pinpoint the Payne points having the biggest impact on your wealth right now. Which are rules of thumb when it comes to financial planning. What rules of thumbs should you be using? Which ones should you disregard? We're going to tell you what kind of customized planning you should be doing right now, what you should be applying to your financial plan, and we've got lots of fascinating facts of finance.

 

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

  • No new eras in investing [1:24]
  • Long term investors vs bubble makers [3:51]
  • Two hard questions to ask yourself as an investor [5:31]
  • The Tipping Point [9:12]
  • The rule of 100 [9:39]
  • The rule of 75% [10:36]
  • 6 months savings rule [11:54]
  • The rule of 5 [13:36]
  • The 4% rule [15:45]
  • The Payne Capital A to B rule [16:53]
  • Hidden Facts of Finance [18:32]

Two hard questions to ask yourself as an investor

First. Are we too optimistic about some markets’ potential or an “addressable market”? Is mom going to go Venmo grandma or maybe pay with Crypto or is she still going to write a check out of her Bank of America account? Is Tesla going to be the only electric vehicle option in town? Are we being naive?

Second. Is this newfound optimism already priced in? Look at a company like DocuSign, a super hot stock right now, it trades for 153 years worth of profits. So maybe that addressable market is already priced in the stock for decades to come. We don't know, but these are big possibilities. And we don't think investors are asking themselves those hard questions.

This week on the tipping point: Rules of Thumb

In this episode, we talk about some financial “Rules of Thumb” you’ve probably heard in your lifetime. The rule of 100. The rule of 75%. The 6 months savings rule. The rule of 5. The 4% rule. In the episode we chime in on each of these, so you should definitely go listen, and these are all pretty good rules, but when it comes to investing... rules are made to be broken. 

The only rule you need to follow is the rule of A to B, and that's getting your family from your point A— where you are right now financially— to your goals...your dreams...to your point B! That's the Bob Payne rule. That's the Payne Capital Management rule. And that rule will help you to rule your life financially, forever. 

This week’s hidden facts of finance

40% of companies successful enough to become publicly traded lost effectively all of their value over time. The Forbes 400 list of the richest people in America has roughly a 20% turnover per decade for causes other than death or transferring money to another family member. It just goes to prove that the numbers show it, that investing in individual stocks is not investing, it's speculation. Investing in the market and a diversified portfolio is the only way to go. 

How lucky do you feel? Lucky enough to pick a company that not only stays in business but outperforms the index, or will you end up with a bunch of companies that go under? I don't know about you, but I don't speculate. I invest. Capitalism's messy. Anything that's incumbent today, whether it's Amazon, Facebook, or Google, is only a couple of steps away from creative destruction from some other force of the universe. So it's a great reminder that you can't stay complacent as an investor.

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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Are You Positioned For Last Year or is Your Portfolio Thinking Ahead?, Ep #31

Wednesday Mar 31, 2021

Wednesday Mar 31, 2021

It's episode 31 of Payne Points of Wealth and the great reopening is upon us! If you think it's not, all you have to do is look at Miami right now. It's spring break. There are no rules! Everything's open and people are going crazy. You can almost imagine what the rest of the world is going to look like as we slowly recover and reopen throughout the rest of the year. Again, what the three of us have been talking about week after week is that the economy's going to boom. It's going to be red hot! It's coming. 

We're going to address that on the show today. We’ll also touch on what's going on with the market and how to invest your money. We’ll bestow upon you some of our thoughts and wisdom about the markets, investing, and financial planning so that you can apply it on your own.

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

  • Party in the city where the heat is on...Welcome to Miami [1:21]
  • What does it mean when company executives sell their own stock? [5:54]
  • Value stocks are the new growth stocks [9:20]
  • The Tipping Point [11:45]
  • Mortgages - pay it off or invest instead? [12:20]
  • Individual bonds -vs- bond funds [13:53]
  • Are annuities a rip-off? [17:36]
  • Hidden Facts of Finance [21:19]

Value stocks are the new growth stocks

When you have inflation, when interest rates are going up, small does better than big, value does better than growth, and international does better than the US. Unfortunately, the majority of the portfolios we're reviewing— and we’re reviewing about 50 non-Payne Capital Management clients a month— are all positioned for last year. They're not built for what's happening right now.

The irony is growth stocks are not where the growth is going to be. Because these old-school value companies that we talk about are where the opportunity is. An example of this is a company called Bloomin' Brands, which owns a lot of restaurant chains. Just a good old-fashioned business of restaurant chains. And Americans love to go out to eat! We know that their earnings are going to go up 80% over the next year. This isn't a technology company. They're cutting costs dramatically and when you cut a lot of expenses and all of a sudden your demand comes back, profits just go crazy. That's what the market's going to start seeking out, new growth that’s operating leverage. It's not new technology and innovation, that's already happened.

This week on the tipping point: Our 2¢

Should you always pay off the mortgage as soon as you can?

It may depend on which generation you ask. With home interest rates under 4% and portfolios average 5% or better, it makes more sense to pay the note and invest any additional cash you’re thinking of dropping on additional principal payments. However, to some of you, peace of mind is more valuable.

Are individual bonds better than bond funds?

We hate bond funds so the simple answer here is YES!! Listen to the segment to hear why.

Are annuities a rip-off?

An annuity is a financial product and most of the time it is loaded with heavy fees. You're basically putting yourself in a position to NOT win because every year you have all these institutions taking money and chipping away at your investment. Sometimes they can be appropriate but proceed with extreme caution and know what the fees are.

This week’s hidden facts of finance

The S&P 500 index has risen by an average of 36% during the nine periods since 1980 when 10-year yields have also moved higher. Kind of like today. Stock prices and bond yields tend to move in tandem because higher yields tend to be a sign of a growing economy. We're predicting a 6.5% GDP yield by the end of the year, that's probably happening right now. Higher yields and inflation are actually good for stocks. You don't want to sit in cash. 

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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Questions To Ask Yourself When It Comes To Risk In Your Portfolio, Ep #30

Wednesday Mar 24, 2021

Wednesday Mar 24, 2021

What's up! It's episode 30 of Payne Points of Wealth! The economy is opening up at warp speed. We literally have had a hundred million COVID-19 vaccine doses administered as of the recording of this podcast. The economic data is looking better and better. We're seeing a huge rotation in the stock market— that we identified for you months ago. 

The world is changing. The world is shifting. The world is opening up. We're going to talk about how you need to play that in your portfolio and what you need to be thinking about with regards to the economy. We're also going to cover what risks you may have in your portfolio and what risks you don't see that you have in your portfolio. We're also going to point out all the different risks that you need to avoid as the economy reopens and the world becomes a better place.

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

  • What’s wrong with the economy [1:55]
  • The Wall Street consensus [4:03]
  • Inflation hedges [8:01]
  • The Tipping Point [9:45]
  • Are risk tolerance tests a good way to dictate risk in your portfolio? [11:33]
  • More risk, more reward? [14:39]
  • Hidden Facts of Finance [19:53]

Is the uptick in inflation temporary? 

There's this big belief on Wall Street that maybe this is just a short-term blip on the radar. Maybe, inflation’s not going to kick in. Maybe, interest rates aren't going to go higher. If that's the case, maybe you want to continue to own those tech stocks and bond funds. 

But if the economy is going to run hot the second half of the year because the entire world's going to reopen— and they are sprinkling all of this money on the economy that we're going to spend— odds are we're going to see a lot of inflation going into the end of the year. Which speaks to owning old-school stocks and stocks that pay dividends. You know... stocks that benefit the most from the reopening of the economy.

This week on the tipping point: Risk

We get great insight into the psychology of investing and financial planning— given the 2000 families that we help manage their finances— and we think one of the most important components is risk. How do you view risk? What about risk in your portfolio or when it comes to reaching your goals? Unfortunately, most risk is only seen in hindsight.

We want to talk about some of the questions that you need to be asking yourself when it comes to risk in your portfolio to make sure that you're on your path to financial independence. Believe it or not, of every portfolio ever reviewed or even looked at, 90% of the investors were taking way more risk than necessary to achieve their stated goals.

This week’s hidden facts of finance

As auto executives and investors buzz about the coming age of the electric car, many car dealers say they're struggling to square that enthusiasm with the actual reality. Last year battery-powered vehicles made up fewer than 2% of all US auto sales. When we watch the nightly news and they tell us that by 2035 everyone will be driving electric cars. Well, only 2% were sold this year. And I'll tell you who gets it is the Tesla executives. Because as people keep buying Tesla stock, the Tesla executives have been selling stock to the public while they think this is going to be the most amazing event in the next couple of years, why they selling their stock? It's a very good point. If I'm holding Tesla stock right now, I'd be concerned that the management's selling.

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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The Urgency Of Financial Planning, Ep #29

Wednesday Mar 17, 2021

Wednesday Mar 17, 2021

It's episode 29 of Payne Points of Wealth — tech is starting to dive and old-school stocks are starting to win. In the last week, we've seen the NASDAQ have a 10% correction while the Dow Jones Industrial Average— the old school index— hit an all-time record high. The economy’s reopening, old school -vs- new school, is this trend going to continue? We are also going to talk about what catalysts in your financial life are going to get you going to make sure that you're getting all your ducks in a row when it comes to all the financial things. It’s a great episode so go check it out!

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

  • Come take a ride in Bob’s way back machine [2:51]
  • Seeing risk in hindsight [6:19]
  • The real opportunity is EVERYWHERE ELSE [8:44]
  • The Tipping Point [10:21]
  • The North Star of financial planning [12:45]
  • Financial stress test [14:29]
  • Hidden Facts of Finance [18:12]

Valuations don't matter... until they do!

Amazon, Google, Apple they're all just making money hand over fist. They're the stocks of the future. Or are they the stocks of last year? Either way, we're still going to order things off of Amazon. We're still going to be buying our Apple phones, our Apple watches, and our Apple brains. So how can these massive, big tech companies that are the crème de la crème in the US all of a sudden not be hot anymore? It makes no sense. Or does it?

But valuations don't matter until they do. 

You're investing in great companies, but is it also a great stock? 

This week on the tipping point: URGENCY in financial planning

Most of us, if we're honest with ourselves, find it very easy to procrastinate when it comes to our financial planning issues. We at Payne Capital Management know this better than anybody! Dealing with people and their finances is a very tricky thing. So in this episode, we will discuss some scenarios that might light a fire under your sense of urgency. 

A lot of people think, “my goal is to make as much money as I can” but making money is NOT a goal. Why do you need to make money? What's the purpose of money? Understand what you're trying to accomplish and have your end game in mind. Do you want to have a lifetime of income that you cannot outlive? Do you want to have a big ol’ pile of go-to-hell money so that you don't have to work for the rest of your life? Are you taking more risks than necessary to achieve those goals? Are you taking enough? Check out the episode and we will help answer some of these questions!

This week’s hidden facts of finance

Despite the pandemic, the total number of billionaires around the world rose by 412 to a record of 3,228 billionaires. Overall, China added 259 billionaires to this list, more than the rest of the world combined. The richest 100,000 American families hold about 16 trillion. That's trillion with a ‘T’ in net assets. Rather than be jealous of these billionaires just celebrate your own success. The US household wealth is at an all-time record high! That means every one of you right now is worth more than you have ever been worth in your life.

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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Do You Have A Fiduciary Acting In Your Best Interest?, Ep #28

Wednesday Mar 10, 2021

Wednesday Mar 10, 2021

It's episode 27 pain points of wealth. And the economy is about to run hot and tech is not. Technology shares have been wavering here as the market goes up and up and up every single week inflation's kicking in. Interest rates are going up. Oil prices are going up. Lots going on in the market. We're going to break it down for you today. We're going to talk about what we see in the future when it comes to the economy, the stock market, and how to invest your money. And we're going to talk about the financial services industry. Yes. There are lots of charlatans in our industry. I'm sure you're shocked. We're going to break down some of the warning signs or things to watch out for when you're getting advice from the financial services industry so you can make the best decisions about your money.

 

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

  • A voracious rally resulting in quickly recovering economy [1:12]
  • Do you feel wealthy? [3:50]
  • The biggest mistakes we are seeing right now [6:26]
  • The Tipping Point [10:50]
  • Financial advisors or glorified product salespeople? [11:41]
  • What is a true fiduciary? [15:02]
  • Hidden Facts of Finance [19:42]

Overconcentration in large-cap US stocks

One of the biggest mistakes that we see right now— and we look at probably 50 portfolios every month, we literally see every strategy out there— is an overconcentration in large-cap US stocks. Apple is a great company, Amazon's a great company, Facebook's a great company but they just had their day in the sun and last year they made so much money it's going to be hard to beat that moving forward. What you have to realize with your portfolio is that the market cares about whose earnings or whose profits are growing the fastest. And those stocks are probably not going to grow as fast anymore because it's the law of big numbers. They've already grown so much that you've got to start looking at where the profits are going to grow the fastest. And that's going to be in a lot of old-school stocks versus new school stocks.

This week on the tipping point: Looking for red flags from advisors

You would think that if someone was dishonest or they pulled the wool over somebody's eyes in the past, our industry would be smart enough to kick them out, but they don't. If you're wondering about your advisor, all you have to do is go to the FINRA site and look at the broker check. Something you should always look at when looking to work with a financial advisor is what their history looks like? 

When it comes to financial planning and financial health and assessing that, it shouldn't be product-based, it should be what we call goal-based. The problem is a lot of our industry is still just looking to sell you something that you put in your portfolio. We talk about this a lot. You end up with what we call collection of investments. In this episode, we cover a lot of things to look for to know if you have someone looking out for your best interest as your fiduciary. Be sure to check it out.

This week’s hidden facts of finance

Clean power sources, such as wind and solar are projected to provide 39% of the US utility industries generating capacity versus 13% today. On the other hand, coal is forecasted to account for just 3% versus 19% of all energy generated from utilities. Well, who says you can't be both green and profitable. So utility traditional utilities are cheap right now, but they're also investing in things like green energy, thinking about the future. So if you can get them cheap, you can also be green. That's going to lead to better profit margins. I like the idea that you can buy old-school utilities here, and it's actually an alternative energy play as opposed to buying some of these alternative energy stocks, which have already been shot to the moon.

Resources & People Mentioned

Connect With Ryan, Bob, and Chris


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

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The Most Important Age to Focus on Your Financial Plan is...RIGHT NOW!, Ep #27

Wednesday Mar 03, 2021

Wednesday Mar 03, 2021

It's episode 27 of Payne Points of Wealth and inflation has arrived. Don't say we didn't warn you. We've talked about inflation and now it's here. Commodity prices are going through the roof as energy prices are up over 20%, lumber prices are up over 50%, and corn is up over 30%. The cost of living is going up. How do you position your portfolio? We're going to show you exactly how to invest your money. We’re also digging into what you should think about when you're 30, 40, 50, 60, when it comes to your financial plan? We're going to tell you exactly what you need to be thinking about at each stage of your journey. 

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

  • What is inflation? [3:42]
  • Weapons of mass financial destruction [5:31]
  • Old school over new school [7:36]
  • The Tipping Point [10:26]
  • Funding in your 30’s [10:46]
  • Budgeting in your 40’s [13:20]
  • Closing in on financial independence in your 50’s [15:12]
  • Building a retirement income plan in your 60’s [16:42]
  • Scary RMD’s in your 70’s [17:37]
  • Hidden Facts of Finance [20:24]

Do you have a portfolio that can deal with inflation?

The simplest economic term for inflation is having too many dollars chasing too few goods. One of the big problems right now is the government has created so much money— in fact, the money supplies have increased by 26%— that's the most since 1943. What that means is there's a lot of money out there and all those dollars are going to be chasing a finite amount of goods. When you talk about things like oil, gold, or copper, they're all finite. It increases the prices because the supply and demand get out of whack. Right now there's just too much money out there and that's the inherent problem, that's what causes inflation.

Just a year ago even a couple of months ago, no one expected inflation to go up at all. Now you can see it right across the board. The best indication you have is interest rates going up. Now, how does that impact you and your portfolio? Check out the show to find out!

This week on the tipping point: Ages & stages of financial planning

The first 30 years of life seem to tick by slowly and the next 30 are gone in the blink of an eye. As we like to say at our firm— Payne Capital Management— financial planning is a journey, not a destination. Depending on where you are in that journey, there are different issues you have to address at different ages. What should you do if you didn’t do anything in your 30’s or even 40’s? Just start now, get in where you fit in.

Listen to the episode as we discuss some of the steps you should focus on at each age. Funding in your 30’s. Budgeting in your 40’s. Closing in on financial independence in your 50’s. Building a retirement income plan in your 60’s. And dealing with scary RMD’s in your 70’s.

This week’s hidden facts of finance

Walmart is still the world's largest retailer when measured by revenue, not Amazon. With 2021 fiscal sales of 559 billion or larger than all the 21 country's gross domestic products. 

The 90-year-old empire state building said in its fourth-quarter financial results, that the number of visitors to its Observateur declined by 94% in the fourth quarter of 2020 to 55,000 from 894,000 people visiting just a year earlier. It sounds like New York's become a ghost town.

During 16 post-war periods in which interest rates went up, the S&P 500 was up in 13 of those windows with an annual rate of return of 13%. In other words, rising rates and rising stocks go hand in hand more often than not. Stocks are actually an inflation hedge.

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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Ironic Things When It Comes To Investing, Ep 26

Wednesday Feb 24, 2021

Wednesday Feb 24, 2021

It's episode 26 of Payne Points of Wealth and money is pouring into the stock market. Two weeks ago, we had over $58 billion go into exchange traded funds, mutual funds, and money jammed into energy as the animal spirits are alive and well. How do you play it? What do you do next? Greed is definitely seeping into the market, what are you doing with your portfolio right now that also speaks to greed. Are you being greedy? Are you being disciplined with your investment strategy? We're going to address all that on this episode so be sure to listen up!

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

  • The great irony of the stock market [1:17]
  • Focusing on the big picture, not the hiccups [3:30]
  • The market does its best to compound the majority [5:38]
  • The Tipping Point [9:36]
  • How FOMO is driving greed [11:54]
  • The market always catches you off guard [14:36]
  • Hidden Facts of Finance [17:10]

Investing where it’s hot and where it’s profitable are rarely in alignment

There's so much opportunity in the market right now and a lot of you are just looking at the wrong thing. Isn't that the way it always is though, it's like whatever we anticipate the most and wherever the money's flowing the most at the same time tends to be where we get the least amount of return over time. It's the great irony of the stock market.

Warren Buffet is selling even more of this Apple stock, not buying into the hot tech trade. He's buying really exciting stocks like Chevron and Verizon, which are not only inexpensive right now, but also pay great dividends. Maybe he's lost his touch because obviously, all your money should be in electric vehicles, Bitcoin, SPACs, and anything growth-related.

This week on the tipping point: Giving in to greed

We have an old saying in our business that markets oscillate between fear and greed. With the stock market going up literally every day now you can kind of feel greed starting to seep in. As we know from managing money now for a collective 70 plus years, when it comes to your money, giving in to that desire of greed can end very badly. Gordon Gekko’s famous speech said greed is good but he lost everything and ended up going to jail, so maybe greed isn’t that good after all. Check out the episode where we talk about how greed can be very detrimental to your financial health specifically right now!

This week’s hidden facts of finance

Colorado topped $2 billion in marijuana sales through state dispensaries last year, putting it on par with Canada. They raised $387 million in taxes and fees. Virginia legalization appears imminent, which will bring the number of recreational pot States up to 16 but with those kinds of tax dollars, I think it's going to 50.

The first electric age effectively ended in 1915 after Henry Ford and Thomas Edison teamed up to take a crack at electric vehicles. The stately battery-powered sedans of the pre-World War One era appealed mostly to well-to-do urbanites. President Woodrow Wilson drove around the White House grounds and his Milburn Electric. Apparently, these vehicles were too slow, too heavy, and too costly. Check out the show for more hidden facts of finance!

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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Positioning Today For Tomorrow & Preparing For The Red Zone, Ep #25

Wednesday Feb 17, 2021

Wednesday Feb 17, 2021

The government has announced another stimulus plan and another $1.9 trillion. Keep in mind last year we had $2.2 trillion bestowed upon the economy, along with another $900 billion at the end of the year. It's almost like pouring rocket fuel on rocket fuel. What this means is the second half of the year is going to be a huge economic boom. 

We're going to talk about what that means for you, how to position your portfolio. If you're getting into that financial red zone, maybe you're five years out from retirement or you're five years into retirement there are things you need to be doing proactively with your financial plan to make sure you're on track. We're going to give you our playbook to make sure you're making all the best decisions when it comes to your finances in episode 25 of Payne Points of Wealth, so don’t miss it!

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

  • Why is everything going up? [1:22]
  • The misconception [3:26]
  • The hidden rotation of profits [6:26]
  • Positioning for tomorrow today [9:10]
  • The Tipping Point [11:40]
  • From wealth accumulation to wealth distribution [13:57]
  • Having interest and dividends so you aren’t dependant on market growth [17:22]
  • Hidden Facts of Finance [20:34]

Be where the action’s going not where it is

The day is coming when we can go out and actually live life again. We talk about this in almost every episode, but I don't think people realize the magnitude of just how great those animal spirits are going to be six months from now. You've got to position your portfolio for that today. As in right now. We'd rather own hotel stock than the hottest biotech stock because in reality, that's where the action's going to be. As an investor, you always want to be investing where the action's going to be not where it is right now. 

The proof is in the pudding. Earnings are coming out showing Amazon and Apple both had over $125 billion revenue quarters. Record quarters! Nothing like that has ever been seen in the history of the country… but their stock is barely moving. That’s because the time to buy that stock was a year or two years ago when the economy was shutting down and there was nowhere else to go for growth.

This week on the tipping point: The financial RED ZONE

We talk with our clients all the time about being in the financial red zone. That's roughly the 10 years before retirement and those first 5-10 years in retirement. We’ve found there’s a lot of adjustments you have to make to your financial life to make sure you're going to be secure throughout retirement. 

The most important thing to figure out in that red zone is what you spend. A lot of you out there have no clue how much money you're actually spending. If you're not putting in good spending numbers, that's going to throw off your entire projection. It's in that first five years of retirement where you find out if you calculated that budget correctly. 

If you think you’ll spend less in retirement, think again. The reality is you're probably going to spend more in the first five years of retirement because your spending habits don't change that much but the time you have to spend it increases. You should always plan for more, not less. We're Americans. We love to spend money. Let's not kid ourselves!

This week’s hidden facts of finance

Only 55% of global market capitalization is composed of US stocks. Yet, US investors tend to put 75% of their stock holdings in US stocks. This statistic completely blows us away considering how many of the products we use on a day-to-day basis are made overseas. Emerging markets and international markets are relatively cheap right now, combined with the fact that we have a weakening dollar, we'd say the opportunity is overseas. It's kind of like being anti-China, but having an iPhone.

Resources & People Mentioned

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It’s Easy To Go Up, When You’re Already Down, Ep #24

Wednesday Feb 10, 2021

Wednesday Feb 10, 2021

What's up! It’s episode 23 of Payne Points of Wealth and Wall Street's gone bananas in a crazy twist. We've got hedge fund managers being taken out by Reddit traders in chat rooms! It goes back to one of our old sayings here at Payne Capital Management “Wall Street’s made up of ordinary people trying to do extraordinary things.” We're going to break this craziness down for you and talk about exactly what happened with the Game Stop trade, what to make of it, and what to do with your portfolio in light of all the market speculation. As an added bonus we're going to talk about Bob's renovation. We know you care about it, his house in Florida, but wait until you hear how that relates to your financial plan. Let's hop to it! 

 

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

  • This Game Stop thing… Reddit vs The Hedge Fund [1:13]
  • Scarcity of capital overabundance of capital [5:02]
  • Buy the stock not the story [7:22]
  • The Tipping Point [11:13]
  • Diversified opinions do not equal a diversified portfolio [12:09]
  • Is your investment strategy in line with your goals? [18:10]
  • Hidden Facts of Finance [23:05]

Are you buying the stock or the story?

You're hearing about innovation. Innovation is going to change the world. It's already happening, but you're paying up for those earnings. It's what happened in ‘99 and ‘00 when you had these companies selling exorbitant PE ratios. They were selling at ridiculous valuations, like Cisco at 200 times its earnings. The story was right, everything that the tech companies promised in ‘99 came true, but not for 10 or 15 years. Meanwhile, the stocks didn't do anything but go down. 

Tesla has this huge opportunity and it's probably 100% correct that we're all going to be driving electric vehicles, eventually. They're probably going to corner the market in batteries and they'll have all these other great services that complement their core business. But the point is, it's all being priced in today. 

This week on the tipping point: Renovating your financial plans

Doing any type of renovation is expensive and you've got to be careful that you get the best discounts you can while still getting quality work. If you hire 10 contractors to do 10 different jobs, then you're paying 10 different people a retail price. It’s wiser to get one contractor who gives you a wholesale price on all 10 jobs and you save on the overall cost and only have to deal with one person. Saves you time. Saves you money. It's no different when it comes to working with one financial advisor rather than working with several different advisors. 

You have your assets spread around because you think you don't want to have all of your eggs in one basket. However, you’re paying fees to everyone. You are a small client with 10 different advisors so you're not getting the overall discount that you would as a larger client with one advisor. Not only that but each of those advisors is bound to have some overlap so while you're not’ putting all of your eggs in one basket you are putting the same eggs in several baskets. 

This week’s hidden facts of finance

Apple reported a record $111 billion in revenue this past quarter! Up 21% from a year ago. Apple now generates $50 million in sales EVERY. SINGLE. HOUR. Bob met Steve Jobs way back in the ’80s after he had just been fired by Apple and he was working for NeXT. Just goes to show you how smart these management teams are. They got rid of the guy who was responsible for creating the first trillion-dollar capitalization company. So $111 billion in one quarter is a record quarter, it’s the first time anybody's done a hundred billion dollars in one quarter. EVER. Check out the episode for more hidden facts of finance! 

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