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 Feb 03, 2021
Wednesday Feb 03, 2021
It's episode 23 of Payne Points of Wealth and there are mounds of money creating mounds of speculation in the stock market. As we speak, there's literally $4.3 trillion sitting in cash because the government prints so much money. Not surprisingly, a lot of that money is finding its way into the stock market and creating rampant speculation. So the question is, are we in a bubble? How do you invest your money today to get a good return over the next five to 10 years? We're going to address that.
With the pandemic starting last year did you push your financial planning to the sidelines? Fair enough. Well, it’s a new year and hopefully, you've got a new perspective on life. So we're going to talk about how to get your financial life in order and get it in gear in 2021! It's going to be another great episode. Check it out!
You will want to hear this episode if you are interested in...
- Why we think bubbles are forming [1:16]
- Is rampant stock speculation leading to a burst? [2:43]
- Why it’s important to have an IPS [6:32]
- The Tipping Point [9:12]
- Tax legislation that may have been overlooked [10:56]
- Have you scheduled your annual financial physical? [14:47]
- Hidden Facts of Finance [18:09]
Risk is something recognized in hindsight, but there are signs along the way
There is all this money finding its way into the market. The scariest thing about it is that it’s not going into the places we are advising, like a diversified risk-adjusted portfolio. It’s going into things like Bitcoin, SPACs, and new IPO companies with no earnings. The “sexy” stocks. These are people looking for a quick buck, not long-term investors. Stock speculation is all around us and you just don’t know when the bubble is going to burst.
A half-trillion dollars worth of options on individual stocks traded last week alone! The highest single-day level in the history of the options market, that goes all the way back to the early ’70s. We also had the lowest amount of bearish bets, or puts, being bought in the history of the stock market. So you have the lowest level in years on people being bearish and the highest level in years of people being bullish. Conventional wisdom tells you to be bullish because everybody else is, but you may find that there is very little wisdom in conventional wisdom. Listen to the episode for more on the signs to look for!
This week on the tipping point: Overlooked tax legislation
There were a lot of rules and regulations that changed last year with the SECURE Act that we might've forgotten about once the pandemic hit. All this fantastic new tax legislation that you could use with your portfolio where all of us got a break on our required minimum distribution from retirement plans. They waived it for everybody. They also moved the required age up from 70 to 72. That's two more years of compounding and two more years of not having to take 20% of your distribution and give it to the IRS. That one piece of legislation is going to help everybody secure their retirement! There’s more to this week’s Tipping Point so be sure to listen!
This week’s hidden facts of finance
Japan was one of the biggest stock markets in the world for a time in the late eighties, making up 45% of the global market capitalization. Japan only makes up 8% of that total now. It was a wild ride back in those late ’80s.
During the Trump presidency, the S&P 500 annualized 13.9% a year, which is only slightly higher than when Obama was president at 13.1% a year. So the market was almost identical under both of their tenures. Just goes to show that businesses don’t care who is in office, they are just in it to make money!
Nearly 87.5 of US GDP is generated by the private sector outside the government's direct reach. Further demand for US stocks and goods US firms produce is fully global. Almost 40% of US firm's revenue stems from outside the US. Mitigating American political influence. In a global economy, Capitol Hill doesn’t have as much influence as you’d think.
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
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Wednesday Jan 27, 2021
Wednesday Jan 27, 2021
Welcome to episode 22 of Payne Points of Wealth. As always, there's a lot going on and we’ve got a lot to say. Here we are nearly a year into a pandemic. There’s a vaccine but distribution is not off to a smooth start. We're looking at another stimulus bill for $1.9 trillion after passing one for $900 billion a month ago! Companies and consumers are sitting on more cash than ever. How do you play this trend? Should you diversify your money? Are we in a stock market bubble? Should you go to cash? We're going to address all those issues on today's Payne Points of Wealth. Don’t miss out!
You will want to hear this episode if you are interested in...
- Are we about to have a repeat of the roaring 20’s [2:28]
- New levels of productivity and efficiency that we think are here to stay [4:29]
- Baggin on bitcoin [6:58]
- The Tipping Point [9:38]
- You can’t double dribble when it comes to Social Security [13:11]
- Hidden Facts of Finance [18:03]
A productivity wave that’s probably here to stay
People like Chris and others in our company are finding that by not commuting and simply working home everybody's saving large amounts of time. That translates to more hours that they are able to put into their work. Better for them, better for the company. Chris says “I'm able to reach out to more people. I’m only seeing clients virtually and because of that, I'm able to connect with way more clients and more frequently. I'm saving a lot of time and even have more free time for myself.”
Look at Zoom, they went from 10 million users to 300 million users in less than a year. It was like the entire population of the US joined up! Think of all those meetings you used to have to attend in person that you may never have to do in person again. These productivity gains are probably here to stay coupled with the fact that companies have been cutting costs, now you've got liquidity along with efficiency. It’s a huge wave that's going to drive this economy for the next couple of years.
This week on the tipping point: Life’s shot clock is always ticking on retirement
You have a limited amount of time on this earth. Nobody escapes alive. It's not just about financial planning, it's about depending on and having a solid financial strategy. You have to have a strategy to be able to take advantage of the financial markets. Maybe another year's gone by and you were reluctant to finally sit down and put together a game plan. You put off figuring out what you spend on an annual basis, how much you should save, and didn’t start looking at how your money is or should be invested?
We all kind of gave ourselves a pass last year because it was a train wreck of a year full of uncertainty, but meanwhile, the economy is recovering. The market had a fantastic year and now you're another year behind. The window gets smaller and smaller every time you delay. Not only are you missing all this opportunity, but you're getting further behind by not putting a game plan in place. Every single day, the clock is ticking on that. It’s not too late to start now, and it’s always better than starting later! Go get to work!
This week’s hidden facts of finance
An estimated 2.4 million new homes are needed every single year, while only 1.6 million are being constructed. It sounds like the housing boom is going to continue. You have the urbanization of America going on and a lot of people are moving out of the cities. They are getting away from the pandemic, getting away from high priced apartments, and buying in the suburbs. Couple that with record-low interest rates— the lowest mortgage rates we've ever seen so if you haven't refinanced, you should— and we think the housing boom will continue and it's going to be a big driver of the economy this year.
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
Monday Jan 18, 2021
Monday Jan 18, 2021
Welcome to episode 21 of Payne Points of Wealth! We are having a phenomenal start to 2021. Markets are going through the roof, interest rates and oil prices are going up. The “cyclical stocks”— those reopening stocks that we told you about— are starting to move. So the question is... how do you position your portfolio in 2021 to win? We're going to address that. We are also going to talk about some of the big questions that you probably don't have the answers to when it comes to your financial plan and things you need to address to make sure you're on solid footing in the year to come.
You will want to hear this episode if you are interested in...
- Tesla: Sell or hold on? [1:38]
- Are you lucky or are you good? [3:20]
- What’s time tested, affordable, & pays well? [6:37]
- The Tipping Point [8:30]
- F.E.A.R. [9:44]
- You can’t ignore taxes [14:04]
- Hidden Facts of Finance [17:24]
A fool and his money were lucky to get together in the first place
Investing is counter-intuitive. You want to own more of what's going up right now. That's what your brain screams. But the real way to create wealth is to put your dividends, interest, and savings into other asset classes when they are out of favor. For example, small company stock returns come in big at 6% for the first two weeks of 21’. Whoever had the most shares made the most money.
However, when you hit a home run, like with Tesla. How was it that you decided on that investment? What's the next one based on your strategy. You have to ask yourself when hitting a homer in your portfolio, are you lucky or are you smart? The good news is you don’t have to be lucky or smart. You just have to be in! The better news is you can choose to be smart with the winnings and you’ll learn more about that when you check out the episode!
This week on the tipping point: Issues to address to build a solid financial plan
The acronym for fear— false evidence appearing real— applies here. When the market pulls back, we have this irrational fear that the market is going to drop to zero, so we make irrational decisions. We take our unrealized losses and we make them real rather than focusing on why we're investing in the first place. Which is, of course, our financial goals for the future, whether that's retirement or something else. The reality is if you own an all-weather portfolio, you can weather these crashes pretty well and ignore the noise.
We waste so much time worrying about a market crash. Over the last decade we’ve had clients call saying, “Well, I think this is it. We're finally going to have another great financial crisis.” The irony is we finally did get a market crash last year and it was something nobody could have predicted. We were completely blindsided! Who could have predicted we would have a global pandemic, that the global economy would shut down. NO ONE figured that out. So the idea is, you always want to be prepared for a crash in your portfolio, have that protection in place because when the next crash comes, no one's going to know ahead of time.
This week’s hidden facts of finance
Since 1948 the S&P 500 index has returned an average of 14% a year when Democrats have controlled Congress and the White House. The S&P is already up over 2% in 2021 so we're already ahead of the game, only 12% to go. Wait a minute. Democrats aren't even in power yet. Why is it going up? Because at the end of the day as long as there is SOMEONE sitting in those chairs in the White House, Congress, and the Senate the stock market is going to go up. At least that’s what history has proved over the last 200 years.
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
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Thursday Jan 07, 2021
Thursday Jan 07, 2021
Happy New Year on this 20th episode of Payne Points of Wealth. Things are getting interesting. Wall Street all of a sudden has rose-colored glasses. Goldman Sachs came out and was looking for a 15% return this year on the S&P 500 as the world has apparently become more bullish overnight. The questions… Will it be a good year in the stock market or a bad year? How do you allocate your money? Last year was a crazy tumultuous year in the markets, and probably a tumultuous year for your financial plan too. So, we're going to break down what lessons we can learn and we're going to talk about how we can carry those lessons over and apply them to 2021 to make it a great year. Join us!
You will want to hear this episode if you are interested in...
- Goldman Sachs predictions… are they even worth reading? [1:10]
- FAT MAG doesn’t represent a reopening economy [4:15]
- Big cap tech is hot right now but will it stay that way? [5:57]
- The Tipping Point [8:11]
- What to do when your asset allocation gets out of whack [11:02]
- The financial Goldilocks of the emergency fund [13:59]
- The importance of legacy planning [15:24]
- Hidden Facts of Finance [18:40]
FAT MAG or FAT GAM which is your favorite acronym?
Ryan is pleased with his creation of an acronym for the S&P’s big 6— Facebook, Apple, Tesla, Microsoft, Amazon, and Google— but he can’t seem to settle on an order. What do you think… FAT MAG or GAM?
In any case, you’ve got a lot of money concentrated in a very small pool of stocks. Stocks that don’t exactly represent the economy reopening either. This could potentially lead to an ironic trade where the S&P 500 actually underperforms this year even though the economy is rockin’. It's one of the reasons why you want to be diversified. We are already seeing other sectors like small caps and energy that are outperforming. Check out the episode to learn more!
This week on the tipping point: Lessons Learned
Staying invested, rebalancing until you don’t have to, optimistic retirement planning, having the right amount in your emergency fund, and the importance of having a legacy plan BEFORE it’s needed are some of the key lessons we took away from 2020. Join us for this episode’s tipping point to hear the meat and potatoes from each of these valuable lessons. They are definitely some you don’t want to miss!
This week’s hidden facts of finance
An investor who put $10,000 into the S&P 500 index fund at the start of 1980 and missed the market's best five days through the end of August 2020— just 5 days over a 20yr period— would have a return of almost 40% less than an investor that just remained invested. That's insane. The market does that though, it pushes you to the point where you can't take it anymore. You get tired of it going down so your get out until it's done going down and just like that you can miss the BEST days! Check out the episode for more hidden facts!
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Thursday Dec 24, 2020
Thursday Dec 24, 2020
In this episode, we’re going to talk about the reopening of the economy and those big mega-cap tech stocks that are now going to be part of the S&P 500. Additionally, we will discuss products Wall Street loves to sell to scam you and what to avoid at all costs so you can create a portfolio that will give you better odds to win long-term and create your wealth. We’ve got a great show for you. Let’s get to it!
You will want to hear this episode if you are interested in...
- Money moving from big tech to value stocks [1:30]
- What is a small-cap value stock? [4:00]
- The sucker trade of the year [6:44]
- The Tipping Point [9:04]
- Can I put my entire net worth into Apple stock? [11:31]
- Should high yield bonds be in your portfolio? [12:59]
- Whole life insurance policies [14:31]
- S&P 500 stocking stuffers [16:39]
- Hidden Facts of Finance [18:37]
- The new second richest man in the world [19:35]
- TV blues [23:09]
What does rotation even mean?
It’s Wall Street jargon! When we're talking about rotation it means money has been moving out of these big tech names and moving into other stocks like value stocks. Value stocks such as financials or energy stocks. And we talk about the proverbial reopening of the economic trade like money going into cruise stocks, airlines, hotels, or pretty much anything but tech. These small-cap stocks outperform larger companies and they are less expensive and inexpensive stocks outperform expensive ones. Why is it that investors miss the fact that there are all these other great opportunities out there when they're investing money?
This week on the tipping point: This season’s financial stocking stuffers
Here are a few financial instruments that you may want to have in your stocking this year...and maybe some you don’t. First up are annuities, which can be very appropriate for some of you but should not be the only thing in your portfolio. They often come with an income stream for life, and who’s not attracted to THOSE words! However, that can come at a cost. All annuities are not all created equal so know what you’re getting before you stuff this into your stocking. Check out the episode for the rest of this story!
This week’s hidden facts of finance
Airbnb shares more than doubled on their market debut on the NASDAQ stock market two weeks ago, and DoorDash certs, 86% all in its first day of trading. Is this a bubble? Anything that goes up 86% in its first days is more than likely being very overinflated. So we would say yes.
The sale of Bob Dylan’s songwriting catalog to universal music publishing group was announced last week, the price wasn't disclosed, but it said it was sold between $300 and $400 million. There may be a lot of people excited to hear those songs sung by someone other than Bob. We’ve got some more facts for you so be sure to tune in to hear them!
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Thursday Dec 17, 2020
Thursday Dec 17, 2020
Fear of losing money has been replaced by FOMO as investors are now plunging into the markets, putting more money into ETFs than we've seen over the last 12 months. With Coronavirus cases on the rise, hospitalizations on the rise, and mortality rates on the rise what's going to happen next? Has the market come too far too fast? Should investors wait for a big dip? We're going to break that down for you. We'll also be talking about getting good financial advice versus getting bad advice. How do you know if you’re working with a true financial professional? Our hope is that after this podcast you’ll have those answers so make sure to tune in! We've got a great show for you!
You will want to hear this episode if you are interested in...
- Are the buy signal wires crossed for average investors? [1:11]
- The Santa Clause Rally [3:19]
- Thinking like a corporate CEO [5:46]
- The Tipping Point [9:33]
- Examples of naughty vs nice financial advisors [10:04]
- What an advisor on the nice list looks like [14:07]
- Hidden Facts of Finance [19:05]
- Why having a global portfolio now can pay off in the future [21:39]
- Getting Tesla stock for a premium [24:17]
Is the doom & gloom media striking fear into would-be investors?
We had $81 billion pour into the equity market in the month of November alone. That means that 32% of all the money to flow into the market came into play last month. We wonder if the signal to buy for the average investor is the market being at all-time highs. Why didn’t they buy in October when the market was on sale? There's a reason why people are fearful of the market, why they don't like to buy when the market's going up. Because even though they see it's a booming bull market all you see are the headlines that are dire and negative. We get pounded every day with news of COVID deaths rising, the spread of the pandemic, and political drama but there's a lot of good news that's happening it’s just not making the headlines. Hear more when you listen to the episode!
This week on the tipping point: Has your financial advisor been naughty or nice?
Example: My financial advisor is very good at talking about all different types of investments. She's a very astute investor. However, I don't see any credentials after her name so she's definitely not a CFP. She doesn't offer any advice on the planning side of my life, only on what to buy and what to sell. Naughty or Nice? This is definitely one that goes on the naughty list. Any advisor that gives investment advice without coming up with some kind of a financial plan is definitely a big no-no.
Example: My advisor says I'm not paying any fees and I don't see any fees coming out of my portfolio. Is this too good to be true? Naughty or Nice? I don't know about the advisor, but this is the naughtiest way you can possibly invest. It’s very likely you’re getting gouged in fees and just don’t realize it. More detail on this in the episode, go check it out!
Example: My advisor calls me every quarter checks in on me personally, reviews my portfolio, and proactively discusses financial issues outside the realm of just my investments. For example, she helped me refinance my mortgage this year and I'm now saving $1500 a month. Naughty or Nice? Well, not only is this advisor on the nice list but she probably works for Payne Capital Management!
This week’s hidden facts of finance
The worst days for the market are usually followed by the best days. Since the 1930s, if an investor sat out the best 10 return days for each decade, their returns would be just 19% compared to 16000% had they just stayed invested. If you need an example of how important it is to stay invested last month small company stocks went up 20% in 30 days. That's two years’ worth of return in basically 10 days. If you need a good example of why you need to be invested, look at what happened last month. November was a great case in point of why market timing is just treacherous. For more on this hidden fact and others check out the episode.
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Thursday Dec 10, 2020
Thursday Dec 10, 2020
November showed off with one of the best months on record with the Dow, S&P 500, and NASDAQ all up over 10%. In fact, the Dow had its best month since 1987. And speaking of big numbers, Tesla is valued at over $537 billion— as much as Warren Buffet's company Berkshire Hathaway— and is the largest company ever to enter the S&P 500. The question becomes, where do you put your money now as the market continues to go higher with the S&P stuffed like a pinata with Mega Cap companies? Can this sustain through the new year? We're going to break it down for you today. We've got a great episode. Let's check it out.
You will want to hear this episode if you are interested in...
- Small Caps making a big splash [1:24]
- What is true diversification? [2:51]
- Good news in the global economy [5:14]
- The Tipping Point [7:43]
- Smart 2020 tax moves [8:16]
- Giving $300 to charity [11:10]
- Hidden Facts of Finance [15:39]
- Stock ownership stats [17:18]
- Investment equality [19:24]
You can’t win trying to time the Market
With an election at the beginning of the month, all the uncertainty, and with a pandemic, who could have predicted that just like that you'd see stocks go up between 10 and 20%. You just can't predict those things ahead of time, and that’s why we always say you can’t time the market.
Let's face it, this stock market, any market, the world markets are the most humbling places in the universe. There are smarter people than us-- smarter people than the analysts who are trying to figure it out--all trying to gain something that can't be gained, something that can't be predicted. It's too complex, and lesser men than economists have tried to beat or predict what's unpredictable and what's unknowable. The only real winners are long-term investors with patience, fortitude, and a plan.
This week on the tipping point
I thought we could discuss some of the financial issues we are addressing for our firm's clients before the end of the year. Not that anybody's going to be unhappy to see 2020 in the books; 2021 can't come too soon enough. Unfortunately, going into the new year means it’s time for taxes. You’ll want to make sure you don't pay more in taxes than necessary. There are a lot of smart moves you can make right now to finish up the year, so be sure to check out the episode to learn more.
This week’s hidden facts of finance
Historically, gold has been the preferred way to hedge against inflation, and the value of gold still dwarfs Bitcoin with above-ground gold reserves worth more than $10 trillion and the Bitcoin is $320 billion; however, gold and Bitcoin aren't great inflation hedges. The best inflation hedge in history has been good old equities. Stocks that pay dividends because dividends are increased, and that increases the value of your investment against the cost of living. We're not talking about Tesla here, for the record, we're talking about a diversified portfolio of stocks to pay dividends. Dividends are the key.
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Thursday Dec 03, 2020
Thursday Dec 03, 2020
We basically have the same story over and over again, pundits are concerned about the second wave of the Coronavirus and as we’re recording this, we have a change of regimen of government, and a new president starting in January. What does that mean for the markets? The concern is abounding and there is record cash, yet the market continues to go higher just as we predicted on this podcast weeks ago. So the BIG question is… where do we go now? That's what we're going to dissect on today’s show! Don’t miss it!
You will want to hear this episode if you are interested in...
- Record highs [1:14]
- Impossible timing [2:47]
- Economic data -vs- the news [4:44]
- Handling a downturn [7:01]
- The Tipping Point [8:59]
- Fear around investing in the market [10:33]
- Too much risk [12:40]
- Millennials aren’t 20 anymore and they’re playing catch up [14:31]
- Hidden Facts of Finance [17:03]
- What creative destruction is around the corner? [18:43]
- Finding a needle in a haystack [20:42]
Embracing a history that creates wealth
If we know about it— if it's in the press, it's in the price— the market knows about it too, it's not ignoring that. It's the difference between being an informed, educated investor and just waking up every day and making it up as you go. When you look at the historical returns of the market and you look at the history of our economy, it always grows.
If you make a projection of where the S&P, Dow, Russell 2000 or Ethereum Indexes will be in the next 10 years, we'll tell you one thing we know— it's going to be higher. We don't know when it's going to go higher, but it will be higher. It's just a matter of educating yourself on the history of the market. Understanding how the market is always discounting future revenues and future earnings and looking at volatility differently. People shouldn't be afraid of it, they should be embracing it because that's how you create wealth. Interested in hearing more? Check out the episode to see all the brilliant things we have to share!
This week on the tipping point: managing risk
Managing risk is one of the most crucial elements of a successful wealth plan. So we thought we’d break down what risk really means to your portfolio. How do you really manage it? Risk is something that's only truly recognized in hindsight. When you think about risk, it's the possibility of something bad happening. No one likes bad things, right? If you're always avoiding something bad then you’re sitting on your hands and inertia causes you to do nothing. But risk does cut both ways so if you're sitting on your hands, in this case, you're sitting in cash. That insidious tax inflation's going to eat away at your purchasing power and you probably won’t be able to retire as early as you’d like. Check out the episode to hear about the flip side of that when you take too much risk!
This week’s hidden facts of finance
Every week Ryan goes out of his way to make a point that investing in the S&P 500 is not a one-stop-shop when it comes to investing. The detail that a lot of investors are missing is that it's a global economy and China is coming on strong. Right now there are 119 homegrown electrical vehicle companies in China. They have 1.4 billion potential customers that might be buying upcoming Chinese cars over Tesla cars. Just like Yahoo fell victim to a better search technology being developed by a little known startup called Google back in 2000, you never know what kind of creative destruction's around the corner that will change everything. For more fun facts be sure to listen to the show!
Resources & People Mentioned
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Thursday Nov 26, 2020
Thursday Nov 26, 2020
We told you that you could see a stock melt-up going into the end of the year, and now we're here. Money's come off the sidelines in droves! Money managers are getting reinvested, and the big question comes: Is this it? Have we gotten the melt-up? We are also going to hit on what you should be doing with your wealth plan right now and how you should be setting that up. We're going to break it down for you, so be sure to check out the episode!
You will want to hear this episode if you are interested in...
- Revenge of the nerds! [1:13]
- Growth that’s made everything else pale in comparison [3:04]
- Don’t get tricked into thinking you’re diversified [5:13]
- The market doesn't care about valuation...until it does [6:08]
- The Tipping Point [9:05]
- Knowing what you own and why you own it [10:45]
- Taking money from your portfolio [12:42]
- Something more important than just a good stock idea [16:02]
- Hidden Facts of Finance [17:36]
- Lending money where you’re guaranteed to lose [19:02]
- ETFs cross a milestone for the second time ever in 2020 [21:33]
Tech’s outperformance has “normal stocks” paling in comparison
We’ve made a killing in tech stocks over the last 10 years. Its growth has way outperformed what it does historically. Historically, it’s been normal to average about 10% per year. We've seen 18% per year for the last 10 years even though the rest of the value and small-cap companies have done about average. It's not that these small-cap companies are horrible performers, it’s that growth has been so ridiculous over the last 10 years, it makes everything pale in comparison.
This week on the tipping point...knowing what you own and why you own it!
Up until the pandemic hit back in March, many people would ask why they own bonds? They don't pay very much. It costs a lot to buy them. However, as the pandemic hit, bonds were the only thing in their portfolio that was profitable, and now you have the ability to take some profits from the bonds and buy back into the market when it's low. A bond is something that is negatively correlated. That just means it goes up and down differently than the rest of your financial assets. For more on this check out the episode!
This week’s hidden facts of finance
It may surprise you that when a Democrat takes over the presidency from a Republican (which, for the record, we're NOT saying has happened yet) the average cycle return has been 43.6%. What usually shocks everyone to find out is that a market under a Democratic president historically has done better than a market under a Republican president. Just so you don't get too concerned, it doesn't matter if it's a Democrat or Republican because historically the market's always going up as long as SOMEONE is sitting in the oval office! 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
- http://PayneCM.com
- Follow on Twitter
- Follow on Facebook
- Follow on LinkedIn
- Subscribe on YouTube
- Follow on Instagram
Subscribe to Payne Points of Wealth
On Apple Podcasts, On Google Podcasts, On Spotify
Thursday Nov 19, 2020
Thursday Nov 19, 2020
Today, we're talking about AFTER the election, we’ve talked about the election for the last couple of weeks and we warned you not to let the election get in the way of making good investment decisions. The economy is recovering. And what do you know, the Payne’s were right. The market has been straight up since the election. Well, it's theoretically over, right? We're not 100% sure, but it looks like Biden will be in the White House come January. With elections over and the economy starting to recover the question is... What do you do with your money now? What strategies do you utilize? What should you be looking for? We're also going to talk about other things that can get in the way of good investing and things you need to watch out for in your portfolio to make sure you get on YOUR path to financial independence. Let's hit it. Let's get into it. We've got a great show for you this morning so don’t miss it!
You will want to hear this episode if you are interested in...
- The economic recovery that’s being missed [2:01]
- Is it a matter of change or waiting on the rules? [3:42]
- American’s finding a spend save balance? [5:46]
- Economist still casting doubt about spending [7:08]
- The Tipping Point: overconfidence in your ability to manage your portfolio [9:09]
- The Market is the most humbling place in the Universe! [10:52]
- The flip side...lack of confidence [13:27]
- Good investing’s just not sexy [15:48]
- Growth vs value [17:42]
- Hidden Facts of Finance [19:47]
- Cash is trash [22:19]
Mind-blowing recovery and the why behind uncertainty
Unemployment today is where economists thought it was going to be at the end of next year. We're there a year ahead of schedule. Historically the stock market makes about 10% after net of inflation you're about 6-7%. In the last two weeks, the market went up almost 14%. So that's like two years’ worth of return in two weeks! How’s that for recovery!
Are the political leaders on Capitol Hill smarter than the captains of industry that run our biggest companies? We think companies just sit back and say, okay, what are the roadblocks they're going to create in Washington, DC. They wait until the rules are set so that they can figure out how to maximize profit margins based on their new rules. That's why there's so much uncertainty around elections. It's not a matter of if it’s going to change things. It's a matter of the captains of industry, the companies that you all invest in and that we all own, are waiting to see what the new rules are so they can figure out how to get around them to make the most money for their shareholders and for themselves.
This week on the tipping point
We've talked about this a lot in the past, but your ego and overconfidence can get in the way of a solid financial plan. We've seen many cases that have led to destruction in people's financial life because their ego and their overconfidence in their abilities to manage a portfolio made them blind to real holes or issues within their financial plan. Today, we will break that down so that our listeners don't make the same mistakes with their portfolios. If anyone can see holes in portfolios, it's the three of us so tune in to get the goods!
This week’s hidden facts of finance
Vehicle sales have experienced a V-shape recovery, increasing 36% from the 2nd to 3rd quarter of 2020. Auto manufacturing contributes more jobs than any other industry when you take into account all the parts, and suppliers, aftermarket servicers, replacement parts suppliers, and support services for a major auto plant. In hindsight, it's not surprising that car sales went up. Who wants to ride the subway during a pandemic!
We've seen more New York license plates in New Jersey than ever before. People are coming out of the cities. They're buying in the suburbs of New Jersey and the subway doesn't get you there! So car sales are increasing. Not a shock in hindsight, but who could have predicted that last March. It’s definitely one of the reasons why the unemployment numbers have come down so much over the course of the last couple of months. Check out this segment 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
- 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