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 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
- http://PayneCM.com
- Follow on Twitter
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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
- 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 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
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
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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!
See if you qualify for a complimentary financial review from the Paynes
Connect With Ryan, Bob, and Chris
- http://PayneCM.com
- Follow on Twitter
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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
On Apple Podcasts, On Google Podcasts, On Spotify
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
On Apple Podcasts, On Google Podcasts, On Spotify
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
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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