Viewing entries tagged
Financial Planning & Investing

Episode 377

  • Difference between having a will and having a trust

  • A will is not legally binding

    • effectively is a letter to the probate judge

    • it WILL go to probate

    • you direct assets and pick someone who will handle the affairs

  • Healthcare directive is incredibly important

    • living will

    • organ donor

  • Probate: the judge needs to review where your assets are going to go

  • Setting restrictions for your children?

  • Important to have a trust as well as a will

August 15, 2019

Episode 376

August 14, 2019

Episode 375

  • Time in an investment, not timing an investment!

  • Volatility creates opportunity!

  • Investors view their investment time horizon in comparison to when they are going to retire

  • Your money still needs to be invested so you can keep pace or exceed inflation

  • Do not take your money out of investments when you retire!

  • Volatility is not RISKY; its the allocation that is risky

  • During volatility is when there is more uncertainty and perceived risk

  • We are NOT on the verge of a recession

  • There are 5 indicators for an recession

    • NEVER is going to determine we are in a recession

  • Investment philosophy and strategy

  • Buy discipline and sell discipline

Question: I get the idea of volatility giving you opportunity to buy companies on sale: where do you come up with the money to buy them at that point? Either you had to have money in cash in which case it ant working for you or you’re forced to sell something else that is suppose to be invested in a good business, which seems like market timing

  • Most people who are invested in Mutual Funds and ETFs don’t have the flexibility because their money is all invested

  • In a well diversified SMA, there are assigned percentages of what you want to own in any given business

  • Taking profits where there are greats gains

  • Sell a position to invest in another position

  • Selling a position at a loss in tax loss harvesting

  • Sell the high to buy the low

  • You put cash to work over time

  • Its not market timing because were looking at the businesses we want to own on sale

  • Can take partial profit and don’t need to have a lot of cash

We’re not looking at the “market”, most people if you’re a growth portfolio do not have cash thats why asset allocation is incredible important

August 13, 2019

Episode 374

  • Advisor Thursday topic: Long term care

  • Does long term care include hospice?

  • Even the wealthy can utilize long term care

  • Assisted living vs nursing home care

    • different facility

    • transition care, independent living or some sort of assistance

  • There are different levels of care

    • the cost of this type of care is growing exponentially

  • Is there a surrender period for these type of policies and get your full money back

  • Asset protection becomes increasingly important when it comes to paying for your long term care

August 8, 2019

Episode 373

  • What goes up must come down, nothing goes in a straight-line

  • Going through predictions that have come true during 2019 so far

  • Discussing predictions from the AAII

    • when will the next recession hit?

  • 3 things investors need during times of volatility

    • buy discipline

    • sell discipline (with an asset allocation strategy)

    • investment philosophy and strategy

  • When you ask yourself are my investments doing the best they can; it is not in comparison to returns

  • Discussion of a conversation with a question from a client about selling their stock

  • Corrections are normal and corrections happen!!

  • Secular bull markets and cyclical bull market

    • secular = long term

    • cyclical = short term

  • Volatility is not bad, it is GOOD!

August 7, 2019

Episode 372

  • Chinese economy will continue to grow regardless of a pullback

  • Asset allocation is incredibly crucial for your volatility threshold

  • What kind of decisions can i make during this period of volatility that will allow me the most opportunity

  • Strategic cost averaging is a tool to use

  • Well diversified and asset allocated portfolio

  • Ultimate clarity gives the investor an opportunity to know what is happening at all times

  • Strategic cost averaging: the ability to strategically invest unequal dollar amounts into a business when you see an opportunity arise

    • examples of companies purchased using strategic cost averaging

  • Investing is about process

  • Recessions create buying opportunities

  • You make the most money in bear markets; you just don’t realize it at the time

August 6, 2019

Episode 371

  • Lowered interest rates

    • refinance?

    • might see more cuts, who knows!

  • Recessions come and go; but its what you do doing the recession that makes a difference

  • Should I pay off my mortgage? Should I have a mortgage?

    • if you refinance a mortgage and you pay the closing costs that is money out of your pocket

    • now you can bill the closing cost into your mortgage rate

    • utilization is incredibly important

  • Bonds are more volatile than stocks

July 31, 2019

Episode 370

  • Advisor Thursday

  • Sharing stories about clients mistakes

    • helping investors learn from other investors mistakes

    • tax penalties

  • Time value of money in terms of planning and what affect tax has on it long term

  • Process before progress!

July 25, 2019

Episode 369

July 23, 2019

Episode 368

July 17, 2019

Episode 367

  • Knowing what you own and why you own it is the key to success

  • This takes away the emotional bias of the investor

  • What is the difference between a suitability advisor and a fiduciary?

    • fiduciary: acting on behalf of someone else

      • is more than just an advisor

      • your interest must be put above theirs

    • broker world vs the fiduciary advisor world

      • one makes money selling products and one takes fees

    • dual registered advisors can recommend fee product or commission product

  • Trust comes with transparency and clarity

    • which then can lead to confidence in the process

July 11, 2019

Episode 366

Investor Sentiment

  • Financial crisis and ups and downs can happen at any time

  • Short term thinkers and gamblers are why the market goes up and down

  • Pullbacks are normal and the market can become overdue!


    • sentiment survey

      • bullish, bearish, neutral

    • great resource for do it your selfers

  • People are not euphoric in this market

    • things will continue to sneak higher with more cash on the side

  • What is the primary factor for why you choose a mutual fund or an ETF?

    • survey response:

      • 24% historical performance

      • 23% performance compared to an index

      • 21% fees and expenses

  • You pay more when you see the value!

  • In the absence of value thus becomes price

July 10, 2019

Episode 365

  • Best economic expansion in 10 years

    • longest economic expansion

    • the longest bull market on record in LENGTH not by total percentage of return

    1. energy independent

    2. technology continues to advance while investors are becoming smarter

    3. the dollar is in a great spot

    4. seeing expansions

  • How familiar are you with the holdings in your portfolio

  • There is a correlation between knowing what you own and why you know it AND your ability to stick to a process

July 9, 2019

Episode 364

July 2, 2019

Episode 363

  • Talking the clarity roadmap

  • Many advisors don’t know how to show the value they are providing in a quantitative way

  • Are you paying other peoples taxes and you’re not even realizing it?

  • Are your investments pooled?

    • mutual funds, ETF, etc

    • fund owns a lot of different positions, but you as an investor don’t own them directly

  • This causes a lack of flexibility and transparency

June 27, 2019

Episode 362

  • Active vs passive investing

  • Investopedia definitions

    • passive: when a fund manager tries to mimic a fund

    • active” tend to have “gig fews” and recent research has questioned their ability to outperform the market

      • an extremely skewed definition

  • Can you put a value on the “fees” you pay

  • Nepsis doesn’t use benchmarks or publish returns

  • Don’t buy historical returns

    • do you know how returns were achieved

    • Do you know how much risk?

  • Benchmarks

    • if you don’t know how a benchmark is structured you should not compare apples to orange

  • Investors are focused on the cheapest option

  • Parabolic move:

    • stock prices go through the roof

  • Many investors don’t do as well as they could

    • investors doing the best they can has nothing to do with returns

June 26, 2019

Episode 361

June 25, 2019

Episode 360

Talking new tax laws

  • Traditional IRA

    • allows you to save money for retirement

    • reduces taxable income

    • grows tax deferred

      • BUT the taxes are still there when you want the money

    • NOT tax free - directly

    • to manage how much income they are taking from their IRA they take it bit by bit to minimize cost

  • Inherited IRAs do not have bankruptcy exceptions

  • Beneficiaries in a trust are based on how the trust allocates the IRA


  • Taxed extremely quick

  • Easy to reach the top tax bracket

  • Leaving your IRA over to a trust can really backfire

Roth IRA

  • Money goes in and gets taxed right away, then grows tax free

  • Rather conversions can be a tool

Having an advisor is a critical component to understanding everything that is going on

June 20, 2019

Episode 359

June 18, 2019

Episode 358

  • Chuck Etzweiler on Radio

  • Talking interest rates

  • Significant pull back in the last quarter of 2018 that affected interest rates

  • All time high (3.23%) in october

    • went to 2.13%

    • looking at change in percentage that is insane

  • How does a bond appreciate?

    • it is like a teeter tatter

      • bond values go up and down based on the present of the bond

      • adjustments of the value of the bond are affected when it comes to interest rates in order to be competitive

  • Have to be VERY careful buying bonds right now

    • pretty risky buying bonds right now

  • Bonds can be more risky AND more volatile than stocks!

  • Strategies are changing to tend to peoples investing needs

  • What is the risk to someone if they own a bond that has a negative yield?

    • you’re buying a bond and you’re lending money, you’re actually going to get LESS back then you started with.

    • you’re paying someone for the bond

June 12, 2019