Episode 189

In this episode, Mark talks about what should you do if you own a stock and the stock goes down by a large percentage (relative). He discusses the difference between yield and return, as well as weather vs investing - both can be unpredictable and both can change your mood and play with your emotions. A lot of people get paid to be right in both, and they will be wrong. Ask questions when things are uncomfortable or something doesn’t feel right. Buy and sell disciplines are vital and you have to take loss to offset gains. If your portfolio is growing and enabling you to reach your goals then your process is working.

May 2, 2017

Episode 188

In this episode, Mark talks about how “investing is a gambling process”. Most of the time commons stocks are subject to irrational and excessive price fluctuations. This causes most people to speculate and gambles give way to hope, fear and greed. He also talks about the responsibility of investing, which revolves around trust. You are either a fiduciary or the “prudent man” process. Investors have a right to know what they’re paying for when their money is put somewhere. You must have a sell discipline in place in order to reach your goals!

May 1, 2017

Episode 187

In this episode, Mark talks about how you should trust the process, don’t rush the process and don’t be unrealistic. Trying to figure out when to put your money to work is a fools game - if you’re going to invest you need to have flexibility. Do not base things off timing a stock, but time IN a stock. Investors ability to stick to the process will determine success. You are causing far more risk in trying to time when to get in or get out. Put money to work, rebalancing, don’t put money in cash. Buy things that are up and sell those that are down. Even after the correction is done you probably will be more successful in the long run.

April 27, 2017

Episode 186

In this episode, Mark asks when is the next stock market crash? There are always opportunities to invest in something and investors must make their spending habits drive their portfolio, as opposed to the other way around. He talks about the 5 biggest myths about the stock market:
1. “Investing in stocks is just like gambling” - Business owners will say they don’t want to invest in the market, I would rather invest in my business so I know where my money is going. What does it mean to buy stocks? A share is proof of ownership in a business.
2. "The stock market is an exclusive club for brokers and rich people”
3. Fallen angels will eventually come back up. Mark talks about market capitulation. Investors begin to quit, only to see the market bounce back
4. What does up must go down: volatility is mandatory when it comes to your ability to invest for success.
5. A little knowledge is better than knowing nothing: investors that do their homework are the ones who succeed

April 26, 2017

Episode 185

In this episode, Mark talks about how there's no one position to make or break your portfolio. It's important to have not only risk tolerance, but tolerance to volatility. Low volatility ETFs to reduce client risk. The allocation is not conducive to the investors risk tolerance, which means you’re tying to time the market. This is counterintuitive to the idea of asset allocation in regards to low volatility ETFs. Mark also talks about inverse ETFs. Success of investing requires you to have a strategy and appropriately diversified. Everyone talks about the strategy of getting out, but never about the strategy of getting in.

April 25, 2017

Episode 184

In this episode, Mark beta tests Facebook Live for his show and discusses how "nearly everyone is below average in their mutual funds" (Star Tribune). Mutual funds are a great tool for investors starting out. An appropriate allocation should include international and emerging market companies. He also talks about how the election going on in France has affected the market  - the S&P and DOW up over 1%. Indexes and fees are relative. Racing to the bottom on cost is a massive mistake. You’re investing money, the people you hire to manage the money are also an investment. Why are the indexes doing so well? The top 5 holdings make up 12% of the index! Time in an investment, not timing an investment.

April 24, 2017

Episode 183

In this episode, Mark talks about SMArt investing. Your money should stay your money and should be unique in its own way for your goals. In order to be successful every part needs to be working for the overall portfolio; if a part is missing that will hinder success. No individual security should make or break your portfolio. Balance risk vs reward. Investment for the long term is critical for investment success. From a diversification stand point, 20-40 positions is an adequately diversified portfolio. People often compare apples to oranges, but most people are not invested in only the S&P 500. So why would you compare your portfolio to it? The longer you own stocks the less risky they become

April 20, 2017

Episode 182

In this episode, Mark talks about volatility. You hate volatility, but you want a computer to make your decisions… but the computer is causing the volatility! He introduces SMArt investing! Where are the markets gonna go? It's fairly valued, maybe slightly over valued. Most of the time money managers invest in companies on future earnings potential, not current earnings. He talks about dollar cost averaging - a great example is your 401k contributions. As you’re buying more over time the value of the investment keeps going up. Compound interest is paramount to investment success. Investors are significantly underweight in emerging markets and international markets and have been extremely poor performers relative to the US.

April 19, 2017

Episode 181

In this episode, Mark talks about the four keys: a solid investment philosophy and strategy, flexibility in the process, transparency. He also talks about the Clarity Roadmap: investors believe their portfolio has to outperform an index every year - wrong! It's not a year over year thing. “Don’t go active, go passive because money managers under perform”. He also discusses the idea of being passive. Ultimate clarity should enhance your goals and success.

April 18, 2017

Episode 180

In this episode, Mark talks about taxes. When it comes to taxes: how much is too much, and how little is too little!? How can you save money on your taxes? He talks about how you don’t invest in stocks! you invest in businesses. Smart investors see stocks as businesses. Do you know why the markets crashed like they did? But don't worry, markets will rebound! worrying about the short term will not help anything.

April 17, 2017

Episode 179

Episode 178

In this episode, Mark talks about the behavioral aspects of financial planning. There are ongoing habits that help you be as successful as you are - make sure you stick to the knitting! Budgets are very fluid and everyone has different expenses, so you should set up a savings account or a separate bucket. The stuff you aren’t spending money on in certain months - put that money away into savings for when those expenses do come about. Maximize potential for reaching your goals. Mark also discusses asset allocation and diversification. The process is key to success.

April 11, 2017

Episode 177

In this episode, Mark asks what is important first - the investments or the planning? Initially investments drive planning, but what you want eventually is that to be the other way around. If my investments aren't doing the best they could be, what steps do I have to take to figure out how to get there? The reason investors are unsuccessful usually has to do with behavior. What is the outcome to you investing? Mark then discusses Tesla vs Ford. You must ask what your sell discipline will be if you’re going to be successful! He also talks about GARP: Growth At a Reasonable Price. Growth managers are willing to pay more for a company due to the growth of the company. Money managers are willing to pay more for growth but when does it become too much. 

April 5, 2017

Episode 176

In this episode, Mark talks about how tax and legal advice is not a check box process - there is an art to trying to save money on taxes. Robo-investing is all computer based and you aren’t dealing with an advisor you’re dealing with machines making the decisions. Selling a cost solution that costs you less and there's opaqueness of fees and what investors are paying drives investors to go with the low cost, no human interaction investing. Part of planning is a function of having human interaction. Investors do not trust the stock market and they think it's a gamble. The biggest risk is making sure you have the appropriate asset allocation strategy based on goals. 

April 4, 2017

Episode 175

In this episode, Mark tells a story about talking with woman from car dealership. She doesn’t trust the market and doesn’t trust people or financial advisors, but she has a substantial amount of money in cash. She thinks advisors have no transparency or flexibility. Is she on track to meet her goals for retirement? Mark continues the conversation with SMAs, which enhance your ability to be successful with your money and with your planning. Being a professional trader is a strategy, but it doesn’t make you an investor. You should have the mentality that no one position should make or break your portfolio. If you have something that is losing you money, you have to ask what are the consequences if you choose to get rid of that position for the portfolio as a whole.

April 3, 2017

Episode 174

In this episode, Mark talks about Roth contributions - money grows tax deferred! With compound interest your money grows faster when it is growing tax deferred. Compound interest is a powerful tool in investing. It is calculated the initial principle and accumulated interest over the different periods. He also talks about RMD: required minimum distribution. Starts with the year you reach 70.5 years of age. You can only fund a Roth IRA with cash. People are so focused on not paying taxes when they put their money into their account. He also talks about tax planning and strategies. 

March 21, 2017

Episode 173

In this episode, Mark talks about SMAsand taking control and influencing how your money is managed. Returns are a result of the right process and having your investments diversified in an appropriate manor the volatility will become less of an issue. He also talks about DirectTV and an AAII article about high frequency traders, concerns about ownership in mutual funds, emotional behavior impacting investors. Finally, he talks about SMA vs Mutual Fund. An SMA are a dedicated investment account, the investor owns individual securities, that are highly tax efficient and flexible. Mutual funds are personally managed investments that pools money from many investors to purchase securities and you do not own them directly. The biggest mistake investors make is looking back at performance and thinking it will reoccur in the future - don’t pay attention to the past! The second biggest mistake: considering returns in nominal dollars.

March 20, 2017

Episode 172

In this episode, Mark talks about flat markets, a market that doesn’t give growth. There still can be volatility and investors must understand when you make an investment the time horizon should not be for the next year. If you are investing in equities your time horizon should be 3 years to 5 years - in this time you want to be “pruning” the portfolio. Just because a money manager has a bad year, does not mean you fire them! The highest performing manager (risk adjusted return) under performed their stated benchmarks 50%. “You don’t pay me to hold cash, you pay me to know when to hold cash.”

March 16, 2017

Episode 171

In this episode, Mark talks about how the Feds raising rates was expected. Yahoo finance: “cut their outlook” and “become extremely bullish for next quarter”. The media and financial institutions have a propensity to provide data that is short term in nature. People will focus on generalities, not what is important to them. There's white noise in the market: it influences one's decisions on what they do with their money over short periods of time. As the internet has grown and the industry has changed, there is a host of “ingredients” going into the cake, because there are so many channels for news there are dangers. Investors get mixed messages and a lot of information that is not in their best interest. Getting back to the basics is important for investors and it's very hard for investors to be pragmatic.

March 15, 2017

Episode 170

In this episode, Mark talks about how the dynamics of investing are changing and how investors won’t make nearly as much money in bonds - it will take longer. Interest rates going up means the value of bonds is going down. This skews actual performance and risk adjusted return. Do not put 100% of money in your portfolio… but it's not about what country or sector you are invested in its being properly allocating assets. You’re either a growth or income investor. You can’t be both! He also talks about passive investing: maximize returns over long run; buying and holding. Avoid fees and drag on performance that happen from frequent trading. You can rely and trust your advisor but most of the time your advisor doesn’t know what you own or what your money manager is doing!

March 14, 2017