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Hey, what's up! It's episode 36 of Payne Points of Wealth. We've got a special guest for you today, Kenny Polcari. He's Managing Partner at Kace Capital Advisors, Chief Market Strategist at Slatestone Wealth, and Managing Director at Campfire Capital. Most importantly, he was one of the most famous stock exchange traders going back to the ‘80s and no one gives you a better tour of the New York Stock Exchange than Kenny! We're going to talk with him about what's going on with inflation, the economy, and investing. On the tipping point, we're going to talk about bonds. Bonds are going down. Do you own bond funds? We're going to let some sunlight in and tell you exactly what you should be doing with bonds. You will want to hear this episode if you are interested in... Is there more inflation coming than our Federal Reserve Chief is telling us? [1:40] Housing prices & interest rates [3:41] Ken’s thoughts on crypto [7:23] Why would we listen to a strategist? [12:26] The Tipping Point [15:32] How bonds work [17:18] The difference between an individual bond and a bond fund [18:19] Hidden Facts of Finance [22:16] Kenny Polcari’s thoughts on inflation Kenny and Ryan seem to agree that there's a lot more inflation coming our way than our Federal Reserve Chief is telling us.  Here are Kenny's thoughts on inflation right now "I've been saying it for a while and I've been writing about it my note and we've been talking about it on television, but you can feel it, right? If you live in this world, if you go out shopping, out to the stores, you can feel the price increases. You can see it. And so therefore I don't need the CPI or some government report telling me that there's no inflation when I go out there and I feel that there's plenty of inflation all around, right? I mean, everybody sees it. Everybody's talking about it but the government doesn't want to admit that we've got it. And so my sense is that it's building and it's building. And it's going to rear its ugly head. It's not going to be temporary and transitory the way that the fed keeps telling us it's going to be. I think we're going to see this spike in the next month or the month after. But then it's going to remain and that's going to change the whole story, the whole fed story, the CPI story, the inflation story, how hot is hot? Define hot? You and I can define it one way. The fed is going to define it a different way to fit their story, to fit their narrative. And that's going to be the part where I think the market's going to have a difficult time and investors are going to have to figure out what's the definition of hot to them. And then what's that mean to valuations?" This week on the tipping point: Bond Funds When you own bonds outright it's simple, you know who you're lending to, you know what they're going to pay you in interest to borrow your money, and you know the set date in the future that they're going to return your money. But when Wall Street packages these bonds into a bond fund it takes away the permanence and definition and that's the big problem with owning a bond fund. Not only does the permanency and definition go away but there's also the question of quality. A prime example is back in 2015, there were a lot of municipal bond funds that were being AAA-rated, meaning they're the highest possible credit rating, that still held Puerto Rican bonds and Puerto Rico defaulted on their debt, which means that the holders of those bonds lost their money. Bonds are good, bond funds...not so much. This week’s hidden facts of finance Exchange-traded funds took in a record $502 billion in investor cash last year. Traditional mutual funds on the other hand said goodbye to a record $289 billion. Exchange-traded funds are typically less expensive and more tax-efficient and as we say here at Payne Capital Management, any money saved in taxes and fees is just as green as money made in the market. Exchange-traded funds are new school and mutual funds are old school, you heard it here first.  Resources & People Mentioned See if you qualify for a complimentary financial review from the Paynes Connect with Kenny Polcari His website On Twitter  On Linkedin On YouTube Kenny Polcari Financial Services Executive | Business Commentator | Speaker | Industry Advocate As the founder and Managing Partner at Kace Capital Advisors and a CNBC Market Analyst - I have dedicated my career to helping my clients and their families achieve their financial goals in life. As Chief Market Strategist at Slatestone Wealth I have a range of investment strategy responsibilities including U.S. market and economic analysis and client engagement. I am also a contributor to TDAmeritrade Internal Network and a keynote speaker at many industry and retail events. A 38 year member of the New York Stock Exchange (NYSE) I bring over 30 years of executive management experience in institutional equities and wealth management, and twenty-five years of stewardship in industry advocacy. I am on the board of the National Organization of Investment Professionals (NOIP), and the Headstrong Project, a nonprofit providing free treatment to 9/11 combat veterans suffering from PTS. Regularly quoted in The Wall Street Journal, Kiplingers, MarketWatch, Thompson Reuters, TheStreet.com and others. 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

It's episode 35 of Payne Points of Wealth and we're going to talk about everything going on around the globe. People are spending, Americans love to spend, but so does the rest of the world. We're seeing people spending money everywhere. Inflation continues to kick in just like we told you. We're looking at economic growth at the end of the year that's going to blow your mind. So how do you play it? How do you position your portfolio? You've got Coinbase going public. Crypto is going crazy and so is the world! We're going to give you some common sense advice today. On the Tipping Point, we're going to talk about procrastination. How do you procrastinate when it comes to your finances? Well, we're going to call you out on it. We're going to tell you how to get on top of those finances, get yourself financially independent, and get on the right track! Join us! You will want to hear this episode if you are interested in... Spending like drunken sailors with Louis Vuitton bags! [1:25] Insane increases in real estate and lumber [4:21] Stocks own real assets [6:19] The Tipping Point [10:20] Procrastinating because it’s stressful and overwhelming [13:23] Taking the first steps [16:35] Hidden Facts of Finance [18:44] Equities and commodities as inflation hedges The idea is to have stocks that own real assets, right? So as the value of those underlying real assets go up in value, the stock goes up in value, business is booming. As they do more business, their earnings go up. As they make more money, they pay more dividends. That’s what a terrific hedge against inflation looks like.  Equities are the core holding as an inflation hedge, but then there are also commodities. We don't see anyone owning commodities right now, except for our clients. Also, look at real estate. Real estate is going up. You want to have real estate as a hedge in your portfolio. You don't want to have bond funds, but what I see people owning right now are long-dated bond funds—which are down 13-14% this year— and gold which is down 10%. What a horrible combination. The bottom line here is you want to own what we call productive assets.  This week on the tipping point: Overcoming procrastination The first step is just telling us the assets that you have. The reason we have a job is that most people don't want to do this by themselves. Then starting to look at what you spent. Then when you're armed with that data, the sky's the limit! Then we can play.  What if you can start looking at what-ifs. What if I retired a little bit early? What if I worked longer? What if I saved a little bit more? What impact does it have? And that's the fun part. There is a fun part to financial planning. That's the part where you get to play and dream. What if you get to dream a little bit and start looking at where you can be if you make some tweaks and adjustments to your portfolio and into your time horizons? That's the good stuff. That's the part that's fun for us too.  This week’s hidden facts of finance If you invested $1000 into the following investments on January 1st of this year, you'd have this much as of April 16th... Tesla, your thousand dollars would have turned into $1,012. GameStop, you'd have $9000. Bitcoin, your thousand would have turned into 2000. And if you'd had $1000 Dogecoin it would be worth $55,000! Man, we missed that investment. The one message you have when you have this type of return in three months is that it can go down just as fast as it went up. Most likely faster. 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

Welcome to episode 34 of Payne Points of Wealth. We're going to talk about the roaring ‘20s today! There is so much going on. The economy's revving up and earnings are going to heat up as we begin earning season. Wondering what you need to do with your portfolio? Taxes are probably going up and we're going to give you strategies. On the tipping point, we're going to talk about the fine print. The financial industry always has caveats with what they're trying to sell you. We're going to give you the buyer beware and show you exactly what to look for. We've got lots of fun, fascinating facts of finance today too. It’s gonna be another great show, don’t miss it!   You will want to hear this episode if you are interested in... The roaring ’20s are back! [1:09] The most dangerous words in investing [4:01] One theme over the last year [7:04] The Tipping Point [8:21] The annuity [8:50] The mutual fund [10:25] The real estate investment trust [12:33] Hidden Facts of Finance [16:42] It’s different this time...? If you weren't in the industry back in the ‘70s, then you haven't seen a bear market in bonds. That has consequences for investors because all these newbie advisors haven't seen what happens. They haven't seen the devastation caused when interest rates go up in those dreaded weapons of mass financial destruction, some people call bond funds.  One thing we've been putting out week after week is that inflation just keeps creeping in and one of the gauges that we love is the producer's price index. What the heck is that? Simply put it's what it costs companies to produce goods and that's going up... a lot. Companies are going to pass those costs on to us, the consumer, which causes inflation. That's what rising prices are all about.  The four most dangerous words in investing are "it's different this time".  Well, guess what? It is different this time! The GDP is going through the roof. It's the strongest US global economic recovery in almost 50 years. It's even longer than Bob’s been in the business. This recovery is going to be the best ever. We're seeing economic growth around the globe, unlike anything anybody who's listening to this right now, has seen since they've been investing. This week on the tipping point: Financial products aren’t bought, they’re sold When a financial product is sold it's like eating Chinese food. It tastes so good going down, but you feel so empty later. One big culprit is the annuity industry. You’ll never hear of anyone who went online and bought an annuity. It's always been sold to them and the person selling it doesn't do it for nothing. The commissions are astronomical on a lot of these products. Then you have another group of investments called mutual funds. They're not necessarily good or bad. It all comes down to whether or not they're appropriate. What could go wrong with a mutual fund? Well, one example, is if you have a manager of that fund that's trying to outperform their underlying index a lot of times they'll take a lot more risks than they need. Then end up getting less returns because they're trying to time the market as well as charging higher fees.  Lastly, we have non-traded REITs. Every time we see a non-traded REIT and ask the investor if they went out and found this to buy it the answer is always "Oh no, the guy who sold it to me told me said it was good." REIT stands for Real Estate Investment Trust. The crazy thing about these is they're sold because people feel like they're getting a "private real estate deal". On the flip side, you can buy a portfolio of REITs in an exchange-traded fund, which is 100% liquid meaning you can buy and sell it all day long. We’ve found that it's usually better than these private REITs where you can never get out of them. This week’s hidden facts of finance Warren Buffett's Berkshire Hathaway bought Coca-Cola stock in the late ’80s and the early ’90s. Today, those shares are projected to generate $672 million a year in annual dividend income. That is a 51% annual yield based on the original $1.3 billion it cost to buy the stock. On top of it all, today the stock is worth $21 billion in their portfolio. Goes to show that time passes and markets operate! Who wouldn't want a 51% yield? But to get it you have to be patient, be an investor, and own great companies that don't just pay a dividend, but also increase that dividend every year like Coke has for the last 60 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

What's up! It's episode 33 of Payne Points of Wealth and the economy right now is hot. Make no mistake, we've talked about it week after week and it's happening. Unemployment is coming down way faster than expected. Consumers are buying more goods than expected and supply chains are on fire!  Today we're going to talk about exactly what you need to be doing in your portfolio, what you need to anticipate, and what this means for the global economy? On our Tipping Point segment, we're going to talk about conflicts of interest. Believe it or not Wall Street is not working for you. We're going to dig into all the dirty little secrets on Wall Street and the financial services industry that you need to be aware of so that you can make better decisions with your finances. You will want to hear this episode if you are interested in... Everything is higher than expected! [1:18] The Market is a slave to earnings [3:59] A hot tip on Bitcoin [6:11] The Tipping Point [8:41] The cost of protection [10:48] Structured products are only beneficial for the entity that’s doing the structuring [14:18] Hidden Facts of Finance [18:12] Wall Street strategist’s estimates are driving record highs in the market The market is a slave to companies’ earnings and companies are going to make a lot of money over the next two years. As a result, you're seeing strategists on Wall Street increasing their estimates of how high those profits or earnings are going to be. Every time they do that it ratchets up the price in the market so we're seeing new highs every week. The S&P 500 reached over $4,000 for the first time in history and we're closing in on $34,000 on the Dow. It seems that right now the bet is not on the future of profits for these big disruptive tech companies like Spotify, Zoom, or Tesla. It's more on the companies that are profitable now, those old-school stocks like banks and oil. That's been the theme here on our show week after week. It's about profits. All about profits! When you start thinking about your portfolio and you think about being strategic you have to think about what has the most benefits and what the losers are. The losers are going to be all these companies that have no profits. This week on the tipping point: Conflicts of interest The financial services world is riddled with conflicts of interest. We worked for one of the largest firms on Wall Street and spent a good amount of time just protecting our clients from the firm. It’s one of the reasons we started our firm Payne Points of Wealth. Check out the episode today where we will discuss some of the situations where the financial services industry might not be working in your best interest.  The first red flag about the financial services industry is that our government has been trying to protect the consumer for a good 20 years now bypassing what they call the fiduciary rule. That's where the advisor or investment firm has to put YOU, the consumer, the investor, the client’s interest first. But guess what guys? They've been fighting it tooth and nail, they don't want to put your interests first. They want to make as much money as they can.  This week’s hidden facts of finance The real net public infrastructure investment has been cut by more than half since the early 2000s. The new proposed $2.3 trillion infrastructure plan is equal to all of the revenue generated by Apple over the past 18 years combined, including that from every iPhone, iPad, and iPod ever sold! That's a lot of stimulus into the economy. Just think if the federal government had gotten into the smartphone and tablet business 18 years ago we probably wouldn't have anything to worry about, but the problem is taxes will probably go up in the future because we have to pay for this infrastructure somehow. Eventually, taxes are coming, but also the economic boom. So you get two sides of the coin there. Resources & People Mentioned See if you qualify for a complimentary financial review from the Paynes Connect With Ryan, Bob, and Chris 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

It's episode 32 of Payne Points of Wealth, we’ve got the news in plain sight, you've seen the headlines, and we give you the real story. The real story is mean reversion! Investors are learning a "Payneful" lesson, a trend we identified on this show months ago, and that is technology stocks are starting to sell-off. You might be wondering what’s a mean reversion? How does it work? We're going to break it down for you and explain why it's so important to understand as you're building your investment portfolio.  On the tipping point, we're going to pinpoint the Payne points having the biggest impact on your wealth right now. Which are rules of thumb when it comes to financial planning. What rules of thumbs should you be using? Which ones should you disregard? We're going to tell you what kind of customized planning you should be doing right now, what you should be applying to your financial plan, and we've got lots of fascinating facts of finance.   You will want to hear this episode if you are interested in... No new eras in investing [1:24] Long term investors vs bubble makers [3:51] Two hard questions to ask yourself as an investor [5:31] The Tipping Point [9:12] The rule of 100 [9:39] The rule of 75% [10:36] 6 months savings rule [11:54] The rule of 5 [13:36] The 4% rule [15:45] The Payne Capital A to B rule [16:53] Hidden Facts of Finance [18:32] Two hard questions to ask yourself as an investor First. Are we too optimistic about some markets’ potential or an “addressable market”? Is mom going to go Venmo grandma or maybe pay with Crypto or is she still going to write a check out of her Bank of America account? Is Tesla going to be the only electric vehicle option in town? Are we being naive? Second. Is this newfound optimism already priced in? Look at a company like DocuSign, a super hot stock right now, it trades for 153 years worth of profits. So maybe that addressable market is already priced in the stock for decades to come. We don't know, but these are big possibilities. And we don't think investors are asking themselves those hard questions. This week on the tipping point: Rules of Thumb In this episode, we talk about some financial “Rules of Thumb” you’ve probably heard in your lifetime. The rule of 100. The rule of 75%. The 6 months savings rule. The rule of 5. The 4% rule. In the episode we chime in on each of these, so you should definitely go listen, and these are all pretty good rules, but when it comes to investing... rules are made to be broken.  The only rule you need to follow is the rule of A to B, and that's getting your family from your point A— where you are right now financially— to your goals...your dreams...to your point B! That's the Bob Payne rule. That's the Payne Capital Management rule. And that rule will help you to rule your life financially, forever.  This week’s hidden facts of finance 40% of companies successful enough to become publicly traded lost effectively all of their value over time. The Forbes 400 list of the richest people in America has roughly a 20% turnover per decade for causes other than death or transferring money to another family member. It just goes to prove that the numbers show it, that investing in individual stocks is not investing, it's speculation. Investing in the market and a diversified portfolio is the only way to go.  How lucky do you feel? Lucky enough to pick a company that not only stays in business but outperforms the index, or will you end up with a bunch of companies that go under? I don't know about you, but I don't speculate. I invest. Capitalism's messy. Anything that's incumbent today, whether it's Amazon, Facebook, or Google, is only a couple of steps away from creative destruction from some other force of the universe. So it's a great reminder that you can't stay complacent as an investor. Resources & People Mentioned See if you qualify for a complimentary financial review from the Paynes Connect With Ryan, Bob, and Chris 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

It's episode 31 of Payne Points of Wealth and the great reopening is upon us! If you think it's not, all you have to do is look at Miami right now. It's spring break. There are no rules! Everything's open and people are going crazy. You can almost imagine what the rest of the world is going to look like as we slowly recover and reopen throughout the rest of the year. Again, what the three of us have been talking about week after week is that the economy's going to boom. It's going to be red hot! It's coming.  We're going to address that on the show today. We’ll also touch on what's going on with the market and how to invest your money. We’ll bestow upon you some of our thoughts and wisdom about the markets, investing, and financial planning so that you can apply it on your own. You will want to hear this episode if you are interested in... Party in the city where the heat is on...Welcome to Miami [1:21] What does it mean when company executives sell their own stock? [5:54] Value stocks are the new growth stocks [9:20] The Tipping Point [11:45] Mortgages - pay it off or invest instead? [12:20] Individual bonds -vs- bond funds [13:53] Are annuities a rip-off? [17:36] Hidden Facts of Finance [21:19] Value stocks are the new growth stocks When you have inflation, when interest rates are going up, small does better than big, value does better than growth, and international does better than the US. Unfortunately, the majority of the portfolios we're reviewing— and we’re reviewing about 50 non-Payne Capital Management clients a month— are all positioned for last year. They're not built for what's happening right now. The irony is growth stocks are not where the growth is going to be. Because these old-school value companies that we talk about are where the opportunity is. An example of this is a company called Bloomin' Brands, which owns a lot of restaurant chains. Just a good old-fashioned business of restaurant chains. And Americans love to go out to eat! We know that their earnings are going to go up 80% over the next year. This isn't a technology company. They're cutting costs dramatically and when you cut a lot of expenses and all of a sudden your demand comes back, profits just go crazy. That's what the market's going to start seeking out, new growth that’s operating leverage. It's not new technology and innovation, that's already happened. This week on the tipping point: Our 2¢ Should you always pay off the mortgage as soon as you can? It may depend on which generation you ask. With home interest rates under 4% and portfolios average 5% or better, it makes more sense to pay the note and invest any additional cash you’re thinking of dropping on additional principal payments. However, to some of you, peace of mind is more valuable. Are individual bonds better than bond funds? We hate bond funds so the simple answer here is YES!! Listen to the segment to hear why. Are annuities a rip-off? An annuity is a financial product and most of the time it is loaded with heavy fees. You're basically putting yourself in a position to NOT win because every year you have all these institutions taking money and chipping away at your investment. Sometimes they can be appropriate but proceed with extreme caution and know what the fees are. This week’s hidden facts of finance The S&P 500 index has risen by an average of 36% during the nine periods since 1980 when 10-year yields have also moved higher. Kind of like today. Stock prices and bond yields tend to move in tandem because higher yields tend to be a sign of a growing economy. We're predicting a 6.5% GDP yield by the end of the year, that's probably happening right now. Higher yields and inflation are actually good for stocks. You don't want to sit in cash.  Resources & People Mentioned See if you qualify for a complimentary financial review from the Paynes Connect With Ryan, Bob, and Chris 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

What's up! It's episode 30 of Payne Points of Wealth! The economy is opening up at warp speed. We literally have had a hundred million COVID-19 vaccine doses administered as of the recording of this podcast. The economic data is looking better and better. We're seeing a huge rotation in the stock market— that we identified for you months ago.  The world is changing. The world is shifting. The world is opening up. We're going to talk about how you need to play that in your portfolio and what you need to be thinking about with regards to the economy. We're also going to cover what risks you may have in your portfolio and what risks you don't see that you have in your portfolio. We're also going to point out all the different risks that you need to avoid as the economy reopens and the world becomes a better place. You will want to hear this episode if you are interested in... What’s wrong with the economy [1:55] The Wall Street consensus [4:03] Inflation hedges [8:01] The Tipping Point [9:45] Are risk tolerance tests a good way to dictate risk in your portfolio? [11:33] More risk, more reward? [14:39] Hidden Facts of Finance [19:53] Is the uptick in inflation temporary?  There's this big belief on Wall Street that maybe this is just a short-term blip on the radar. Maybe, inflation’s not going to kick in. Maybe, interest rates aren't going to go higher. If that's the case, maybe you want to continue to own those tech stocks and bond funds.  But if the economy is going to run hot the second half of the year because the entire world's going to reopen— and they are sprinkling all of this money on the economy that we're going to spend— odds are we're going to see a lot of inflation going into the end of the year. Which speaks to owning old-school stocks and stocks that pay dividends. You know... stocks that benefit the most from the reopening of the economy. This week on the tipping point: Risk We get great insight into the psychology of investing and financial planning— given the 2000 families that we help manage their finances— and we think one of the most important components is risk. How do you view risk? What about risk in your portfolio or when it comes to reaching your goals? Unfortunately, most risk is only seen in hindsight. We want to talk about some of the questions that you need to be asking yourself when it comes to risk in your portfolio to make sure that you're on your path to financial independence. Believe it or not, of every portfolio ever reviewed or even looked at, 90% of the investors were taking way more risk than necessary to achieve their stated goals. This week’s hidden facts of finance As auto executives and investors buzz about the coming age of the electric car, many car dealers say they're struggling to square that enthusiasm with the actual reality. Last year battery-powered vehicles made up fewer than 2% of all US auto sales. When we watch the nightly news and they tell us that by 2035 everyone will be driving electric cars. Well, only 2% were sold this year. And I'll tell you who gets it is the Tesla executives. Because as people keep buying Tesla stock, the Tesla executives have been selling stock to the public while they think this is going to be the most amazing event in the next couple of years, why they selling their stock? It's a very good point. If I'm holding Tesla stock right now, I'd be concerned that the management's selling. Resources & People Mentioned See if you qualify for a complimentary financial review from the Paynes Connect With Ryan, Bob, and Chris 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

It's episode 29 of Payne Points of Wealth — tech is starting to dive and old-school stocks are starting to win. In the last week, we've seen the NASDAQ have a 10% correction while the Dow Jones Industrial Average— the old school index— hit an all-time record high. The economy’s reopening, old school -vs- new school, is this trend going to continue? We are also going to talk about what catalysts in your financial life are going to get you going to make sure that you're getting all your ducks in a row when it comes to all the financial things. It’s a great episode so go check it out! You will want to hear this episode if you are interested in... Come take a ride in Bob’s way back machine [2:51] Seeing risk in hindsight [6:19] The real opportunity is EVERYWHERE ELSE [8:44] The Tipping Point [10:21] The North Star of financial planning [12:45] Financial stress test [14:29] Hidden Facts of Finance [18:12] Valuations don't matter... until they do! Amazon, Google, Apple they're all just making money hand over fist. They're the stocks of the future. Or are they the stocks of last year? Either way, we're still going to order things off of Amazon. We're still going to be buying our Apple phones, our Apple watches, and our Apple brains. So how can these massive, big tech companies that are the crème de la crème in the US all of a sudden not be hot anymore? It makes no sense. Or does it? But valuations don't matter until they do.  You're investing in great companies, but is it also a great stock?  This week on the tipping point: URGENCY in financial planning Most of us, if we're honest with ourselves, find it very easy to procrastinate when it comes to our financial planning issues. We at Payne Capital Management know this better than anybody! Dealing with people and their finances is a very tricky thing. So in this episode, we will discuss some scenarios that might light a fire under your sense of urgency.  A lot of people think, “my goal is to make as much money as I can” but making money is NOT a goal. Why do you need to make money? What's the purpose of money? Understand what you're trying to accomplish and have your end game in mind. Do you want to have a lifetime of income that you cannot outlive? Do you want to have a big ol’ pile of go-to-hell money so that you don't have to work for the rest of your life? Are you taking more risks than necessary to achieve those goals? Are you taking enough? Check out the episode and we will help answer some of these questions! This week’s hidden facts of finance Despite the pandemic, the total number of billionaires around the world rose by 412 to a record of 3,228 billionaires. Overall, China added 259 billionaires to this list, more than the rest of the world combined. The richest 100,000 American families hold about 16 trillion. That's trillion with a ‘T’ in net assets. Rather than be jealous of these billionaires just celebrate your own success. The US household wealth is at an all-time record high! That means every one of you right now is worth more than you have ever been worth in your life. Resources & People Mentioned See if you qualify for a complimentary financial review from the Paynes Connect With Ryan, Bob, and Chris 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

It's episode 27 pain points of wealth. And the economy is about to run hot and tech is not. Technology shares have been wavering here as the market goes up and up and up every single week inflation's kicking in. Interest rates are going up. Oil prices are going up. Lots going on in the market. We're going to break it down for you today. We're going to talk about what we see in the future when it comes to the economy, the stock market, and how to invest your money. And we're going to talk about the financial services industry. Yes. There are lots of charlatans in our industry. I'm sure you're shocked. We're going to break down some of the warning signs or things to watch out for when you're getting advice from the financial services industry so you can make the best decisions about your money.   You will want to hear this episode if you are interested in... A voracious rally resulting in quickly recovering economy [1:12] Do you feel wealthy? [3:50] The biggest mistakes we are seeing right now [6:26] The Tipping Point [10:50] Financial advisors or glorified product salespeople? [11:41] What is a true fiduciary? [15:02] Hidden Facts of Finance [19:42] Overconcentration in large-cap US stocks One of the biggest mistakes that we see right now— and we look at probably 50 portfolios every month, we literally see every strategy out there— is an overconcentration in large-cap US stocks. Apple is a great company, Amazon's a great company, Facebook's a great company but they just had their day in the sun and last year they made so much money it's going to be hard to beat that moving forward. What you have to realize with your portfolio is that the market cares about whose earnings or whose profits are growing the fastest. And those stocks are probably not going to grow as fast anymore because it's the law of big numbers. They've already grown so much that you've got to start looking at where the profits are going to grow the fastest. And that's going to be in a lot of old-school stocks versus new school stocks. This week on the tipping point: Looking for red flags from advisors You would think that if someone was dishonest or they pulled the wool over somebody's eyes in the past, our industry would be smart enough to kick them out, but they don't. If you're wondering about your advisor, all you have to do is go to the FINRA site and look at the broker check. Something you should always look at when looking to work with a financial advisor is what their history looks like?  When it comes to financial planning and financial health and assessing that, it shouldn't be product-based, it should be what we call goal-based. The problem is a lot of our industry is still just looking to sell you something that you put in your portfolio. We talk about this a lot. You end up with what we call collection of investments. In this episode, we cover a lot of things to look for to know if you have someone looking out for your best interest as your fiduciary. Be sure to check it out. This week’s hidden facts of finance Clean power sources, such as wind and solar are projected to provide 39% of the US utility industries generating capacity versus 13% today. On the other hand, coal is forecasted to account for just 3% versus 19% of all energy generated from utilities. Well, who says you can't be both green and profitable. So utility traditional utilities are cheap right now, but they're also investing in things like green energy, thinking about the future. So if you can get them cheap, you can also be green. That's going to lead to better profit margins. I like the idea that you can buy old-school utilities here, and it's actually an alternative energy play as opposed to buying some of these alternative energy stocks, which have already been shot to the moon. Resources & People Mentioned See if you qualify for a complimentary financial review from the Paynes FINRA —> Broker Check 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

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 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

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 On Apple Podcasts, On Google Podcasts, On Spotify

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 isThe 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 ZONEWe 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 financeOnly 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 MentionedSee if you qualify for a complimentary financial review from the PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.com Follow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify

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 plansDoing 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 financeApple 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 PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.com Follow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify

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 wayThere 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 legislationThere 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 financeJapan 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 MentionedSee if you qualify for a complimentary financial review from the PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.com Follow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify

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 stayPeople 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 retirementYou 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 financeAn 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 MentionedSee if you qualify for a complimentary financial review from the PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.comFollow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify

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 placeInvesting 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 planThe 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 financeSince 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 MentionedSee if you qualify for a complimentary financial review from the PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.comFollow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify

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 LearnedStaying 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 financeAn 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 MentionedSee if you qualify for a complimentary financial review from the PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.comFollow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify

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 stuffersHere 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 financeAirbnb 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 MentionedSee if you qualify for a complimentary financial review from the PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.comFollow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify

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 financeThe 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 MentionedSee if you qualify for a complimentary financial review from the PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.comFollow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify

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 MarketWith 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 pointI 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 financeHistorically, 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 MentionedSee if you qualify for a complimentary financial review from the PaynesConnect With Ryan, Bob, and Chrishttp://PayneCM.comFollow on TwitterFollow on FacebookFollow on LinkedInSubscribe on YouTubeFollow on InstagramSubscribe to Payne Points of WealthOn Apple Podcasts, On Google Podcasts, On Spotify