Financial Planning Olympics, Ep #72

2022-02-23

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What's up! It's episode 72 of Payne Points of Wealth and we have the three R's right now, 'Russian', 'Repricing', and 'Rates', you’ll want to listen to hear what that’s all about. The market isn't going anywhere fast as it's trying to find its footing. We're going to give you our outlook for what we think is going on right now and how you should position your portfolio. On the Tipping Point today, I know you're not watching the Olympics—nobody's watching the Olympics, but we're gonna talk about the Financial Olympics to make sure that you can b...

You will want to hear this episode if you are interested in...

The 3 R’s [1:04]
Investors fear uncertainty [5:51]
The Tipping Point [9:26]
Inflation marathon [10:47]
Recession hurdles [11:29]
Hidden fee toss [13:21]
Portfolio balance beam [16:30]
Synchronized planning [18:54]
Hidden Facts of Finance [21:48]

Value trumps growth in the current market

Investors fear the uncertainty of what can happen in the future. They price in more of a pessimistic outlook and once that fear is realized, they say, "oh wait, that wasn't so bad. The economy's still booming. I'm still living my life. I'm still spending." So inflation is something that we're fearful of because it's skyrocketing right now. But remember the biggest cure for higher prices is higher prices.

The market isn't selling off. One specific market is selling off. It's those growth stocks and if you look at growth specifically right now, that's taking the brunt of any selling. Value stocks, any company that has pricing power in this new environment of higher prices where they can raise their prices and their customers are willing to pay those higher prices, their earnings look awesome!

This week on the tipping point: Financial Planning Olympics

Viewership for the Olympics is down big right now but I thought we could talk about something more exciting than the Winter Olympics and that's the Financial Planning Olympics and how we can equate the Olympics to some of the financial planning issues that we've come across in our firm. A lot of managing money or getting people to financial independence is similar to being in the Olympics.

When we think about the summer Olympics and running we think about the inflation marathon. That's the thing about inflation, it's like death by a thousand cuts. If you look at it historically every 20 years, your purchasing power is cut in half, every million dollars you have today is only worth half a million dollars over the next 20 years. That's very problematic when you're trying to be financially independent.

Another event in the Financial Olympics is the recession hurdles. It's those blocks that the economy puts in your way, on the way to making your free financial goals. Things like recessions, bear markets, hyperinflation, all those things can disrupt your portfolio if you're not properly invested.

Check out the episode to hear about some of the other Financial Planning Olympic events like Hidden fee toss, Portfolio balance beam, and Synchronized planning.

This week’s hidden facts of finance

Median housing price between 2006 and 2021
35% of the stock bought by Robin hood users are concentrated in 10 companies compared with at least 24% by retail investors
Queen’s greatest hits collection was so popular in the UK that one in every three British families now owns a copy
Prosecutors charged a New York couple with conspiring to launder proceeds of 119,000 Bitcoin valued at 4.5 billion

Resources & People Mentioned

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