What's up? It's episode 99 of Payne Points of Wealth and there is no good news. Inflation is not coming down as quickly as expected. The FED continues to talk tough and interest rates are skyrocketing. There is a threat of nuclear war in Eastern Europe. As usual, we're going to break it down for you today and talk about our views on where everything is going. Are we going to have this huge recession that we're hearing about week after week? On the Tipping Point today we're going to talk about roulette, chess, and poker and what they have to do with your financial life. Go have a listen!
You will want to hear this episode if you are interested in...The only thing going up this year has been inflation and short-term money market yields. As financial advisors and planners, we're in a position where we have portfolios that we can actually sink our teeth into.
You have forward earnings at about 16 times, which means stocks are valued where they are in the average PE ratio. You have bond yields that are significant, where there’s a decent return in our intermediate bond portfolio and there's great opportunity. We were more concerned in January when we saw interest rates at zero than we are today. Now we know we can generate the income, generate the total return, that we need to help all of our clients overcome unexpected inflation and taxes to achieve their financial goals.
We don't wanna have a portfolio that's cool. We want to have a portfolio that's like the revenge of the nerds, and that is the kind of market we have now! Yes, having bonds that come due, how boring. I love it! Having dividend stocks that increase their dividend every year. How boring. I love it! That's where we have to be. The key is you have to take action. If you have losses, do some tax swaps because you want to put money in the loss bank. We are taught as children to put money in the piggy bank, put some money in the loss bank, there will be gains in the future.
This week on the tipping point: Chess, poker, or roulette?Today we compare some different strategies that we see deployed in the financial world to chess, poker, and roulette. Rollette is basically luck and how the dice roll. If it's chess, it's a real strategy. And poker we'd say is both a little bit of luck and a little bit of strategy.
The first strategy that we see deployed a lot in our industry is market timing. Another strategy that we see is deciding how much money to convert from an IRA to a Roth IRA where the money is tax-free for the rest of your life. The other one that comes up, especially when we're doing our annual reviews, is deciding on when to retire. What's the date in the future that you're going to definitively say, okay, I'm done, I'm going to live off my portfolio. The last strategy we compare is going to be picking stocks. Which of these strategies is comparable to which game? Check out the episode to find out!
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Three Forces That Determine Everything, Ep 41
Beware of the Shiny Brochure, Ep #40
From Common Questions to The Right Questions?, Ep #39
The Last 10 Years Aren’t Going To Look Like The Next 10 Years, Ep #38
Simplicity Over Complexity, Ep #37
Inflation, Bonds, & Bitcoin with Kenny Polcari, Ep #36
Calling All Financial Procrastinators! This Show is for YOU!, Ep #35
Financial Products Don’t Sell Themselves And Those Who Sell Them Don’t Do It For Free, Ep #34
Some Like It HOT...We Prefer Profitable!, Ep #33
Learning a Payneful lesson, there are no new eras in investing, Ep #32
Are You Positioned For Last Year or is Your Portfolio Thinking Ahead?, Ep #31
Questions To Ask Yourself When It Comes To Risk In Your Portfolio, Ep #30
The Urgency Of Financial Planning, Ep #29
Do You Have A Fiduciary Acting In Your Best Interest?, Ep #28
The Most Important Age to Focus on Your Financial Plan is...RIGHT NOW!, Ep #27
Ironic Things When It Comes To Investing, Ep 26
Positioning Today For Tomorrow & Preparing For The Red Zone, Ep #25
It’s Easy To Go Up, When You’re Already Down, Ep #24
Mounds of Money and Mounds of Speculation, Ep #23
A year into a pandemic and how it’s impacting your future?, Ep #22
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