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Payne Points of Wealth Podcast

Get rich slow Ep#154

By March 23, 2024No Comments

Why you should want to get rich slowly

Last week inflation was up, interest rates spiked, and the market seemed to shrug it off. But we have seen a bit of a rotation to other areas like financials. However, FOMO is still strong and the desire to chase the rally in tech stocks is alive and well. We talk about why buying high is not the best way to grow your wealth and instead, how getting rich slowly, as Warren Buffett once said, is a better long-term strategy.

Bull markets don’t let you in :50

We’ve seen a little bit of a rotation 1:20

..we're seeing a big bump up in financials like JP Morgan made an all time record high.

Bob Payne

People still want more tech and AI in their portfolio 1:35

Dichotomy between extreme risk and fear 2:35

..$6.2 trillion sitting in cash. That's a big dose of skepticism. And when you have skepticism the market's got a lot of room to climb that wall of worry..

Bob Payne

“Nobody wants to get rich slowly” – Warren Buffett 4:45

..the real money is made before the bull market..

Ryan Payne

..that's what investing's about.. investing for the next bull market, not chasing the current bull market..

Bob Payne

..people forget having a big downturn in your portfolio can be more detrimental than the upside can be great..

Courtney Garcia, CFP®

Getting crushed when markets go down is what kills your return 7:15

..you don't brag about your long investment in large-cap value stocks with a 2.5% dividend yield..

Bob Payne

Listen to or watch the full episode for more!

The Tipping Point

Organizing Your Finances

One of the biggest issues we deal with when helping people with their plan for financial independence is organizing their accounts which are often scattered in multiple places—401ks, IRAs, brokerage accounts, annuities, paperwork in a shoebox.. etc. In addition, part of that challenge is owning products like a mutual fund or ETF where you don’t know the underlying investments or if you’re overexposed in one sector or a few companies.

Know what you own and why you own it.

Bob Payne

..when you add all these things together, you are way overexposed to just a couple of companies than you might realize..

Courtney Garcia, CFP®

I get a lot that come in for the first time and say.. I've got a little money at Schwab ..a little money at Fidelity, I'm diversified, right?

Chris Payne

I think that's the big problem.. trying to do lots of different processes and have lots of different advisors, and you just end up with a hodgepodge of investments and a strategy that just doesn't work.

Ryan Payne

Hidden Facts of Finance

After the terrorist attacks of 9/11, the S&P 500 fell 12% but recovered its losses a month later. Looking back at market reactions to 25 of the most significant geopolitical crises since World War II, the S&P 500 dropped on average around 4% bottomed out in 15 days, and recovered in 33 days.

Looking at your portfolio in 2023, had you made an initial $100 investment in gold in 1972 it would be worth a whopping $3,194 today. That sounds great, but if you invested $100 in 1972 in the S&P 500 instead, that would be worth over $16,500 today. And lastly, gold, even today trading over $2,100 is still an inflation-adjusted price lower than it was in 1980. That’s 44 years ago.

In a report released this past week, the EAI says that the U.S. is now producing 13.3 million barrels a day, more than double the output from a decade ago in oil. And the United States produced more crude oil than any other nation for the past six years in a row.