Payne Points of Wealth Podcast

Do You Have A Fiduciary Acting In Your Best Interest? Ep#28

By March 10, 2021No Comments

It’s episode 28 of Payne 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

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