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.
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