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You’ve probably been taking a long hard look at your portfolio following the downturn in the market caused by Coronavirus. There have been ups and downs, a lot of volatility. But the bear market is when you get the best returns. So how do you adjust your financial strategy during this crisis to get the best results for your investments?

In today’s episode, Bob and I break down the critical questions you should be asking yourself to build a secure, long-term retirement plan. Given the uncertainty in the market and the economy, it’s more important than ever to have the right financial foundation. We talk about what you should expect in the upcoming recession.

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For our spotlight segment, we have my brother, Payne Capital Management’s Financial Advisor, Chris Payne. He tells us about diversifying the portfolio of a couple that was taking too much risk than they should have.

This is another awesome show for our listeners. You better tune in now to the No Payne, No Gain podcast!

 

Financial Propaganda of the Week

We’re still seeing volatility in the market, although less than last month. You read about so many things being reported left and right. But which ones have lessons that are important? Here are the things you need to know about:

[04:15] – The pension fund of the State of California is not properly funded. Back in 2008-2009, the state had to sell most of their Apple investments worth $300-400M then. Those would have been valued at $2B today.

[05:46] – You have to be responsible for yourself and figure out what you need to be able to spend and retire.

[06:33] – The lesson here is that you need to know what you own and why you want it.

Building a Secure, Long-term Retirement Plan

An in-depth look into your retirement plan is crucial right now. Do you know what are the questions you should be asking yourself as you build a more secure future?

[07:11] – A great rule of thumb to follow is never touch the principal. You want to live on the income. The first thing is to check the longevity of your income and make sure you have increasing income to account for the rising cost of living. Plan to live up to 90 years.

[08:26] – How do you establish a primary investment objective? Reverse engineer your goals and invest on purpose. 

[09:49] – The purpose of the industry is to sell you the products that make them the most money.

[10:12] – Have an all weather portfolio. Even with a lot of volatility, your high-quality bonds will still pay their income.

[11:17] – What are the trade-offs you need to do to reach those goals? Some level of risk is important because you need growth over inflation.

Setting Up the Right Financial Foundation

There’s a lot of bad advice going around. Given all the uncertainty, you need to be able to discern the things you should be doing. That’s exactly what we’re here to figure out.

[16:14] – There’s no excuse not to work on your finances. Whatever you’re planning, you need to know how much income you are going to need.

[17:20] – Don’t just look for the highest yield. Look at both the return on your money or the yield, and the return of your money. 

[18:36] – Financial planning is customized so you can find the right mix for you that considers the income stream you need, your risk appetite, and the cost of living. 

[19:37] – Adjust your strategy as time goes by. 

[20:13] – Make an investment plan that makes the decisions for you. Humans are bad when it comes to making decisions because we follow our emotions. 

[21:35] – You want a financial plan, not just a collection of investments.

The Mailbag

Got any questions about the economy or the market? We get a lot of investment-related questions coming in. We’ll be happy to answer them for you, simply send us an email at questions@bebullish.com.

[27:05] – Question #1: “Is this a good time to add money to the markets or should we wait for another pullback?”

[29:57] – Question #2: “I’m thinking about putting a large chunk of my savings into cruise ship companies. The ship will eventually sail again and then prices will go back up, right? I don’t have to get rich tomorrow. I’m willing to wait a few months.”

Spotlight Segment

Today, we have Financial Advisor of Payne Capital Management, my brother, Chris Payne. He tells us how she was able to increase the income of a couple by over $100,000 a year just by getting more conservative and truly diversified.

[38:09] – After running a couple through a comprehensive financial plan, we found out that they’ll have great pensions and security in retirement.

[39:42] – The couple was taking more risk than they needed to, and their portfolio was under diversified with most of their money concentrated in large cap U.S. stocks.

[40:28] – Chris was able to double the income they were going to get annually from their portfolio. 

[40:59] – The couple was cost-sensitive and was supposed to talk to an advisor. What they didn’t realize is that they were paying for a lot of internal costs.

Do you need a game plan for these volatile times? We’ll make sure you’re making the right decisions for your retirement plan. Schedule a call with one of us at https://paynecm.com/gameplan/.

“Reverse engineer, work backwards, and only take the risks you need. Why take more risk than necessary?”

-Bob Payne

To download 5 Ways to Maximize Your Retirement Accounts and Save on Taxes in 2020 and the Highlights from the new SECURE Act, text BULLISH to 555888.

If you have saved over $500,000 for retirement and need a plan based on your retirement goals, Bob and Ryan will create a 360 Financial Portal just for you! Text or call 844-752-6692 to check out the 360 Financial Portal with no strings attached!

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Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Payne Capital Management, LLC), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Payne Capital Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Payne Capital Management, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Payne Capital Management, LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request.