Communication is such an important thing. Countless books have been written about the subject yet we still struggle to communicate with one another. In the world of financial services, some miscommunication is unintended while some happens to be on purpose. It is hard to question the advice or the validity of an investment strategy when you cannot understand it. The real trick is to know when someone is struggling to communicate with you or if they are purposely trying to talk circles around you. The first is irritating and CAN cost you a lot of money, while the second WILL cost you a lot of money!
I spend some time on the program trying to translate financial speak into common sense. It is hard to translate but well worth it. The difference can mean thousands of extra dollars in your pocket instead of in the pocket of the person trying to sell you a product.
The Active Management/Passive Management Debate (Case Closed)
Later in the program, I provide the basic facts of how active management fails to deliver on its promise of beating the market. I still wonder why so many people believe in the Wall Street Santa Claus of superior performance when study after shows that the Grinch is alive and well in the canyons of Manhattan.
As always I hope you enjoy the show. – Gary
If you would like to contact Gary the best way is through email at email@example.com or you can try him at 916.436.8331.
Human Capital and Financial Capital Equals Life Cycle Investing
Unfortunately, too many people do not understand the interaction between human and financial capital. Human capital is the collective skills, knowledge, or other intangible assets that you possess in order to create economic value. A simpler way to understand human capital is your present and future earning power. Education is an investment in your human capital that pays off in terms of higher productivity.
Our economic life cycle is driven by a balance between our human and financial capital. Early in life we have a lot of future earnings power in the form of human capital. As we work, we have a choice; to either consume our present earnings or save for future needs. That balance between consumption and savings is one of the primary drivers of our economic life. Consumption is spending, while savings is the process of turning human capital into financial capital. That financial capital becomes our investments.
In this program, I discuss the general concepts of human and financial capital and how it is crucial to understand the big picture. Hope you enjoy the program.
Have a question for Gary or would like to contact him? You can reach Gary at firstname.lastname@example.org. Or you can try to call him at his office at 916.436.8331.
Stock Market Jitters… Stock Market Predictions 2016… What To Do?
The New Year has not been kind to financial markets. In the back of people’s minds I sense fear of another meltdown like 2007-2009. Unfortunately, no has that answer until after the fact. That is why it is so important to make sure your investments are aligned to your individual circumstances. Depending on someone to time the market or to pick individual securities only adds to the level of risk you face.
On the program this week, I cover the market downturn as well as the abysmal record of Wall Street and other financial professionals (United Kingdom and Australia) for predicting market returns.
Since it is the beginning of the year, I do provide you with a list of 10 forecasts that I feel very comfortable about. These forecasts provide you with some of the reasons why it is so hard for market prognosticators to provide any value.
Finally in the last segment, I remind people to focus on what they can control and not to worry or focus on what you cannot. In this segment, I give you a sneak peek at a project we have been working on for a while. We feel that Wall Street and its beat the market mantra has led so many people down the wrong path. Hopefully, soon, we can let you know about a completely different path that should provide investors a better chance at success.
Stock Market History: A Crash Course for Investors
About two years ago, our friends at Sensible Investing (from Birmingham, England) put together an eight-part series on the history of the stock market. It is an excellent piece of work, well worth anyone’s time even if they only have a passing interest in investments.
For those who are interested in finance, you might be surprised by what you find in this chronicle of financial history. The production is high quality and filled with great information.
I highly recommend the series for my listeners. – Gary Allen
Here is a link to the program by Robin Powell from Sensible Investing:
On the program this week, I preview a new educational presentation we have been working on for a while. The presentation covers ten important decisions that help investors target long-term wealth accumulation in the capital markets. While the presentation is not currently completed, the information seemed very timely as financial markets took another deep around the globe last week.
I have noticed an uptick of investor anxiety as we have seen more volatility in capital markets in recent months. The increase in tensions highlights the need for a prudent investment strategy that investors can utilize through good times and bad. A prudent strategy, conviction, discipline and a strong dose of confidence goes a long ways towards generating a positive investment experience.
In this program, I was able to cover nine of the ten major investment decisions needed to develop and implement a prudent investment strategy. However, I was not able to cover investment decision number ten this week. That will be covered at the beginning of my show next week.
When the presentation is completed, we will release it and make it available to everyone online. We are currently working on some of the illustrations and completing the voice tracks. So look for that release in the near future.
In the first segment of the program, I spend time chatting about taxes from a strategic perspective. Often investors are encouraged to think short-term about taxes instead of strategically. In many cases, tactical tax planning does not solve the underlying issues.
I hope you enjoy the show this week.
Remember to subscribe or follow my blog if you would like to receive updates about when new podcasts become available. Here are the materials from this week’s show.
Segment 1: Strategic versus tactical investment tax planning
Segments 2-4: Pursuing A Better Investment Experience
People are constantly looking for a better way to invest. There are countless books, magazine articles and many other forms of communications promising great returns, magical results and more. However, most if not all, of these get rich quick schemes fall far short of their promise. In this program, I spend the first segment providing my thoughts on what people should be doing to achieve a positive investment experience. This segment should give the average person a decent roadmap of what to do if you are tired of chasing the pot of gold at the end of the rainbow. This segment gives you a very good idea of the underlying philosophy behind how we manage money for our clients.
In the middle segments of the program, I review the list of money rules that financial writer Jonathan Clements of the Wall Street Journal created this year. It is for the most part an excellent list of things to consider to put your financial house in order. Finally, in the fourth segment with just a little time left, I give a brief review of the major themes that might dominate the Consumer Electronics Show (CES) in 2015. The world’s largest electronics and technology show is set to kick off on Tuesday of this week in Las Vegas.
I hope you enjoy this week’s show and thank you for listening. Hopefully each and every one of you will have a healthy and prosperous 2015!
In this segment, I spend time talking about three of the four guiding investment principles that people should use to get a handle on the big picture. Many people struggle with their investments and one cause might be the lack of bedrock principles to guide them through good markets and bad.
What does planting an olive tree have to do with investments? More than you might think! This segment ties in the process of planting an olive tree and building a solid set of investment principles to last a lifetime. In many cases, investment professionals and individual investors alike fail to focus on what they can control. Instead, they spend countless hours focusing and worrying about matters beyond their control.