Blog and Podcast

Ep 52: Investing Vs. Speculating Part 1

Investing should be scientific and process-based. Speculating is more akin to gambling and lacking fundamental support. At extremes, it is easier to discern the two but can be shades of grey in between. Hear Kevin discuss the forward-looking nature of the stock market and times why it can make investing sense (not speculating) to look through bad economic news. Continue reading

Ep 51: Case Study: Retiring Before Age 60 & Before You Ever Thought You Would

Hear Kevin share a story of a client who retired in her late 50s. She was in a state of disbelief after her retirement plan showed she could retire in her 50s. The sheer thought of retiring was new and a bit scary.

Be sure to pay attention to the end to hear how things are going for her now four years retired and how she has defined phases and varied strategies to her retirement distribution planning. Continue reading

When Stocks Diverge From The Economy

Do you find it puzzling when a bleak economic report emerges from the press, only to be accompanied by a positive surge in the stock market? Or good news is reported and stocks sell-off?

If you said yes, you’re certainly not alone… Continue reading

Ep 50: What To Do When Your Spending Goals Change After You Retire

You cut the paycheck cord and enter retirement. Then a spending goal unexpectedly increases…significantly. You can’t simply continue to work longer, so what do you do?

Hear Kevin discuss real-life cases where clients had to provide financial support to their daughter going through a messy divorce and another situation where a client desired to buy a 2nd home. Though the situations were starkly different, the process to rework the retirement plan and evaluate tradeoffs was similar. Continue reading

Ep 49: Potential Inheritance: Include In Your Retirement Plan Or Not?

You live below your means and invest for your future … similar to your parents. Now your parents are getting older, and it seems fairly clear they’ll be leaving you an inheritance at some point. Meanwhile you’re still working. Should you include the potential inheritance in your retirement plan?

Banking on an expected inheritance for your retirement plan involves risk. Hear Kevin discuss real-life cases where it was appropriate and another where it was too risky. Continue reading

Why Big Tech Stocks Must Underperform

The combined market capitalization of the five largest stocks by market capitalization — Microsoft, Apple, Google, Amazon, and Facebook — reached 20% of the S&P 500 in 2020. This level of concentration has not been seen since the Technology Bubble in the late 1990s.

Yet, these businesses have proved so successful that there is no way to repeat what they have done. Continue reading

Ep 48: Why Big Tech Stocks Must Underperform

The five biggest tech stocks — Amazon, Apple, Facebook, Google, and Microsoft — are great businesses. They’ve been so successful over the last decade that they comprise about 20% of the total S&P 500 market capitalization — a level of concentration not seen since the late 1990s. They also command higher prices (valuation) than the market as a whole.

Listen to Kevin describe a simple thought experiment illustrating why it’s mathematically impossible for past to be prologue for these tech darlings. Eventually, the music will run out. Investors will again learn the lesson that price matters … just as they learned the same at the end of the Tech Bubble. Continue reading

Ep 47: Risks & Uncertainties in Pandemics & Retirement Planning

Interesting parallels can be seen in modeling retirement projections and the Coronavirus pandemic. Small changes to inputs — such as the rate of return or infection spread rates — can have magnified effects on outputs — such as ending wealth or total infections (and ultimately deaths), given similar exponential growth traits. Continue reading

Ep 46: Rebalancing Your Portfolio: Why, How & Complexities to Overcome

Control risk? Buy low and sell high? Higher returns? Who doesn’t all of these in their portfolio! And that’s what portfolio rebalancing can do. While rebalancing sounds simple in theory it quickly gets complex in practice. Hear Kevin describe rebalancing from the simple to complex. Continue reading

Ep 45: Retire Smarter Solution™

Suppose you have to have surgery. Does exploratory surgery sound good, or does a pre-determined surgical plan sound better? Having a plan and a repeatable process sounds less risky.

The same goes for retirement. Retirement spending. Health Insurance. Social Security. Investing. Taxes. These are all key and complex areas where you need to make smart decisions for retirement. Listen to Kevin describe True Wealth’s Retire Smarter Solution that aligns your money to your goals, overlaid with tax-smart strategies, so you can retire with confidence. Continue reading