More Knowledge, More Wealth - Episode 158: "Stock Market Volatility"

1. More Knowledge More Wealth-Stock Market Volatility-Oct 1[00:00:00]gabe:Good afternoon. This is Gabriel Shahin, certified financial.And President of Falcon Wealth Planning, your host of more knowledge, morewealth here on every weekend, talking about all important topics of personalfinance. My goal is to give you the knowledge you need to increase your wealthnow to the listener.[00:00:16]You can always reach out to myself for any one of our colleagueshere at Falcon Wealth Planning. Our phone number is (855) 963-2526. That's 85 5 96 Falcon like the Bird, or visit our website@falconwealthplanning.com.That's falcon wp.com for sure. We can help you. Doesn't matter where you are.All across the country.[00:00:40]We have offices all over. We'd love to help. Now I'm a principal ofFalcon Wealth Planning a fee only. Registeredinvestment advisory firm. Weare independent ria, and we do investment management as well, but we reallyspecialize in all important topics of personal finance with the specialty in taxplanning, but that talks about where you are today, how retirement looks like,talk about investments, insurances, estate planning, folks who name it, anythingthat involves a dollar sign we can help.[00:01:07]And it's very important to get an unbiased opinion. Of that, thatdoesn't get paid commissions. There's no products we offer. We are salary basedat Falcon Wealth Planning. This way, when the markets are up inside, down andall over the place, you don't have to worry about somebody trying to sell you anannuity right now.[00:01:25]You don't have to worry about somebody trying to tell you now isnot time to invest. You're gonna lose it all. You're gonna lose more. I mean,heck, markets are already down roughly 30%. Okay. I mean, so to think that thisis the time to sell and get out, I mean, folks, there are risks. Toinvesting andthere are rewards to investing everything in life.[00:01:47]There's risks and rewards. There's risks to getting married. Therecould be rewards to getting married. There are risks to having kids. There arerewards to having kids. And you can say this about anything, whether it's rentalproperty investments, starting a business, risks and rewards. What we know therisks of investing, it's losing money.

2. [00:02:06]Now it's time to stick around for the rewards because the marketshave dropped.Now, depending on how you're invested, if you're investing inneo stock or EV companies or companies that are losing money, maybe that'snot the best thing to stick around for. But what I'm saying is if you are investedin global diversified portfolio inmarkets, it could make a lot of sense to notonly.[00:02:31]not get out and put into cash, but to add more into the portfolio.Especially if you don't need the money, the markets have always come back.Okay, Now I understand. Past performance has no guarantee on future results. Iget that. I absolutely do. But you gotta understand, these companies are globalcompanies.[00:02:52]That's goal is to make money. And oh, by the way, are continuing to.Me and costs are going up, which means profits are even gonna be more andhigher. And you're hearing that where certain companies are still discussing andtalking about record profits. So I don't understand the notion of investing is badright now.[00:03:10]I can argue if you liked it six months to a year ago,you should loveit now. . This is the sad part of our, the bad side, the dark side of our industry.And the financial services industry always tries to scare you for two reasons.Number one, trying to get you into a product to push you and sell you and togetyou stuck and guaranteeing those losses.[00:03:34]Number two is they need you selling to drive the market down lowerso they can buy in because when you lose, you're guaranteeing somebody elseis. and to holding tight is always proved to be the rightthing to do because thesecond you think about selling and you know the world revolves around you,right?[00:03:54]You know what's gonna happen when you decide to sell. When youdecide to sell, the stock markets are gonna go rebounding right back up. Youknow how it goes. But the point is, is that when the market goes up and you'reon the sidelines, you're gonna say, Dang it, I missed it. I'm gonna wait for it tocome.[00:04:11]And this happens time and time again, and I'm gonna share with youresearchfrom The Hartford, The Hartford Funds. This is fantastic. And I havevalidating research from the University Chicago, the Booth School of Business.I'm gonna share with you guys, okay? So if you look at the past 30 years of

3. data, if you just missed the top 10 days of the past 30 years, which is about over10,000 days, okay?[00:04:36]If you miss just 10 of those days. You've missed out on half of thereturns in the whole stock market. Isn't that crazy to think you've missed out onhalf of the returns of the whole stock market? I'm just missing 10 days. Geez, Ifyou missed out on the 30 top days of the stock market over the past 30 years,you have missed out on 83% of the returns.[00:05:07]That's insane. You know what that means? Number one, you can'ttime market. Stop thinking you can. Oh yeah, I've received this. An analysis.I'm reading the Federal Reserve minutes. Some. You know what, Whoop doyou do? Because if that was the case, you would ha you would be a billionaire ifyou really knew and you're not.[00:05:26]And in the billionaire state, you can't, including Warren Buffet, thatthey consistently can't have the. Who's to say you can. By the way, folks, ifyou're just joining us, you're listening to givers machine, certified financialplanner, andyour host, a more knowledge, more wealthier on every weekend,talking about all important topics of personal finance and say, we're talkingabout this stock market that seems to be going crazy right now.[00:05:46]We're right back at the lowest part wherewe have been for the yearand for what? Inflation numbers. Nothing has changed. Talks of recession.Heck, we've already had two quarters of negative gdp. . No new news is comingout, and yet people are freaking out. Now, I'm not freaking out. We're on a firmwhere we're advising on billions of dollars and managing half a billion dollars.[00:06:11]I mean, this is not a time for we're freaking out. We're buying andtalking to my colleagues that also vantage billions of dollars. They're notfreaking out. They're buying. I don't understand. Who's selling? Are youselling? Think about this. Are your 401k in cash? That answer is probably not.So what are we really talking about here?[00:06:34]We're talking about this is the time where you have to be during,when people are bearish. You have to be bullish. Look at the positive, addingnew money in. Whether it's rebalancing your portfolio from selling bonds, I'mbuying stocks. Buying in now will secure you whenever the market comes backto where it was.[00:06:53]Will secure you to make. . I don't know when that's gonna be.Whether it's in three weeks from now, three months from now, or three years

4. from now. All I can tell you is if you like the stock market before, you shouldlike it even more now on sale, right? It's the only sale people complain about.And when you look at, if you would've missed the top 10% and a stock marketaverages 10% return, if you missed the top 10% of the days, the.[00:07:22]Performing days, your return would drop to 3.6%. Okay? If you lostand missed out on the top 10% of the trading days of a year in the past 30 years,you would've made a 3.6% return. Now, if you missed the top 25% of thetrading days, top 25%. Then you would actually be down almost 5% down 4.6.What's the point?[00:07:57]Stop trying to tying this market. Stop. Try, because you know whathappens if you look at all the top days in the market, it comes after a bad day inthe market. So we're having bad days, folks. This is why it could be a perfecttime for you to invest. Stop listening to these foes out here, Wall Street thatwants you to lose.[00:08:19]And the only way you could do that is by securing that loss and byselling. Listen, you have real estate property. Your real estate has dropped.Whether you know itor not, you dropped it, but did you really lose If you'reholding the house, right? You bought it for 500,000. Now it's worth four 60, notincluding co uh, commissions.[00:08:37]If you sell the house, that's when you lose. But if you hold onto thehouse, you don't lose. You still have the house. It's the same thing with yourmoney. I know The problem is you look at your statements in the online and itshows it's dropped, but you're still holding the shares just like you're stillholding the house.[00:08:56]Nothing has changed with that, so stop overacting. You need to startunderstanding that what's going on. Is it very normal in the business cycle?What goes up must come down. What goes down doesn't stay down forever. Italso goes up. It's like a yoyo,and as one of my colleagues here says, When doesall the fancy tricks happen in the yoyo?[00:09:22]On the way down, on the down is when all the fancy tricks arehappening. That's where you have to be proactive. That's when you need to bestrategic, andthat's when you need to be discipl. This is not the time to freakout. Let's just say it drops another five to 10%. Let's just say you had a milliondollars, and that million dollars is now worth 800,000.

5. [00:09:45]Let's just say it drops another 10% andyour 800,000 is now worth$720,000. That's what happens if it drops another 10%. Okay? And if you buy. ,let's just say added more money to the account, which a lot of you are doing inyour 401ks already. When the market goes back to where it was, you willhavemore money.[00:10:10]This is why dollar cost averaging, when you look at the average costper share, it's lower than the average price per. The average is always lower.This is why you wanna make sure that you take advantage of what's happeningright now and do not freak out and do not be convinced to sell right now and togo into something safe like a cd.[00:10:35]Do not be convinced to go into even these compelling treasury ratesone to two year treasuries. I paying four. very compelling. This is the time youhave to act and this is the time you have to be proactive and not acting to selland go buy an annuity, which I know is being sold to you. Happens time andtime again.[00:10:55]I'm gonna talk to you about, we're gonna take a break here in a littlebit about what people are trying to scare you and pitch you of today, and if youneed help with that, if that'ssomething that you wanna make sure to get asecond opinion of. Who's completely unbiased or don't get paid. If you buy it ordon't buy it, give us a call.[00:11:12]We can help. Doesn't matter where you are. We help all across thecountry. Our phone number is eight five. 9 6 3 25 26. That's 8 5 5 96 Falcon likethe Bird. We can help put a personal assessment that can help relate this show toyour specific situation.But hang tight. We're gonna talk to you about the pitchesthat you're gonna be getting coming up here on all the nonsense of people tryingto take advantage of you, cuz this is when scamming is at its highest.[00:11:41]We'll be right back after a few words.[00:11:44]Welcome back folks. This is Gabriel Shahin, certified financialplanner and your host of More Knowledge, More Wealth here on everyweekend, talking about all important topics of personal finance. And todaywe're talking about this crazy stockmarket and we're talking about how youshouldn't freak out if nothing else, you should look at the positive of this.[00:12:01]Buy something that's on sale and hopefully you're globallydiversified. You don't have individual stock because those things can go to zero.A great company today. Like Gen or, uh, whatever it is, Amazon, Apple, or

6. whatever, is only as good as what the future holds for them. General Electric, 20years ago was the company in the world and look at Enron.[00:12:23]It was ranked byFortune Magazine, 19 99, 1 of the top companies inAmerica. And now look, they're outta business. And GE has just disintegrateditself due to complacency. And what's my point to you is that if you stay in theindex model and globally diversified, you don'thave to worry about thatbecause as long as you believe in capitalism and markets will continue to arise.[00:12:46]And right now we're at the. Bottom end of a recession. I shouldn'tsay bottom end cuz I don't know when the bottom is. All I'm trying to tell you isthis is where you don't freak out because as long as you are able to continue toput money away or can hold onto it and do not need it for the next two to threeyears, you will come out ahead.[00:13:04]I assure you, based on when you compare it to what happened in2008 to today, it's logical for it to. But what the reason I'm talking to you guystoday is I wanna make sure you're not being sold this junk that I'm seeing onlate night and commercials on internet, on emails, and all the stuff that's comingthrough on radio shows.[00:13:25]You name it folks, you have to be careful of what's out there. So Iwant to spend some time to talk about that. By the way, you can always reachout to one of our colleagues for help with this, folks, whether you're a client ornot a. We're more than happy to help. Beware. Don't buy these things and if youfell for a scam before, your information is being sold to other scammers, so youhave to be on high alert and trust in somebody.[00:13:50]When you need help,give us a call. We'd love to be that trustedpartner. Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like theBird, or visit ourwebsite@falconwealthplanning.com.That's Falcon WP dot.For short. Okay, so I'm gonna spend some time right now talking about thethings that are being sold to you right now of what you need to be aware of.[00:14:18]And so one of the biggest scams that are out there right now isselling you overpriced gold. Trying to tell you that the market and US economyand the dollars. Deflated to nothing and that your money is gonna be worthlessunless you buy gold or silver, which is an absolute ridiculous host. If you lookat how much money that was printed and what inflation is.[00:14:41]Could argue that gold should be going up, but no gold prices areactually down. They're at 1600 an ounce. They fluctuate up and down as I'm

7. speaking, and silver prices are at 18 bucks. Folks, it doesn't work that way. Youshouldn't be putting your money in something. That's number one. You can't usethat right now.[00:15:01]If you go to local grocery store or gas station, you can't use. . It's aploy to have you buy something and put your money in something that isunusable, and I see it time after time, after time. So be on the lookout forthat.Folks, it's very important. Okay, so that's number one. Number two is re's realestate investment Trust.[00:15:24]Still trying to sell you on re uh, properties is still one of the biggestparts where people are trying to put their money. They're trying to sell you onsecure income. A lot of these properties are dures. A lot of these properties,they're selling you on the tenant. They're not selling you on the property itself.[00:15:40]The tenant moves. That property is not worth as much as simpleasthat. And I've heard the craziest of stories of this cannabis company to thesecompanies that do electric vehicles, to companies that do some crazy things andtechnology. And guess what? They go belly up and arguably they never evenhad that tenant tobegin with.[00:15:59]So beware of those at times like this, as all that stuff comes outta thewoodwork because you're losing your money in the most competent investmentthat there is, the most liquid investment that there. You can't liquidate real estatein 10 days. If so, you're not gonna get what you want for it. You can't liquidategold.[00:16:17]Where are you gonna go? You're gonna go a local paw shop. Goodluck with that. You're gonna go where? To your downtown. You're gonna lose10 to 15% commission. You have to shop it. You have to take your time. . Soyou have to be careful of these things. Another thing people say times like, thisis first trustees.[00:16:34]Oh, you could take first position on a home. I've seen people takemultiple positionson the same home. They've lended out a million dollars on aproperty that's worth two 50. That's number one. And number two. Now, let'ssay you do an actual first trust, First trustee. It's in the middle of nowhere andyou have to sell the property.[00:16:50]Now you're the bank. You have to have victim kick him out and nowwhat? You own a property that was. 500,000 that's now worth 300,000 and yourfirst trustee is 300,000. Now you're sitting on a property with carry costs on it,

8. such as property tax andshelf, so on. Folks, that's annoying. And a lot of theseare not, uh, adequate long term as well.[00:17:13]Because of the e-liquid nature and the high tax costs of that holding.By the way, folks, if you're just joining us, you're listening to Gabriel Shahin, shecertified financial planner, and you're host of more knowledge, more wealthhere and every weekend talking about all important topics of personal finance.[00:17:27]And today we're talking about the alternatives that are being pitchedto you and sold to you right now. And you have to be on the lookout and youdon't wanna put all your money in one. Okay. It's important to diversify, butsome of the things that are being sold to like these non-public de traded res realestate investment trust, like this gold, silver nonsense that's gotten down, eventhough inflation has gone up, makes no sense.[00:17:48]And first trustees folks, all this is smokey mirrors. Nothing hasoutperformed the stock market. Over and it has the same time history on that aswell. Now, the other thing is insurance products. These are sold to you as well.This is one of the last ones. I'll talk about annuities. And then I'm seeing peopleinvest in life insurance policies.[00:18:10]What the heck is that about? They're putting their money in thisindex, universal life, saying they can't lose money and they can only makemoney and they're, and they put their money and they get these illustrationsshowing there's no. Their first few years, they put in 50,000. A year after yeartwo. Theyonly have like 30,000 to their name.[00:18:28]Why? Cuz the rest went to commissions. It's crazy how some peopleare falling for this. It's frankly sad. This is why you need the second opinion.Don't get advice from the person that only gets paid if you buy the insuranceproduct or the annuity. They have these index, fixed index annuities as well.They have limited.[00:18:48]an unlimited downside. What did I just tell you? Let me read it. Inthe past 30 years, if you missed the top 10 days in the stock market, you gave uphalf of the overall returns the stock market gave. If you missed the top 30 daysin the stock market over the past 30 years, you gave up 83% of all your returns.[00:19:07]So why would you limit your upside on a monthly basis? A lot ofthereturns come into month, by the way, why would you limit it on a monthlybasis? To one to 1.5%, which a lot of these in fixed index annuities do makes no

9. sense to me. But people are doing it left and right and being sold at left and rightcuz they havethis pitch that says it's guaranteed you can't lose.[00:19:31]But Yeah. But you know what, you guarantee yourself to getyourself stuck into something that's five to as long as it's 20 years before youcan get. It all for what? A cash equivalent product. That's probably lucky to payyou two to 3% over time. Think about it like this. In the month of March of2020, the stock market dropped 30%.[00:19:50]It doesn't matter. Every single month after that made one point halfpercent the negative 30% and onemonth wiped out all your returns for the restof the year. And guess what? 2020 was up almost 20% that year. So don't freakout. About it. And if you are a war reward, if you are somebody who freak out,if you somebody who's become cynical, if you're somebody who's just notpositive on the outlook, you need to hire a professional.[00:20:15]You do cuz you're too emotionally vested to this. And I heavilyrecommend that you take control of your finances. And by taking control, thatmeans delegated out to a trusted party, not somebody who's commission basedtrying to sell you product. Look fora fee only non-commissioned true fiduciarywho 100% of the time has their best interest at.[00:20:33]I hear you. Some people saying, Yeah, well I'm a fiduciary and Iunderstand if I sell you a insurance product one time that I'm not wearing thehat, butI would never sell you something that's not in your best interest. Like,give me a break, then why offer it? Why are they selling you such a heavycommission?[00:20:48]And if they're so nice, why not get you a charitable gift annuity that,oh, by the way, pays. On a monthly basis upfront write off, which means youget money back in taxes, which means your initial investment is less and yourmonthly payouts have a pro rat tax-free benefit. So don't gimme that nonsense.If you really wanna do what's in their best interest, you would go get acharitable gift annuity.[00:21:10]That's better in every aspect there is payout, front end, write off andhigh, uh, ongoing, uh, write offs on the. . It's nonsense. People believe in thisstuff. It's sad, and I don't blame you, but they're looking you in their eye with allsincerity, shaking your hand and saying, We're doing what's in your bestinterest.

10. [00:21:30]Some of them even doing prayers and bringing religion into it, it'sdespicable if you ask me. Get a secondopinion. Who doesn't get paid anycommissions? I'm not trying to say Falcon Wealth is not a for profit company.We are for profit, don't get me wrong. We just get profit sharing at the end ofthe year.[00:21:47]There's no products. We sell, We sell brain, we charge hourly. Okay?We charge a percentage of assets, not what we buy and sell for our clients. Ourgoal is to make our clients the most. , but if you need help identifying whatyou've had and what you've been sold, and more importantly, what you can dogoing forward, it is not too late.[00:22:04]Now is the best time because it was protecting you for losing moneyand the market's already lost. This is the time to do it. There is no time to wait.Now is because you could buy in while the markets are low. Don't be fooled bysaying, and people tricking you and trying to tell you that you're gonna losemore.[00:22:21]Says who. Made money in 2021, made money and even in 2020,made money in 2019. Yeah, 2018 lost, made money in 2017. 16, 15, 14, 13, 12,11. Ten nine. 2009. Like give me a break, guys. Trying to tell me that can't,You're gonna lose, Well lose like for what period of time? It's ridiculous. Don'twant to hear. If you need help, give us a.[00:22:48]We are able to help and not trick you into doing something thatcould be disastrous. Our phone number is (855) 963-2526. That's 8 5 5 96.Falcon like the bird, by the way, folks, that was a fast fashion show. I want tothank you for tuning in with us this weekend. Feel free to reach out to myselffor one of our colleagues at Falcon Wealth Planning.[00:23:09]Our phone number is (855) 963-2526. That's 8 5 5. 96 Falcon likethe bird. We'll be happy to help relate this show to your specific situation. Iwant you to enjoy your week. Have a great weekend and God bless.

More Knowledge More Wea… Volatility - Oct 1.docx