Ep. 184: Reviewing Quarter One of 2023 - More Knowledge, More Wealth

  📍 Good day. This is Gabriel Shane, certified financial planner and your host of More Knowledge, more Wealth here on every weekend, talking about all important talks of personal finance. My goal is to give you the knowledge you need to increase your wealth, not to the listener. You can always reach out to myself or any one of our colleagues here at Falcon Wealth Planning.

Our phone number is eight five five nine six. 25

 26. That's 8 5 5 96. Falcon like the bird, or visit our website@falconwealthplanning.com. That's falcon wp.com. Very short. Now, you can always reach out to us or any one of our colleagues who would love to help relate this show to your specific situation.

Now, I'm the president of Falcon Wealth Planning. We are a fee only non-commissioned, true fiduciary folks. We're a registered investment advisory firm folks, and we help you with all important aspects of personal finance. That's where you are today, how retirement looks like, investments, taxes, estate planning, insurance, investments.

You name anything that involves a dollar sign, we can help you with folks. We are offering a free financial assessment. We would love to help answer those questions and it doesn't matter where you are. We got offices all over. We, uh, service multiple states across the country. Folks, we would love to help, we're offering one to two meetings, one to two hours of our time at.

Cost folks, our phone number is (855) 963-2526. That's 8 5 5 96. Falcon like the Bird. And we are excited to talk to you today cuz there's always a lot to discuss. You know, q3, uh, excuse me, Q1 just ended. So that ended on the third month of the co, uh, this past year, which was in March. And it. Important to go over what?

Just the summary of what happened because 2022 was crab. I mean, you have the tech world dropping 30, 40% as an index. The NASDAQ fell significantly and you had multiple name brand companies losing 70, 80, 90% of its value that historically did great in 2020 and 2021 during the whole COVID crash. So now what happened, part of earlier conversations I had is beware in a rising interest rate environment, what happens to tech?

Well guess. What happened in Q1 of this year is our fed chair says, Hey, there was economic signs of improvement. They didn't raise rates, so what did everybody do? The tech world got excited q1. From January to March of this year, the NASDAQ went up 16%. In addition to that, bonds went up 3%. How crazy is that?

We're talking about how those are. Crappy investments coming up here. And sure enough, it did well in q1. What the heck does this tell you? Nothing makes sense. What you should do. So the thing is this folks, nobody knows what's gonna happen. It's extremely important for you to stay disciplined. Stay diversified.

Did I tell you to sell it? Did I tell you to get out of it? Maybe in hindsight, yeah, but that doesn't mean anything for the. So this is crazy part about investing. When you think you got it figured out. When the writing's on the wall, when the feds say they're gonna raise rates, which, oh by the way, they have raised rates still this year.

They raised it instead of 50 basis points, 25 basis points. But they still said, or Fed Share, just said they're gonna continue with the rate increases, especially if signs are still looking strong. This is the crazy part of the industry at our space folks, is people don't know what to. And you can't start thinking you know what's gonna happen.

Just last week I was talking about the craziness that's happening and some of the countries out there wanting to trade in their dollars versus the petro dollars, which is backed by the usa. I mean, this is important because it doesn't mean you go out and buy international cuz you think now they're gonna go amazing or buy China cuz you're gonna think they're gonna be the next world dominant, uh, superpower.

I mean, folks. Just calm down. Since when was everything binary, like you have to be all in or all out? I'm gonna sell everything in my gold, like gimme a break. Commodities, year to date is one of the worst performing asset classes. Like, like just everybody take a breath. Everybody just calm. Down. I see it often.

I mean, you got over the past 14 years, you have commodities that are down in the bottom 20%. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11 times, including this year since 2008. I mean, geez, guys, just, just calm down. I, the overreaction is insane and it's not just in investments. We are so emotionally high strung these days and the whole high strung could be something what you see, what's happening with the president.

Of course that upsets you, but just calm down, stop getting so high strung about it. You get high strung about what's going on and just the normal news, what's going on in your local city. You are complaining here in Southern California, I have people and clients in Texas that are complaining about Texas.

This is the big, great state of Texas. Remember folks, I mean, everybody is uber sensitive. Just chill, stay calm, stay disciplined. That's what you do at work. You can't afford to do that, or you'll get fired if you act half as crazy as you do at home. Imagine what happens at work. If you're lucky enough to be crazy at work and people actually appreciate you.

I don't know, that's like a Jim Kramer or something, or some people you see on tv. My point. Everybody chill. Okay. By the way, if you're just joining me, you're listening to Gabriel Sheen, certified financial Planner and your host, and more knowledge, more wealth. Here on every weekend talking about all important topics of personal finance.

And if you have a question, send it in folks@radiofalconwp.com. We'll be happy to help. We'll address those questions on the air, and I have one question that I'll share with you later on that somebody shared, but my point is this, folks, this is where it makes sense more times than ever if you're finding yourself high.

Now versus before. If you're finding yourself hard to make a decision on what to do in your portfolio, if you're finding that you're making the wrong decision, which, because you know the world revolved around you, right? I mean, you know it. I'm sure you do. Let me give you an example. When you sell your investment, what happens to the stock?

It goes up every time. But what happens when you buy the. Oh yeah. When you buy it, it drops. That's just how the world works. Have you ever thought for a second that maybe just you're showing up late to the party? Have you ever shot that? You're just reacting versus being proactive, which, oh, by the way, most people do.

This is why it makes sense to get a second opinion. This is why it makes sense. To talk with a financial planner that's unbiased, that looks at your situation and quite frankly needs to tell you what's your target rate of return that you need to have a successful retirement. More times than not, people are chasing.

They are seeing the next shiny thing out there and following it. And this is the issue for failed investments. And DALBAR has fantastic studies that has proven that in normal investors, individual investors, not just normal individual investors that do it themselves, get emotionally controlled. We make fun of the Asian countries with prop propaganda.

You have no clue about. Because if they want you, the people that say it's too, they're too cheap to hire a professional when the professionals are the one buying when you're selling. And guess what? When you're getting greedy and you're buying, they're selling. Because it's too rich and it's too expensive, and I see this all far too often, folks get a second opinion, talk to a professional.

That's what we're here for. We have multiple staff members, multiple CFPs, and we can help answer a question. We'll give you one to two hours, one to two meetings of our time, folks at no cost. Folks. Our phone number is (855) 963-2526. That's eight five. 96 Falcon like the bird, or visit our website@falconwealthplanning.com.

That's falcon wp.com for sure. We can help put a personal confidential assessment to really help the answers that the questions that you haven't give you answers to all of them, because we've seen this before. You're gonna retire once, maybe twice of your life if you tried part-time afterwards. Okay?

You've probably had a few. You probably bought a few homes even if you bought a dozen homes. My point is, is we bought dozens, 50 hundreds, just last month alone, cumulative as a firm, and we're able to tell you what's coming up and do not fall for the traps of the media trying to scare the hell outta you and make you emotional.

And that's what's happening. They're making you emotional. They make money. Emotional, which then means you turn irrational and that's where you start buying and selling things you shouldn't be doing. Stay firm, stay disciplined. It's extremely important to make sure you identify the goal that you have. If the market drops, well, guess what?

It dropped 20% last year, but you have made 30% three years in a rock. After that, you're still on track. Discipline folks, we're gonna take a little break here. We're gonna come back, we're gonna discuss a few items, uh, in regards to be careful the predators, when the markets are dropped and people are weary, predators come out there and try to sell you and take advantage of you.

So we're gonna talk about the kind of new ploy there, and plus I'm gonna talk about a phone, uh, excuse me, a radio, uh, email that I received. Uh, and we're gonna discuss what that is and how to answer that. We'll be back with a few.

Welcome back folks. This is Gabriel Shane, certified financial planner and your host, more Knowledge, more Wealth here on every weekend, talking about all important topics of personal finance. And today I wanted to discuss with you just what goes on when markets are volatile, when you can't. Outsmart or understand what's gonna happen next here.

You thought that tech companies in a rising interest rate environment was going down and sure enough, this quarter it ended up booming over 15% this past quarter. Same thing with bonds. Bonds have only dropped money last year, dropped 13 to 15% depending on the bond that was out there. And sure enough, this year it's up three.

Year to date. What's the point with all this? Is people overreact. That's why they drop sometimes more than they should. And then the news comes out that gives hope, which allows these stocks to go back up. Now, what does this mean yet again for you? It's you have to stay disciplined. You have to be able to know what you're going to do when things happen.

And the problem is when people try start confusing you, when the stock market is confusing, you people start, go out there and try to sell annuities. And this comes, and this is why I've talked about it. Could the call or uh, the email that I got over this past weekend was somebody wanting to buy an annuity.

But you have to be careful of these annuities because these annuities that are out there, people are trying to take a. Of you, because it's different. If they're trying to talk about maybe a fixed annuity that's maybe one to three years long, but some of these are 10 to 20 year fixed annuity, seven year annuities that are out there.

They have these massive surrender charges in there. People aren't aware. Yeah, sure, you get 10%, but you are locking your money away for a long period of time at a variable rate that, oh, by the way, number. Especially on a variable annuity, you can still lose money. And number two, on a fixed annuity where they say you can't and you can still get market-like return, there is unexplained, which means they don't explain it to you under misrepresented of how it works, which means you don't understand a year, like last year.

Sure you didn't lose, uh, money. But what you don't understand is depending on the point to point period where they limit the amount you make every month, and they give you unlimited loss potential. So you just have to be pleased. Be careful of that. There's a reason our government, the s e c state regulators are telling you, beware of these annuities as they're often misrepresented of how they work.

So please be careful because. Email that I received, I'm gonna read it to you. This is from Jordan in Riverside, California. They asked a question saying they were offered a 5% annuity and wanted to know what's wrong with that. They would like to purchase it. What are the questions to ask if they were to purchase it?

So let me, uh, kind of answer that question. Number one is you have to understand what type of annuity is it? Is it a fixed annu? We're a variable annuity because this, they do have these guaranteed rates of five, six, 7% on a variable annuity. But what you don't understand is that's a ver, that's a guaranteed rate only if you annuitize it, which means you surrender your money, you give the, you literally are giving the insurance company your money.

You're giving it away and they're gonna give you a check for life based on this guaranteed income. So what the heck does that mean? Let's just say you give 'em a hundred thousand dollars and they give you a 5% guaranteed rate of return. Now over 12 years, you double your money. So let's say that, and by the way, they typically don't guarantee that for 12 years, they guarantee it for maybe 10 years, maybe five years.

So let's just say for simplicity, they'll, you found the fantastic one that doubled it in 12 years. So you're 60 years old, you put your money in there and now it doubles. So your a hundred thousand is 200,000. Okay, and now you can, now you're 72 years old and you can withdraw four or five, maybe 6% depending on, on your age.

Now if you're 72, it's gonna be less than 5%, but let's just say 5%. You can pull 5% of the $200,000 on an annual basis, which is 10 grand. So now from 72 to 82, you pull out 10,000 a year, over 10 years. What does that mean? Well, you just took out a hundred thousand dollars, which, oh, by the way, is the principal you started.

So you went the first 12 years and then 10 years pulling your money, 22 years just to get your principal out. Then you go another 10 years. Now you're 92 years old and you doubled your money in 32 years. That's less than a two and a quarter percent rate of return. Folks, beware of these type of annuities.

So is a 5% great? Let's just assume it was a fixed annuity. A true 5% fixed an. Locked for one year, three year, I don't know, but you gotta look. The one year treasury is at 5.2%. You know, at a point in time it was, it changes every day. My point is, is that sounds pretty good by itself as well. Maybe you wanna look at what your risk tolerance is.

If you don't need this in five years from now, I can argue put in the stock market in five years from now, I bet you you can get probably 20 to 30% return, which would be an annualized. Probably 6%, if not higher, and I'm being conservative as hell. Cause when the market just comes back to where it was, that's a 25, 30% return.

You get what I'm saying? So you gotta make sure what type of products are out there and what makes sense for you. Because realistically, the stock market averages factoring in the drops, which just happened last year, 10% a year. Small cap averages over 12%. Some international emerging markets goes 14, 16%.

Since inception, so be careful of what's out there and people trying to sell you. By the way, folks, if you're just joining me, this is Gabriel Sheen, certified Financial Planner and your host of More Knowledge, more Wealth. Here on every weekend, we're talking about all important topics of personal finance, and today we are just talking about your money.

And people always trying to take it and take advantage of you. My point is this, if somebody's trying to sell, you get a second opinion. If somebody's trying to, I don't want to say take advantage, but if somebody is trying to put you in a position where you have to make a decision because the rates are gonna change, or you have to make a decision by the end of the month or the end of the week, or whatever the case is, folks, that's a sales tactic.

It always get a second opinion. That's why we're offering a free financial assessment folks, yet again to help relate this show to your specific situation to make sure you don't get taken advantage of. And these could be trusted places like your credit union, like your bank. These banks have partnerships with the brokerage divisions and their commission based.

They're not the only folks. So be careful. Don't make these mistakes that we see people making. It's not beneficial for you. It's only beneficial for the person that's collecting 6, 7, 10, 20% commissions. If you need help, give us a call. We have offices all over, folks, we can help. Our phone number is eight five five nine six three.

25, 26. That's 8 5 5 96 Falcon like the bird. We can help answer some of these questions that you have because the predators that are out there, keep in mind, they only get paid when they, when you, when you buy their product, when you buy from them, they have to sell to get paid. So yes, they are aggressive and sometimes just for sake of survival, they have to say whatever they have to say for you to.

It's hard for the government to regulate what they verbally say. See if it's in a writing, those documents are yay thick cuz you're buying a contract, surrendering your money, and the IRS has come out with tables showing annuities and they do these tables for write off reasons where when you buy annuity and you annuitize it, you're losing 50% of your money for the security 50.

I, I'm not telling you this, the IRS is telling you this, so please be careful and get that second opinion folks, and when somebody's just talking for sake of time, they can say whatever they want with no repercussions. This is the scary part of our industry folks. It's important to talk to somebody who's gone through that same path, who understands these products, and quite frankly, doesn't get paid a penny from those products.

If anything, he'll tell you not to do it so you don't pay Joe Schmo down the street, five, 10, 20% commissions from taking advantage of you. You don't ask for those products, they're sold to you. Think about that for a second. So if you need help with this, give us a call. We would love to help. Our phone number (855) 963-2526.

That's 8 5 5 96. Like the bird. Folks, that was a fast, fast show. I wanna thank you for tuning in with us this weekend. You can always reach out to myself or any one of our colleagues here at Falcon Wealth Planning. Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon. Like the bird, or visit our website@falconwealthplanning.com.

That's falcon wp.com for sure. And if you have a question you want me to read on the error, you wanna record yourself, send it over at radio@falconwp.com. That's radio@falconwp.com. Folks, we are on every weekend. We've got offices all across the country. We would love to help. We service eight states. Feel free to reach.

We can relate this to your specific situations. I want you to please feel free to come next week where we can help talk more about personal finance and answer some of the questions that you guys have. Folks enjoy your weekend. Have a great Easter and God bless.