AWM Insights Financial and Investment News

World developments frequently impact financial markets and test the resolve of investors. The fear, panic, and uncertainty these events cause are exactly what creates the concept of a “risk premium.”

The evidence is also very clear. Those who weather the storm have been rewarded over the long run. Consider the COVID outbreak, the Great Recession, and the Dot Com Bubble. These were all significant periods where markets moved, but the investors who didn’t panic and stayed in the market were rewarded for their perseverance.

Investing is not always going to be a smooth and comfortable ride, but the destination is worth it.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 1:50 Uncertainty is unavoidable, but how can you construct your portfolio to weather the storm?
• 2:59 Uncertainty creates excess returns.
• 5:31 How hard is it to predict the future?
• 7:02 How market timing is a damaging strategy.
• 8:58 Control what you can control.
• 10:35 The power of diversification.
• 11:03 Text us!

Over the past 150 years, data on markets has been collected, analyzed, and an optimal investment process has been discovered. This process has been shown to reward investors over long periods.

It includes taking advantage of diversification, flexibility, the efficiency of markets, and technological advancements that help markets function.

Even with the rigorous, science-backed methods of investing, there is still an artistic and emotional side that can’t be ignored.

The rewards of investing are founded on the principles of commitment and consistency, so managing your emotions, incorporating investments that matter to you, and being able to weather turbulence are just as important as the fundamentals.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 1:55 Diversification and reducing unrewarded risk in your portfolio  
• 2:29 Flexibility improves purchase prices
• 3:15 Active management is more of a friction than a value-add
• 3:50 How technological advances and market forces penalize active management
• 6:43 The Art of Investing
• 8:32 Investing as a practice
• 10:33 Text us!

Financial services and investment expertise have traditionally been scattered across many different roles with no one “Quarterbacking” the process. In the past, investors worked with brokers, accountants, private investment specialists, and other professionals individually with differing levels of knowledge and involvement.

There was little to no cross-communication between these individuals, and partitioned advice ultimately hurt investors.

The Family Office Framework centralizes experts and allows them to collaborate and focus on delivering the most holistic and customized advice while offering the best investment experience.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:49 The Multi-Dimensional Framework of a Family Office 
• 3:19 Maximizing the facets of life through proper management of wealth 
• 6:15 Looking at your wealth journey holistically
• 8:23 Building a healthy foundation
• 9:13 Text us!

The news is usually saturated with events that are out of everyone’s control. This frequently triggers anxiety and panic. 

From Government shutdowns to predictions of financial turmoil, we are pulled into being invested in and accepting certain negative situations without looking at the bigger picture and realizing that there are actions we can take to financially prepare for an assortment of situations and outcomes.

A well-diversified portfolio that is structured to meet and protect your critical priorities will shield you from the uncertainties that life and financial markets can throw your way. It’s essential to plan and prepare, instead of sitting back and predicting. 

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:49 How do emotions impact financial markets and investing? 
• 4:19 The power of planning and not predicting 
• 6:15 How being a flexible investor and consumer improves your odds for success
• 8:43 The power of compounding returns and efficient portfolio management
• 10:40 Control what you can control
• 12:20 Tuning out the noise and staying consistent with your investment framework and thesis
• 13:53 Text us!

An advisor who is independent, integrated, and can work through your individuality will increase the odds of your family’s success and help you establish multigenerational wealth.

Independence, and the lack of a corporate structure that places shareholder interests above those of clients, is imperative. An advisor who is there to work for you and views your interests as being their own as a fiduciary will inherently improve the alignment of values and your investment experience.

Integrating different elements of wealth strategy from Investments to Financial Planning and Taxes, enables your advisor to truly take ownership of your wealth and deliver a comprehensive experience that checks all the boxes.

Lastly, the ability to understand and work with your individuality, and not just place you in a mass-produced offering, improves the odds of success based on the tailored nature of service. S, M, and L are great measurements for shirt sizes, but exponentially more complexity is needed to manage something as important as your wealth.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:41 What are the right ways to vet out advisors and get the best results and experience?  
• 1:46 Ownership matters
• 4:25 The importance of finding an Advisor that Aligns their interests with yours
• 8:05 Why the Multi-Family office structure puts the client first and integrates all the experts you need
• 10:10 Independence, Integration, and Individuality
• 12:33 Text us!

The concept of “making it” or crossing the finish line in your Wealth journey is like the tooth fairy. It would be awesome if it existed, but it doesn’t.

Preserving your wealth is a full-time job, and if done well, it’s a job that will be carried out past your lifetime.  Working with a financial “Quarterback” helps your wealth grow and protects you from the unnecessary and avoidable risks that can erode your wealth.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:31 What are the risks that can destroy your wealth?
• 3:16 Why not all kinds of risks are bad
• 3:45 The importance of Estate Planning and Family Dynamics
• 7:05 The Importance of Liability Planning
• 8:25 Death and disability planning
• 10:00 The importance of having a financial “Quarterback”
• 11:33 Text us!

The saying “defense wins championships” applies in a few ways to portfolio management.

Playing good defense (keeping your opponent off the board) and taking the risk out of the important areas of your life is the foundation of the game and gives you peace of mind as an investor. A leaky or inadequate defense leads investors to fall behind, and it’s hard to catch up without taking unreasonable risks.

A strong defense enables you to take mindful risks to get ahead while still managing the current game and potentially saving an arm or giving a prospect some game time for future benefit.

The offense is still very important, but it’s easier for a good offense to flourish when there is very strong confidence in the defense. Our goal is to finish ahead. A dependable and robust defense with a sophisticated and intentional offense is a winning combination.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:40 How do we think about gathering, preserving, and expanding your wealth?
• 2:36 What are the benefits of having a custom-made portfolio?
• 5:45 How does a protective reserve approach allow your portfolio to take on risk to grow?
• 9:05 Why your net wealth is one holistic number?
• 11:33 Text us!

We frequently bring up the three uses of money (Spending, Saving, and Gifting) and how we help our clients expand their wealth and impact through each use.

We implement a thoughtful and proactive approach to tax planning and management that helps our clients keep more dollars in their pockets. This is a year-round job and not one that can be done effectively just before Tax Day.

From there, we help our clients with the money that does stay in their pocket to build an investment portfolio that achieves their goals and priorities, while expanding their wealth.

We also work with our clients to identify the causes that matter most to them and leverage the gains in their portfolios to make charitable gifts while reducing their future tax liabilities.

Our integrated process magnifies the wealth of our clients while protecting and achieving the priorities and goals that matter most to them.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:40 Maximizing net income to fully capture your human capital and magnify your impact
• 2:53 How Gifting can reduce your future tax liability
• 6:05 How to think about Lifestyle spending when it comes to your net wealth
• 8:32 Investing excess funds to expand your wealth
• 10:15 How do your stock investments generate passive income?
• 11:53 Text us!

Being a diligent, long-term investor is a very rewarding proposition, but most investors ignore the impact that taxes can have on their investments and what they get to “take home.”

Our industry is almost solely focused on total returns and fixates on specific return figures, but those numbers don’t tell you what you get to keep, which is what really matters.

Ignoring this dynamic and not proactively working to reduce returns that are lost to taxes can corrode wealth and complicate your journey to building multi-generational wealth.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 1:01 What tools can we use to reduce and defer our tax liabilities?
• 2:33 Why are after-tax returns so relevant?
• 5:28 Why an integrated and multi-faceted investment and tax team is so important.
• 7:39 How can you tie your charitable interests with tax efficiency?
• 10:15 Why tax planning is a year-round responsibility.
• 11:13 Text us!

We continue our series on the Multi-generational Wealth Formula. This week, we focus on income - the most common types and sources, active versus passive income, and how they are treated differently for tax purposes. 

The most common source is typically called Employment Income or W2 Wages. This income comes from work you do as a formal employee of a company. Athletes are paid Employment Income from the team they play for. On the non-athlete side, founders, senior executives, and employees are typically paid their salaries this way. This income can be subject to the highest tax rates.

Any off-the-field income (endorsement income, etc.) is considered self-employment income, independent contractor income, or 1099 Income. Non-athletes can earn this through consulting work or other types of independent work. It is paid as though you are your own business, which has its benefits and drawbacks. There is certainly more flexibility for tax planning but more responsibility to make sure taxes due are paid on time. 

The last category we discuss can be broadly thought of as investment, or passive income, and there are a few different sources – interest income, dividends, and capital gains. Rental income would also fall into this category. These income types are typically generated from an investment portfolio and the tax treatment varies widely.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:24 A quick review of what we’ve covered in the series so far
• 0:44 What are the different types of income & how are they taxed?
• 1:11 Employment income or W2 Wages
• 2:02 Self-employment income
• 3:02 Investment, or passive, income
• 5:47 What's the tax treatment of these sources?
• 7:04 Benefits of capital gains and the compounding effect
• 7:34 Text us!