AWM Insights Financial and Investment News

Understanding the different types of Human Capital is critical to building multi-generational wealth. The three main types are Physical, Intellectual, and Social Capital. Each plays a role in building wealth and leading a more flourishing life.

Your Physical Capital is your strength, your natural talents, and your ability to stay healthy. All of which are big drivers of wealth for many of our clients. Investing in it – optimizing strength & conditioning, eating well, getting enough sleep, etc. – will pay dividends. 

For founders of companies, Intellectual Capital is typically their main driver of growth. Athletes can also use this to be a smarter player. Intellectual Capital is not just your academic accomplishments, rather it’s the accumulation of life experiences, formal and informal education included, and self-reflection that typically advance this form of Human Capital.

Social Capital can stand on its own or be a very strong complement to both Physical and Intellectual Capital. It is not just expanding your community and network for your benefit. While that’s important, Social Capital can also be giving back to your community or causes you care about.

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
• 0:35 Money is a tool to use in order to accomplish your priorities
• 1:16 What is Intellectual Capital, and how do people use it?
• 3:21 Social Capital, not just networking
• 4:32 Yes, you should invest in your Physical Capital! 
• 5:15 Invest in all aspects of your Human Capital
• 6:05 Think about diversification and the evolution of each over time
• 7:43 Text us!

Capitalizing on your Human Capital is essential. Capturing the three main branches of Human Capital (Physical, Intellectual, and Social Capital) in a comprehensive and tax-efficient manner is the starting point for building wealth.

From there, this acquired needs to be strategically used to work for you. Warren Buffett famously said, “If you don't find a way to make money while you sleep, you will work until you die.”

Establishing a plan to maximize your Human Capital and put it to work in the most effective way for you and your goals is how Multi-Generational Wealth is built, preserved, and expanded.

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
• 0:55 Human Capital and the three distinct segments of it.
• 2:56 Maximizing your Human Capital and the importance of focusing on tax efficiency
• 4:09 Utilizing your capital to accomplish your goals
• 5:49 Setting up your portfolio to cover your priorities and expand your wealth
• 7:25 Syncing your portfolio with your life
• 9:00 Text us!

Last October when Equity Markets bottomed out, there were calls to sell and warnings that market conditions would only get worse with rampant inflation and a weakening economy.

With the recent positive performance of most Public Equity Markets, you may be noticing that the trend to invest and take risks is now “in” again.

Markets fluctuate, and although these swings may lead to emotional responses, even on the upside, investors must tune out the noise, ride out the waves, and focus on their mission.

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 has happened this year and what’s to come?
• 3:33 Accepting volatility and not reacting to the noise.
• 5:25 How the wrong advice from the “experts” can impact your wealth.
• 6:49 Why we build portfolios for the long haul. 
• 9:53 Text us!

With short-term interest rates currently hovering above 5% and inflation remaining elevated, the proposition of holding too much cash can be a costly one.

Cash gives investors security, immediate accessibility, and certainty as there are FDIC assurances that prevent total losses, but the cost of those elements is missing out on having that money work for you.

Checking accounts still have very low-interest rates relative to what can be realized in the fixed-income markets, and no one gets paid to store cash under their mattress.

Being intentional with cash balances and making sure your money continually works for you is a small way to continue to build and own 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 The Importance of Cash Management
• 2:42 The Behavioral element of holding cash and a protective reserve
• 4:40 Inflation’s Impact on Cash
• 6:19 Why the current interest rate market is attractive and rewarding investors that hold less cash
• 7:55 What about CDs?
• 9:53 Text us!

Taking the time to review your portfolio’s performance is a great exercise, but it’s important to use the right tools and methodology to carry out an accurate evaluation.

It’s also critical to remember that everyone is playing a different game with different starting and ending points. This fact makes the standard returns you see online or on TV relatively important, but not the absolute target.

As our portfolios are custom-made to fit each client’s priorities, no singular benchmark or data point can give you complete context on how you’re performing or doing. The most meaningful metric will always be how likely you are to accomplish your goals and priorities. 

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
• 0:25 How should you start thinking about your portfolio’s performance?
• 2:32 One index is not enough to measure your portfolio’s relative performance
• 3:30 Why a custom portfolio approach needs a different method of performance evaluation
• 5:19 What indexes do we use to compare ourselves and how do we think about the results?
• 7:25 Why being a long-term investor is a rewarding rollercoaster
• 10:13 Text us!

Understanding, processing, and regulating emotional responses toward your investments is one of the most important skills to have in order to be a successful and diligent investor.

Markets give us various inputs that lead to an array of feelings, but it is critical to process and regulate your emotional responses at all times and keep your eye on the bigger picture, which is your financial structure.

Trends come and go over the years. True multigenerational wealth can be everlasting if structured and implemented properly.

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
• 0:25 How do human emotion and behavior tie into investing?
• 2:45 History of the public stock market
• 4:22 Why the behavioral element of finance is just as important as the technical side
• 5:19 Why a robust understanding of markets helps investors over the long run
• 7:38 Being disciplined across market cycles
• 9:30 Managing your feelings and being diligent while looking at the bigger picture
• 11:00 Text us!

The S&P 500 is up more than 20% since it hit its low last year. Market conditions have improved since then with CPI inflation coming in at 4%, and the Federal Reserve pausing rate hikes this week.

There is a huge lesson to learn from the market’s short-term performance. Patience and persistence are key to any investor’s long-term well-being, and those qualities are rewarded. Markets are forward-looking, and even though conditions may have looked gloomy 8 months ago, withdrawing from the market and waiting it out on the sidelines would have led to missing out on the rally that we just witnessed.

Timing markets and playing the guessing game usually leads to missing out on these great periods and causes a high level of stress and friction. Patience and persistence can save you from that!

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
• 1:20 What is happening and driving markets?
• 3:45 Why predicting markets is a dangerous game to play
• 5:15 How a systematic investment approach helps you capture returns in an efficient manner
• 7:55 Why diversification and patience in the public and private markets reward investors
• 9:05 Why the guessing game is the wrong game to play
• 11:40 Text us!

As we wrap up our series on Private Markets and Venture Capital specifically, it’s important to highlight why Venture has been so impactful in building multigenerational wealth. 

Historically, Venture Capital as an asset class has had remarkable returns due to its positioning on the cutting edge of innovation. 

Returns always come from and with risk, but the long period of illiquidity, uneven returns, and the J curve that is usually witnessed can be risk factors that are mitigated with a strong financial structure and a systematic, consistent, and repeatable approach.

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 (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:50 Why has Venture been such a powerful asset class for building multigenerational wealth?
• 3:46 Why does your Venture allocation need to be systematic and repeatable?
• 7:23 How do we set our Venture Portfolio up for success?
• 9:16 Why do consistency and diversification help us capture higher expected returns?
• 11:00 Text us!

Constructing a well-diversified portfolio is very similar to building a well-rounded baseball team.

Assets must be distributed between current players and prospects to field a strong lineup while also investing in the future to fill any foreseeable gaps and improve key positions.

Venture Capital aligns closely with the logic of investing in prospects. The benefit is deferred, but if done correctly, there may be outsized returns and general production relative to the initial investment outlay.

This must be carried out systematically and diligently to maintain the balance between the present and the future and optimize short and intermediate-term competitiveness while also reaching for a brighter future.

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 (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:45 How do we build out and structure our Venture Fund
• 3:16 Why it makes sense to diversify across stages?
• 5:13 How do we determine what funds and fund managers we invest with?
• 7:53 How does our dynamic and consistent approach give us more quality at-bats?
• 9:25 How fund size impacts the investment process and returns?
• 10:46 What expected returns and outcomes are we targeting?
• 12:40 Text us!

Tens of thousands of Private Equity and Venture Investments are made every year. How can you sort through these opportunities in thoughtful ways to isolate and get in front of the best of the best?

Private Markets are not as transparent as their public counterparts, which adds to the complexity of making investment decisions, but also creates opportunity. Building relationships with standout companies and operators gives insight into the most exciting prospects and can give investors the inside track to “win” deals.

From there, expert managers add value to their investment companies by helping with operations, expansions, and exit strategies. This is why who you invest with is just as important as what you invest in.

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 (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:45 How do we source and filter through Private Market Opportunities?
• 2:56 What are our first steps to Evaluate an Opportunity
• 4:01 Sourcing, Selecting, Winning, Exiting
• 7:25 How the distribution of Venture returns impacts our investment framework
• 8:10 Differences in Perception in the Private Markets
• 9:40 Our Ultimate goal is to help you accomplish your priorities
• 11:30 Text us!