Best In Wealth Podcast

We invest in large companies, small companies, value companies, international companies, emerging markets, etc. We practice discipline when investing in all of these asset classes. If we want 20% of a portfolio allocated to large value, we maintain that percentage.

We also practice strategic rebalancing. If something has an upward momentum, we set tolerance zones. If we go above or below those tolerances, we buy or sell. We practice discipline. Why? I share more in this episode of Best in Wealth.

[bctt tweet="Discipline in asset allocation means sticking to your plan—no matter the headlines. Find out why this matters in today’s investing landscape. 🎧 #AssetAllocation #InvestingDiscipline #BestInWealth" username=""]

Outline of This Episode

[1:02] The importance of reading the full story

[3:13] Why we practice discipline in asset classes

[8:00] Taking a look at the big picture

[11:02] Developed markets vs emerging markets

[13:23] A disciplined approach to investing matters

Why we practice discipline in asset classes

By the end of the third quarter of 2024, the S&P 500 was up almost 20%. It’s up another 6% since then. The S&P 500 is one of our best-performing asset classes. If we’re just reading the headline, “The S&P 500 is doing the best,” we might think we should put more money in. But hindsight is 2020.

And if we’d listened to the experts, many of them said that small-caps were going to perform the best in 2024. But small-caps are only up a little over 10% after the third quarter. It’s also gone up 6–8% since then but is still underperforming the S&P 500.

If we’d listened to the experts, we’d be tempted to put more money into small-caps. But that’s not the right decision either. We need to remain disciplined to our plan for each asset class.

[bctt tweet="The S&P 500 is up, but that doesn't mean we chase momentum. Strategic rebalancing is key! Learn how to stay disciplined in your investment choices. #InvestingStrategy #AssetClasses #WealthManagement" username=""]

Taking a look at the big picture

Looking back 95 years, the small-cap index has done better than the large-cap index. We call this the small-cap premium. However, it comes with more risk. Because of the risk, investors demand a higher average return for owning smaller companies.

Our portfolios skew more large than small because of the risk. However, we do want to capitalize on some of those returns—but not because of headlines.

If you choose something riskier, it won’t always do better. On average, stocks do better than bonds because they’re riskier—but it doesn’t mean stocks always beat bonds.

Developed market small-caps on average bean developed markets large-caps by about a percent and a half per year. Small-caps over the last 20 years perform better than large-caps in emerging markets.

Remember, past performance is no guarantee of future results. Have small-caps have underperformed large-caps in the recent past? Yes. Does that mean we abandon small-caps? No? Does that mean the premium is gone? We don’t think so.

A disciplined approach to investing matters

We need to investigate every headline that we read because they don’t tell the full story. If we’re just reading the headlines, we might make an emotional decision about asset allocation. We can’t try to guess which asset class will do the best. When we do that, we’re putting our family and our future in jeopardy. A disciplined approach to investing matters. Learn more in this episode of Best in Wealth.

[bctt tweet="Reading the full story helps you make smarter choices. Get the full breakdown on disciplined investing in today’s episode of Best in Wealth! #InvestingInsights #BestInWealthPodcast" username=""]

Connect With Scott Wellens

Schedule a discovery call with Scott

Send a message to Scott

Visit Fortress Planning Group

Connect with Scott on LinkedIn

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Fortress Planning Group on Facebook

Audio Production and Show notes by

https://www.podcastfasttrack.com

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

Ever wondered where you rank financially among Americans? Curious about what it takes to join the top 5% in income or net worth?

Every three years, the Fed surveys the finances of American households, tracking assets, debt, and more. One of the things they cover is who landed in the top 5% of both income earned and net worth.

In this episode of Best in Wealth, I will share the income that puts you in the top 5% of income earners by age, what lands you in the top 5% of net worth by age, and why none of it matters. Don’t miss it!

[bctt tweet="Are you in the top 5% of income-earners or net worth? Learn what it takes in this episode of Best in Wealth! #PersonalFinance #FinancialPlanning #Wealth #WealthManagement " username=""]

Outline of This Episode

[1:15] Getting into the University of Wisconsin Madison

[3:21] The income that puts you in the top 5% of income

[11:12] Individual versus household income

[12:00] The income that puts you in the top 5% of net worth

[17:21] Are you in the top 5% of income or net worth?

The income that puts you in the top 5% of earned income by age

Do you land anywhere in these brackets?

18-29: If you earn $156,732 or more, you are in the top 5%. You are just launching your career and starting to earn an income.

30-39: If you earn $292,927 or more, you are in the top 5%. You are getting more established in your career and perhaps started a business or received a promotion.

40-49: If you earn $404,261 or more, you are in the top 5%. Maybe you continued to receive promotions or your business grew.

50-59: If you earn $598,825 or more, you are in the top 5%. The 50s are your highest potential for earnings years. Maybe you sold your business or became the CEO of a company.

60-69: If you earn $496,139 or more, you are in the top 5%. You may be retired and living on social security and your investments during these years.

70 or older: If you earn $350,215 or more, you are in the top 5%. Most people in their 70s probably are not working any longer and that income is being derived from Social Security, pensions, and investments.

What does it take to be in the top 5% of households? If you earn $499,000 or more, at any age, you are in the top 5% of all income earners.

[bctt tweet="What income puts you in the top 5% of earned income by age? I hash out the numbers in episode 253 of Best in Wealth! #wealth #retirement #investing" username=""]

The income that puts you in the top 5% of net worth

What does the top 5% of net worth look like in each age group?

18-29: $415,700 or higher

30-39: $1,104,100 or higher

40-49: $2,500,000 or higher

50-59: $5,001,600 or higher

60-69: $6,684,220 or higher

70 or older: $5,860,400 or higher

Your net worth is far more important than your income. You can make all of the money in the world but if you do not save anything, your net worth will never increase. It will stay zero.

Secondly, you can earn a lot less than the top 5% of income earners and still save enough to be in the top 5% of net worth.

Are you in the top 5% of income or net worth?

It is okay if you do not fall into any of these categories—they can be very skewed. Numerous factors impact these numbers. Secondly, these numbers don’t matter. If you have the right retirement plan for you, you will have the retirement of your dreams regardless of whether or not you land in the top 5%.

[bctt tweet="Are you in the top 5% of income or net worth? Does it matter? Let’s hash it out in this episode of Best in Wealth! #PersonalFinance #FinancialPlanning #Wealth #WealthManagement " username=""]

Resources Mentioned

Survey of Consumer Finances (SCF)

Here Are the Net Worth and Income That Put You in the Top 5% of American Households by Age

Connect With Scott Wellens

Schedule a discovery call with Scott

Send a message to Scott

Visit Fortress Planning Group

Connect with Scott on LinkedIn

Follow Scott on Twitter

Fortress Planning Group on Facebook

 

Audio Production and Show notes by

https://www.podcastfasttrack.com

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

Did you know that anyone can say they are a financial advisor? They may not be licensed or experienced. So how do you know who to trust?

In this episode of Best in Wealth, I will break down the three types of people who put “financial advisor” on their business cards, what the letters after a financial advisor's name mean, and how a fee-only financial advisor is compensated for their services.

Knowing all of these things will help you determine what type of advisor is right for you to help you achieve a successful retirement.

[bctt tweet="Did you know that anyone can say they’re a financial advisor? They may not be licensed or experienced. So how do you know who to trust? Find out in episode 252 of Best in Wealth! #Retirement #Investing #PersonalFinance " username=""]

Outline of This Episode

[1:08] High expectations do not leave room for satisfactory outcomes

[6:17] The 3 types of people who put “financial advisor” on their business cards

[19:14] How fee-only financial advisors charge for their services

[22:34] What do the letters after a financial advisor's name mean?

[24:17] Work with someone you can build a connection with

The 3 types of financial advisors

Three different types of people typically put “financial advisor” on their business cards:

Insurance Sales Representative: They are required to be licensed to discuss or sell insurance. Their main goal is to sell you life insurance (typically whole life insurance that can be invested and earn dividends and be used for retirement). Is someone who can only sell life insurance acting in your best interest all of the time? How could they be? They make a commission on the insurance product that they sell you.

Registered Representative/Broker-Dealer: They take an exam to be “registered” to sell securities, mutual funds, life insurance policies, etc. They are paid by commission, much like insurance representatives. Or they will recommend a mutual fund where they get a percentage (annual 12B1 fees and more). They are also not fiduciaries.

Investment Advisor Representative: They must take a securities exam that also covers laws required to act as a fiduciary. An investment advisor is prohibited from collecting commissions. The fees they collect come directly from the client. They can call themselves fee-only representatives.

I am a fee-only Investment Advisor Representative. I do not co-mingle with insurance sales representatives or registered representatives. It removes any conflict of interest. I am not beholden to any company. I must act in the best interest of my clients. Most financial advisors are dually registered. They may have an insurance or broker license.

Listen to find out what questions you have to ask an advisor to find out if they are strictly an Investment Advisor Representative.

[bctt tweet="In this episode of Best in Wealth, I’ll break down the three types of people who put “financial advisor” on their business cards and why it matters. #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

How fee-only financial advisors charge for their services

There are four primary ways a fee-only advisor might get paid:

Hourly: You hire a financial advisor to create a financial or retirement plan and you pay them for the hours it takes to do the job. It is a short-term relationship.

One-time planning: A one-time plan may cost you $5,000–$7,000, which you pay once. They deliver the plan and you write them a check. It is a short-term relationship.

Monthly retainers: The advisor might charge a couple hundred dollars a month, depending on the complexity of your plan. This may be great for someone who needs help with budgeting, college loans, setting up 529 plans, etc.

Assets under management: This is when you are charged an annual fee that is typically a percentage of your assets under management. The money is taken directly out of your brokerage account(s), which the advisor is handling for you. This is how most fee-only financial advisors work.

Fortress Planning Group operates using the assets under management approach.

What do the letters after a financial advisor's name mean?

There are three gold standards that actually matter:

CFP: This is short for “Certified Financial Planner,” which is what I am. A CFP must have a college degree to deliver holistic planning.

CFA: This is short for “Certified Financial Analyst,” which is a difficult designation to achieve. These are experts in investing.

CPA: This is short for “Certified Public Accountant,” these are experts in taxes.

There are hundreds of other designations. But if you are looking for letters, look for one of these three. If you want someone who can help advise you on investments, taxes, retirement, insurance, etc. you want a CFP.

[bctt tweet="How do fee-only financial advisors charge for their services? Learn how it works in this episode of Best in Wealth! #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

Connect With Scott Wellens

Schedule a discovery call with Scott

Send a message to Scott

Visit Fortress Planning Group

Connect with Scott on LinkedIn

Follow Scott on Twitter

Fortress Planning Group on Facebook

Audio Production and Show notes by

https://www.podcastfasttrack.com

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

Do we care who wins the election? Does it actually impact our investments? The issues at stake matter to each of us for different reasons. Most Democrats think things will be better if a Democrat is voted into office. Most Republicans likely feel that things will fare better with a Republican in office. But does who wins the election actually matter when it comes to your investments? I will break it down in this episode of Best in Wealth.

[bctt tweet="Does the outcome of the presidential election impact your investments? I share the surprising answer in episode #251 of Best in Wealth! #Investing #FinancialPlanning #WealthManagement " username=""]

Outline of This Episode

[1:08] September is never a good month in the stock market

[4:02] Stock market statistics during each presidency

[15:32] What do we do with this information?

[20:17] Can a President influence the stock market?

Stock market statistics during each presidency for the last 100 years

We have had 17 presidents since 1926. Nine of the presidents were red, eight were blue. How did the stock market fare during their presidencies?

Calvin Coolidge (Republican) was President from 1923-1926: If you invested $1 the day he became president, that dollar would’ve turned into $2.33.

Herbert Hoover (Republican) was president from 1929-1933, during the Great Recession: Inflation was -0.7%. The annual GDP was negative 7.5%. Your $1 would have dwindled to $0.28.

Franklin D. Roosevelt (Democrat) was president from 1933-1945: Democrats controlled the Senate and the House. Unemployment was 25.6%. The average GDP was 9.4%. Your $1 doubled twice and then some—becoming $4.61.

Harry Truman (Democrat) was President from 1945-1953: Max unemployment was 7.9%. He inherited the end of Hoover’s recession. Annualized inflation was 5.4%. The average GDP was 1.3%. Your $1 turned into $3.10.

Dwight Eisenhower (Republican) was President from 1953–1961. Max unemployment was 7.5%. The average inflation was 1.4%. The average GDP was 3%. There were three different recessions during his term in office. Your $1 turned into $3.05.

John F. Kennedy (Democrat) was President from 1961-1963. Democrats controlled the House and Senate. Max unemployment was 7.1%. The average inflation was 1.2%. The average GDP was 4.4%. Your $1 turned into $1.39.

Linden B. Johnson (Democrat) was President from 1963-1969. Democrats controlled the House and Senate. Max unemployment was 5.7%. The average inflation was 2.8%. The average GDP was 5.3%. Your $1 turned into $1.66.

Richard Nixon (Republican) was President from 1969-1974: Democrats controlled the House and Senate. Max unemployment was 6.1%. The average inflation was 6%. The average GDP was 2.8%. Your $1 stayed $1.

Gerald Ford (Republican) was President from 1974-1977: Democrats controlled the House and Senate. Max unemployment was 9%. The average inflation was 6.5%. The average GDP was 2.6%. There was a huge recession when he first started. Your $1 turned into $1.51.

James (Jimmy) Carter (Democrat) was president from 1977-1981: Democrats controlled the House and Senate. Maximum unemployment was 7.8%. The average inflation was 10.2%. The average GDP was 3.3%. Your $1 turned into $1.55.

Ronald Reagan (Republican) was president from 1981-1989: Democrats controlled the House and the Senate was mixed. Max unemployment was 10.8%. The average inflation was 4.2%. The average GDP was 3.5%. Your $1 turned into $2.89.

George H. W. Bush (Republican) was President from 1989-1993: Democrats controlled the Senate and the House. Maximum unemployment was 7.8%. The average inflation was 4%. The average GDP was 2.2%. Your $1 turned into $1.79.

Bill Clinton (Democrat) was President from 1993-2001: He had a mixed Senate and mixed House. Maximum unemployment was 7.3%. The average inflation was 2.5%. The average GDP was 3.9%. Your $1 turned into $3.56.

George W. Bush (Republican) was President from 2001-2009: He had a mixed Senate and mixed House. His Presidency lived through the dot-com bubble and then the Great Recession. Maximum unemployment was 7.3%. The average inflation was 2.3%. The average GDP was 2.2%. Your $1 turned into $0.79.

Barack Obama (Democrat) was President from 2009–2017: He had a mixed Senate and Mixed House. Maximum unemployment was 10%. The average inflation was 1.7%. The average GDP was 1.7%. Your $1 turned into $2.94.

Donald Trump (Republican) was President from 2017-2021: Republicans controlled the Senate and the House was mixed. Maximum unemployment was 14.8%. Hit a recession in 2020. The average inflation was 1.8%. The average GDP was 1.4%. Your $1 turned into $1.81.

Joe Biden (Democrat) has been President since 2021: Republicans have controlled the Senate with a mixed House. Maximum unemployment was 6.4%. The average inflation was 5.5%. The average GDP was 3.4%. Your $1 turned into $1.33.

Whew. Alright. Now, what do we do with this information?

[bctt tweet="In this episode of Best in Wealth, I cover how the stock market performed during each presidency for the last 100 years. Learn why it matters by listening! #Investing #FinancialPlanning #WealthManagement " username=""]

What should you do if your preferred President is not elected?

While you may be tempted to drop out of the market, that is never the answer. 15 out of the 17 Presidents had positive returns in the stock market. That means that 88% of the time, we have seen positive returns in the stock market. We only saw negative returns during the Great Depression and under Bush during the Dot-com bubble and Great Recession.

If you invested $1 in 1926, that $1 would be worth well over $10,000 right now. If you only invested that money when your preferred President was in office, you would only have half that amount. You would miss out on so many returns.

Remember, we are investing in companies—not Presidents. The S&P 500 averages over 10% returns every year. There is no data we can come up with that would tell us to get out of the market depending on who is elected. Who is elected never matters for your investments.

[bctt tweet="What should you do if your preferred President isn’t elected? I give you my two cents in episode 251 of Best in Wealth! #Investing #FinancialPlanning #WealthManagement " username=""]

Resources Mentioned

Stocks often drop in September — but many investors shouldn’t care

Connect With Scott Wellens

Schedule a discovery call with Scott

Send a message to Scott

Visit Fortress Planning Group

Connect with Scott on LinkedIn

Follow Scott on Twitter

Fortress Planning Group on Facebook

Audio Production and Show notes by

https://www.podcastfasttrack.com

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

I frequently talk about what you should do to prepare for retirement and how to handle the years leading to retirement. But I rarely talk about what to do during retirement because I have not experienced it. 

[bctt tweet="Retirement will be different than you expect. How? Learn more in episode #250 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username="wellensscott"]

So when I came across Fritz Gilbert’s article, “6 Lessons from 6 Years of Retirement,” I knew I had to talk about it. In the article, Fritz talks about the surprising things he has learned six years into retirement. I will cover the fascinating lessons in this episode of Best in Wealth.

Outline of This Episode

 

[1:06] Thank you for being loyal listeners!

[1:36] What should you do during retirement?

[4:52] Lesson #1: Retirement is complex

[7:47] Lesson #2: Retirement changes with time

[10:45] Lesson #3: Retirement will be different than you expect

[14:17] Lesson #4: Your priorities will change throughout retirement

[17:45] Lesson #5: Your mindset matters a lot

[18:58] Lesson #6: Retirement can be the best years of your life

Lesson #1: Retirement is complex

 

When you retire, you have far fewer external influences than during your working years. Money issues are top-of-mind during the early phase of retirement. It is scary moving from collecting a paycheck for 30+ years to starting to live off of your nest egg. But Fritz believes that true value comes by figuring out all of the non-financial issues in retirement.

[bctt tweet="Your mindset matters a lot in retirement. Find out why in episode #250 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username="wellensscott"]

Lesson #2: Retirement changes with time

 

Your experience will change as you move from the honeymoon stage to more advanced stages. The changes will last for years and will be different than what you expect. Your retirement plan will change. Your new reality requires a new approach. Embracing the challenge is part of the fun. Why not enjoy the new life? You get to experiment as you face the changes. 

 

Lesson #3: Retirement will be different than you expect

 

I spend a lot of time talking about retirement goals with my clients. Whether it is traveling, spending time with grandkids, buying a second home, donating to charity, etc. we revisit it every six months. Why so frequently? It is impossible to know what you want retirement to look like until you live through it. As long as you expect change, it will be exactly how you think it will be. Let the journey lead you where it may. 

Lesson #4: Your priorities will change throughout retirement

 

Priorities change throughout your entire working life. Whether you are choosing a job, raising kids, or sending them off to college—it is constant change. You may have thought you were done but priorities continue to change when you retire.

[bctt tweet="Retirement can be the best years of your life—and they can be the worst. What’s the differentiator? Learn more in episode #250 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username="wellensscott"]

 

Fritz was focused on covering expenses when he retired. Then he realized it would be hard to spend all of the money he had saved, so they gave themselves permission to spend their money. Then they shifted to thinking about bringing fulfillment to their lives. 

Lesson #5: Your mindset matters a lot

 

After reflecting on the first six years of his retirement, Fritz realized what brought him to a place of fulfillment was having the right mindset. It is vitally important. It is your job to fill your day. It is your job to focus on gratitude. With the right mindset, you can have an unbelievably filling retirement. 

Lesson #6: Retirement can be the best years of your life

 

Fritz is happier than he has ever been. But so many retirees are struggling. 28% are absolutely miserable. Alcoholism and depression run rampant in many retirees. Fritz writes to help others get out of their slump. He wants them to know their future can be bright. It is up to you to fill your days with things that bring you joy. 

 

What surprised you the most about Fritz’s first years of retirement? 

Resources Mentioned

 

6 Lessons from 6 Years of Retirement

Who Moved My Cheese?

Connect With Scott Wellens

Schedule a discovery call with Scott

Send a message to Scott

Visit Fortress Planning Group

Connect with Scott on LinkedIn

Follow Scott on Twitter

Fortress Planning Group on Facebook

 

 

Audio Production and Show notes by

https://www.podcastfasttrack.com

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

I believe there are three rules that every family steward should follow when it comes to investing. In theory, these rules are “easy” to follow—but living by them is not. Secondly, these rules will not surprise you. That does not make them any less important. So in this episode of Best in Wealth, I will share what each rule is and you will discover why you have to follow them.

[bctt tweet="📣 What are my 3 BIGGEST rules for investing? Find out in episode #249 of Best in Wealth! #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]

Outline of This Episode

[1:06] The 3 rules for dating my daughters

[5:31] Rule #1: Do NOT try to time the market

[11:12] Rule #2: Do NOT focus on the headlines

[13:53] Rule #3: Do NOT chase past performance

Rule #1: Do NOT try to time the market

Whether it is a bad day in the stock market or upcoming elections, it can be easy to let your emotions get to you and think, “Maybe I should get out of the market right now.” It is easy to sell everything and get your money out.

However, it is far harder to decide when to put the money back in. No one ever thinks about the second half of the equation. Do you have an investing philosophy? What is your system? When will you get your money back in the market?

The S&P 500 has been rolling. It was up 15% last quarter. Small Value was negative for the year. Wouldn’t it be tempting to take the money from your small value and move it into the S&P 500? But Small Value has done far better this quarter. You would have lost out on that money.

John Bogle—The Founder of Vanguard—spent over 70 years on Wall Street. He’s famously known for saying, “I’ve never found anyone who can successfully time the market.” There is a reason for that.

[bctt tweet="🚨 Do NOT try to time the market. Why? Check out episode #249 of Best in Wealth for the answer. #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]

Rule #2: Do NOT focus on the headlines

It is too easy to become enamored with popular stocks that get media attention. For example, the Magnificent Seven has risen in popularity (Google, Apple, Facebook, etc.) for the last 10 years. They have done amazingly well in 2023 and 2024.

However, once companies hit the “top 10,” their returns tend to decline. Just because you read a headline about a company does not mean it will perform better. What you have read about is already priced into the market. You must separate what you are seeing on the news from your investment.

Rule #3: Do NOT chase past performance

You might be inclined to choose investments based on past returns. You expect top-ranked funds to continue to deliver their best performance. We see this time and time again with new investors. They do not know where to start. The only information they have in front of them is past performance. So they choose what has had the best performance recently.

But research shows that most funds that are ranked in the top 25% don’t remain in the top 25% over the next five years. Only about 1-in-5 mutual funds stayed in the top-performing group. The lesson? A fund’s past performance offers limited insight into its future returns.

As family stewards, how do we shift our focus? What do we want to do instead? Listen to hear my thoughts.

[bctt tweet="📣 One of my biggest rules for investing: Do NOT chase past performance. Learn why in episode #249 of Best in Wealth! #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]

Connect With Scott Wellens

Schedule a discovery call with Scott

Send a message to Scott

Visit Fortress Planning Group

Connect with Scott on LinkedIn

Follow Scott on Twitter

Fortress Planning Group on Facebook

Audio Production and Show notes by

https://www.podcastfasttrack.com

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

When we decided my wife was going to get a new vehicle, I knew we needed to test drive the vehicle she wanted: A Jeep. She had never driven a Jeep before. She had never experienced what it was like driving something with the doors off. So I knew she needed to get behind the wheel to see how it felt. Let me tell you, our Jeep-buying experience was a wild ride!

In this episode of Best in Wealth, I will share our experience, and how I ultimately purchased my wife her dream Jeep at the best price possible. Don’t miss it!

[bctt tweet="My wife and I just bought a brand new Jeep. I detail how I negotiated the best price in episode #248 of Best in Wealth! #FinancialPlanning #WealthManagement #Jeep" username=""]

 

Outline of This Episode

[1:11] Growing our health alongside our wealth

[2:46] Walking into the dealership

[9:17] The moment everything went wrong

[12:23] Asking for the best price

[17:17] Purchasing my wife’s Jeep

Walking into the dealership

When we walked into the dealership, we test-drove a Jeep with the salesman. He immediately pushed us to sit down, crunch some numbers, and make a deal happen. But I knew we would not be making an emotional purchase that day, and I immediately let him know we were not going to move quickly.

My wife told him that if negotiation was necessary, all communication had to go through me. The next day, this salesman started bombarding my wife with text messages, emails, and phone calls. Not surprising.

She responded and said she wanted to test-drive a hybrid with the doors and top off. We set up a day and time. We walked to the Jeep and he showed us how he had taken the doors off. But he had not taken the top off because it was a “Two-person job.”

We took it for a spin with the doors off and it was really cool. It was a great ride. My wife decided she wanted a Jeep. But, yet again, he had her test drive a Jeep that wasn’t a hybrid. My wife had a list of non-negotiable specifications that she wanted from the Jeep, including it being a hybrid. We knew that a hybrid wasn’t on their lot.

This salesman had done enough for us that I knew I would buy the Jeep through him if he could match the best price that I could find. That’s when everything went wrong.

[bctt tweet="We just bought my wife a brand new Jeep. Why’d we buy new? How’d we get the best price possible? I share my #negotiation secrets in this episode of Best in Wealth! #FinancialPlanning #WealthManagement #Jeep" username=""]

 

The ridiculous ask

He brought us inside to talk to his sales manager. The sales manager told us that finding my wife’s perfect Jeep was like finding a needle in a haystack. So he asked us to commit that we would buy the Jeep from them before he located it! He would only negotiate at that point. You should never commit to anything before you negotiate and land on a price. It was completely backward, so we walked out the door.

Buying my wife’s Jeep

I immediately went home, sat down at the computer, and found five different Jeeps fitting my wife’s specifications within five minutes.

I emailed all five dealerships asking them to email me their best price on the Jeep. Every dealership called me right away. One said, “We do not negotiate over the phone, you have to come in.” I crossed them off my list.

The other four dealerships gave me their price within 12 hours. But I did not know if what I was quoted was the best deal. So I took the three best prices and sent them all a text saying, “Congratulations. You made it to the top three with your initial offers. If you would like to sweeten the deal, I’m giving you one final chance. I’m buying a Jeep in the next 48 hours and buying it from the person who has the best price.”

One said, “That was my best price,” but the other two sweetened the deal. They took more money off. One of them gave a lower quote than the one that was initially the best. I called that dealership, put $1,000 down, and they held the vehicle for me. I did my due diligence and at the end of the day, I was happy with the price we paid.

I share the rest of the story in this episode (including why we bought a new car). Don’t miss it!

Would you have done anything differently? I would love to know!

[bctt tweet="I negotiated buying my wife’s perfect Jeep at the best price possible over phone and email. How? Learn my strategy in this episode of Best in Wealth! #FinancialPlanning #WealthManagement #Jeep" username=""]

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The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

I am often asked how much a family should spend on vacations. While that is entirely personal, most experts recommend that 5–10% of your net income can be spent on vacations.

Many factors may change this number. Maybe you have a large family or your kids are into expensive sports. You might not have that income to spend on a lavish vacation.

But to spend any amount on a vacation, you need to budget. You cannot go into debt. So how do I do it? I will share a great strategy in this episode of Best in Wealth.

[bctt tweet="✈️ How much should you spend on vacations? How do you budget for them? Learn more in this episode of Best in Wealth! #PersonalFinance #VacationPlanning #WealthManagement" username=""]

Outline of This Episode

[1:04] We are heading on vacation to Europe!

[2:38] How much you should spend on vacation

[6:48] How we budget for vacations

[8:20] Be aware of luxury creep

[10:02] Be aware of entitlement creep

[11:33] Do not be a vacation scrooge

How to budget for a vacation

You cannot go into debt to purchase a vacation. I have done it. I had a great time. But when I got home, the guilt and regret sunk in. That is why I firmly believe you need to have a spending plan.

We set a monthly budget. Then, we have a separate spreadsheet that lists all of our non-monthly line items. It covers things like Christmas gifts, oil changes, car insurance, and vacations.

All of these items are added up. If the number is $12,000, we divide it by 12, and save that money in our “escrow savings account.” Every time a non-standard monthly expense comes up, we use that money to pay for it. Those things will not disrupt our budget.

[bctt tweet="🗺️ How do you budget for a vacation? I share my family’s strategy in episode #247 of Best in Wealth! #PersonalFinance #VacationPlanning #WealthManagement" username=""]

Be aware of luxury creep

If you are going to Disney, there are a lot of different hotels to choose from in Orlando, right? You can stay at the Holiday Inn and Suites or choose from numerous luxurious hotels and resorts. Do not let yourself get lured in. Budget within your means.

I spent a lot of time budgeting for our trip to Europe and I have saved for a couple of years. We are working within our budget. When it is all said and done, I will be proud. I am getting to spend time with my family within the budget I have set.

Be aware of entitlement creep

Do not let entitlement justify overspending on vacation. You are grinding every day at your job. You are exhausted being a parent. You deserve a vacation. But do not spend too much because you “deserve” it. It will eat you up inside.

It is not about keeping up with the Joneses. Just because your neighbor stayed at a five-star hotel and was waited on hand and foot does not mean you should. Do not allow yourself to be talked into something you cannot afford.

You know who you are. You are listening to a financial podcast. You are a budgeter. But you cannot be afraid to take a vacation. A vacation is investing in your family, investing in improving your mental health, and investing in lasting memories. Remember, vacations with your loved ones are an appreciating asset.

[bctt tweet="⭐ Don’t let entitlement justify overspending on vacation. You deserve a vacation. But let’s keep it within budget, shall we? Learn more in episode #247 of Best in Wealth! #PersonalFinance #VacationPlanning #WealthManagement" username=""]

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The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

There are a lot of huge decisions you have to make in life. What career are you going to choose? Will you get married? Will you have kids? Will you buy a home? There are many more. But there are not many bigger than this question: When are you going to retire? 

Maybe that is your only huge decision left. Have you really thought about it yet? Because if you are going to retire early, we have to plan for it. In this episode of Best in Wealth, I cover four huge questions you have to consider to help you make one of the biggest decisions of your life.

[bctt tweet="🚨 In this episode of Best in Wealth, I ask 4 questions that will help you decide when to #retire. Check it out! #Retirement #RetirementPlanning #FinancialPlanning" username=""]

Outline of This Episode

[1:02] What big choices have you made in your life?

[2:33] What the 2024 Retirement Confidence Survey tells us

[9:48] 4 things to consider when contemplating early retirement

[11:04] Question #1: Why do you want to retire early?

[12:34] Question #2: What is your plan for retirement income?

[15:00] Question #3: Do you have a plan for health insurance?

[18:00] Question #4: When are you going to collect Social Security?

What the 2024 Retirement Confidence Survey tells us

Deciding when you are going to retire is an enormous decision to make. Americans are not mandated to retire at a certain age. Certain milestones may make the decision easier.

Age 62: This is when you are first eligible for social security (though you will take a big hit on benefits)

Age 65: This used to be the full retirement age (and is still the age when you are eligible for Medicare)

Age 67: This is when you can collect your full retirement benefit from Social Security

Age 70: If you wait until 70 to retire, you can collect a larger social security benefit

A recent survey suggests that most people want to retire in their mid-60s. In reality, many retire earlier. It may be due to downsizing, deteriorating health, etc. According to the 2024 Retirement Confidence Survey, the median expected retirement age is 65. Only 28% of people expect to retire at this age (up 23% from last year). Most retire closer to age 62.

52% of current workers are expecting to retire gradually. 36% are expecting to retire all at once. Yet 74% of current retirees had a full stop to work and only 18% engaged in a gradual transition. These are all things to consider when deciding what age to retire.

[bctt tweet="📣 What does the 2024 Retirement Confidence Survey tell us about when and how people are actually retiring? Get the details in this episode of Best in Wealth. #Retirement #RetirementPlanning #FinancialPlanning " username=""]

Why people like to retire earlier

If you had to choose now, when would you retire? Many people want to retire earlier than the traditional mid-60s. Why? People like to retire earlier to enjoy time while they are healthy and physically active. They can travel everywhere they have been waiting to go. They can play pickleball.

As a financial advisor, we play a huge role in helping clients consider the ramifications of their choice (based on both financial and lifestyle factors). When we are helping our clients contemplate early retirement, there are many things to consider.

When we onboard clients, we have meetings about investment planning, retirement income strategies, tax strategies for retirement, and insurance and estate planning. That’s before someone is officially signed as a new client.

4 things to consider when contemplating early retirement

Here are four things we consider that may help you make this decision if you are doing this on your own:

Why do you want to retire early? Are you tired of your current job? Do you have a plan or routine in place for when you retire? What if you simply need a new career? Too many people retire and become depressed because no one depends on them anymore. If you have a good “why,” you can move on to the next step.

What is your plan for retirement income? We have to look at the wide range of outcomes for retirement plans for an extended retirement. People are living longer and longer. If we have to plan for 40+ years, numerous ranges of return and inflation outcomes must be considered.

Do you have a plan for health insurance? If you are going to retire at 55 or 60, you are not eligible for Medicare yet. Extended health care coverage (COBRA) is expensive and has a time limit (18 months). What can you do to bridge the gap between retirement and Medicare?

When are you going to collect Social Security? If you retire at 55, will you have enough money to survive until age 62 at the very earliest? We have to figure out how you will navigate uneven cashflow until you can claim Social Security.

Everything matters when we are planning for retirement—especially an early one.

[bctt tweet="📣 What are 4 things you NEED to consider when contemplating an early retirement? I share important details in episode #246 of Best in Wealth. Check it out! #Retirement #RetirementPlanning #FinancialPlanning " username=""]

Resources Mentioned

2024 Retirement Confidence Survey

Solving the Two Biggest Retirement Problems, Ep #242

Connect With Scott Wellens

Schedule a discovery call with Scott

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Audio Production and Show notes by

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The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

I make a spending plan for our family every single month. We account for every dollar coming in and going out. But what about the things that happen quarterly and annually? We add up all of those expected expenses at the beginning of the year and calculate the total approximate cost. That money will be saved every month to go toward those expenses. That is how we allocate money for things like Christmas and birthdays, too.

We budget $300 for each daughter’s birthday party and $200 for a present and save for it monthly. But last year, we bought pizza, cake, snacks, etc. Our daughter requested that we take her friends to brunch the next morning. We ended up spending far more than we had budgeted.

Now we need to save more in the remaining months of the year to make up for going over budget. When I have to do this, we have to lower our spending or it will not balance out. I vowed that it would not happen again. So this year, we did things a little bit differently. Listen to this episode to learn a unique way you can teach your kids how to budget.

[bctt tweet="🎉 In episode #245 of the Best in Wealth podcast, I share a unique way you can teach your kids how to budget that they’ll enjoy, too! #PersonalFinance #Budgeting #FinancialPlanning" username=""]

Outline of This Episode

[0:35] Why my kids had to take a personal finance class

[2:55] Why I make a spending plan every month

[5:05] Budgeting for my daughter’s birthday

[9:09] How I taught my daughter to budget

[18:37] The powerful lesson my daughter learned

What I plan on doing differently this year

My daughter was talking with my wife about her plan for her birthday and I knew I needed to interject. That is when a lightbulb went off in my head.

I asked her to share what she wanted to do for her birthday. She planned to have 10 of her friends over for a sleepover. She wanted to decorate our basement with banners and balloons. She wanted to take her friends out for pizza and ice cream. She also wanted to take them to an escape room. Lastly, she wanted to give her friends a cool party favor.

I’m sweating profusely at this point, starting to get nervous about my plan. But I took a deep breath and said, “That all sounds great.” I then proceeded to tell her that we had $300 saved for her birthday party and $200 for her birthday present.

I told her that she got to plan her party down to the last detail—but that she had to stay within the $300 budget. Even better, if she spent under $300 on the party, I would take the extra money and put it toward her birthday present.

But I told her that there was a catch: If she spent more than $300 on her party, it would be deducted from her birthday present. 

[bctt tweet="💡 I asked my 14-year-old daughter to plan her birthday party and gave her a specific budget to work with. It was a game-changer. Learn why in this episode of Best in Wealth! #PersonalFinance #Budgeting #FinancialPlanning" username=""]

My daughter’s real-life experience with budgeting

She had to calculate how many friends she wanted to invite and how much it would cost for pizza and ice cream for all of them. She had to find out how much the escape room would cost. She had to calculate how much the decorations would cost.

She wanted to get her 10 friends Owala water bottles for party favors. She excitedly said, “They’re cheaper than Stanley’s—only about $30 a piece.” And I said, “Eva—what’s $30 x 10?” Her smile faded when she realized the water bottles alone would eat her entire budget.

So she got to work. She decided they would not do the escape room. She would get ice cream that was on sale at our local grocery store. We would buy pizza from Costco. She priced out birthday decorations on Amazon. She also decided to invite only her closest friends so she could still get each of them an Owala water bottle.

The grand total for her birthday party was $294. She came in $6 under budget. My daughter was in control of her party and learned a valuable lesson: When you want something, you have to find a way to make it work that is within your budget.

What do you think? Would you try this with your kids?

[bctt tweet="🥳 I had my 14-year-old daughter plan her own birthday party. Why? To teach her how to #budget. Learn how you can do the same thing with your kids in episode #245 of Best in Wealth! #PersonalFinance #Budgeting #FinancialPlanning" username=""]

Connect With Scott Wellens

Schedule a discovery call with Scott

Send a message to Scott

Visit Fortress Planning Group

Connect with Scott on LinkedIn

Follow Scott on Twitter

Fortress Planning Group on Facebook

Audio Production and Show notes by

https://www.podcastfasttrack.com

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.