Enjoy More 30s: Family Finance

Recapping the 9 episodes that reframe our investment mindset to ease financial anxiety!

• The worst 15 year period in the market over that same period of time going back to 1970, positive 3.7%, same exact index, different time period, very different result. (06:04)
• Uncertainty on the other hand, we talked about how it does historically show a high correlation with volatility: financial crisis of 2008, COVID in 2020, the uncertainty period was the drop. Once there was more perceived certainty, a plan of action, what are we going to do? The market started its recovery. (07:29)
• When you use a mathematical statistically diversified portfolio, the goal is like that of a healthy cookie, we want the most delicious flavor that we can get for the least amount of unhealthy ingredients. (13:46)

Quote for the episode: "The fear should not be paying for advice, it should be not getting something for that advice, not getting the value that you're paying for." (15:35)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Is the financial advice you're receiving worth it?

• Goal statement: I now better understand how advice versus fees for that advice can separately affect my situation. (02:13)
• Pensions are mostly a thing of the past and Social Security is not going to replace your six figure salary that you and your spouse have. You are now responsible for your own retirement in this society. (04:26)
• When they came out then, so Vanguard, this low fee, low cost company, when they came out and said their research showed that having a proper advisor could add 3% per year in overall net worth growth above what you would have gotten without them? (06:13)

Quote for the episode: " This study didn't even talk about things that a good comprehensive adviser will be doing for you, like taking advantage of say matching contributions through work, or analyzing your cash flow to maximize how much you could save every month, or making sure you have the right life insurance or disability insurance so it doesn't blow up all in your face." (10:07)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

If we learn about normal fluctuations ahead of time, then we'll be better prepared to cope with those inevitable market downs.

• Goal statement: "I now better understand how much up and down is normal for investments so I'm better prepared to not freak out when it does." (01:50)
• ...he [Dr. Markowitz] could now mathematically mix together what should produce the most return for the level of risk someone was willing to take, which is fantastic, right? (06:14)
• So when you get to a year with this portfolio goes down 12%, you could say that is actually normal. This should happen once roughly out of every 10 to 11 years. (08:47)

Quote for the episode: "And as the time period gets shorter, that range of possible returns increases. So the range for what can happen in any one month is much more than what can happen over say a 15 year period of time." (09:19)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

When you hear news about "the market", how much is actually applicable to your investments?

• Goal statement: I better understand what they mean when they say 'the market', and how that actually relates to my investments. (01:42)
• When you hear about the market on TV, most people's reaction is either "Oh no", when it does, something bad when it goes down or "Great! Yes", when it goes up. However, they are not talking about your specific investment. (03:10)
• We could break this down, in fact, much further because out of your stock piece, maybe it isn't all in the S&P 500 maybe part of the equity or the stock pieces in real estate funds, maybe foreign funds, maybe small cap funds, small company funds, which are all different than the S&P 500. (05:51)

Quote for the episode: "Basically, just look down at your bingo card that is your investment account and make sure, before you get worried, that it is actually matching what's on your card." (06:53)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

A bit more savings is almost always possible and what that means for your future self!

• Goal statement: I better understand how impactful it can be to consistently push my savings just a little bit further. (01:58)
• If your kid gets sick and needed a medicine costing $100 a month, you would figure out a way to afford that right? That means that you can also figure out a way to pay yourself another $100 a month. (06:43)
• So when we take that original $100 a month scenario, and we do the same thing, but assume that you increase your payments every year because you make more every year so it should go somewhere towards you. (08:39)

Quote for the episode: "The more you can keep pushing that upwards in small incremental feasible amounts, the greater that exponential long term number can grow to. Do that for yourself." (09:17)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Just how "every dog has its day", every area of the market has its time in the lead, and how to emotionally deal.

• So one thing to remember is that most returns are due to what area of the market, what box, so to speak, your fund may be in. (06:10)
• Rebalancing is basically taking the areas that did well, and selling them, and putting those funds into other areas that did not do well and buying them. (06:59)
• I would again not recommend somebody trying to manage individual pieces and do this rebalancing because you have to be again completely emotionless about it, you have to have the ranges set and as soon as it hits the ranges, boom, you're rebalancing. (08:57)

Quote for the episode: "Goal statement: I better understand how to view my winners and how to view my losers." (01:37)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

How TV and movies give us negative perceptions about advisors and investments.

• Goal statements: "I recognize what can greatly affect many people's perceptions of investments." (01:33)
• They've heard of people losing everything in the movies. They haven't heard of people missing out on retirement by being too conservative in the movies, though. (04:42)
• And think about how you may have gotten to where your mindset is today. It didn't just pop up out of the blue, it developed to where it is today. And then think about what mindset you might want your kids to have about it. (06:10)

Quote for the episode: "Look for someone who is comprehensive, though. Look for someone who focuses on planning, more than anything else, though, not investments, but planning and you're likely to wind up in very good hands with more clarity and greater chance to reach your goals and making life more enjoyable." (05:38)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

How could these diametrically opposed groups that are influencing basically every aspect of public policy not cause the stock market to play favorites?

• When it comes to the stock market, though it historically doesn't really care one way or another what political party is in office. (03:33)
• What the stock market tends to be influenced by more than anything, though, is the certainty versus uncertainty factors that we've brought up a number of times. (05:07)
• But based on each individual administration's policies, and what they put into play can certainly affect how the stock market reacts to that news is, do they think this will increase the growth of companies? (07:02)

Quote for the episode: 'If you can say "I now know better what generally affects the stock market and what generally doesn't", then you have succeeded in the main takeaway from today.' (07:20)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Set your expectations for how often downs do occur and hold it together when emotions run high.

• ...declines are normal and you should absolutely expect them to happen and mentality and emotionally prepare for that to occur. (02:55)
• Remember recoveries whether they take six months, 12 months, 18 months, that's also normal. (04:55)
• Finally, this is why we have talked about diversification before, so not owning just one or a few individual stocks, but rather having a professional advisor or at the very least using an Allocation Fund, as mentioned in the last episode, to spread your money out across many areas of the market to try and smooth out those rides. (05:26)

Quote for the episode: "If you think about your kids or your job or some other experience in your life, you can likely think of where it was maybe stressful at the time but now with the knowledge that you've learned, it's really not a big deal anymore." (02:54)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

What do you want your investments to do for you and are they on track to do it?

• So if my investments are doing good, that means they're on track to having the fuel that I need to get me to the goal that I'm trying to reach. (05:47)
• This is why I say investments are far less important in the grand scheme of things than planning. The planning is what gives you clarity, and the planning is what makes things possible. (06:18)
• So if you don't have the desire or the ability to properly compare and evaluate your different funds, then you need to in my strong opinion either A) hire an advisor who knows how to do this for you, or B) use an allocation fund that has a manager who can make sure you aren't overly concentrated in any one area. (08:18)

Quote for the episode: "Goal statements: I now understand what I want my investments to do, and how I should be evaluating if they are doing that. I want my investments to get me to a goal. So are they on a path to do that? And are they doing so effectively when I compare them to their peers?" (08:45)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.