Show Description: This week has brought so much uncertainty and even panic for the American public.  In today’s show Jason Labrum and Alex Klingensmith hope to bring some reality to the situation with regards to the financial markets and what this means going forward for investors. During this time the advantages of free market capitalism and the American public’s opportunity to make an action plan have become a huge asset to every American.  Although the markets are shaky and declining history shows us, they WILL recover. Even more important if an investor misses the best days of the market, which history shows come during the Bear Markets and the recovery, the returns are so much lower. Getting in and out of the market/ timing the market will harm investors returns.  The goal of this show is reinforcing the principles of proper investing. 

-What to do before major markets events: Have a Financial Plan with a Fiduciary Adviser

-What to do during major market events: Don’t panic and make sure you have a fiduciary adviser.  Revisit principles of investing and how markets work- Talk with your Adviser

-What to do after major market event: Stay the course with your financial plan

In this show you will learn about:

What should investors do with their portfolios when markets dramatically decline?

Why its so important to have a financial plan?

"A rear view mirror is only good when you turn it on yourself to evaluate how you behaved during volatile markets"- Liz Ann Sonders- Chief Investment Strategist - Charles Schwab

Show Description: Jason and Alex directly address the recent volatility caused by the Coronavirus. The engine behind the Financial Detox team is their wealth management firm Intelligence Driven Advisers (IDA). The beginning of every client relationship with IDA focuses on setting a foundation of expectations and perspective. Investors should be prepared for markets going up and markets going down. The long term expectation is that they will continue growing as history has shown us. This does not make times like these easier to bear. Jason talks about the average growth of the S&P 500 six and twelve months after previous major disease outbreaks such as SARS, the Avian Flu, HIV, etc. Six months later the average increase was 8.8% higher, twelve months later it was 13.6% higher. These results are not meant to be predictive, but rather to caution investors to take actions based off emotions or information that is not aligned with their personal situations. Another data point that Alex goes on to share was the performance of a diversified 60/40 portfolio post the September 11, 2001. After one year, the portfolio was down 1%, three years later it was up 40% and after five years it was up 81%. The message that they show is meant to communicate to listeners is that while “it is different this time”, it really is not. Markets weather all storms. Focus on what you can control and accept what you cannot. 

In this show you will learn about:

-          How markets performed through other major disease epidemics

-          How markets performed through other major market events

-          How to control what you can and accept what you can not

-          What a full time fiduciary adviser can do for you in markets like these

Show Description:

Jeff has a long history with MG Properties Group and is responsible for investment transactions, investment strategies and partner relations. Jeff was previously Director of Investments, responsible for corporate equity and debt strategies and was an Acquisition Manager sourcing and underwriting new investment opportunities. Jeff has also served in asset management, regional management and onsite property management roles. Prior to joining MGPG, Jeff worked in apartment investment sales at CBRE, the country’s largest apartment brokerage firm, where he oversaw the sale of over $500 million in Southern California multifamily properties. Jeff has a Business Degree, with an emphasis in finance and management from the University of Southern California, while also completing internships at CBRE and Berkadia Real Estate Advisors. He later earned a Master of Science degree in Real Estate from the University of San Diego Burnham Moores School of Real Estate. Jeff holds a California Real Estate Broker license and LEED Green certification.

In this show you will learn about:

·         MG properties investment philosophy and recent activity 

·         Investing in Multifamily Real estate 

·         Current Market Fundamentals 

Show Description: In this episode Jason and Alex discuss the trending and complex topic of opportunity zone investing. This strategy is particularly interesting if you fall into any of the following categories. If you recently sold a business or if you are selling a business in the near future. If you have recently realized large capital gains in stocks or are considering doing so. If you have recently sold highly appreciated real estate or are thinking about selling it. All these situations present the opportunity to explore whether investing in an opportunity zone makes sense. This all started with the Investing in Opportunity Act, part of the Tax Cuts and Jobs Act. It was enacted as a way for the government to stimulate private investment in low income communities across the nation. With this strategy you have the potential for three very powerful tax benefits; Deferral, Permanent Reduction and Elimination of Capital Gains taxes. These unique tax benefits are rarely found in one investment strategy, but in this case all three are combined into one. These zones are being identified throughout the country and can be found in cities that you might not necessarily consider low income. The decision to diversify into a direct real estate or private business is not a simple or straight forward one. By having a comprehensive financial plan and a full-time fiduciary adviser, and investor can explore what portion of their portfolio might benefit from Opportunity Zone Investing. The team spends the show highlighting how these zones work, where they came from and what to do if you think this might be worth exploring for your situation. 

In this show you will learn about: 

-          Why Opportunity Zone investing was created in the first place

-          The potential tax benefits of investing capital gains into Opportunity Zones 

-          Some ways to explore options for investing in Opportunity Zones

Show Description:

History has shown there’s no compelling or dependable way to forecast stock and bond movements, and 2019 was a case in point.

Rather than basing investment decisions on predictions of which way debt or equity markets are headed, a wiser strategy may be to hold a range of investments that focus on systematic and robust drivers of potential returns. Investors who were broadly diversified across asset classes and around the globe were in a position to potentially enjoy the returns that the markets delivered in 2019. Executive Chairman and Founder of Dimensional, David Booth, discusses the lessons from 2019 that investors can apply to 2020 on the Dimensional Perspectives blog. 2019 served up many examples of the unpredictability of markets, as a way to showcase this, we revisit a few 2019 Market Forecasts and Outcomes below.

We hope this is helpful in client conversations and would be happy to set up a call to discuss further.

2019 Market Forecasts & Outcomes 2019 Global Market Outlook: Mind the Gap (Charles Schwab)

· FORECAST: “Global growth is likely to slow in 2019 as economic cycle nears a peak…International stocks may continue to see heightened volatility and could enter a bear market if key indicators continue on their current path.”

· REALITY: Charles Schwab correctly predicted that global growth would slow in 2019—global GDP grew 2.2% in 2019,1 down from 3.0% in 20182. The MSCI All-Country World ex USA Index experienced flat volatility in 2019 (12.71% versus 12.72% in 2018) but this was lower than the annualized standard deviation it has experienced over the last 20 years of 16.62%. Additionally, annualized returns were significantly higher in 2019 (21.51% versus -14.20% in 2018)3. Vanguard Economic and Market Outlook for 2019: Down but not Out (Vanguard)

· FORECAST: “In the United States, we still expect the Federal Reserve to reach terminal rate for this cycle in the summer of 2019, bringing the policy rate range to 2.75%–3% before halting further increases in the face of nonaccelerating inflation and decelerating top-line growth.”

· REALITY: The Fed cut interest rates 3 times in 2019, ultimately lowering the benchmark rate to a range of 1.50% to 1.75%.4 Barron's 2019 Outlook: Professionals Sense Recession Risk (Barron’s via Forbes)

· FORECAST: Barron’s asked strategists from banks and asset managers for a single-point, 2019 year-end S&P 500 projection. The results ranged from 2,750 to 3,100.

· REALITY: The S&P 500 finished the year at 3,231, outpacing many of the most bullish targets.5 Byron Wien Announces Ten Surprises for 2019 (Blackstone)

· FORECAST: “The better tone in the financial markets discourages precious metal investors. Gold drops to $1,000 as the equity markets in the United States and elsewhere improve.”

· REALITY: Gold rallied, breaking the $1,500 barrier in August 2019 for the first time in six years and ending the year at approximately $1,522.6 Gundlach's Forecast for 2019 (Advisor Perspectives)

*For more FORECAST/ REALITY please visit https://www.idawealth.com/learn/the-financial-detox-show/

· 1. Data provided by The World Bank · 2. “Another lackluster year of economic growth lies ahead”, The Economist · 3. Data provided by Morningstar 4. “Federal Reserve cuts interest rate for a third time this year in effort to boost U.S. economy”, Washington Post · 5. S&P 500 Index data provided by Morningstar · 6. Gold Spot Price data provided by Morningstar · 7. “Dollar index records smallest ever annual move in 2019”, Reuters · 8. Data provided by Morningstar · 9. Data provided by Morningstar

Show Description:

Jason and Alex welcome special guest Mike Battin. Mike is a founder, partner and business attorney of Navigato & Battin based out of San Diego. Casual conversation about intermittent fasting and ketosis transitions into the newly implemented employer law dictating employee classification between independent contractors and W2 employees. This crucial topic affects thousands of California businesses and is a very important law to get right. The previous law consisted of an 18-step test to determine classification. That law has now been narrowed to a three-step test commonly called the ABC test. This makes it easier to navigate but easier to flunk. Mike explains the tests this in detail going into how they measure whether an employer exerts control over the employee, whether the worker has an independent business and regularly engages in that business and if the employee is in the same business of the employer. The ABC test is a test that every business owner or control person needs to become an expert at as soon as possible. The consequences of not getting this right could mean significant taxes, penalties and interest owed by the employer at both the federal and state levels. It could also trigger a domino audit effect that paralyzing the business. The next topic that Mike dives into is what to do when you get sued as a business owner. Mike shares some great general advice on the topic previewing his upcoming book A Business Person’s Guide To Being Sued. His advice includes 1) Don’t ignore it, 2) Get a Lawyer, 3) Tender the claim to insurance if at all possible, 4) Take steps to preserve all relevant evidence. This advice from business attorney Mike Battin is a really wonderful insight into the importance of having a great adviser on your business employment needs. The Financial Detox team works with several business owners of various sizes and having a solid partner like Mike makes financial peace of mind that much easier to accomplish.

Mike Battin, Esq. Contact: 619-233-5365 or email at [email protected] Bio: Founder, Partner and Attorney at Navigato & Battin Attorneys since 1997 
http://navbat.com/

In this show you will learn about:

- A review of the new laws that went into effect Jan. 1st which impact businesses (mainly, labor laws)

- An analysis and discussion of “AB-5,” the new law that dramatically changes how and whether businesses can use independent contractors or not

- What to do when you are sued as a business owner

Show Description: Politics and investing intersect in this show where Jason and Alex pose a tough but important question to investors. Is your investment philosophy impeachable? Impeachment is defined as the act of calling into question the integrity or validity of something. Markets have been extremely kind to investors in recent history which may be causing many to have a false sense of confidence. A rising tide lifts all boats. One of the more common investment philosophies is to have an extreme home bias towards a US only portfolio. We buy what we know. While US Large cap and FAANG investors have been rewarded by recent market performance, Jason shares evidence over both 10 and 48 year time frames where a globally diversified portfolio performed significantly better than an all US Large Cap one. The lost decade was a clear example of how important it is to think bigger than just the US when it comes to your portfolio. It could mean the difference between a -9% ten year total return compared to a +50% one during that same time frame. There are other investment philosophies that also warrant a closer look. If you had a 17% chance of success vs an 85% one, which would you choose? Jason and Alex take it one step further and ask investors to look closer at whether their adviser is impeachable. If your adviser is operating within suitability guidelines and isn’t serving you as a full time fiduciary adviser, you might benefit from spending some time considering the alternatives. Would you rather have a preferable adviser or one that is just suitable? Another critical and potentially impeachable situation might be present if your adviser tells you what you want to hear rather than follow a disciplined philosophy rooted in confidence, conviction and a solid foundation to weather all seasons. Listeners should come away with actionable questions to bring to their investment philosophy and their adviser with the purpose of knowing whether they are impeachable or well positioned for what’s to come. 

In this show you will learn about: 

- Why a home bias in your portfolio may not be the best long term strategy 

- How to look at history and craft an investment philosophy that has a higher likelihood of success 

- How to evaluate if your adviser is working in your best interest above their own 

- Why it’s important to have an adviser to sticks to their philosophy in good times and in times of volatility 

Show Description: 
2020 is off to the races and the markets continue to break record highs. Is it time to sell and capture profits? Jason and Alex explore this question and many others that investors are asking themselves with balancing both comedy and academic evidence in their responses. They discuss the past and how looking back can be helpful when making decisions about the future. Election years tend to evoke many emotions about what could happen depending on who is elected into office. Recent tensions in Iran and what could spark a war most certainly do as well. The acceleration of technology and how it’s forcing entire industries to evolve and remain relevant have investors speculating more than ever on emerging industries.. What are we to do with all this information? And what predictions can we make about the future as it pertains to investing? Jason also tackles a very important concept; how we define risk and volatility can govern our decision making and be the difference between success and failure. Understanding when there is more risk vs less risk (in the market) may also be very helpful when facing forces that are out of our control. We are likely to be at the riskiest times when our personal life events intersect with market uncertainty. The team shares their opinion on what the “right way to invest” is and how they serve clients to steward true financial peace of mind in times of uncertainty, volatility and even at market highs.

In this show you will learn about:

- How to navigate uncertainty and volatile times

- How to know when markets have more risk vs less risk

- Some of the things that you can control when investing

Show Description:

Jason and Alex kick off the new year by reframing the purpose of Financial Detox and conclude that it is “Helping You Make the Most of Your Wealth”. They proceed further by talking about the importance of having a purpose in how you invest and how to best set goals for success. Some studies show that 80% of new year’s goals are abandoned after one month and only 8% of these goals are even achieved by the end of the year. In an effort to help you not become that statistic, Jason and Alex share time tested goal setting techniques such as “The Wheel of Life” introduced by good friend Mark Robertson. Having a balanced approach to goal setting leads to a balanced life. They take it one step further by wrapping in the well-known concept of SMART goal setting and that by using this foundation you will have a much higher likelihood of accomplishing your goals and increasing your fulfillment of a well-balanced life. One of Jason and Alex’s goals is that every client of their wealth management firm, Intelligence Driven Advisers, has a comprehensive financial plan that is monitored on an ongoing and interactive manner. By accomplishing this they feel that clients can best achieve financial peace of mind thus enhancing a well-balanced life. Jason introduces the concept of a preferable adviser as compared to one that is just suitable. Credit for this brilliant wordsmithing goes to Brooks Hamilton, Erisa attorney in his commentary of a Dan Solin LinkedIn post. The confusion around the word fiduciary has reached a point where simplifying the difference may help. Would you rather have a preferable adviser or one that is merely suitable. The show then gives reference to a recent Geico commercial where the doctor is recently reinstated and carries with him a rather cavalier attitude about his patient’s upcoming surgery. Just ok is not ok. The show challenges listeners to set their first SMART goal of 2020, find out by the end of the day if their adviser is preferable or just a suitable one.

In this show you will learn about:

· The purpose of Financial Detox for you

· How to set well balanced goals with The Wheel of Life

· Why using SMART goal setting techniques will improve your odds of success

· The difference between a preferable adviser and one that is just suitable

Show Description:

Jason and Alex welcome back Agustin Lebron, Co-Founder & Managing Director of Essilen Research. Agustin is also a member and active investor in Tech Coast Angels San Diego and author of The Laws of Trading. In this episode they explore the popular topic of private equity. The market run up has allowed for unprecedented levels of private equity activity, combined with easier access than ever for an investor to become a private equity investor. They discuss the ever-important question – just because you can do something, should you – in detail. It starts with the information and they discuss the importance of understanding where good information does, and does not, come from. These “too good to be true” opportunities to participate are almost always just that. Once you have filtered your sources down to reliable, consistent experts in their field the next wave of considerations must be pondered – when does it make sense to allocate towards this asset class, how much of your overall net worth makes sense and finally which opportunity makes the most sense for you and your specific situation. Finally, the show regroups to help listeners really understand the stark contrast between investing in a globally diversified, low cost, tax efficient portfolio compared with a private equity opportunity. While private equity may present a tremendous upside potential, it has also proven to wield overwhelmingly negative odds to investors. Listeners are left with guidance on how to navigate decision making around this highly marketed asset class.

In this show you will learn about:

- Where to get good information from regarding Private Equity

- The difference between Private Equity and Public Markets when investing your money

- When to consider adding Private Equity as an asset class to your portfolio

- If it makes sense for you, how much of your net worth makes sense to allocate into Private Equity