Our 2 Cents

Another bank failure doesn't mean a failure of the banking system. But we are talking about the very real implications that it does have. Plus, we're sharing a listener-suggested article about how heart health should be top-of-mind as you plan for retirement.

1. Gabriel's Quote Picks of the Month:
   • "It's good to have money and the things that money can buy, but it's also good to check up once in a while and make sure that you haven't lost the things that money can't buy." - George Lorimer
   • "When a man retires and time is no longer a matter of urgent importance, his colleagues generally present him with a watch, for some reason." - RC Sherriff
2. More Unrest in the Banking Industry:
   • At the end of last year, First Republic was the nation's 14th-largest bank. As of May 1, the bank had failed.
   • How did the collapse of Silicon Valley Bank lead to a 97% plunge in First Republic's stock?
   • With some larger banks attempting to save First Republic by infusing billions of dollars into it, how did it still fail?
   • Biggest takeaway of the current uncertainty in the banking sector: diversification of deposits.
3. A Heart-Healthy Retirement:
   • Although a highly-prevalent cause of death in the U.S., why is heart disease under-discussed in the media?
   • What makes retirees within a year of transitioning from work 40% more likely to have a heart attack?
   • How having "a well-written retirement plan equals better health and wealth."

Our 2 Cents is back this week with a discussion about what's in store for Social Security in the years ahead. Plus, we're taking a closer look at Bed, Bath and Beyond's demise and lessons to learn from what happened to the once beloved retail chain.

1. The Future of Social Security:
   • The recent negative headlines about Social Security have some people worried about their preparedness for retirement. 
   • What are some possible solutions to ensure the fund's solvency for the long-term?
   • How any changes made to the Social Security program could impact your claiming strategies.
   • What risks are involved with some of the possible changes?
2. Bed, Bath & Gone:
   • After a long struggle to stay in business, Bed, Bath & Beyond declared bankruptcy and will be closing all its stores.
   • What ultimately lead to the company's downward spiral?
   • The reasons why this is another prime example of the challenges that come with picking individual stocks.

Welcome back to another great Our 2 Cents episode with Steve and Gabriel Lewit! In store for today is a thoughtful conversation about the wisdom that comes with age and experience, and how it impacts your financial planning. Plus, they're sharing fun quotes and big money regrets!

1. Gabriel's Quote Picks of the Month:
   • "If you're shopping for stocks, choose them the way you'd buy groceries, not the way you'd buy perfume." - Benjamin Graham
   • "You can live to be a hundred if you give up all things that make you want to live to be a hundred." - Woody Allen
2. The Role of Wisdom in Financial Planning:
   • How does age impact wisdom, and wisdom impact your financial planning?
   • Why you should be thinking deeper about your retirement, not just surface level planning.
   • The importance of incorporating your, and other people's, life experiences and lessons into your financial planning.
3. Baby Boomers' Big Money Regrets:
   • From swimming pools and recreational vehicles to lavish weddings and more! Baby Boomers are sharing what purchases they made after retiring that they regret.

Richard Branson's Virgin Orbit (VORB) collapsed last week and Steve and Gabriel are here to discuss what lead to its demise, and the inherent risks involved with picking individual stocks. Plus, they're sharing details on I bonds, answering listener questions, and more on today's show!

1. VORB Goes Bust:
   • Everything has pros and cons and a proper place in your planning, but we like to take a Core + Satellite approach when considering investment options.
   • How does the collapse of VORB showcase the risk of speculative investing?
2. The "Mansion Tax":
   • Los Angeles recently introduced an extra tax on homes sold over $5 Million and $10 Million in the county.
   • We're discussing why making smart tax moves can have a major impact on your wealth.
3. I Bond Updates:
   • I bonds gained popularity last year, but what are they? And how are the interest rates calculated?
   • There's been an update to the fixed rate component of these bonds, what does that mean for investors?
   • There are limits on how much you can buy, we'll share how it works.
4. Listener Questions:
   • "I'm retiring in about five years and I'm currently maxing out my 401(k), but not adding any other savings. Should I be saving anywhere else even if that means putting less in my 401(k)?" - John
   • "I have a REIT that I purchased several years ago and it's done nothing but lose money. I'm told that I can't cash it out but I got a letter from a company offering to buy it from me. Is this worth exploring?" - Amy

The Fed's efforts to curb inflation have continued this week, and that's our first segment on this new episode of Our 2 Cents. Then, Steve and Gabriel are taking a look at some major shifts in the vacation rental industry and wrapping up the show with listener questions.

1. Rate Hike Déjà Vu:
   • What does this latest move by the Fed indicate about the banking industry?
   • What do the continued rising rates mean for consumers?
   • Are there any positive benefits to rising interest rates?
2. "Airbnbust":
   • Vacation rentals are facing new challenges, even as the industry continues to grow.
   • An oversaturated market is hurting individual owners/hosts while short-term rental demand has never been higher.
   • We'll explain what could have caused the run up in costs and the oversupply in the market.
   • Plus, the unique impacts being felt across communities and neighborhoods.
3. Listener Questions: 
   • "I just paid my last tuition payment, so my kids are officially off the payroll. Is it safe to cancel my life insurance at this point? - Tom
   • "I'm not retiring for another five years, so I don't feel the need to be ultra-conservative with my money, but my wife keeps insisting that she wants to be more secure. Just how secure do I need to be at this stage?" - Jim

Steve and Gabriel start off today's show by sharing their thoughts on the recent collapse of Silicon Valley Bank and what it could mean for you. Then, they switch gears to wrap up our Part 2 of different investor personalities. Listen in now to this new episode of the Our 2 Cents podcast!

1. The SVB Collapse:
   • The 10-step timeline of events that led up to the SVB failure.
   • Thoughts on what this means for investors and the broader banking industry as a whole.
2. Understanding Investor Personalities - Part 2:
   • The Doomsday Prepper: When you're always concerned that the worst is going to happen.
   • The Odd Couple: When your financial views and goals are misaligned with your partner's.
   • The Trend Follower: When the "fear of missing out" forces you to hop on the bandwagon.
   • The Googler: When you're searching all corners of the internet for information and become overwhelmed.
   • The Model Citizen: When you've diligently saved money all your life but don't spend it or enjoy it.

Have you ever noticed certain personality traits in yourself when it comes to your financial matters? In Part 1 of a 2-part series, Steve and Gabriel explore the world of investor personality types and how, as advisors, they've learned to work with and help all kinds of investors.

1. Understanding Investor Personalities:
   • The Burned One: When trusting just doesn't come very easily to you anymore.
   • The Do-It-Yourselfer: When you've got it all handled by yourself and don't need any outside help.
   • The Price Shopper: When finding the best deal at the lowest possible price out there is your top priority.
   • The Over-Analyzer: When "analysis paralysis" tends to take over control of your decision making.
   • The Ostrich: When you catch a case of "hope-itis" and cross your fingers that it will all just work out.

It's the first week of March and we have spring fever on the Our 2 Cents podcast! Today, Steve and Gabriel are sharing some spring cleaning tips for your finances and diving a bit deeper into asset allocation. Plus, we have a couple other fun segments on the show, too! 

1. Gabriel's Quote Picks of the Month:
   • "The best way to teach kids about taxes is by eating 30% of their ice cream" - Bill Murray
   • "The world is divided into two groups—the people who do things and the people who get the credit" - Dwight Morrow
2. Spring Cleaning for Your Finances:
   • Budget and cash flow review
   • Consolidate financial accounts
   • Review asset allocation to ensure alignment
   • Organize insurances
   • Reupdate your overall financial plan
3. A Bit More on Asset Allocation:
   • "Vanguard Sees Global Equities Trouncing U.S. Stocks Over Next Decade"
   • An overview of these capital market assumptions and forward looking projections
   • This prediction would mean a major shift in where growth will be coming from
   • Why all this makes diversification so important
4. Getting to Know Steve and Gabriel:
   • Would you rather have a personal maid or a personal chef?
   • What's the worst haircut you've ever had?

Continuing from last week's conversation about Monte Carlo simulations, we're sharing our preferred income planning techniques and why we feel they provide enhanced benefits, both financially and emotionally. But first, we're flipping the script and starting the show with listener questions! 

1. Listener Questions:
   • "I've talked to a financial advisor and I like him a lot. But how do you know if someone is trustworthy or not?" - Wayne
   • "I've been stressed at work for a long time, and honestly would have left years ago. However, each year I receive a sizable retention bonus so then I decide to stick it out until I end up frustrated again, right before my next bonus. It feels like a viscous cycle. When should I walk away from this without feeling stupid?" - Larissa
2. Different Income Planning Ideas:
   • How "worst-case scenario planning" and stress-testing sets the table for a good income plan
   • The Bucket Planning Approach
   • The Flooring Method
   • Hybrid Planning
   • Why we feel these planning methods are better than a Monte Carlo simulation and also offer greater peace-of-mind

Today we're poking holes in a common financial planning strategy called a Monte Carlo and explaining why we don't consider it to be a reliable planning technique. Then, we are giving you 5 ways to keep feeling young throughout your retirement years. 

1. This 'Lazy Way' of Financial Planning Should Be Banned:
   • What is a Monte Carlo simulation and how are the results generated?
   • What factors could generate vastly different and unreliable results for the exact same client?
   • Why the "safe" withdrawal rate isn't really safe
2. 5 Habits to Feel and Stay Young in Retirement:
   • The importance of creating structure to your day
   • Why breaking up the routine is crucial as well
   • Retiring doesn't mean you should leave your social life behind
   • Healthy eating and exercise are keys to a longer life (and retirement!)
   • Getting involved can help you live a retirement life with purpose