This week, I’m talking about 5 mistakes that smart investors don’t make in bear markets. 

In today’s uncertain world, cash is king. The turmoil in the stock market has been dominating the headlines, but even the typical safe haven hideouts for investors during times of crisis - namely bonds and gold - are showing sign of stress as well. 

A mistake that too many investors make heading into times of crisis is that they don’t have enough cash. There are a couple of different applications to this, so let me explain: 

First of all, if you’re retired and you’re relying on your portfolio to provide income, one of the best ways you can prevent further losses in your portfolio during market downturns is by having cash on hand, so you can suspend those portfolio withdrawals. 

Most Americans, even financially savvy Americans don’t have enough cash on hand. In fact 40% of us could not even cover a $400 emergency without putting it on a high interest credit card. 

But by having 6, 12, or 18 months of your income needs covered by cash, you can weather the market storm much better, especially when you’re retired. 

The second reason why you need to have cash on hand is so you can pick up bargains and take advantage of opportunities in times of crisis. For every panicked phone call I’ve received over the last week, I’ve received another call saying “Ashley, I have $10,000 or $100,000 or whatever it is sitting in my bank account right now, what do you recommend”. 

That’s what cash does - it allows you to capitalize on the chaos. That’s how the wealthy think. That’s what Warren Buffett did in 2008. He called the financial crisis of 2008 an economic pearl harbor. He made investments in struggling companies like Goldman Sachs and General Electric, and his investments paid off big, earning him a profit of $10 billion on those investments in just a few years. 

If Buffett was saddled with debt or fully invested and forced to sell other assets to make those investments, he wouldn’t have been able to buy in the first place. But because he had lots of cash on hand, he could jump in and take advantage of opportunities that existed in those dark days of the Fall of 2008.  

So remember, cash is king in times of chaos and it’s important to have a meaningful amount on hand so you can protect yourself and take advantage of opportunities. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast

This week, I’m talking about 5 mistakes that smart investors don’t make in bear markets. 

Today I’m talking about the most obvious, but also the most common mistake investors make in times of turmoil - panic selling. 

When times are uncertain, our fight or flight response kicks in and for those of us who opt for the flight response, when you see that your portfolio is down by 10, 20, or 30% all you want to do is just stop the bleeding. 

The obvious problem when you sell into the teeth of a big drop in your portfolio is that you got out too late and you locked in those losses at the point where you sold. You’re also abandoning your long-term strategy, and most investors wait too long to get back in the market - after the stock market has long-since recovered. I saw this happen with people who got out in 2008. Often, they were still sitting on the sidelines 3 or 4 years later, meanwhile missing tremendous gains in the stock market and a recovery in their portfolio. 

If you’re going to try to time the market, you have to be right twice - you have to get out before the downturn begins, near the top of the market - unlikely, considering you feel like a crazy person for selling at the top when everyone else is euphoric. And you have to jump back in at the bottom. Stock market drops usually follow a consistent emotional pattern and the bottom is marked by hopelessness. We’ve moved past fear, panic, and depression at that point, and have come to terms with the fact that hope is lost. 

Obviously, history proves otherwise, but that’s the feeling. So you have to get out when everyone else is euphoric and get back in when the world as we know it has ended. There are only billionaire long-term investors, no billionaire market timers and consistently making market timing calls and being right is just outside of our human abilities.  Anyone who tells you they can do otherwise is lying and I would run from them as fast as you can. 

So the bottom line here is that by succumbing to panic-selling is a recipe for terrible long-term returns, and the data backs me up on this. Acting on your emotions with your investment portfolio, can drag on your annual returns by 1.5% or more. That may seem small, but that’s the annual impact, so when you multiply that over a lifetime of investing, you could be reducing your total assets by 6 or even 7 figures. 

And that’s why it’s so important that you can keep a cool head in both good times and in bad, but especially in bad times when anxiety, stress, and uncertainty can all lead to panicky decisions. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Welcome to a new week and a new theme here on the One Minute Retirement Tip! 

As the stock market continues to suffer blows and it now seems inevitable that the U.S. economy will quickly enter a recession as the unemployment rate shoots up, and we all hunker down and stop spending money, I want to talk about mistakes to avoid during this time of chaos.

Specifically, 5 mistakes smart investors don’t make during bear markets. 

So if you haven’t already panicked and sold everything in your 401k and locked in your losses, this week’s tips are for you. It’s rough out there right now, so my goal this week is to help you avoid some of the more common pitfalls that investors make during scary times like these. 

I hope you’ll tune in each day, because I won’t just be talking about how to avoid the temptation of panic selling, but also how you can avoid missteps in picking and holding on to losers, and missing opportunities that are hard to see in the moment, but clear in hindsight. 

That’s it for today, but before you go...

If you haven’t already left a review for the One Minute Retirement Tip, please consider leaving an honest review in Amazon or iTunes. I read them all, so feel free to leave any feedback or topic suggestions there too. 

Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast

It’s Sunday, which means...It’s recap time! 

This week, I talked about the FAANG stocks - these are the five most popular powerhouse American tech companies - Facebook, Amazon, Apple, Netflix and Google. The FAANG stocks have generated some amazing returns for investors for the last several years, which begs the question - are FAANG stocks still a good investment? 

Here’s what we covered in each episode this week: 

• The amazing returns in the FAANG stocks over the last 10 years
• The hidden concentration that you might already have in FAANG stocks....and how much is too much in FAANG stocks
• Then I talked about...are FAANG Stocks Worth Buying Now?
• And...What Makes A Good FAANG Stock?

Hopefully after listening to the One Minute Retirement Tip this week, you understand FAANG stocks - what they are, how you likely already own them even if you don’t think you do, and how to determine if these stocks are a worthwhile investment for you. 

If you missed any of these episodes or if you want to revisit any of them, you can find them on iTunes, Spotify, or Google Play by searching for the “One Minute Retirement Tip with Ashley”. 

Tomorrow, we are starting a brand new theme: How to generate income in retirement. This is a timely topic as the interest rate on the 10 year treasury just plunged to a new record low, hitting under .5% as investors - scared of the Coronavirus and it’s economic shockwaves - piled their money into safe US treasury bonds and drove the rate down. Now, what that means for you is that if you go out and buy a 10-year treasury bond today, you’re going to get a measly .5% per year in income. If you invest 10,000, you’ll get $50 a year in interest for the next 10 years. Not too exciting and a little depressing when you’re nearing retirement or in retirement, and bonds need to be making up a higher percentage of your portfolio. Which begs the question - with rates so low, where can you find income now? I’ll cover that next week. 

That’s it for this week! Thanks for listening and I hope you have a blessed Sunday! 

My name is Ashley Micciche and this is the “One Minute Retirement Tip”.

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast

This week, I’m talking about the FAANG stocks - these are the five most popular powerhouse American tech companies - Facebook, Amazon, Apple, Netflix and Google.

Yesterday, I talked about whether or not you’ve already missed the boat on investing in FAANG stocks with the returns up 1,433% over the last decade and if these stocks are a worthwhile investment to consider going forward. 

I didn’t give you a definitive answer, because the answer is different for each stock and its always changing. But there are principles that govern what makes a good stock, and that’s the topic of today’s tip. So whether it’s a FAANG stock or a completely different business, what are the qualities you should look for in any business before you invest?

Here are the boxes to check: 

1. Durable competitive advantage - ideally the business isn’t selling a commoditized product and has pricing power. There should be high barriers to entry as well where it’s not easy for any startup to come in and wipe them off the map. A competitive advantage for a strong business helps ensure future growth. 
2. Free Cash Flow is also a very important but more difficult metric to evaluate. Cash cow businesses that have strong, consistent cash flow have the ability to reinvest in the business 
3. Strong management team who is competent and capable 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast

This week, I’m talking about the FAANG stocks - these are the five most popular powerhouse American tech companies - Facebook, Amazon, Apple, Netflix and Google.

Today, I’m talking about whether or not FAANG stocks are worth buying now. An equal investment in each of the FAANG stocks would have resulted in an average return of 1,433% during the 2010s. So is it too late to get in and buy one or several of the FAANG stocks? 

One of the worst things you can do as an investor is to buy in to something when it’s overpriced. It's a common temptation to let the fear of missing out drive you into a bad decision, and buy in after all the value in something is already baked in and most of the upside has already passed. 

But it actually doesn’t matter that the FAANG stocks are up 1,433% over the last decade. What matters is not past returns or the current price of the stock. What matters is the value. Is the stock price justified based on the company’s earnings? And future growth prospects...is the stock price justified based on the company’s business model, their competitive advantages, market dominance, and so on.

So whether or not you should buy then, depends on an objective assessment of current value and future growth prospects, along with several other qualities that I’ll cover in tomorrow’s tip. 

The bottom line is: Don’t make a decision about where you go from here, by looking in the rearview mirror. You must look forward through the windshield. 

That’s it for today. Thanks for listening. Tomorrow, I’m going to talk about the additional qualities to look for in FAANG stocks (or any investment for that matter), regardless of whether or not it’s a FAANG stock. 

My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast

This week, I’m talking about the FAANG stocks - these are the five most popular powerhouse American tech companies - Facebook, Amazon, Apple, Netflix and Google.

These stocks currently account for over 12% of the S&P 500 index. This is incredible, and something that few people realize. The S&P 500 is made up of 500 of the largest companies in the US. But it’s a market-weight index which means that the largest companies also make up a higher weighting in the index. And since Facebook, Amazon, Apple, Netflix and Google are massive businesses they make up a massive % of the index. Heck, Amazon alone is worth about $1 trillion right now! 

So whether or not you own these companies through an index fund, a mutual fund, or individually, it begs the question: how much is too much in FAANG stocks? 

This question is really the motivating factor behind this week’s topic. More often than not, I see portfolios where people have too much in these stocks. And why not? If you bought Netflix 10 years ago, it’s up 4000%. You’d be crazy to sell it, right? If you owned a significant portion of your portfolio in Netflix 10 years ago, it could not be worth 30 or 40% or more of your portfolio today. 

Large concentrations of a particular sector, like tech, or a particular stock, like Netflix can be a big problem depending on the % of your portfolio that the sector or the individual stock makes up. 

So the first step is understanding what you own. There are x-ray tools that will look through the ETFs and mutual funds you own to see what stocks you own and what the concentration is. 

You might be surprised that you already own 10% or more of your portfolio in Apple, because you own 3 or 4 “diversified” mutual funds, which all have concentrations in this stock or any of the other FAANG stocks. 

Even if you want to own the stock, you want to avoid having a concentrated position in any one stock, since a major decline in the value of that one company could be devastating for your portfolio. 

Generally a concentrated position of 10-15% or more in any one stock is considered risky, so if any of your stocks make up more than 10-15% it’s wise to reduce your position over time in that stock. 

In addition to individual stock concentrations, too much in any sector or industry, like technology, or energy, or health care can also be problematic. Tech as a group makes up 23% of the S&P 500 index. Personally, I think this is a problem, since so many dollars are invested in the S&P and few people realize how concentrated they are in just a handful of tech companies and the tech sector as a whole. 

Having concentrations in specific sectors has burned many people in the past - notably the tech bubble in the early 2000s, so no company, no sector or industry is immune, so if you have a concentration in one stock or a concentration in any one industry - which I would define as 20%-25% or more in any one sector, it’s wise to keep that in check. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast

This week, I’m talking about the FAANG stocks - these are the five most popular powerhouse American tech companies - Facebook, Amazon, Apple, Netflix and Google.

Yesterday, I talked about the wildly impressive results of these 5 stocks over the last 10 years. If you’re fearing that you missed out because you didn’t buy any of these stocks 10 years ago, think again. 

If you own any large cap mutual fund or an ETF like the S&P 500, chance are you own some, if not all of these stocks already. These 5 stocks alone made up over 12% of the S&P 500 index in 2019, and they’ve been making up an ever larger piece of the S&P 500 pie over the last decade. 

Back in 2012, these 5 stocks made up only 5% of the index, but because the returns of these 5 stocks since then have been parabolic, they’ve become a larger and larger percentage of the index. 

So whether it’s in your 401k or another investment account where you own mutual funds are target-date funds, you likely own some of these stocks already, and perhaps even a higher percentage than you realize, which could be problematic, as I’ll discuss tomorrow. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast

This week, I’m talking about the FAANG stocks - these are the five most popular powerhouse American tech companies - Facebook, Amazon, Apple, Netflix and Google.

Today, I’m talking about the mind boggling returns of these 5 stocks over the last several years. Tech companies as a group have outperformed the S&P 500 5 out of the last 5 years, and 7 out of the last 10 years. But for this subset of companies, the results have been stunning. Over the last 10 years, Facebook: Up 444%, Amazon: Up 1,290%, Apple: Up 1,007%, Netflix: Up 4,082%, Google: Up 345%

Suffice it to say you’d be pretty happy with those results over the last decade, and if you missed the boat, its a painful reminder of what you missed out on. But as I’ll talk about tomorrow, there’s a good chance you already own these stocks, even if you don’t realize it. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast

Welcome to a new week and a new theme here on the One Minute Retirement Tip! 

Have you heard of the FAANG stocks? FAANG (F-A-A-N-G) is an acronym referring to the stocks of the five most popular powerhouse American tech companies - Facebook, Amazon, Apple, Netflix and Google.

Their strong returns as a group, and their name recognition among virtually everyone make them a popular group of stocks to invest in. So this week, I’m going to look at whether or not these stocks - both collectively and individually - are a good investment. 

You’d be quite happy with your returns over the last several years if you invested in the FAANG stocks. The results of these 5 stocks and tech companies in general continue to produce impressive results. Plus, when’s the last time you went a week or even a day without using Facebook, Amazon, Apple, Netflix, and Google. In the case of Facebook, Apple, and Google, chances are you don’t go more than a few hours (or maybe even more than a few minutes) without accessing Facebook, your Apple device, or searching for something on Google. 

Investing in these stocks might seem like a no brainer, but just because you use something all the time, doesn’t mean it’s a good investment now. So this week, I’ll talk about the amazing returns of these stocks, and probably make you want to cry if you’ve sat on the sidelines. But don’t reach for the kleenex box yet, because I’ll also talk about how you probably already own these stocks even if you don’t realize it, and whether or not investing now is a good decision. 

That’s it for today. Before you go, though, I have a couple more things for you: 

1. First of all, an important disclosure: True North Retirement Advisors, LLC or its investment advisor representatives may own positions in certain companies discussed in this week’s podcast.  Nothing in this podcast should be construed as a recommendation to purchase or sell any securities.
2. if you haven’t already left a review in Amazon or iTunes for the One Minute Retirement Tip, can I ask a favor of you to go do that right now? It just takes a few seconds and it helps to spread the word, and raises visibility of this podcast to help others find it. And thank you to all of you who have taken the time to write a review. 

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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Tags: retirement, investing, money, finance, finances, financial planning, retirement planning, saving money, personal finance, wealth management, money tips, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast