The Investor Coaching Show with Paul Winkler

This week Paul pulls a clip of an investment guru on a prominent financial TV show blatantly encouraging market timing and no one is calling her on it. The crux of her argument is that investors looking for security during this time should move out of cash and bonds to buy dividend-paying stocks. Paul discourages both and explains why stocks that pay dividends are not very reliable and by nature undiversified. Later in the episode, Ira shares about a couple who wins the Powerball lottery and how their situation turned into a nightmare because of the greed of a financial advisor.

For more information about what we do or how we can help you, schedule a 15-minute call with us here: paulwinkler.com/call.

Large investment firms like Vanguard work very hard through advertising to convince investors how smooth, efficient, and professional their investing process is. What happens when mammoth companies like this own too many shares in a company and are forced to sell? Today, Paul talks about this topic and explains that after heavily indexing Vanguard may be required to sell off shares of companies and purchase derivatives causing more fees and a loss of dividends. 

A thoughtful investor wants to know what Paul thinks about borrowing from his 401(k) and using a HELOC on his home to purchase an investment property. The investor is curious if taking advantage of these options would be favorable to paying a high mortgage interest rate. Listen along as Paul explains why there are penalties on 401(k)s, what a HELOC is, and what this investor should consider about this strategy before making a decision.

With the high commissions on annuity products, annuity sales people will say almost anything to get you to get their hands on your retirement money. Today, Paul gets an email from an investor who was offered a 47% bonus on their principle to invest in an indexed annuity product. The bonus was so large that Paul had to grab the contract and get down to the details. It turns out that not only did you have to tie up your money for 10 years in this contract, but that even with the 47% bonus, this product found ways to limit the returns. It turns out that the company was giving the bonus because there was something in it for them.

Paul interviews on Matt's show to discuss recent market movements. 

Today, Evan shares an article written by one of his favorite investment writers, John Rekenthaler. In this article, Rekenthaler explains three common investment “truths” that he claims “haven’t stood the test of time.” Listen along as Evan shares how easy it is to believe something that isn’t true, because it was the best way to understand what was happening at the time. People believed for thousands of years that the sun revolved around the Earth. Check out these investment fallacies and why it is important for us to let them go as we continue down the path of becoming an educated investor. 

Today, Evan debriefs two major events that took place last weekend and explain how they may affect different investment markets. First, former President Trump comes to Nashville and vows to formalize Bitcoin’s position with the federal government. Evan explains how the price of Bitcoin will likely be connected to the election because of the Republicans position on it. Next, the Olympic’s open in Paris this weekend highlight that 200 countries can collaborate and compete together in a peaceful way. Evan talks about the impact of the Olympics on trade and how the U.S. has many more friends than it has enemies. Later in the episode, Evan talks about some of the problems with indexing and why PWI only uses it in specific situations. 

Paul grabs a snapshot of the top financial headlines of the week and immediately notices how confusing they could be for anyone who is toward the end of their work life and starting to think about retirement. Paul talks about how even the phrase “stock market” in a news story can be misleading and encourages you to view these headlines not as financial advice but as a way to understand the problems in the investment industry. Later in the episode, Paul explains how to navigate the website and take advantage of the hundreds of hours of education available via webinars, podcasts, episodes, videos, and blogs.  

Today, Paul talks about the Bitcoin 2024 conference, an event that recently came to Nashville and got a lot of local and national attention. Amid all the hype of VIP lounges, star-studded panels, and media frenzy, Paul wants you to know that Bitcoin hasn’t fundamentally changed since its invention in 2008. Paul explains why Bitcoin evangelists constantly preach similar messages about how Bitcoin will revolutionize the financial industry and turn average investors into wealthy, modern, and savvy investors. Paul wants you to know that confident investors don’t take risks they aren’t fairly compensated for and don’t chase products to feel significant or intelligent. Later in the episode, Paul talks about how he assumed a mortgage on his first house and how almost 23% of mortgages in the United States are currently assumable.

For more information about what we do or how we can help you, schedule a 15-minute call with us here: paulwinkler.com/call.

Dan has a client bring in a product offer that claims to have a 20% premium bonus, but Dan looks into it and quickly realizes that this isn’t really in anyone’s best interest but the insurance company selling it. Then, Paul shares his biggest complaint about annuity sales. Listen along to hear why insurance companies keep morphing their products to address problems people know about while creating new problems that are hard to understand. Later in the episode, Paul shares a clip that says Bitcoin is a good asset to own because it doesn’t move in the same direction as markets. Paul is very skeptical of that claim because we only have about 10 years of data so far on Bitcoin and it has been very rocky.

For more information about what we do or how we can help you, schedule a 15-minute call with us here: paulwinkler.com/call.