Zach Reeg, CFP®’s Post

The smarter way to organise your investments There have been lots of great posts on LinkedIn highlighting the futility of predicting the markets. The 2023 forecasts were miles off 🎯🫣 The worst bit: trying to find the perfect investment causes us to under-perform the markets we invest in 🫣 It’s called the “behaviour gap” and it costs investors hundreds of millions each year 🥺 But There is a better way… Rather than looking externally (with a crystal ball forecasting the markets 🔮) Look internally: Spend more time figuring out what’s most important to you and ultimately what the money is for 🤔 This approach is known as “goals-based investing” It’s considered a new approach to Wealth Management, which is strange when you consider how much common sense is involved… 😳 Once you have an idea of the different buckets that you want to save for: Try to put a rough time horizon on each ⏳ and think about your personal balance of priorities ⚖️ 💥 For short-term goals (5 years or less) consider cash 💥For medium term goals (5-15 years) consider a mixed (diversified) strategy 💥For the longer term (multiple decades) consider the best companies in the world - stock market Next, make sure you use the tax-wrappers that are available to you (eg ISAs and pensions) - prioritising your longer-term goals with their benefits. Once you have your pipe work in-place: automate your contributions and forget about it… Patience and discipline will enable you to outperform the majority of other investors by minimising your personal behaviour gap 🙌 Of course, a competent and integrous guide will help you continue to make good decisions and avoid mistakes along the way 🤩 and can also help you think through your goals and priorities with an eye on what is realistic 🤓 Perhaps most importantly: they can help you figure out how much is ‘enough’ which could enable you to retire sooner than you thought possible 🤩 Where do you think the markets are heading in 2024? 😵💫 Picture credit: Felix Hazlehurst #goalsetting #marketpredictions #marketstrategy

It's touted everywhere, "Oh passive investing will let you quit your job"... Getting 7% cash on cash return on $100K per year is going to let you quit your job? Nope. Only ACTIVE investing (finding, underwriting, borrowing, managing, operating) will let you quit your job, but that means you'll be working 14-16 hours a day, 7 days a week on a journey for some years before you can make the switch. Passive investing is for those who are looking to: 1. Diversify their portfolio by having the ability to participate in larger deals in markets they don't have access to. 2. Build equity and generate better returns than other asset classes. 3. Accelerate their retirement. 4. Potentially have short term tax benefits. 5. Focus on what they're good at, and leverage someone else's time and experience. If anyone tells you any different, it's a lie. #passiveinvesting #limitedpartner #diversification

Investing is not just about making money; it's about achieving your dreams and building a better future. 3 Things You Should Know About Growth Investing: Definition: Investing in companies expected to grow at an above-average rate. Key Focus: Looking for companies with strong earnings growth, high return on equity, and potential for significant future growth. 1. High Potential Returns - Targets companies with significant growth prospects. 2. Innovation Focus - Often involves investing in cutting-edge industries. 3. Long-Term Gains - Aims for substantial capital appreciation over time. Why People Do It: Investors seek substantial returns by investing in the future leaders of the market. Tip 1: Research the company's growth potential thoroughly. Tip 2: Diversify across high-growth sectors. Tip 3: Be prepared for volatility and have a long-term perspective. Top Risks: 1. Volatility - Growth stocks can be highly volatile. 2. High Valuations - Risk of overpaying for future growth. 3. Market Speculation - Subject to market hype and speculation. Growth investing can be more volatile and speculative compared to strategies that offer more predictable outcomes. Join my master class to learn an investment strategy that works whether the market is up, down, or sideways: https://lnkd.in/gwt6gCAw. #PersonalDevelopment #Stockinvesting #Wealth

If you're looking to build wealth over a long time horizon, it's time in the market that counts - not timing the market. One needs to determine - What is my objective for investing? What's the most suitable way to achieve my objective? Equity markets have consistently delivered the returns necessary to meet investment objectives over the long run. Yet the short run can and will always be very volatile. However, with proper planning, a savings plan, and an appropriate asset allocation and rebalancing strategy, you can turn off the TV and tune out the headlines. This leaves you the ability to focus on things such as advancing your career, caring for people in your sphere of influence and just enjoying your life. Easy to say, hard for most to do.

How often should you check the value of your stock accounts and investments? Assuming you have a strategically designed portfolio (not just a mash up of companies), looking at your investment accounts on a monthly or quarterly basis should be sufficient. However, these are still considered short periods of time and if your investments are for retirement they are Long Term Investments. Our experience is that the short-term account value movements can cause investors to make poor decisions based upon emotion instead of making their decision based upon their long-term goals. We recommend you take the long-term view. . . . . #womensupportingwomen #womanownedbusiness #WealthAlignment #MoneyMomentum #FinancialGoals

𝐒𝐭𝐞𝐚𝐝𝐲 𝐒𝐭𝐫𝐞𝐚𝐦𝐬: 𝐔𝐧𝐯𝐞𝐢𝐥𝐢𝐧𝐠 𝐍𝐨𝐧-𝐂𝐲𝐜𝐥𝐢𝐜𝐚𝐥 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐈𝐧𝐝𝐞𝐱 𝐌𝐮𝐭𝐮𝐚𝐥 𝐅𝐮𝐧𝐝𝐬 The world of investing can be a rollercoaster, but what if you craved stability? Enter Non-Cyclical Consumer Index Mutual Funds – a haven for investors seeking consistent returns. 𝐁𝐮𝐭 𝐰𝐡𝐚𝐭 𝐞𝐱𝐚𝐜𝐭𝐥𝐲 𝐚𝐫𝐞 𝐭𝐡𝐞𝐲? These funds track a market index that focuses on companies that sell essential, everyday consumer goods. Think groceries, personal care items, and household products. Unlike cyclical stocks that rise and fall with the economy, these non-cyclical companies experience steadier demand, regardless of economic booms or busts. People need toothpaste in good times and bad! 𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬? 𝐒𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲: Non-cyclical funds offer a smoother ride compared to funds heavily invested in cyclical stocks. 𝐋𝐨𝐧𝐠-𝐓𝐞𝐫𝐦 𝐆𝐫𝐨𝐰𝐭𝐡: These companies often have a history of consistent growth, translating to potential capital appreciation over time. 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: By including them in your portfolio, you add a layer of stability alongside potentially more volatile asset classes. 𝐖𝐡𝐨 𝐬𝐡𝐨𝐮𝐥𝐝 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐭𝐡𝐞𝐦? 𝐑𝐢𝐬𝐤-𝐀𝐯𝐞𝐫𝐬𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: If you prioritize steady returns over high-risk, high-reward options, these funds might be a good fit. 𝐋𝐨𝐧𝐠-𝐓𝐞𝐫𝐦 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: The stability of these funds makes them suitable for long-term goals like retirement planning. 𝐈𝐧𝐜𝐨𝐦𝐞 𝐒𝐞𝐞𝐤𝐞𝐫𝐬: Some non-cyclical companies pay regular dividends, providing a potential income stream. 𝐑𝐞𝐦𝐞𝐦𝐛𝐞𝐫: 𝐍𝐨𝐭 𝐑𝐢𝐬𝐤-𝐅𝐫𝐞𝐞: While offering stability, these funds are not entirely immune to market downturns. 𝐋𝐨𝐰𝐞𝐫 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐑𝐞𝐭𝐮𝐫𝐧𝐬: Compared to aggressive investment options, returns might be more modest. 𝑵𝒐𝒏-𝑪𝒚𝒄𝒍𝒊𝒄𝒂𝒍 𝑪𝒐𝒏𝒔𝒖𝒎𝒆𝒓 𝑰𝒏𝒅𝒆𝒙 𝑴𝒖𝒕𝒖𝒂𝒍 𝑭𝒖𝒏𝒅𝒔 𝒐𝒇𝒇𝒆𝒓 𝒂 𝒄𝒐𝒎𝒑𝒆𝒍𝒍𝒊𝒏𝒈 𝒐𝒑𝒕𝒊𝒐𝒏 𝒇𝒐𝒓 𝒊𝒏𝒗𝒆𝒔𝒕𝒐𝒓𝒔 𝒔𝒆𝒆𝒌𝒊𝒏𝒈 𝒂 𝒃𝒂𝒍𝒂𝒏𝒄𝒆 𝒃𝒆𝒕𝒘𝒆𝒆𝒏 𝒔𝒕𝒂𝒃𝒊𝒍𝒊𝒕𝒚 𝒂𝒏𝒅 𝒈𝒓𝒐𝒘𝒕𝒉. 𝑪𝒂𝒓𝒆𝒇𝒖𝒍𝒍𝒚 𝒄𝒐𝒏𝒔𝒊𝒅𝒆𝒓 𝒚𝒐𝒖𝒓 𝒓𝒊𝒔𝒌 𝒕𝒐𝒍𝒆𝒓𝒂𝒏𝒄𝒆 𝒂𝒏𝒅 𝒊𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 𝒈𝒐𝒂𝒍𝒔 𝒕𝒐 𝒔𝒆𝒆 𝒊𝒇 𝒕𝒉𝒆𝒚 𝒂𝒍𝒊𝒈𝒏 𝒘𝒊𝒕𝒉 𝒚𝒐𝒖𝒓 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝒓𝒐𝒂𝒅𝒎𝒂𝒑. #mutualfunds #safefunds #noncyclicalconsumerfund #investing #investingtips #financialfreedom #equityinvestment #SIP #NJ #safeinvestment #recessionproof #indexfund

Rather than let your equity compensation define your portfolio, navigating your stock options and creating a plan that synthesizes your goals with investment opportunities is essential.

🕒 The Now vs. The Future in Investing 🌱 Promise of long-term growth? You're not alone. The way investment outcomes are presented - focusing on either the short-term or long-term - can significantly sway our decision-making process. 🤔 Short-term Gains: It's tempting, isn't it? The prospect of quick returns can be alluring. Imagine a stock that's predicted to surge in the coming weeks. The immediate payoff sounds great, but it's often accompanied by higher risk. 🎲 Long-term Benefits: On the flip side, there's the steady, reliable growth of long-term investments, like retirement funds. These may not offer the instant gratification of short-term gains, but they promise a more stable and potentially significant payoff over the years. 🌳💰 Here's the kicker: Our preferences can shift dramatically based on how these options are framed. A focus on immediate returns might make us overlook the stability and potential of long-term growth, while emphasizing the future could lead us to miss out on viable short-term opportunities. 🔄 So, what's the takeaway? It's crucial to strike a balance. Understanding the impact of temporal framing can help us make more informed, balanced investment decisions. Before you leap towards short-term gains or settle into long-term strategies, consider the framing and how it aligns with your financial goals and risk tolerance. 🎯🔍 Remember, the best investment strategy considers both the excitement of now and the promise of tomorrow. Follow Chakrivardhan Kuppala for more such insightful posts! #InvestingTips #BehavioralFinance #LongTermInvesting #ShortTermGains #FinancialDecisionMaking #SmartInvesting

This week's market activity will catch everyone's attention, from seasoned savers to first-time investors. Our CIO, Lane M. Jones, CFA, CFP®, summarized it well regarding volatility: At Evensky & Katz/Foldes Wealth Management, our investment philosophy is rooted in the simple, predictable principle that “capitalism works.” We believe the global economy consistently generates profits for patient investors willing to endure market risks. Plan Sponsor emphasizes the importance for trustees to balance raising awareness of market volatility while also reassuring participants. Read more about effective communication strategies during market downturns: Plan Sponsor Article