AWM Insights Financial and Investment News
195 episodes - English - Latest episode: about 1 month ago -A bite sized discussion on timely financial news and investment topics, to help you maximize your net worth and wealth for the next generation with Brandon Averill, Erik Averill and Justin Dyer of AWM Capital.
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Episodes
Strategic Tax Planning: Maximizing Wealth Beyond Tax Season | AWM Insights #195
March 29, 2024 19:39 - 10 minutes - 9.99 MBTax has a crucial role in wealth generation and preservation. Professional athletes have very complex tax situations which make tax planning a year-round endeavor, not just a one-time stop during tax filing season. The importance of integrating tax strategies with investment planning can't be stressed enough as we have seen the countless pitfalls of receiving separate tax and investment advice. Proactive strategies must be taken on, and changing the game plan to account for updates in the ...
Decoding Crypto's Comeback: Navigating Blockchain, Bitcoin ETFs, and Strategies| AWM Insights #194
March 22, 2024 20:34 - 12 minutes - 11.8 MBCrypto has reemerged in the financial landscape with the recent rally in Bitcoin and the significant role of the SEC's approval of Bitcoin Spot ETFs. With all the hype, a cautious approach to the crypto space is prudent. This does not mean that the trend should be ignored. It’s essential to know and understand the ever-evolving investment universe. However, prioritizing investments in businesses with predictable cash flows over speculative bets on price movements is a tried and tested path...
Economic Trends and Market Insights | AWM Insights #193
March 18, 2024 19:59 - 12 minutes - 11.7 MBThe economy and the stock market are not the same. Usually, the market has a head start and prices in future economic events. The market’s recent rally preceded the positive news that came out in terms of inflation, GDP, and employment rates. Making alternative bets has been shown to be counterproductive. Investing with a long-term mindset and avoiding market timing and speculation has been the winning gameplan, and gives investors the best odds of creating and sustaining multigenerational...
Real Estate in the Multi-Generational Wealth Formula | AWM Insights #192
March 04, 2024 16:00 - 11 minutes - 10.6 MBReal Estate is one of the most talked about asset classes. The allure of real estate comes from fact, fiction, and fallacy. Tax benefits, inflationary hedges, and income streams come with potential risks that are sometimes neglected, such as leverage, volatility, liquidity, and concentration. Incorporating real estate's unique advantages while considering and planning for the challenges is essential to building a well-diversified and prudent financial structure. Have questions for an upc...
Building a Winning Portfolio | AWM Insights #191
February 26, 2024 15:50 - 8 minutes - 8.23 MBWhat does it take to build a Winning Portfolio? The answer has a significant amount of overlap with how a GM would build a winning team. It starts with expertise and knowledge. You need to assemble a group that understands what winning is, what it takes to win, and how to get there. Compiling a cohesive team and continuously coaching and improving the team is needed, but also utilizing those players effectively and efficiently with a proper game strategy and playbook are the only ways to...
Investing Beyond Elections | AWM Insights #190
February 19, 2024 15:00 - 7 minutes - 7.18 MBThe complexity of predicting market reactions due to events or scenarios playing out can be perfectly proved by looking at elections. There has been no statistically significant data that has shown elections swaying markets in any direction. Making investment decisions based on election results is a dangerous game to play. Long-term financial planning can create value while short-term trading strategies influenced by political events are more likely to destroy it. Have questions for an u...
Clarifying Misconceptions: The Real Impact of Elections on Markets | AWM Insights #189
February 09, 2024 15:32 - 6 minutes - 5.82 MBThere are many perceived effects of presidential elections on investment strategies and markets, but the data clearly shows that there is a misconception here. Over the past 100 years, there have only been 4 election years that have had negative returns, all of which were not influenced by presidential elections. Those 4 negative years were 1932 (Great Depression), 1940 (World War II Ramping Up), 2000 (Dot com bubble), and 2008 (Great Recession). Counterintuitively, the S&P 500 typically s...
Investing Through Elections with Evidence-Based Strategies | AWM Insights #188
February 03, 2024 22:01 - 9 minutes - 8.81 MBPresidential elections and financial markets have a nuanced relationship. All the media coverage and speculation around elections creates a significant panic and worry that can sway investor emotions. However, the historical data does not support making investment decisions based on the election outcome. Election years have shown no signs of differing performance from normal years. Financial markets are highly complex, and even though elections are important to policy, they are a single pi...
Navigating Market Uncertainty and Elections in 2024| AWM Insights #187
January 27, 2024 20:30 - 9 minutes - 8.8 MB2023 was a year filled with surprises. It showed us how different predictions are from reality. As we kick off a year that is already starting with a lot of uncertainty and ending with a presidential election, it's critical to keep the lessons we have already learned top of mind. The key to successful outcomes is to block out the noise and focus on what matters over the long term. Market fluctuations are like the turbulence that a well-positioned portfolio can weather. It is imperative to s...
A Year of Surprises and Resilience | AWM Insights #186
January 19, 2024 20:00 - 14 minutes - 12.9 MBIn 2023, financial markets displayed remarkable resilience despite countless global challenges. Contrary to the predictions of a majority of economists, a recession was averted. This year highlighted the unpredictable nature of inflation, interest rates, and ultimately, financial markets. The year’s developments and the strong performance of markets underscore the importance of adopting a long-term, systematic approach to investing, rather than making reactive decisions based on short-term...
Reflecting on Your Financial Structure | AWM Insights #185
January 13, 2024 19:00 - 7 minutes - 7.01 MBCreating a personalized financial structure is an intricate process that isn’t a “set it and forget it” task. As our clients move through their lives, they evolve and so should their financial structure. Accommodating these updates and protecting new, important priorities is the only way to keep a portfolio relevant to a client's needs. It takes constant and clear communication to establish and reestablish a plan that will continue to position our clients in an optimal position to achieve t...
Measuring Your Financial Success | AWM Insights #184
December 23, 2023 20:30 - 9 minutes - 8.38 MBEvaluating custom portfolios can be tricky. Unlike off-the-shelf investments, each custom portfolio is unique and tailored to an investor's family, making it hard to compare using the standard benchmarks you see every day. Private investments further complicate the process as they are valued in different ways and at different time intervals. The key to measuring success with these portfolios isn't just about how much money they make, but how well they help you reach your personal financial ...
Scheduling Your Financial Success | AWM Insights #183
December 15, 2023 21:00 - 7 minutes - 7.09 MBFiguring out your purpose and intention is the first step to maximizing the impact of your wealth. After your intention is established, time needs to be set aside to execute on that intention and take actions that turn the concept into reality. Figuring out what needs to be done and how it needs to happen is crucial. We work with our clients to build a game plan that is realistic to execute and advise them along the way to achieve the goal at hand with a customized set of scheduled checkpoi...
Intentionally Personalizing Your Portfolio | AWM Insights #182
December 08, 2023 18:30 - 6 minutes - 6.45 MBInvesting should be centered around you and the plan should evolve as your life develops and changes. This general concept may sound straightforward and logical, but the ideology of setting an intention for the funds in your portfolio and constantly reevaluating and adjusting them is not a common one. The simple reason for the lack of adoption is that this process is highly sophisticated. Foundations and Endowments manage their funds in this way. They have large teams dedicated to constantl...
Building a Winning Plan | AWM Insights #181
December 02, 2023 20:00 - 7 minutes - 6.87 MBBrian Cain works with dozens of professional athletes to push them to Mental Performance Mastery. His 4-step formula transcends sports performance and actually has a direct application to managing wealth holistically. Establishing your goals and envisioning your priorities is Step 1. Creating Intention is followed by Scheduling time to do the work to get there. As time is being spent to get to the target, progress and improvement need to be measured and monitored. Finally, a reflection rega...
Giving Thanks for Progress | AWM Insights #180
November 24, 2023 21:30 - 9 minutes - 8.76 MBLooking back at this past year, there is more to be thankful for than just strong market performance. There have been many improvements and advancements in our industry that will impact all for the better. Our Industry continues to move away from the transactional business model. Advice and Expertise are dominating, and more businesses are putting their clients first to keep up. This, unfortunately, was not the norm. This year, our relationship with Charles Schwab expanded and enabled all ...
Discipline and Consistency in Moving Markets | AWM Insights #179
November 17, 2023 20:30 - 10 minutes - 9.93 MBMarkets this week have reacted very positively to easing inflation figures and dropping producer prices. The positive news has changed the sentiment of markets and rewarded investors who took on risk in their portfolios. It was a great reminder of how Equities reward investors who take on risk in their portfolios. Obviously, risks must be measured and appropriately sized, but when a strong plan is implemented and followed, investors typically reap the benefits over the long run. Wealth isn...
How Do Higher Interest Rates Impact Your Investments? | AWM Insights #178
November 13, 2023 21:00 - 11 minutes - 10.5 MBInterest rates across the board are at or near their highest levels in the last 15 years. While it's more expensive to get a mortgage nowadays, investors are benefiting from these higher rates with their investable assets. Short-term Treasuries are generating more than 5%, which is significantly higher than the rates we have seen for the last decade. It's important to remember that over the long run, Equity markets have returned more than 9% annually. Equities are riskier than bonds but ha...
Taking the Guesswork out of Investing | AWM Insights #177
November 04, 2023 17:30 - 10 minutes - 9.76 MBStocks and their returns are built on the uncertainty of financial markets. No one knows what tomorrow holds. Bearing that risk is compensated when things go well, and punished when they don’t. Many try to play the guessing game in hopes of only getting positive results. The data has shown that this is not possible. Trying to outsmart the market consistently doesn’t work due to the unpredictability of the world. It's been proven that trying to avoid periods of negative performance harms inv...
Building a Thoughtful and Productive Financial Framework | AWM Insights #176
October 28, 2023 15:00 - 9 minutes - 8.81 MBA strong and thoughtful financial framework should be built around your life and enable you to accomplish your goals. Creating a strong connection between you and your portfolio ensures that your money is working for you specifically, and is allocated to improve your odds of success. A tailored financial framework not only reduces waste and enhances overall efficiency, but it also improves your focus as it clearly defines what should be done to get you to your destination, while steering yo...
The Power of Consistency and Commitment | AWM Insights #175
October 21, 2023 18:01 - 11 minutes - 11 MBWorld developments frequently impact financial markets and test the resolve of investors. The fear, panic, and uncertainty these events cause are exactly what creates the concept of a “risk premium.” The evidence is also very clear. Those who weather the storm have been rewarded over the long run. Consider the COVID outbreak, the Great Recession, and the Dot Com Bubble. These were all significant periods where markets moved, but the investors who didn’t panic and stayed in the market were r...
The Science and Art of Investing | AWM Insights #174
October 13, 2023 19:00 - 11 minutes - 10.3 MBOver the past 150 years, data on markets has been collected, analyzed, and an optimal investment process has been discovered. This process has been shown to reward investors over long periods. It includes taking advantage of diversification, flexibility, the efficiency of markets, and technological advancements that help markets function. Even with the rigorous, science-backed methods of investing, there is still an artistic and emotional side that can’t be ignored. The rewards of investi...
The Multi-Dimensional Framework of a Family Office | AWM Insights #173
October 06, 2023 19:00 - 9 minutes - 8.8 MBFinancial services and investment expertise have traditionally been scattered across many different roles with no one “Quarterbacking” the process. In the past, investors worked with brokers, accountants, private investment specialists, and other professionals individually with differing levels of knowledge and involvement. There was little to no cross-communication between these individuals, and partitioned advice ultimately hurt investors. The Family Office Framework centralizes experts ...
Focusing on What You Can Control | AWM Insights #172
September 29, 2023 22:30 - 14 minutes - 13.5 MBThe news is usually saturated with events that are out of everyone’s control. This frequently triggers anxiety and panic. From Government shutdowns to predictions of financial turmoil, we are pulled into being invested in and accepting certain negative situations without looking at the bigger picture and realizing that there are actions we can take to financially prepare for an assortment of situations and outcomes. A well-diversified portfolio that is structured to meet and protect your ...
Finding the Right Steward for Your Wealth | AWM Insights #171
September 23, 2023 15:00 - 13 minutes - 12.2 MBAn advisor who is independent, integrated, and can work through your individuality will increase the odds of your family’s success and help you establish multigenerational wealth. Independence, and the lack of a corporate structure that places shareholder interests above those of clients, is imperative. An advisor who is there to work for you and views your interests as being their own as a fiduciary will inherently improve the alignment of values and your investment experience. Integratin...
The Essentials of Wealth and Risk Management | AWM Insights #170
September 15, 2023 20:00 - 11 minutes - 10.7 MBThe concept of “making it” or crossing the finish line in your Wealth journey is like the tooth fairy. It would be awesome if it existed, but it doesn’t. Preserving your wealth is a full-time job, and if done well, it’s a job that will be carried out past your lifetime. Working with a financial “Quarterback” helps your wealth grow and protects you from the unnecessary and avoidable risks that can erode your wealth. Have questions for an upcoming episode? Want to get free resources, book g...
Gathering, Preserving, and Expanding Your Wealth | AWM Insights #169
September 09, 2023 17:30 - 11 minutes - 10.7 MBThe saying “defense wins championships” applies in a few ways to portfolio management. Playing good defense (keeping your opponent off the board) and taking the risk out of the important areas of your life is the foundation of the game and gives you peace of mind as an investor. A leaky or inadequate defense leads investors to fall behind, and it’s hard to catch up without taking unreasonable risks. A strong defense enables you to take mindful risks to get ahead while still managing the cu...
Magnifying the Impact of Your Wealth | AWM Insights #168
September 01, 2023 20:00 - 12 minutes - 11.4 MBWe frequently bring up the three uses of money (Spending, Saving, and Gifting) and how we help our clients expand their wealth and impact through each use. We implement a thoughtful and proactive approach to tax planning and management that helps our clients keep more dollars in their pockets. This is a year-round job and not one that can be done effectively just before Tax Day. From there, we help our clients with the money that does stay in their pocket to build an investment portfolio t...
Keeping Investment Returns in Your Pocket | AWM Insights #167
August 25, 2023 20:00 - 11 minutes - 10.9 MBBeing a diligent, long-term investor is a very rewarding proposition, but most investors ignore the impact that taxes can have on their investments and what they get to “take home.” Our industry is almost solely focused on total returns and fixates on specific return figures, but those numbers don’t tell you what you get to keep, which is what really matters. Ignoring this dynamic and not proactively working to reduce returns that are lost to taxes can corrode wealth and complicate your jo...
How to Think About Income – The Types, Sources, and Tax Implications of Each | AWM Insights #166
August 18, 2023 21:00 - 8 minutes - 7.79 MBWe continue our series on the Multi-generational Wealth Formula. This week, we focus on income - the most common types and sources, active versus passive income, and how they are treated differently for tax purposes. The most common source is typically called Employment Income or W2 Wages. This income comes from work you do as a formal employee of a company. Athletes are paid Employment Income from the team they play for. On the non-athlete side, founders, senior executives, and employees ...
Maximizing Your Physical, Intellectual, & Social Capital | AWM Insights #165
August 11, 2023 21:00 - 8 minutes - 7.9 MBUnderstanding the different types of Human Capital is critical to building multi-generational wealth. The three main types are Physical, Intellectual, and Social Capital. Each plays a role in building wealth and leading a more flourishing life. Your Physical Capital is your strength, your natural talents, and your ability to stay healthy. All of which are big drivers of wealth for many of our clients. Investing in it – optimizing strength & conditioning, eating well, getting enough sleep, e...
Expanding and Protecting Your Sources of Wealth | AWM Insights #164
August 04, 2023 21:00 - 9 minutes - 9.21 MBCapitalizing on your Human Capital is essential. Capturing the three main branches of Human Capital (Physical, Intellectual, and Social Capital) in a comprehensive and tax-efficient manner is the starting point for building wealth. From there, this acquired needs to be strategically used to work for you. Warren Buffett famously said, “If you don't find a way to make money while you sleep, you will work until you die.” Establishing a plan to maximize your Human Capital and put it to work in...
Riding the Public Market Rollercoaster | AWM Insights #163
July 21, 2023 20:30 - 10 minutes - 9.69 MBLast October when Equity Markets bottomed out, there were calls to sell and warnings that market conditions would only get worse with rampant inflation and a weakening economy. With the recent positive performance of most Public Equity Markets, you may be noticing that the trend to invest and take risks is now “in” again. Markets fluctuate, and although these swings may lead to emotional responses, even on the upside, investors must tune out the noise, ride out the waves, and focus on thei...
Putting Your Cash to Work | AWM Insights #162
July 14, 2023 22:00 - 11 minutes - 10.6 MBWith short-term interest rates currently hovering above 5% and inflation remaining elevated, the proposition of holding too much cash can be a costly one. Cash gives investors security, immediate accessibility, and certainty as there are FDIC assurances that prevent total losses, but the cost of those elements is missing out on having that money work for you. Checking accounts still have very low-interest rates relative to what can be realized in the fixed-income markets, and no one gets p...
How to Evaluate your Portfolio’s Performance | AWM Insights #161
June 30, 2023 20:00 - 11 minutes - 10.7 MBTaking the time to review your portfolio’s performance is a great exercise, but it’s important to use the right tools and methodology to carry out an accurate evaluation. It’s also critical to remember that everyone is playing a different game with different starting and ending points. This fact makes the standard returns you see online or on TV relatively important, but not the absolute target. As our portfolios are custom-made to fit each client’s priorities, no singular benchmark or dat...
The Importance of Behavioral Finance | AWM Insights #160
June 23, 2023 20:30 - 12 minutes - 11.2 MBUnderstanding, processing, and regulating emotional responses toward your investments is one of the most important skills to have in order to be a successful and diligent investor. Markets give us various inputs that lead to an array of feelings, but it is critical to process and regulate your emotional responses at all times and keep your eye on the bigger picture, which is your financial structure. Trends come and go over the years. True multigenerational wealth can be everlasting if str...
Patience and Persistence in the Markets | AWM Insights #159
June 16, 2023 22:00 - 12 minutes - 11.4 MBThe S&P 500 is up more than 20% since it hit its low last year. Market conditions have improved since then with CPI inflation coming in at 4%, and the Federal Reserve pausing rate hikes this week. There is a huge lesson to learn from the market’s short-term performance. Patience and persistence are key to any investor’s long-term well-being, and those qualities are rewarded. Markets are forward-looking, and even though conditions may have looked gloomy 8 months ago, withdrawing from the mar...
The Importance of Consistency and Repeatability in Venture | AWM Insights #158
June 09, 2023 20:00 - 11 minutes - 10.6 MBAs we wrap up our series on Private Markets and Venture Capital specifically, it’s important to highlight why Venture has been so impactful in building multigenerational wealth. Historically, Venture Capital as an asset class has had remarkable returns due to its positioning on the cutting edge of innovation. Returns always come from and with risk, but the long period of illiquidity, uneven returns, and the J curve that is usually witnessed can be risk factors that are mitigated with a s...
How to Build a Best-in-Class Venture Portfolio | AWM Insights #157
June 02, 2023 20:30 - 13 minutes - 12.7 MBConstructing a well-diversified portfolio is very similar to building a well-rounded baseball team. Assets must be distributed between current players and prospects to field a strong lineup while also investing in the future to fill any foreseeable gaps and improve key positions. Venture Capital aligns closely with the logic of investing in prospects. The benefit is deferred, but if done correctly, there may be outsized returns and general production relative to the initial investment outl...
Selecting the Best Opportunities in the Private Markets | AWM Insights #156
May 19, 2023 18:00 - 11 minutes - 11 MBTens of thousands of Private Equity and Venture Investments are made every year. How can you sort through these opportunities in thoughtful ways to isolate and get in front of the best of the best? Private Markets are not as transparent as their public counterparts, which adds to the complexity of making investment decisions, but also creates opportunity. Building relationships with standout companies and operators gives insight into the most exciting prospects and can give investors the in...
How do we build our Venture Portfolio? | AWM Insights #155
May 13, 2023 16:00 - 11 minutes - 10.3 MBPrivate Markets, and specifically, Venture Capital, appeal to investors as they offer outsized returns for those that can accept illiquidity and risk. After we work through those factors for a client and build a dependable financial structure, how do we invest to maximize your opportunity for success? We are always present in the Private Markets, meeting with fund managers and business operators to identify the best opportunities and stay top of mind for future ventures. Our annual fund str...
Accessing the Private Markets | AWM Insights #154
May 05, 2023 19:00 - 16 minutes - 15.1 MBPrivate Markets are not open to all investors. There are minimum thresholds that need to be met to qualify individuals to invest in this space. These rules are set to protect smaller, less sophisticated investors from the challenges and complexity of the Private Markets. On top of the regulatory requirements are implicit hurdles. In Venture specifically, having the funds to invest is not enough to access the best managers and get a seat at the table. Our Multi-Family Office structure and c...
Private Market Basics | AWM Insights #153
May 01, 2023 20:30 - 14 minutes - 13.8 MBPrivate Markets represent a broad range of asset classes and opportunities for investors. Historically, the best-performing segment of Private Markets has been Venture Capital, which has also significantly outperformed public markets. Investing in highly innovative companies early in their life cycles is a risky proposition, but if this strategy is implemented correctly, aligned with your financial structure, and the proper Due Diligence is done, it puts you in a position to potentially rea...
The Multigenerational Mindset | AWM Insights #152
April 21, 2023 18:00 - 11 minutes - 10.2 MBAthletes and Founders are playing a different game that has its own unique rules and boundaries, from your unorthodox career path and service time to the magnitude of impact your earnings can have. With the distinct nature of your lives, it is vital to take these rules into account and use them in your favor to maximize your impact. In many cases, this leads to establishing wealth that will outlive you. This enduring influence must be built around what you value and prioritize and be guide...
The US Dollar and Economy | AWM Insights #151
April 17, 2023 15:30 - 14 minutes - 13.5 MBThe Dollar became the International Reserve Currency in 1944 to establish a common medium of trade in a war-torn world. Since then, the Dollar has been trusted by non-US countries to settle transactions for goods, commodities, and services due to its stability, predictability, and broad usage. In recent years, larger countries around the world have been looking to settle transactions in their own currencies. We discuss the implications of these moves and how it affects the companies you a...
The AI Wave and How It Impacts Your Portfolio | AWM Insights #150
April 07, 2023 19:30 - 10 minutes - 9.84 MBAI is today’s buzzword, and for good reason. OpenAI’s release of ChatGPT to the public has started a wave of creativity in applications for the broad tool. It has started disrupting major fields and industries from education to programming, and we are still in the infancy stage. As promising as any new technology can be, it is important to be diligent and stay true to the fundamentals of investing. Crypto and the Dot Com bubbles are great examples of this. This technology has a very stron...
The Basics of Private Market Investing | AWM Insights #149
March 31, 2023 18:00 - 14 minutes - 13.6 MBPrivate Markets come with a very different set of challenges and rewards when compared to Public Markets. Unlike the Public Markets, there are requirements that need to be met for investors to be able to access Private vehicles as they are illiquid. Private Markets are also much less transparent than their public counterparts and, for that reason, require significantly more due diligence. There is a large dispersion of returns between Private Market funds due to expertise and manager’s ski...
Building Resilient Portfolios | AWM Insights #148
March 24, 2023 20:00 - 14 minutes - 13.2 MBMarkets rarely move sideways without fluctuations. Although we may want a smoother path to success, fluctuations and volatility are signs of health in the financial markets and give investors the returns they seek over extended periods of time by weeding out short-term investors and “nervous capital”. Our role as caretakers of your financial well-being is to create a portfolio that meets your needs, helps you achieve your goals, and weathers the market turbulence to come while keeping you...
How Doing the Simple Things Wrong Can Be Disastrous | AWM Insights #147
March 18, 2023 16:35 - 15 minutes - 14.1 MBIt has been a news-filled last few weeks, to say the least! On a positive note, the silver lining that is evident through the turmoil is that many of these issues can and should have been prevented through the use of proper financial logic and principles. Whether it was diversification, fixed income management, or market timing, it is clear that going against what we know to be true does not work out. Having a robust financial framework that is built around the rules of the markets is th...
Rewarded Factors and Outperforming the Market | AWM Insights #146
March 03, 2023 21:15 - 12 minutes - 11.9 MBRewarded factors have been integral for investors that seek to outperform the market. Instead of guessing and making stock picks, the use of these factors has beaten indices and stock pickers while keeping costs low and staying more tax efficient than active managers. Incorporating more small, valuable, and profitable companies into your stock portfolio over long periods of time takes advantage of efficient risk that pays off and can supercharge multigenerational returns. Have questions ...