Blog

Behavioral Economics and the 2016 Election

Have you heard the term “behavioral economics”?

One example of behavioral economics is when, all at once, everybody starts spending their money on the same thing. This is otherwise know as “crowd behavior” and it usually does not end in good results for the crowd.

What happened last week in the stock markets is a classic example of behavioral economics.

Immediately following the election, everybody started investing in the same things. When the markets reopened on the morning after the election, specific sectors of the market that have been lagging all year started to turn positive, because now—in light of Trump’s policies—they should be favored during Trump’s administration.

Fluctuations in the market are normal surrounding major events such as a presidential election, and no doubt there will be changes ahead when our newly elected administration swears into office—but a wise investor knows he cannot let events, even major events, dominate his investment decisions. A wise investor knows to remain aware and informed, but steady and consistent. A wise investor knows not to follow the crowd—because elections, natural disasters and other news flashes happen everyday, all over the world, and he can’t change his mind every time public opinion wavers.

Are you second guessing your investment portfolio post-election? Chances are, you should continue to stay your chosen course.

But if you need a professional opinion—or a boost in confidence—don’t hesitate to call us at 800-300-3684 or send us an email at askdoug(at)dougfabian(dot)com. We understand  the feelings of uncertainty after an event as important as our recent presidential election. With our investment knowledge, we can help you combat second-guesses with logic, planning and a clearly defined path for your money.

Contact us today for a personal consultation!

Share
Posted in News, Podcast Summary | Tagged , , , , , | Leave a comment

Post-Election Special Presentation Coming November 9!

The upcoming election is on everybody’s mind. How could it not be?

New allegations for each candidate seem to come out every day, and emotions are running high. For an investor choosing where to put his or her money, the uncertainty of our country’s future makes it hard to know what to do.

That’s why just one day after the election on Wednesday, November 9th, Doug is sharing a special presentation: “Investment Strategies Post-Election 2016: A Path For Your Cash”.

In this presentation Doug will talk specifically about how to handle your investment portfolio after the election, no matter the results. If you want to access this exclusive presentation—as well as receive weekly updates, tips and strategies from Doug on the financial markets—make sure to join Doug’s free e-mail list by clicking the “Join My Inner Circle” link on the Fabian Wealth Strategies home page, or click here.

Don’t be struck by “election paralysis” when it comes to your investment portfolio. Let election day find you and ready and waiting to act, not scared and indecisive!

Join Doug’s inner circle today and equip yourself for what’s to come, no matter what comes.

Share
Posted in Asset Management, ETF Articles & Reports, News, Podcast Summary, Retirement Planning | Tagged , , , , , , , | Leave a comment

New Q&A Section of the Podcast!

Have you ever listened to the news during your commute to work in the morning and thought to yourself, “I wonder if the event I just heard about will affect the market?”

You don’t have to wonder anymore. Ask Doug!

Coming soon, Doug is adding a new Question and Answer segment to his podcast.

This is your chance to pick Doug’s brain about all things financial investment. Maybe you have questions focused on your income, social security, retirement, ETFs, or how the market will respond to the upcoming election. Maybe you have an investment question you’ve wanted to ask Doug for a while now – send it on over and Doug will answer it on the podcast!

Send all of your financial questions—income, retirement, ETF, investment or otherwise—to askdoug(at)dougfabian(dot)com. Doug will give you his professional advice or opinion in his new Q and A segment on his podcast, aired each week on Friday mornings.

Share
Posted in Asset Management, News, Podcast Summary | Tagged , , , , , | Leave a comment

The “Red Zone”

It’s that time of year—the “red zone”—the period between August 15th and October 30th when the markets are highly volatile.

The “red zone” doesn’t guarantee there will be a steep correction or a market crash, but from the way financial investors are glancing around and chewing their fingernails lately, you’d think we’re on the brink of a financial emergency. A number of big names in the investment business are saying it’s time to sell (and maybe it is) but at Fabian Wealth Strategies, we’re not letting the media or the political climate scare us into making rash decisions.

We’re staying in control of our money—not the other way around—and helping our clients do the same. We’re maintaining our discipline and remembering that, actually, the market is in an uptrend.

No, we don’t have our heads in the sand. We’re paying attention and following the numbers; we know the markets are unstable. But we also know that the worst thing a financial investor can do is panic.

Don’t let fear drive you!

It’s good to be prepared in times of uncertainty—in fact, we recommend you have a sell-strategy in your back pocket for if something bad happens. But if your financial decisions are motivated by fear and anxiety, you’ll make the wrong choice every time.

Control your money—don’t let it control you. Stick to your plan and stay disciplined. And if you need advise about your portfolio, or just reassurance that you’re doing the right thing, don’t hesitate to call us at 800-300-3684 or email us at askdoug(at)dougfabian(dot)com. We’re here to point you in the right direction and help you stay on track!

Share
Posted in Asset Management, News, Retirement Planning | Tagged , , , , , , , | Leave a comment

Personal Wealth Coaching: Designed for You

We’ve been talking about our Personal Wealth Coaching program for a while now.

We keep talking about it, because through this program, our clients are finding clarity, gaining confidence and reaching their financial goals.

The best thing about our Personal Wealth Coaching is that it’s personal: it’s about you! We take a detailed look at your unique goals and financial situation, and help you take control of your money and invest it well. With a professional analysis and advice personalized to your situation, we help you reach your financial goals.

Here’s what every Personal Wealth Coaching session looks like:

  • Document what your goals and objectives are by writing them down on paper, so that you and your spouse can see them, adjust them and pursue them.
  • Review all of your assets (such as real estate) and talk with you about your legacy, your future plans, whether or not your trust fund is up-to-date, etc.
  • Give you tax strategies.
  • Analyze your portfolio.
  • Create for you an ETF portfolio tailored to your goals and objectives.
  • Give you an easy-to-follow, short-term action plan (such as a 30-day or 90-day action plan) that fits within your long-term goals.

If you’re in a place where you’d like to get some help, but you don’t want to hire a full-time financial advisor, our Personal Wealth Coaching program is for you. Your satisfaction is always guaranteed!

Check out our Personal Wealth Coaching program today—why wait? The sooner you contact us, the sooner you can start making (and saving) money. We’d love to answer your questions at 800-300-3684, or email askdoug(at)dougfabian(dot)com.

Share
Posted in Asset Management, ETF Articles & Reports, Mutual Funds, News, Retirement Planning | Tagged , , , , , , , | Leave a comment

Put Politics Aside

As investors, we should put politics aside when it comes to our investment portfolios. Don’t let every headline on the news influence how you invest your money, or scare you into making rash investment decisions (or overly conservative ones.)

Admittedly, the financial markets are unstable right now. Bond yields are collapsing, markets in Europe and Japan are falling, faith in central banks is waning, and we’ve just had the news that the UK voted to leave the European Union (AKA Brexit). In the midst of such uncertainty, it’s essential to remember that in the world of investment, every crisis is an opportunity. Doug wants you to learn to take advantage of volatility and not get swept up in fear of the future. When fear and uncertainty surround the markets, that’s when you want to be a buyer, because that’s when prices fall.

In this week’s podcast, Doug gives you tools for putting together your Exchange Traded Funds (ETFs) watch list, your buy list, and he even includes some long-term investment ideas. Tune in today and learn about the opportunity for financial growth during tumultuous times. If you want even more personalized advice from Doug, consider signing up for our Wealth Coaching service – find more information by clicking here.

FABIAN WEALTH STRATEGIES | 800-300-3684 | askdoug(at)dougfabian(dot)com

Share
Posted in News, Podcast Summary | Tagged , , , , , , , | Leave a comment

Stop Saving for Retirement?

Recently, Doug has recommended that two different couples in his personal wealth coaching program stop saving for retirement.

You’re probably wondering: WHY? To stop saving for retirement flies in the face of every piece of financial advice you’ve ever received, right? But before you jump to conclusions about Doug’s sanity, consider that every case Doug handles is unique, and so the advice is also unique to that client. In the case of the two couples he helped recently, he advised them both to reconsider their retirement savings strategies.

In the first case, Doug’s clients—a couple in their late sixties—have been blessed to work for organizations that offer pensions. After meeting with them, Doug found that both the husband and the wife have pensions, both of them will be receiving social security, and both of them will soon receive required minimum distributions (RMDs). Between the two of them, they have six sources of income. Weighing these factors, Doug advised both of them to pause and rethink their options. Because a large retirement savings account means a large tax bill, Doug suggested they should redirect their savings dollars to a trust account—or a taxable portfolio—because more savings in their retirement will create a tax problem for them in the not so distant future.

In the second case, Doug’s clients are a couple in their early sixties looking at an early retirement. In his consultation with them, Doug found that they have large sums of money in their IRAs and 401Ks, and that their expenses are low. These are all good factors, but the factor that bothered Doug is that the number of dollars in their taxable savings was much smaller comparatively. Doug recognized that this couple has been great at saving their entire lives—they have put an admirable chunk of money into their savings account every year. Unfortunately, though—without purposeful strategies—that nicely cushioned retirement savings account they’ve worked to hard to build would come back to bite them in taxes. To keep them from owing a heart-stopping tax bill year after year, Doug recommended that they redirect their retirement savings into taxable savings, so they can build up their trust accounts.

What you should do with your money—savings, investment or otherwise—all depends on the factors in your life. That’s what Doug Fabian’s personal wealth coaching program is all about: helping you assess your situation and determine a solid plan of action.

Thanks to Doug’s personal coaching, the two couples you just read about learned a valuable (pun intended) lesson and protected their assets for years to come.

Do you want to pay less taxes? Do you want to grow your income and save more of what you already have? Do you think a financial game plan tailored to your needs and goals sounds like a pretty good idea?

Contact Fabian Wealth Strategies today and ask about our personal wealth coaching program. You’re just a phone call away from a free consultation!

FABIAN WEALTH STRATEGIES | 800-300-3684 | askdoug(at)dougfabian(dot)com

Share
Posted in Asset Management, News, Podcast Summary, Retirement Planning | Tagged , , , , , , , | Leave a comment

An Important Lesson from Prince: Do You Have a Will?

As most of you know, the well known music artist, Prince, died recently. He was known as a creative genius, an incredible entertainer, even a cultural icon. His death is a loss that’s been felt across not just the U.S., but worldwide.

Though Prince is to be admired for his many talents and accomplishments, as more and more information is released following his death, it’s come out that he died with no will, no trust, no plan, no nothing. This leaves a valid question:

What happens when somebody—a culture icon or John Doe—dies with no will, no trust, no plan, no nothing?

The government takes over, that’s what happens. The deceased person’s family is left with no assets and no options—that is, except to hire lawyers and go to battle over an estate that should have been theirs to begin with. Legal fees and court dates quickly pile into a complicated, expensive burden weighing on your loved ones shoulders. Nobody is happy; nobody wins. It’s a lose/lose scenario.

Is your will current? Do you need to start from scratch? Are you unsure how to begin? At Fabian Wealth Strategies it’s our mission to help people just like you make the most of their money, even when you’re not here to handle it yourself. Take a lesson from Prince: don’t be the guy who leaves his family behind with nothing but legal battles and headaches. You’ve spent a lifetime building your legacy—don’t let it go to waste!

Call us today for a personal consultation at 800-300-3684 or e-mail us at askdoug(at)dougfabian(dot)com, and we’ll help you make sure the legacy you’ve worked so hard to build continues even after you’re gone.

Share
Posted in News, Podcast Summary | Tagged , , , , , | Leave a comment

What are “Alternative” Assets?

There is an asset class the investment industry calls “alternatives”.

Alternatives are assets that are not correlated to interest rates, the bond markets or the stock market. Most non-correlated strategies that fall into the alternative category are usually “managed funds”: a managed futures fund (a trading strategy behind the SMP 500 or commodities), a long-short fund (a mutual fund that’s holding some long stocks, some short stocks) and so on. The non-correlated asset that Doug talks about in this podcast—an asset that’s at the forefront of the market so far this year—is gold and precious metals.

You may be wondering: why is gold non-correlated?

Usually, instead of correlating to the stock market, gold finds its foothold in other financial trends you might not expect. For instance, inflation is good for gold, uncertainty is good for gold, even negative interest rates can be good for gold. Gold stocks have increased in 2016, and considering the instability of the world market today, it’s no wonder.

At Fabian Wealth Strategies, ETFs for gold and other precious metals fall into two broad categories: Physical ETFs and Mining ETFs. These categories differ greatly from each other; the volatility difference between physical and mining ETFs is vast. If you’re building an investment portfolio and you’re thinking about using gold, it’s important that you understand the differences between physical and mining ETFs before you make a decision.

Is gold a good investment for you, personally? If so, which category is best for your investment portfolio, physical or mining? How much or how little should you invest in gold? As an investor, how can you use gold to respond to the volatile, sideways market of today?

Don’t try to answer important questions like these on your own—we can help you answer these investment questions, and others! Call Fabian Wealth Strategies today and set up a personal consultation; it may just be the best investment decision you make this year.

FABIAN WEALTH STRATEGIES | 888-300-3684 | askdoug(at)dougfabian(dot)com

Share
Posted in Asset Management, ETF Articles & Reports, Podcast Summary | Tagged , , , , , , | Leave a comment

How is a financial adviser different from a broker?

If you’re getting investment advice from a broker/dealer firm, there’s something you should know: brokers and advisers are not the same thing.

Most brokers (or “advisers” who work for a broker/dealer firm) are commission-based, rather than fee-based. They have to operate under something called the “suitability rule” as in, is the product suitable for the client? This seems like an OK rule of business, and sometimes it is, but most of the time it means that the broker needs to sell you a high-fee product (read: the most expensive product possible) in order to make a profit for himself and the firm he works under.

Because of the model his firm operates in, a broker cannot sell you exchange traded funds (ETFs), because he simply can’t make money off them. For his needs and the needs of his firm, it makes more sense to sell you annuities. Sometimes annuities do make sense, but to have the majority of your assets in annuities is not a good investment strategy. It is a relatively safe strategy but it’s expensive, limits your upside and reduces your flexibility. Annuities can be suitable—but beware of a broker who pushes them too heavily.

How is a financial adviser different from a broker?

Registered Investment Advisers (RIAs) work under fee-based terms, versus commissioned-based terms. They operate as fiduciaries, meaning they represent their client and give advise based on their client’s best interest. The client always comes first! In the world of finances, a fiduciary relationship makes good moral sense and good business sense. What’s best for the client is also best for the adviser, because the more money an adviser can help a client make, the more money the adviser makes. So, whoever you are working with—a broker or an adviser—always make sure you know what model they are operating under, where the fees are coming from and if commissions are involved. You (and your wallet) will be better for it.

If you’re not satisfied with where you’re at financially—maybe you’ve received bad advice in the past, or maybe you’ve never sought help with your finances before—consider the personal wealth coaching program at Fabian Wealth Strategies, a fee-only financial advisory firm. Our personal wealth coaching has had a positive impact on many people’s lives—we’d love for you to be one of those people. Contact Fabian Wealth Strategies today with your questions, we’re happy to answer them.

After all, as advisers, your best interest is our best interest!

FABIAN WEALTH STRATEGIES | 888-300-3684 | askdoug(at)dougfabian(dot)com

Share
Posted in Asset Management, News, Podcast Summary, Retirement Planning | Tagged , , , , , , , , | Leave a comment