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Middle Market: The Investment for the Super Rich That You Can Access Too

The U.S. economy is by far the largest economy in all the world. It’s worth $18 trillion followed by China at $11.4 trillion which is followed by a market that few know about and fewer invest in. If treated as its own economy, the U.S. middle market economy is the third largest economy in the world, worth $5.9 trillion. It’s bigger than Japan, Germany and the U.K. yet no one on CNBC or Fox Business even talks about it.1 In fact, it’s an area of the market that I really didn’t know anything about until a friend of mine introduced it to me several years ago. After years of research, and my own money along with some client’s money being invested in this area of the market, I think it’s something more people should be aware of. I really got excited about middle market investing during the first part of
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Categories: Markets and Personal Finance.

Myth Busting: Stop Losses are a great tool for investors

One of the best phrases in the market today is a “stop loss.” Think about that . . . who wouldn’t want to stop losing? No one! However, I will tell you from experience, the only thing a stop loss does is stops you from making money! In fact, I’ve talked with several people in the last week that have experienced the very things I discuss in this email. It’s got me so fired up, it deserves to be this week’s content. Let’s start with the basics . . . For those unaware, a stop loss is an order that you can enter with a brokerage saying that you would like to sell a stock (or option) at a certain price. For example, let’s say that you just bought XYZ stock. You’re really excited about the investment BUT you definitely don’t want to lose money after you buy it (who
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Categories: Personal Finance and Strategy.

Does Your Financial Advisor Eat Their Own Cooking?

Here’s a great question to ask your financial advisor: How much of their own cooking are they eating? This is one of those pertinent and telling questions to help you suss out a solid financial advisor vs. a salesman-like advisor. In this week’s video Brian and I help you figure out if you have a financial advisor who believes in and is passionate about what they offer. It could change the way you think about your advisor in a big way. What we’ve been watching and reading: America is truly an amazing place to live and invest: Jamie Dimon, CEO of JP Morgan, was interviewed by the Economic Club of Washington D.C. This entire interview is fantastic, but we really enjoyed from 10:20 to 13:30 as he discusses how great and how much potential the United States has. He also discusses the role of banking in the financial crisis. Some
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Categories: Personal Finance.

Being Human: Biggest Obstacle to Your Investing Success?

“Be careful when you follow the masses . . . sometimes the ‘m’ is silent.” – Mark Twain Investing is tricky and many people are doing it so wrong they are dramatically limiting their future prosperity. Today in my video newsletter I want to talk about avoiding doing something wrong. And the wrong often comes simply from following our instincts and being human. Let’s talk about how “being human” can get in the way of successful investing. What We’re Reading How Salespeople Make Money from Your Wealth: This is something that we wrote for the popular website Investopedia.com. It is a must read as it shares with you some first-hand experience of how sales can hurt you (current example is Wells Fargo). It also offers a suggestion of what you can do about it. If Wall Street is Bearish, I’m Bullish! Barry Ritholtz explains all the scenarios to be negative
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Categories: Personal Finance and Wise Money Monthly.

Are You Freed From the Dead Weight of Fees? Find Out Here.

Fees crush the performance of so many portfolios that it is one of the great tragedies of investors. In this week’s video we take a deeper dive into fees. Be prepared to learn just how crushing the performance of fees is on your portfolio. Warning: It likely ain’t pretty. But joy! There is hope, we also discuss how to release yourself from fee underperformance and get your portfolio on the right track.
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Categories: Personal Finance.

Big Banks Are Flushing Your Wealth Down the Toilet: Here’s How

Wells Fargo, Edward Jones, and Morgan Stanley. What do they all have in common? In the past month they have all been involved in some pretty shady activity. They have done things that are completely contrary to what’s in the best of interest of clients. The biggest and most recent example of this is Wells Fargo. In case you haven’t heard, Wells Fargo employees, in an attempt to hit internal sales quotas, opened millions of phony accounts for clients. This allowed those Wells Fargo sales people to hit goals and receive bonuses. They were rewarded for breaking the law. Wells Fargo responded by firing 5,300 employees (yes, it was that widespread!) and by firing the Executive that headed the “phony account” department. They were also fined $185 million by the Consumer Finance Protection Bureau (CFPB). A month before this story broke, this now fired Executive, was touted by the Wells
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Categories: Personal Finance and Wise Money Monthly.

This is Your Brain on Financial Losses

We’re going to keep things really simple this go round. Why? Because this basic principle is what keeps the wise getting richer and the unwise getting poorer. It’s what drives the shift in market wealth from the unsophisticated investor to the seasoned investor. And you just might recognize a bit of yourself in the foundational concept I share in the video. It’s inspired by The Behavior Gap by Carl Richards and is applicable in many situations but particularly investing. So take a look. I think you’ll enjoy and come out wiser as you think about your money. Check out what we’re viewing on the web: Edward Jones hit with suit alleging 401(k) mismanagement: Unfortunately this is becoming a common theme. As people become more educated these mammoth firms that have been ripping people off will be called out. We believe that this is a GREAT thing! If it’s not in
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Categories: Contrarian View and Personal Finance.

What I’d Tell Every Teenager and It’s The Key For Your Wealth Too

I just had a great conversation with a fifteen year old who had been working hard to save his money. I told him one secret about what to do with it and it blew his mind. That secret is the one thing you too should be applying to your wealth building approach. It’s the very first thing everyone needs to do when planning for their financial future. This video reviews that conversation and is a great check up for you as to whether you have the right mind set for your portfolio. It’s short (three and a half minutes long). It’s sweet. And it’s the key to wealth. I hope you’re already doing this one thing. Enjoy. What We’re Reading More Money, More Success, More Stuff? Don’t Count on More Happiness – Money and items are not the key to happiness, including winning the lottery! Read the full article. One
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Categories: Personal Finance and Wise Money Monthly.

Avoiding the Big Mistake and Enhancing Your Returns: Why Hire an Advisor

This past week I had a great webcast conversation with someone that was looking for a new Financial Advisor. As part of that discussion I reviewed this gentleman’s current portfolio, dissected the risk he had in that portfolio, compared it to his risk tolerance and discussed potential reward. His risk tolerance was a 52, which is actually pretty conservative. In fact it was so conservative that it would be very difficult to near impossible to outperform the market. (Remember, the less risk in a portfolio the less reward in a portfolio.) As we discussed this number he said something very interesting to me . . . he said: “The reason people hire an advisor is so that they can outperform the market . . . now you’re telling me that I can’t?” There are a couple of things wrong with this statement which we immediately discussed: 1. “The reason people hire
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Categories: Personal Finance.
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