Mon, 29 January 2024
In this episode of New Focus on Wealth, certified financial planner Chad Burton dives into the important topics of retirement readiness and managing concentrated stock positions. Chad begins by sharing his personal experience attending his father's retirement party and reflecting on the concept of retirement. He then introduces the upcoming event, "Seven Steps for Retirement Readiness," hosted by EP Wealth Advisors, where he will be discussing crucial aspects of retirement planning such as taxes, income, long-term care, safe money, investing, life goals, and health and wellness. The conversation shifts to the recent rally in the market sparked by the anticipation of rate cuts by the Federal Reserve. Chad explains the implications of rate cuts and the potential impact on the economy. He also discusses the inverted yield curve and its historical correlation with recessions. The discussion then delves into the importance of asset allocation, specifically the balance between growth and value investments. Chad emphasizes the need for diversification, especially as individuals approach retirement. He highlights the performance differences between growth and value ETFs and the significance of rebalancing one's portfolio. The episode also addresses the challenges of managing concentrated stock positions. Chad provides practical steps to mitigate risk, including selling vested RSUs, trimming ESPPs, and reviewing 401(k) investments. He emphasizes the need to diversify and reduce risk as retirement approaches. Furthermore, Chad explores the strategy of selling covered calls as a way to generate income and manage concentrated positions. He explains the concept of call options and how they can be used to hedge against potential losses or create income. He also clarifies common misconceptions about selling calls and the benefits of actively managing these positions. Overall, this episode of New Focus on Wealth offers valuable insights and practical advice for individuals preparing for retirement and managing concentrated stock positions. Listeners will gain a deeper understanding of retirement readiness and the importance of diversification in building a secure financial future. Timestamps: [00:03:08] Recent rally sparked by rate cuts. [00:06:06] Inverted yield curve and recession. [00:07:32] Rebalancing investment portfolios. [00:12:05] Tech wreck and higher interest rates. [00:18:08] Concentrated stock positions. [00:19:30] Concentrating on stock positions. [00:23:05] Mega Roth 401k option. [00:26:46] Retirement and wealth issues. [00:30:09] Selling covered calls. [00:33:28] Diversification through selling calls. Email your money question to chad@chadburton.com Call 1-888-762-2423 for Wealth Management and Financial Planning services or visit www.ChadBurton.com |
Thu, 18 January 2024
In this episode of New Focus on Wealth, host Chad Burton discusses the current market conditions and the potential impact of interest rate cuts. He explains that there was a rally in both stocks and bonds at the end of 2023, driven by the expectation that the Fed would cut interest rates four to six times. However, Burton warns that this may not be a positive sign, as excessive rate cuts indicate a struggling economy. He emphasizes that rate cuts are primarily beneficial for bonds and explores the reasons behind them, which is to stimulate economic growth. Listeners are encouraged to be cautious and mindful of the potential implications of these rate cuts on their investments. Timestamps: [00:02:17] Emerging market assets dropping. [00:07:11] An interesting topic. [00:08:35] Drop in real estate agents. [00:13:30] Online crypto trading scams. [00:17:19] Inflation and grocery store prices. [00:19:32] Proper inflation rate. [00:23:06] Bucket list and retirement expenses. [00:28:31] Retirement planning and market volatility. [00:30:06] Diet and its significant changes. [00:33:09] Aging and health through diet. [00:37:11] Annuities for growth. Email your money question to chad@chadburton.com Call 1-888-762-2423 for Wealth Management and Financial Planning services or visit www.ChadBurton.com
Direct download: New_Focus_Chad_Burton_Ep_1302.mp3
Category:financial planning -- posted at: 9:34am PST |
Wed, 10 January 2024
In this episode of New Focus on Wealth, host Chad Burton discusses the themes for 2024 in the stock market and economy. Despite expectations of a recession in 2023, it did not materialize. Looking ahead, the upcoming elections and potential changes in taxes and other policies are important factors to consider. The overall theme is that the Federal Reserve has likely achieved a soft landing by raising rates. Stay tuned to gain insights into the financial landscape for the year ahead. Timestamps: [00:01:24] Wacky elections and taxes. [00:04:03] 10-year bond overvalued. [00:08:01-00:08:12] Value over growth in 2024. [00:10:53] REITs underperforming S&P 500. [00:16:40] Volatility and consistent returns. [00:18:14] REITs and real estate investment trusts. [00:23:24] Safe money ideas for retirees. [00:25:23] Tradable money market funds. [00:30:23] Estate tax and gifting limits. [00:33:36] Estate planning for pets. [00:37:35] Rental property income discrepancies. [00:40:01] Real estate as a business. Email your money question to chad@chadburton.com Call 1-888-762-2423 for Wealth Management and Financial Planning services or visit www.ChadBurton.com |
Thu, 4 January 2024
In 2023, interest rates underwent significant fluctuations, starting with an inversion where the two-year U.S. Treasury paid more than the 10-year U.S. Treasury. However, as the year progressed, interest rates rallied. By year-end, the 10-year U.S. Treasury rate stood at approximately 3.88%, reaching a peak of 4% at one point. Meanwhile, the two-year treasury closed the year at 4.23%. This unprecedented volatility in interest rates had a profound impact on the market. The episode highlights the strong performance of the NASDAQ, with the QQQ ETF rallying by 54.85%. This indicates that the QQQ ETF, which tracks the NASDAQ's performance, achieved a total return of 54.85% in 2023. This remarkable increase surpassed other major indexes like the S&P 500. The NASDAQ's robust performance can be attributed to the recovery of tech stocks, which had experienced a decline in the previous year. Additionally, the S&P 500 delivered a total return of 26.19% in 2023, indicating a positive year, albeit not as strong as the NASDAQ. In 2023, growth stocks significantly outperformed value stocks. The NASDAQ, which heavily comprises growth stocks, achieved a total return of 54.85% for the year, while the S&P 500, consisting of a mix of growth and value stocks, achieved a total return of 26.19%. This highlights the strong performance of growth stocks in the market. However, it remains crucial to maintain a balanced portfolio that includes both growth and value stocks. While growth stocks may have outperformed in 2023, value stocks tend to exhibit more stability and provide consistent returns over the long term. Value stocks are often attractively priced and possess lower price-to-earnings ratios, making them more resilient during market volatility. By incorporating both growth and value stocks into a balanced portfolio, investors can benefit from the potential upside of growth stocks while enjoying the stability of value stocks. This approach helps mitigate risk and provides more consistent returns over the long term. Furthermore, diversifying the portfolio by including different asset classes, such as bonds and international stocks, can further enhance stability and performance. Spreading investments across various sectors and regions reduces the impact of any single investment or market segment on the overall portfolio. In summary, while growth stocks may have outperformed in 2023, it is essential to maintain a balanced portfolio that includes both growth and value stocks, along with other asset classes. This approach enables investors to achieve consistent returns and mitigate risk over the long term. Timestamps: [00:05:06] Wild ride in interest rates. [00:09:29] Endless travel for $2,500. [00:09:58] Value versus growth investing. Email your money question to chad@chadburton.com Call 1-888-762-2423 for Wealth Management and Financial Planning services or visit www.ChadBurton.com |
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New Focus on Wealth with Chad Burton
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