Do You Need a Family Office? | AWM Insights #123

Real 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 upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network. 
 

Episode Highlights: 

• 00:00 - Intro 
• 00:35 - Why Investors Love Real Estate? 
• 01:14 - Real Estate in Public vs Private Markets 
• 02:36 - The Behavioral Aspect of Real Estate Investing 
• 04:09 - The Goal of Real Estate Investing 
• 04:53 - Analyzing Real Estate Returns and Costs 
• 07:34 - Benefits of Real Estate as an Asset Class 
• 09:11 - Leverage and Real Estate Investment Strategy 
• 10:24 - Text Us!

What 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 get the most out of your resources.

 Finally, plans and strategies must be constantly evaluated and updated for changing conditions. Building and maintaining a successful personal portfolio follows the same logical framework! 

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504 -7689 to join our new AWM Insights Network. 

Episode Highlights 

• 00:00 - Intro
• 01:01 - The "game" of investing
• 02:13 - Having the proper expertise, coaching, and team to win
• 02:57 - Developing a playbook for investing based on data and historical lessons
• 03:51 - The impact of missing the best days in the market
• 05:38 - Building your all-star investment roster
• 07:38 - Text Us!

The 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 upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network. 

Episode Highlights

• 0:00 - Intro 
• 1:42 - Complexity of Markets and Elections' Impact 
• 3:40 - Gameplays and investments 
• 5:08 - Long-term Investment Strategy 
• 6:09 - Text us!

There 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 sees an average return of 11.5% during election years, which is slightly above the average return in all years (10.3%). Instead of being a critical component, elections are merely one of many factors at play when it comes to market performance. 

The importance of maintaining a long-term investment strategy and preparing for potential market fluctuations underscores the need for investors to distinguish between informed decision-making and impulsive reactions to political news. 

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji to Brandon at (714) 504-7689 to join our new AWM Insights Network.

 Episode Highlights 

• 00:00 Intro 
• 01:21 Data on the S&P 500 returns during election years, highlighting the minor impact of elections on market performance
• 02:53 The principle of voting in the ballot box, not with your portfolio 
• 03:51 Volatility is elevated leading up to elections
•  04:44 Text us!

Presidential 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 piece in a sea of factors that impact markets.

Focusing on long-term financial goals and adhering to disciplined investment principles creates far more successful opportunities and outcomes for investors when compared to playing the election guessing game.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 00:00 Intro
• 01:18 Discussion on the election as a significant behavioral event influencing investor emotions.
• 03:03 Insight into financial markets' processing of election outcomes without political bias.
• 04:38 Emphasis on the importance of evidence-based investing over emotional decision-making.
• 05:55 Historical market performance analysis showing resilience despite political changes.
• 07:16 Discussion on the nuanced effects of presidential policies on markets.
• 08:17 Conclusion and mention of future deeper dive into the episode's topic.

2023 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 stay disciplined, avoid emotional investment decisions, and continuously align your portfolio with personal priorities.

There will be bumps along the way. Getting over the bumps and to the other side is what separates the best from the rest.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 00:03: Intro
• 00:38: Current market dynamics and earnings expectations.
• 02:19: Uncertainty around interest rates and difficulty predicting markets.
• 03:24: Impact of the upcoming presidential election on markets and portfolio positioning.
• 04:30: Prioritizing short-term goals.
• 05:53: Emotional investment decisions and the importance of personal priorities.
• 08:50: Text us!

In 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 market fluctuations or media reports.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Introduction and overview of 2023's financial uncertainties.
• 2:01 Discussion on interest rates and inflation dynamics.
• 3:40 The Federal Reserve's handling of the economy.
• 4:42 Analysis of 2023's bond and equity markets.
• 7:45 Impacts of global events on the markets.
• 8:26 The 2023 banking crisis and its effects on venture capital.
• 10:47 State of the private markets in 2023.
• 12:35 The importance of a long-term investment strategy.

Creating 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 their goals.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 1:10 Reflecting on your financial structure.
• 2:00 The value of refocusing and adjusting the plan due to updated circumstances.
• 3:23 Focusing on what you can control and evaluating the sources of news we consume.
• 5:26 Money is a tool, and are the right tools in your shed for your purpose?
• 6:35 Text us!

Evaluating 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 goals.

It's more about the total progress of your financial structure, than just numbers.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 1:13 How do you evaluate and measure your financial structure and success?
• 3:30 Considering your unique allocation when measuring performance.
• 5:03 Creating a personalized benchmark for success.
• 7:50 Text us!

Figuring 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 checkpoints. The Scheduling step on the road to success needs to be interactive to evolve with our clients' changing schedules and goals.

Setting up a well-thought-out plan that takes the guesswork out of achieving your goals and being able to effectively adjust for any changes gives our clients clarity into what they can accomplish and the impact they can make.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (714) 504-7689 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:45 Scheduling our intentions for success.
• 1:30 Building a game plan before the season and executing on that scheduled plan.
• 3:45 Constantly revisiting the scheduled plan to make sure it is in line with our client's needs.
• 6:50 Text us!