alex cabot

We have a two-part episode for you today, as we begin our fifth year of the Nurturing Financial Freedom Podcast.

First, the FED raised interest rates by 0.25% on May 3rd.  Are they finally done raising rates?  Ed Lambert of Birch Run Financial wades into that question.  Are more hikes coming, and if so, will they be small or large?   We look at the current state of the economy and where we believe things are going. 

Next, Alex Cabot is here to debunk three market "hacks" that investors sometimes get pulled into.  They are:

1. "Sell in May and Go Away"
2. "The January Effect"
3. "Buy the Rumor, Sell The News"

All data in today's episode are courtesy of YCharts, and Alex walks through the numbers of why these market fallacies don't work. At Birch Run Financial, we believe in a time-tested, diversified, long-term approach.  Alex, Ed, and their team are always happy to have a conversation about your investment questions, whether you're a client or not.

You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.

Or visit them on the web at https://www.birchrunfinancial.com/

Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536

You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.

Or visit them on the web at https://www.birchrunfinancial.com/

Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536

Any opinions are those of Ed Lambert and Alex Cabot and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Birch Run Financial is located at 595 E Swedesford Rd, Ste 360, Wayne PA 19087 and can be reached at 484-395-2190.

Any rating is not intended to be an endorsement, or any way indicative of the advisors abilities to provide investment advice or management.  This podcast is intended for informational purposes only.

We celebrate 4 years of the Nurturing Financial Freedom Podcast with our 48th episode today. Thank you for listening!

As we reflect on the first quarter of 2023, we will do a recap of the markets (data courtesy of YCharts), as well as reflect on some of the headlines and lessons learned so far this year.

Alex starts us off by looking back at the markets, which were largely positive in 2023, as of our recording date of April 20th.  After a stock and bond recap, we spend some time explaining bonds and why they're often a misunderstood asset class.   Also, gold is interesting.   Alex explains why this precious metal is considered both a "panic asset" and an "inflation hedge," perhaps erroneously!

Finally, Alex comes back to one of our favorite principles in this show - diversification.  Why is it such an important concept to both understand and utilize?

In the second half of today's episode, Ed talks about not believing the predictions of market prognosticators.  Two in particular predicted a very bad Q1 in 2023, which as Alex explained, didn't happen.   You simply can't predict the markets.  Ed explains what would have happened to your portfolio had you made a panic move based on what you saw or read.

Next, many investment management firms suggested buying dividend stocks and ignoring growth stocks.  Ed has the numbers to show why that wasn't a good idea!    We also look at the housing market.  While "doom and gloom" were predicted, that didn't come to fruition either!  Yes, interest rates have gone up, but a limited supply has prevented any drastic changes in housing prices.

Finally, Ed breaks down the collapse of Silicon Valley bank, an event that dominated the headlines for a few days last month.  Why did the bank collapse?  Ed walks us through the two biggest reasons.

So what did we learn, or perhaps have reinforced, in the first quarter of this year?  Don't panic, stay diversified, and focus more on the long-term than the short term.  The world is scary right now, but it always has been and always will be.

Alex Cabot and Ed Lambert are always happy to have a conversation with our listeners, whether they are a client or not.  Financial literacy is something they are very passionate about at Birch Run Financial.

You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.

Or visit them on the web at https://www.birchrunfinancial.com/

Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536

There are special risks associated with investing with bonds such as interest rate risk, market risk, call risk, prepayment risk, credit risk, reinvestment risk, and unique tax consequences. To learn more about these risks and the suitability of these bonds for you, please contact your financial advisor.

Gold is subject to the special risks associated with investing in precious metals, including but not limited to: price may be subject to wide fluctuation; the market is relatively limited; the sources are concentrated in countries that have the potential for instability; and the market is unregulated.

Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification.

Dividends are not guaranteed and must be authorized by the company's board of directors.

There are special risks associated with investing with bonds such as interest rate risk, market risk, call risk, prepayment risk, credit risk, reinvestment risk, and unique tax consequences. To learn more about these risks and the suitability of these bonds for you, please contact your financial advisor.

Gold is subject to the special risks associated with investing in precious metals, including but not limited to: price may be subject to wide fluctuation; the market is relatively limited; the sources are concentrated in countries that have the potential for instability; and the market is unregulated.

Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification.

Dividends are not guaranteed and must be authorized by the company's board of directors.

You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.

Or visit them on the web at https://www.birchrunfinancial.com/

Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536

Any opinions are those of Ed Lambert and Alex Cabot and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Birch Run Financial is located at 595 E Swedesford Rd, Ste 360, Wayne PA 19087 and can be reached at 484-395-2190.

Any rating is not intended to be an endorsement, or any way indicative of the advisors abilities to provide investment advice or management.  This podcast is intended for informational purposes only.

Join Mike Cavaggioni with Alex Cabot and Ed Lambert on the 169th episode of the Average Joe Finances Podcast. Alex and Ed share how to avoid common financial pitfalls and have the right mindset to make smart financial decisions.

In this episode, you’ll learn:

• How to create the right mindset to achieve financial freedom.
• The capital markets in the first six months of 2022 and what lies ahead.
• Why the "no debt" approach isn't optimal for every investor.
• And so much more!

About Alex and Ed:

Alex and Ed were recognized in the 2021 Forbes Best-In-State Wealth Advisors list, and they're also the Co-Founders and Managing Partners of Birch Run Financial, a financial advisory managing $350M+ in clients' assets.

Alex and Ed are the authors of Mastering the Money Mind: A New Way of Thinking About Personal Finance, a book that offers advice investors of all ages can use to make smarter financial decisions.

They have 35+ years of combined experience guiding people on how to avoid common financial pitfalls like adopting a groupthink approach or investing with emotion as well as providing insightful perspectives designed to weather stock market volatility and navigate inflation.

Find Alex and Ed on:

Website: https://www.birchrunfinancial.com/

Alex:

Forbes: https://www.forbes.com/profile/alex-cabot/

LinkedIn: https://www.linkedin.com/in/alexander-cabot-b5a359b/

Ed:

Forbes: https://www.forbes.com/profile/ed-lambert/

LinkedIn: https://www.linkedin.com/in/ed-lambert-a03b9520/

Average Joe Finances®

All of our social media links and more: https://averagejoefinances.com/links

About Mike: https://themikecav.com

REWBCON: Join me at the Real Estate Wealth Builders Conference. Use promo code “Mike” to save on tickets. https://averagejoefinances.com/rewbcon

Important Tools and Resources that I Use

Financial Resources: www.averagejoefinances.com/resources

CRM Tool: www.averagejoefinances.com/crm

Pay Off Your Mortgage in 5-7 Years:

www.theshredmethod.com/averagejoefinances

https://bit.ly/replaceyourmortgage

Find a REALTOR® in any state: www.averagejoefinances.com/realtor

Make Real Estate Investing Easier with DealMachine:

www.averagejoefinances.com/dealmachine

Podcast Hosting: www.averagejoefinances.com/buzzsprout

Podcast Editing Services: www.editpods.com

*DISCLAIMER* www.averagejoefinances.com/disclaimer

See our full episode transcripts here: www.averagejoefinancespod.com/episodes

Join Mike Cavaggioni with Alex Cabot and Ed Lambert on the 169th episode of the Average Joe Finances Podcast. Alex and Ed share how to avoid common financial pitfalls and have the right mindset to make smart financial decisions.

In this episode, you’ll learn:

• How to create the right mindset to achieve financial freedom.
• The capital markets in the first six months of 2022 and what lies ahead.
• Why the "no debt" approach isn't optimal for every investor.
• And so much more!

About Alex and Ed:

Alex and Ed were recognized in the 2021 Forbes Best-In-State Wealth Advisors list, and they're also the Co-Founders and Managing Partners of Birch Run Financial, a financial advisory managing $350M+ in clients' assets.

Alex and Ed are the authors of Mastering the Money Mind: A New Way of Thinking About Personal Finance, a book that offers advice investors of all ages can use to make smarter financial decisions.

They have 35+ years of combined experience guiding people on how to avoid common financial pitfalls like adopting a groupthink approach or investing with emotion as well as providing insightful perspectives designed to weather stock market volatility and navigate inflation.

Find Alex and Ed on:

Website: https://www.birchrunfinancial.com/

Alex:

Forbes: https://www.forbes.com/profile/alex-cabot/

LinkedIn: https://www.linkedin.com/in/alexander-cabot-b5a359b/

Ed:

Forbes: https://www.forbes.com/profile/ed-lambert/

LinkedIn: https://www.linkedin.com/in/ed-lambert-a03b9520/

Average Joe Finances®

All of our social media links and more: https://averagejoefinances.com/links

About Mike: https://themikecav.com

REWBCON: Join me at the Real Estate Wealth Builders Conference. Use promo code “Mike” to save on tickets. https://averagejoefinances.com/rewbcon

Important Tools and Resources that I Use

Financial Resources: www.averagejoefinances.com/resources

CRM Tool: www.averagejoefinances.com/crm

Pay Off Your Mortgage in 5-7 Years:

www.theshredmethod.com/averagejoefinances

https://bit.ly/replaceyourmortgage

Find a REALTOR® in any state: www.averagejoefinances.com/realtor

Make Real Estate Investing Easier with DealMachine:

www.averagejoefinances.com/dealmachine

Podcast Hosting: www.averagejoefinances.com/buzzsprout

Podcast Editing Services: www.editpods.com

*DISCLAIMER* www.averagejoefinances.com/disclaimer

See our full episode transcripts here: www.averagejoefinancespod.com/episodes

It's been almost a decade and a half since we've seen a market downturn like we have in 2022.  And while you may not be happy when you look at your investments, our current environment may provide some opportunities that investors haven't seen in some time.   Today, Ed Lambert and Alex Cabot of Birch Run Financial explain.

First, Ed tackles Roth Conversions.   On a traditional IRA, you pay the taxes on the way out.  On a Roth, you pay them on the way in.  This is also true at the time of a conversion - that's when you pay the taxes.  And while every individual's situation is different, reasons to do a Roth conversion could include people who are young, people with lower incomes, and in 2022's case, when the value of your investments are down.   Ed explains all of this with examples, and also tells us why it's a good idea to have the money to cover the taxes come from elsewhere.

Next, Alex talks about tax loss harvesting.  Again, this is a complex strategy, and you should always consult with a professional before executing it.  Essentially, if you want to sell securities at a loss, you can use those losses to offset any capital gains you have - for tax purposes.   There are many caveats here, too, though.  Alex cautions us not to prioritize tax strategy above overall investment strategy.  And there are other factors to consider, like the IRS Wash Sale Rule.  He shares one particular horror story involving this strategy.

As the year winds down and you consider your financial future, Alex, Ed, and the team at Birch Run Financial are always happy to have a complimentary conversation with you.

You can always email them at info@birchrunfinancial.com or give them a call at 484-395-2190.

Or visit them on the web at https://birchrunfinancial.com/

Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536

You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.

Or visit them on the web at https://www.birchrunfinancial.com/

Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536

Any opinions are those of Ed Lambert and Alex Cabot and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Birch Run Financial is located at 595 E Swedesford Rd, Ste 360, Wayne PA 19087 and can be reached at 484-395-2190.

Any rating is not intended to be an endorsement, or any way indicative of the advisors abilities to provide investment advice or management.  This podcast is intended for informational purposes only.