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When successful business owners start the planning process of selling their business, in many cases the largest asset that person owns, many are looking at things such as; what multiple of my Business-sale-image 02.19.16EBITDA is reasonable, what business broker or investment banker should I be using, etc.?  The first step in the process really starts with the question “how much do I need to realize from the sale of the business to fund my family’s lifestyle for the remainder of our lives?  I like to equate this process to building a home, if your foundation (or in this case accumulation needed), is not thoughtfully and carefully calculated and executed the rest of the process is built on shaky ground.

Take a deep breath…  YOU have the golden ticket!  Your thoughts immediately jump towards all your wildest dreams, and reality starts to kick in that money is no longer a hurdle to life experiences or the worldly goods you desire.  If you can dream it up, you can do it!  With such a substantial jackpot, it’s hard to fathom that someone could possibly blow through this type of fortune.  Without a clear and concise plan, however… anything is possible!

So how do you protect yourself from becoming associated with the unwanted statistic that 70% of lottery winners eventually end up broke?

The task for growing and protecting your assets can be daunting, and there are 35 areas of wealth that need to be optimized in order to become an Accomplished, Depletion-Resistant Wealth Steward.

Yesterday thehappy new year 2015 Fed, led by Janet Yellen, made the announcement the investment community has been expecting: A 25 basis point increase in the Federal Funds rate. The Fed voted unanimously to set the new Federal Funds rate to .25%, up from zero. The outlined path will be a gradual increase with a target rate of 1.38% by the end of 2016. Improvements in the job markets and an increasing level of inflation both supported the Feds decision to increase rates.

The increase draws a close to an unprecedented period of low rates that were part of a grandiose plan implemented by the Fed to help stimulate the economy after the turmoil in 2008. The financial markets took the rate increase announcement in stride, reflecting growing conviction among investors that the U.S. is strong enough to withstand higher borrowing costs.

Scales-of-Justice - Janiczek

 

I’ve had a lot of clients and friends recently ask me if our comprehensive “bear watch” or “rally watch” investment models have triggered any sell or buy signals. The short answer is…

  • the weight of our macro, fundamental and technical evidence remains bullish,
  • albeit with signs of elevated risk across global markets.

With plenty of headlines and moving economic parts to consider, I do think it’s a good time for you to review our mid-year market outlook. Click the image below to download.

Portfolio Matters

In the 5-page report, our Chief Investment Officer, James Callahan, CFA does a fine job filtering through all the noise, hype and data to zero into a quality evidence-based assessment of conditions, dangers and opportunities.

As always, if you have any questions, feel free to call me at 303-721-7000.

 

A prWealthy intergenerational familyominent estate planning attorney I was meeting with recently said it well:

“The middle high net worth segment ($5 million to $40 million net worth) often encounter:

A) a revolving door (of representatives) from mega-institutions that may “lower their standard” and accept them as a border-line (size) account, or

B) biased sales pitches from retail brokers and banks who are incentivized and organized to pitch investment products rather than provide comprehensive investment and wealth management services.”

We couldn’t agree more with this synopsis. As we like to say, who wants to work with an advisor who “gives them no respect” (we call it the “Rodney Dangerfield” treatment) and way too complicated and costly investment products in today’s open architecture world? Or, who wants to be the gravy train for the top sales superstars of retail brokerages and banks when “open source/free agency” investing has opened up a world of quality, lean investment vehicles less complicated, less costly and less sticky (easy to plug in and out)?

a-leaders-disciplineSchwab’s annual industry conference, Schwab Impact, was held in Denver last week. The conference offered two memorable keynote speakers in former Fed Chairman Ben Bernanke, and our 43rd President George W. Bush. They both offered authentic recollection of the financial collapse in 2008, and the September 11th terrorist attacks on U.S. soil.

In listening to both speakers candidly telling their stories, I had a much deeper appreciation around their thinking and the actions they took to lead our country through those difficult times.


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