Financial Planning: A means to an end

Home
  ›  
Posts from "" by tag:
  ›  
Page 3
You are here:

What Are Your Own Possibilities?

You can't take it with youSometimes, the pursuit of wealth can leave a void in our lives—a place left empty because we lacked the energy or time to pursue a dream. There is a saying: “Wealth is not an end, it is a means to an end.” The problem is that the complexity of creating wealth and the subsequent financial planning often gets in the way of seeing and pursuing an end truly aligned with your highest purpose in life.

My life’s work has been focused on this critical unmet need. I hope to help people see the possibilities that open up once you escape from the chaos and confusion that characterize so much of the wealth management field today. I absolutely know it is possible to put a large portion of wealth management on automatic; I have built the system, structure, support and discipline to achieve this; and I’ve seen how using these benefits helps people define and achieve their highest ambitions. This approach is both effective and rewarding.

Clients are surprised sometimes when I ask them about their higher purpose and possibilities. It is not that they feel I’m prying; they just don’t expect an advisor to be concerned with such matters. I tell them that these are the most important questions for them to consider when it comes to financial planning.

Does intelligence equate with investment management success?

Intelligence does not necessarily lead to expertise in every area- especially when it comes to investing.

What might it take to succeed in investing? Intelligence alone? You have to be intelligent to get into Mensa. They only accept applicants with IQs that place them in the top 2 percent of the population. One might expect that if Mensa members formed an investment club, their returns would exceed market averages, or at least match them. In actuality, between 1986 and 2001, while the S&P 500 was returning a robust 15.3% annually, the Mensa Investment Club had average returns of 2.5% per year.

How did these geniuses and near geniuses manage such poor results in such a strong market? Their basic problem was a lack of discipline. Instead of using their intellects to determine a sound investment approach and sticking with it, they got sidetracked into exploring trendy new tools and theories of how to predict market trends. When one strategy didn’t work they tried another. They made frequent trades, thus increasing their transaction costs. In short, they provided a perfect example of Warren Buffett’s comment: “Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ.” Common sense and discipline will beat erratic genius every time.

At this point in your journey toward financial strength, you already may have great momentum. All you need to reach the goal line is to exercise self-control in a few vital areas. I call these personal finance disciplines the High Five because they are the key to achieving your highest potential in life. They are:

  • Saving Awareness and Control
  • Spending Awareness and Control
  • Work Ethic
  • Goal-Setting
  • Learning

 

By automating or delegating a huge share of the discipline needed to master wealth, you can reserve your energy for situations when it is needed most. This is one of the secrets of the successful people with whom I have the privilege to work. They devote their best to challenges associated with their greatest ambitions, rather than squandering valuable energy on secondary pursuits.

JUDGMENT UNDER UNCERTAINTY
Behavioral Economics Takes Center Stage in Q3

I will be very impressed if the title of this latest edition of Portfolio Matters sounds familiar to anyone. It’s actually the title of the research paper by Daniel Kahneman and Amos Tversky back in September of 1974 that brought the field of behavioral economics into the mainstream mindset we know today. (We credit writer Jason Zweig for bringing this anniversary into spotlight.)

What this research paper really did was to question our understanding of how we think, or at least, how we think we think. The paper shed light on powerful thought patterns that likely affect us all. And when it comes to investing, these thought patterns and resulting behaviors play a far greater role in the markets than most folks realize…read more

We’re moved in! Take a closer look at our new Denver headquarters

The Janiczek team couldn’t be more excited about our brand new headquarters in Denver!  It’s our fourth location and eighth expansion/facility-improvement in 27 years! We spent well over a year determining what new features, technologies and designs would best augment our team work and client experience and we could not be more pleased with the results of our team’s hard work. Gensler Architects worked closely with us and our general contractor and many sub-contractors to deliver a wonderful end product that will serve our company for decades ahead.

On September 1, 2017 everything came together as we moved in to our new facility at 7001 E. Belleview Ave, Suite 600, Denver, CO 80237. Its a great new building in a prime location (wonderful urban location right off the highway and rail and it has magnificent views and amenities (including a new Ruth’s Chris Steak House right off the lobby). We will be hosting an open house on Thursday, November 9th, from 3:30 – 6:00.  We would love for you to stop by, chat with the team and get a tour of the many features of the layout.  Until then, enjoy a few pictures of our new space!

Being a resident, I have experienced Denver’s hot housing market first hand. All residents can attest to the fact real estate has a short shelf life in this town. An influx of out of state buyers who regularly comes in with cash to quickly buy up our already low housing inventory. I have always wondered where this cash is coming from. Are buyers liquidating investment assets to purchase a home in Denver under assumptions of continued year over year real estate appreciation?

As I discussed in my last blog, investor participation in the stock market is at an all-time low. Does this mean investors are stock piling hordes of cash for future use? No. We know people are still investing with hopes of better returns than what is earned in their savings accounts. So, who are the recipients of these funds? According to Gallup, real estate is the current preferred driver of net worth. When looking at the chart below, I would have to say that Americans’ view of the stock market as the best long-term investment option is changing.

Over the past few years there has been a steady increase in real estate investing. Thirty-five percent of Americans now choose real estate over stock and mutual funds. Both asset classes suffered catastrophic losses during the great recession and both have now recovered to well above their pre-crash highs. But Americans now seem to have more confidence in real estate than the stock market. I hope they understand the risks associated with direct real estate investing; illiquidity, expensive to exit, high entry price… but that’s for a later discussion.

In 2017 thus far, the only thing more dominant than the L.A. Dodgers may be large cap growth investing.

Through July, large cap growth is up over 17%, beating the S&P 500’s impressive 12% return. At the other end of the spectrum, small cap value investors have seen a minuscule 1% return, as seen in the chart below. But there’s something eerily familiar about these year-to-date results …

With the U.S. markets hitting record highs, one would assume more adults would be participating in the stock market when compared to previous years. Since the last financial crisis, we have not experienced an increase of stock market participation. The equity markets continue to march forward and the participation in these gains has not. Per research published by Gallup, a little more than 52% of Americans’ currently have money invested in the stock market. As you can see in the below graph, this matches the lowest ownership rate since 1999. During the high in 2007, nearly 2 out of 3 adults had money invested in the stock market. Did big losses experienced in 2008-09 change Americans’ sense of confidence in the stock market?

The Janiczek Team raced their way through the Donor Dash!

On Sunday, July 16th, the Janiczek team completed the Donor Dash 5k at Washington Park.  The Donor Dash is a 3.1 mile run/walk to honor the lives of organ and tissue donors, celebrate the lives of organ and tissue recipients and recognize those who continue to wait for a lifesaving transplant. The Donor Dash was a huge success this year, with over 4,800 individuals participating in the event.  The race hit close to home, as a few team members were racing in honor of family members who were donors or recipients.

A SMOOTH RIDE IN Q2
But Don’t Fall Asleep At The Wheel

On May 16th, there was a Wall Street Journal column by Jason Zweig that may have gone unnoticed, if not, underappreciated. The article discusses Amazon’s 20th birthday as a publicly traded company. Since its IPO in 1997, Amazon generated a total return of nearly 49,000%, or over 36% annually for its shareholders. No doubt that a performance number of 49,000% will make anyone stop dead in their tracks, either in amazement, disbelief, or both. But the rest of the article had some far more important points that may not have sunk in for most readers.

We’ll return to this story later, but suffice is to say that the Amazon story was likely lost among the many negative stories that embodied the most recent quarter. In this issue of Portfolio Matters we’ll discuss what all these moving parts mean for investor returns and, more importantly, the future for our clients and friends…read more


1 2 3 4 5 6 16
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken Janiczek Welath Management -Janiczek”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Janiczek. Please remember that if you are a Janiczek client, it remains your responsibility to advise Janiczek, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Janiczek is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Janiczek’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request. Please Note: Janiczek does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Janiczek’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please review Important Disclosure Information.

*Please Note: The scope of any financial planning and consulting services to be provided depends Read More Here

*Please Note: Please remember that past performance may not be indicative of future results. Different types of investments Read More Here