AWM Insights Financial and Investment News

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...

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 ad...

Investing should be centered around you and the plan should evolve as your life develops and changes. This general concept may sound straightforward and logical, but the ideology of setting an intention for the funds in your portfolio and constantly reevaluating and adjusting them is not a common one. The simple reason for the lack of adoption is that this process is highly sophisticated. Foundati...

Brian Cain works with dozens of professional athletes to push them to Mental Performance Mastery. His 4-step formula transcends sports performance and actually has a direct application to managing wealth holistically. Establishing your goals and envisioning your priorities is Step 1. Creating Intention is followed by Scheduling time to do the work to get there. As time is being spent to get to the...

Looking back at this past year, there is more to be thankful for than just strong market performance. There have been many improvements and advancements in our industry that will impact all for the better. Our Industry continues to move away from the transactional business model. Advice and Expertise are dominating, and more businesses are putting their clients first to keep up. This, unfortunatel...

Markets this week have reacted very positively to easing inflation figures and dropping producer prices. The positive news has changed the sentiment of markets and rewarded investors who took on risk in their portfolios. It was a great reminder of how Equities reward investors who take on risk in their portfolios. Obviously, risks must be measured and appropriately sized, but when a strong plan is...

Interest rates across the board are at or near their highest levels in the last 15 years. While it's more expensive to get a mortgage nowadays, investors are benefiting from these higher rates with their investable assets. Short-term Treasuries are generating more than 5%, which is significantly higher than the rates we have seen for the last decade. It's important to remember that over the long r...

Stocks and their returns are built on the uncertainty of financial markets. No one knows what tomorrow holds. Bearing that risk is compensated when things go well, and punished when they don’t. Many try to play the guessing game in hopes of only getting positive results. The data has shown that this is not possible. Trying to outsmart the market consistently doesn’t work due to the unpredictabilit...

A strong and thoughtful financial framework should be built around your life and enable you to accomplish your goals. Creating a strong connection between you and your portfolio ensures that your money is working for you specifically, and is allocated to improve your odds of success. A tailored financial framework not only reduces waste and enhances overall efficiency, but it also improves your fo...

World developments frequently impact financial markets and test the resolve of investors. The fear, panic, and uncertainty these events cause are exactly what creates the concept of a “risk premium.” The evidence is also very clear. Those who weather the storm have been rewarded over the long run. Consider the COVID outbreak, the Great Recession, and the Dot Com Bubble. These were all significant...

Over the past 150 years, data on markets has been collected, analyzed, and an optimal investment process has been discovered. This process has been shown to reward investors over long periods. It includes taking advantage of diversification, flexibility, the efficiency of markets, and technological advancements that help markets function. Even with the rigorous, science-backed methods of investing...

Financial services and investment expertise have traditionally been scattered across many different roles with no one “Quarterbacking” the process. In the past, investors worked with brokers, accountants, private investment specialists, and other professionals individually with differing levels of knowledge and involvement. There was little to no cross-communication between these individuals, and...

The news is usually saturated with events that are out of everyone’s control. This frequently triggers anxiety and panic.  From Government shutdowns to predictions of financial turmoil, we are pulled into being invested in and accepting certain negative situations without looking at the bigger picture and realizing that there are actions we can take to financially prepare for an assortment of situ...

An advisor who is independent, integrated, and can work through your individuality will increase the odds of your family’s success and help you establish multigenerational wealth. Independence, and the lack of a corporate structure that places shareholder interests above those of clients, is imperative. An advisor who is there to work for you and views your interests as being their own as a fiduci...

The concept of “making it” or crossing the finish line in your Wealth journey is like the tooth fairy. It would be awesome if it existed, but it doesn’t. Preserving your wealth is a full-time job, and if done well, it’s a job that will be carried out past your lifetime.  Working with a financial “Quarterback” helps your wealth grow and protects you from the unnecessary and avoidable risks that can...

The saying “defense wins championships” applies in a few ways to portfolio management. Playing good defense (keeping your opponent off the board) and taking the risk out of the important areas of your life is the foundation of the game and gives you peace of mind as an investor. A leaky or inadequate defense leads investors to fall behind, and it’s hard to catch up without taking unreasonable risk...

We frequently bring up the three uses of money (Spending, Saving, and Gifting) and how we help our clients expand their wealth and impact through each use. We implement a thoughtful and proactive approach to tax planning and management that helps our clients keep more dollars in their pockets. This is a year-round job and not one that can be done effectively just before Tax Day. From there, we hel...

Being a diligent, long-term investor is a very rewarding proposition, but most investors ignore the impact that taxes can have on their investments and what they get to “take home.” Our industry is almost solely focused on total returns and fixates on specific return figures, but those numbers don’t tell you what you get to keep, which is what really matters. Ignoring this dynamic and not proactiv...

We continue our series on the Multi-generational Wealth Formula. This week, we focus on income - the most common types and sources, active versus passive income, and how they are treated differently for tax purposes.  The most common source is typically called Employment Income or W2 Wages. This income comes from work you do as a formal employee of a company. Athletes are paid Employment Income fr...

Understanding the different types of Human Capital is critical to building multi-generational wealth. The three main types are Physical, Intellectual, and Social Capital. Each plays a role in building wealth and leading a more flourishing life. Your Physical Capital is your strength, your natural talents, and your ability to stay healthy. All of which are big drivers of wealth for many of our clie...

Capitalizing on your Human Capital is essential. Capturing the three main branches of Human Capital (Physical, Intellectual, and Social Capital) in a comprehensive and tax-efficient manner is the starting point for building wealth. From there, this acquired needs to be strategically used to work for you. Warren Buffett famously said,  “If you don't find a way to make money while you sleep, you wil...

Last October when Equity Markets bottomed out, there were calls to sell and warnings that market conditions would only get worse with rampant inflation and a weakening economy. With the recent positive performance of most Public Equity Markets, you may be noticing that the trend to invest and take risks is now “in” again. Markets fluctuate, and although these swings may lead to emotional responses...

With short-term interest rates currently hovering above 5% and inflation remaining elevated, the proposition of holding too much cash can be a costly one. Cash gives investors security, immediate accessibility, and certainty as there are FDIC assurances that prevent total losses, but the cost of those elements is missing out on having that money work for you. Checking accounts still have very low-...

Taking the time to review your portfolio’s performance is a great exercise, but it’s important to use the right tools and methodology to carry out an accurate evaluation. It’s also critical to remember that everyone is playing a different game with different starting and ending points. This fact makes the standard returns you see online or on TV relatively important, but not the absolute target. A...

Understanding, processing, and regulating emotional responses toward your investments is one of the most important skills to have in order to be a successful and diligent investor. Markets give us various inputs that lead to an array of feelings, but it is critical to process and regulate your emotional responses at all times and keep your eye on the bigger picture, which is your financial structu...