Nurturing Financial Freedom

Today, Alex Cabot and Ed Lambert of Birch Run Financial cover two main topics.  First, Ed tells us the four things everyone should do to start the new year.  Then, Alex talks about how investors should be viewing the current financial environment. Ed talks about: Increasing your retirement contributions Eliminating high interest rate debt Adding to your monthly mortgage payment Checking your inves...

"Fed Tightening" is a term we've been hearing a lot lately.  Today, Alex Cabot and Ed Lambert of Birch Run Financial explain the term, and why it's relevant now, at the end of 2021. The Federal Reserve, or "The Fed," has two main weapons in its arsenal: Short Term Interest Rates and Money Supply.  Alex explains how these two tools can be used to bolster a struggling economy, or, like now, slow the...

Birch Run Website: www.birchrunfinancial.com Birch Run Financial email: info@birchrunfinancial.com Birch Run Financial Phone Number: (484) 395-2190 On this podcast, Alex Cabot and Ed Lambert often preach the importance of diversification - having many different types of investments in your portfolio.  Today, Ed breaks that down from a 30,000 foot view.   And much to Jag's appreciation, he even has...

Birch Run Website: www.birchrunfinancial.com Birch Run Financial email: info@birchrunfinancial.com Birch Run Financial Phone Number: (484) 395-2190 Fiscal Stimulus and Monetary Stimulus, Explained Since the beginning of the pandemic, we've been hearing about fiscal stimulus and financial stimulus.  Today, Alex Cabot and Ed Lambert of Birch Run Financial break them both down. Fiscal Stimulus: When...

Birch Run Website: www.birchrunfinancial.com Birch Run Financial email: info@birchrunfinancial.com Birch Run Financial Phone Number: (484) 395-2190 Do I Need Bonds in My Portfolio? We begin today's episode with a quick market recap of the past month, then we get into a question that Alex Cabot and Ed Lambert of Birch Run Financial are frequently asked.  "Do I Need Bonds in My Portfolio?" First, Ed...

Gamification of investing refers to the idea that investing is a "game" that can be won or lost.  Alex Cabot and Ed Lambert of Birch Run Financial are here to break down this trend. Alex starts by walking through the fundamentals of this gamification, and the effort to democratize investing.  He also provides some historical context into where this trend fits.   There is a downside to this trend,...

Today, Alex Cabot and Ed Lambert of Birch Run Financial provide an update on the economy and the markets, through the second quarter of 2021. Ed explains, how in terms of GDP, we are growing faster than at any point since 1984!  We've recovered all pandemic-related losses, and any further economic growth will be new. The employment rate is improving, and Ed explains why we expect it to get better...

After a brief check of the markets over the last month, we jump into today's big topic. Inflation has been a major topic in the financial media lately. The question is: Will current inflation be transitory (temporary) or will it last?  Today, Ed Lambert and Alex Cabot of Birch Run Financial play devil's advocate and present each side of the argument. First, Ed outlines the argument that inflation...

We begin today's episode with a check of market performance from April 15th-May 15th.   Ed Lambert walks us through the changes in the S&P 500, small cap market, Russell 2000, and more. The focus on today's podcast is fire drills . Markets can be volatile and uncertain. There are pullbacks, corrections, and bear markets. Alex Cabot walks us through some of the more recent incidents of each, includ...

With so many different types of investments considered "hot" right now, Alex Cabot and Ed Lambert thought this the perfect time to revisit the importance of diversification. Hot asset classes don't necessarily remain hot, and "cold" classes aren't "overdue."  Past performance does not indicate future results, and your best chance at success is a properly diversified portfolio. Alex and Ed provide...

Over the past weeks and months, we've heard many stories in the financial media about inflation, when it's coming, and what it will mean.  Today, Ed Lambert and Alex Cabot of Birch Run Financial break it all down. Ed talks about the massive amount of money we have flowing through our financial system, thanks to historically low interest rates, economic stimulus money, and the pent up demand that w...

We often hear advisors say "Don't chase returns."  But what does that really mean? Today, Alex Cabot and Ed Lambert of Birch Run Financial explain, and why this advice is so important. Chasing Returns is really about FOMO, or "keeping up with the Joneses."  Psychologically, we hear about a hot stock or other item, and we don't want to miss out. We've seen this with tech, commodities, even real est...

We are all grateful to put 2020 in the rear-view mirror and turn the page to 2021.  Today, Ed Lambert and Alex Cabot of Birch Run Financial join Jon Gay for a 2021 economic outlook and what investors should expect in the coming year. Ed breaks down the importance of COVID-19 vaccines, and why they are key to the expected economic recovery. If we can reach "heard immunity," consumers' pent up deman...

As 2020 (finally) draws to a close, we want to take a look back at what happened this year, and what we've learned for the future.  Alex Cabot starts with a look back at a volatile 2020 in the markets. After a strong performance in 2019 and a few minor bumps in January, the stock market was doing well throughout the first few weeks of February. S&P 500 hit a new high on Feb 19th…COVID was a minor ...

It's  been a tumultuous 2020 and election cycle.  Today Alex Cabot and Ed Lambert of Birch Run Financial will break down what this year's results will mean for the economy as whole and individual investors. Ed starts with some perspective on where we are, with a likely Democratic President and House, balanced by a likely Republican Senate. Divided government means modest legislation, so we could b...

As many of us spend more time online (work, school, and more), Cybercrime has grown significantly in the last 6 months.  Today we break down some common threats: Phishing Scams Identity Theft Sweetheart Scams Relative Scams Social Security and IRS Scams Next, we talk about how to protect ourselves against these threats: Updating Software Multi-Factor Identification Backing Up Your Data Being Caref...

In the US, interest rates are extremely low right now.  Today, Alex Cabot and Ed Lambert of Birch Run Financial explore what that means for investors. How did these low rates come about and who benefits from them? Who is hurt by low interest rates? Resources: Nurturing Financial Freedom Book: https://www.amazon.com/Nurturing-Financial-Freedom-Edgar-Lambert/dp/1483442950 Birch Run Financial Website...

With COVID-19 cutting many people's desire to get on an airplane or other public transportation,  many of our clients are considering buying a second vacation home - on the Shore or elsewhere. Today, we weigh the pros and cons of whether or not you should make this major purchase. Ed gives 5 reasons to buy the home: You can afford it and any trade offs with regard to  your retirement You can affor...

There are a number of cliches when it comes to investing, many of them considered to be "truths." Today, we look at three of them - what's true, and what's not. Buy Low and Sell High While this is mostly true, it doesn't mean try to time the markets. Quite the opposite - it means to stay invested.  Alex Cabot explains. Cash is King This cliche is thrown around all the time, especially in down mark...

Given the volatility the market has experienced so far in 2020, today we explore investor psychology, and how we sometimes need to fight our instincts. Evolution has programmed us for "fight or flight" when confronted with a stressful stimulus, for example a large loss of money. And psychologically, losing money is twice as powerful as gaining it. We look at a study that shows individual mutual fu...

Today, we take stock (no pun intended) of where we are financially with regard to the Coronavirus pandemic.  First, how has the 2020 market selloff compare with previous declines, corrections, and bear markets? Alex Cabot compares the data and explains that it's not the depth of the trough, but how quickly it happened. Next, Ed Lambert takes stock of where we are now, mid-May, in terms of the econ...

Today, Alex Cabot and Ed Lambert of Birch Run Financial join Jag to talk about the effects that COVID-19 has had on the financial markets.  They also offer some historical perspective, and look ahead to a potential recovery. How much economic damage has been done? What has the fallout for the financial markets been so far? What are some possibilities for economic recovery? Resources: Birch Run Fin...

As our world changes very quickly these days, the markets have been increasingly volatile. Today, Alex Cabot and Ed Lambert explain how to prepare and weather the storm of current market conditions. Should investors ride it out? What is the importance of having separate "buckets" in your portfolio? When should you buy stocks aggressively? Resources: Birch Run Financial Website More info: info@birc...

ere are many reasons you should be re-balancing your portfolio. To start today's episode, Ed explains what portfolio re-balancing is, why you should buy low and sell high, and how often you should re-balance. Next, Alex explains the dangers of a portfolio that's too heavily invested in stocks, with a bit of historical perspective. Finally, Ed talks to Sequence of Returns, what it is, and why it's...

It's New Year's Resolution time! Alex Cabot and Ed Lambert of Birch Run Financial join co-host Jag to talk about important pieces of your financial future to look at as we enter a new year. Investment Strategy: Is your broad strategy appropriate? Should you rebalance? Do you have an emergency fund? Budget Planning: Do you have a budget in place? Are you maxing out your retirement plan? Employee Re...