Thoughts On Money [TOM]

Today's Post - https://bahnsen.co/3J91t3Q Today I want to discuss a very simple and actionable planning item – the interest rate you are earning on your cash. As we know, inflation and interest rates are spiking, yet still, the national average yield for savings accounts is less than 0.25%. Please join me as we dive right in and address what a saver is to do in these interesting times we are livin...

Last week I celebrated my birthday, and this week I got to enjoy one of my birthday gifts – Warriors tickets (NBA basketball). My in-laws sweetened this gift by also volunteering to watch our kids, so my wife and I could go together. The drive from home to the arena is modest in miles and daunting in drive time – LA traffic. I laugh in hindsight, but I was fumbling to find directions, as I kept as...

First, a false alarm (fire drill) interrupted a client conversation at the office.     Next, a false alarm woke me up from a dead sleep at home.     Today, we will discuss the importance of not mistaking false alarms for fires when it comes to investing.  A simple financial truth that I’d encourage you to heed.  Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

Today, I’d like to address a financial misconception that’s running rampant right now in the world of personal finance. Financial anxiety and economic uncertainty are spiking, and investors are speculating if we are in a recession, approaching a recession, or potentially avoiding a recession. This climate, and the overall general sentiment, have left many investors wanting to avoid risk assets lik...

Today I would like to address a very simple question: where do you go for advice A very straightforward inquiry but an important one nonetheless.  As it often is in personal finance, sometimes the simplest questions can be the most revealing and thought-provoking. To help illustrate what I’m referring to here, I’d like to start with a personal story that I’m sure some of you can relate to. Links m...

In the last week or so, I’ve fielded numerous calls that have all revolved around the same or similar questions.  An investor has some surplus savings they’ve earmarked to spend in the near future, and they are wondering where to park these funds.  I’ve found myself repeatedly cautioning people away from placing short-term monies into long-term investments.  This a good reminder for all of us rega...

Each and every one of us needs A.A. (Awareness and Accountability). The path to successful investing relies on (1) educating ourselves to become aware of what good investor behavior looks like and (2) resourcing the right advice-giver to help hold us accountable to making good decisions. Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

As we wrap up 2022, what better time than now to reflect on our blessings and begin to meditate on our own financial objectives for the coming year. For some, prioritization will be key and candid conversations with their financial advisor on these matters will be important. For others, a reminder is needed that with wealth comes responsibility and an added level of complexity as we layer on the p...

Today, I would like to answer the question that has no right answer. Sounds like a fun little exercise, right? I want you to take a moment and ponder this query: What is the single most important word in personal finance?  One’s answer to this question could evolve and morph over time.  Depending on your season of life or recent experiences, perhaps your answer changes.  For others, maybe the answ...

You know that friend, the one who always has a counterargument, an obscure factoid, or tidbit they throw out; the one who’s always looking for a drop-the-mic type moment – the devil’s advocate in all situations. Their comments always sound something like, “I read this article once…” or “This survey actually showed that…” or “Despite the common assumption…” The friend that has a hand full of these...

STOP!! DON’T DO IT!! You just had a conversation with your second cousin's husband over Thanksgiving dinner, and he gave you this “great” investment idea or financial advice.  His pitch was persuasive, and that finance class he took in college, along with his morning habit of reading the Wall Street Journal, makes him seem credible.  In all reality, that extra dose of tryptophan from your second h...

End-of-year planning has officially begun. My days are filled with questions about tax loss harvesting, end-of-year retirement contributions, and a plethora of inquiries about Roth conversions. It’s always been my preference here on Thoughts On Money to tackle the “softer side” of financial planning, and I typically veer away from the more technical or nuanced topics. Primarily because these topic...

In the last few weeks, I have had more conversations about a recession – and what that would mean to markets – than I’ve ever had in my entire career. As I’ve mentioned before, I heard one pundit cleverly ascribe this as the most anticipated recession of all time. Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

This week on Thoughts On Money I would like to dive into a question a client recently asked me.  The question was focused around how an investor stays engaged in the daily happenings of markets without negatively impacting their posture as a long term investor.  Often the news of the day can be troubling, and sometimes the barrage of content can cause us to take our eyes off the prize – our long t...

In 2004, Matthew Emmons would make one of the most memorable Olympic blunders in history.  I encourage you to join us for our discussion today on the importance of aiming at the right financial targets.  Come learn about Emmons's big miss and how you can avoid making the same mistake with your personal finances.  Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.co...

September. Was. Ugly. The S&P 500 was down more than 9% in the month of September alone. Markets were dropping, and investors were stressing. When it comes to investing, we have a lot of metrics and measurements to analyze investments. We typically like to express these measurements in ratios – allowing us to compare one particular figure with another. Think return-on-investment or price-to-ea...

Kids are the best. They say the funniest things, and they don’t mind telling you exactly how they feel. They’ll give you the unvarnished truth, whether you want it or not. My four-year-old can get grumpy sometimes, as many four years olds can. It’s hard not to laugh when he gets upset, as he crosses his arms, puffs up his bottom lip, and gives a stomp and a humph. This sequence is usually followed...

Here at The Bahnsen Group, our Founder and namesake for the firm, David Bahnsen, wrote a book outlining our primary investment strategy, The Case for Dividend Growth: Investing in a Post-Crisis World. This Dividend Growth portfolio, which we refer to as Core Dividend, is made up of approximately 30 individual businesses (stocks). This number of securities was not chosen at random, it is much like...

What’s For Dinner? Ok, let me set the scene… Your spouse, your significant other, your friend, your sibling, or someone close to you says, “Let’s go out to dinner tonight! Your choice, just say where…” For the next few minutes, you list off ideas one by one, and your counterpart shuts down each of them. Sometimes with a “Nah,” sometimes just a look of disgust, and sometimes with a “Didn’t we just...

Today I want to talk about portfolio design. Specifically, I want to start with the basics; the foundational concepts of how one begins to build a portfolio. But first, let’s talk a little bit about road trips… Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

It was May 10th, 1996, when Twister hit the box office, a popular action-packed thriller that was the second highest-grossing film of the year.  This fictional flick sparked the popularity of “storm chasing” across the country. Fun Fact: Twister was the first film to be released on DVD in the US. Some twenty-six years later and the enamor for storm chasing has not faded.  A number of travel compan...

I’m writing today specifically to give you permission to transact. If you’ve met with your family and your financial advisor and you’ve collectively decided that it makes sense for your financial plan to acquire a new property - do it. If you’ve met with your family and your financial advisor and you’ve collectively decided that it makes sense for your financial plan to sell a property you current...

A Practitioner's Perspective I know I’m not the smartest guy you’ll ever meet. And I know I don’t have a reputation or record of predicting macroeconomic events. So why listen to what I have to say?  Well, I have a distinctive vantage point as an advisor - as a practitioner versus an academic - who talks to investors all day long, every day.   I know what makes investors tick.  I advise folks to m...

So, you’ve decided that you are going to purchase a new vehicle and you’ve narrowed your focus down to one particular make and model. You’ve even determined the color along with all the bells and whistles you’d like on this new gem. Then, you can’t help but notice your desired automobile everywhere – on the freeway, driveways in your neighborhood, the parking garage at work, etc. It “feels” like n...

On a few different occasions, over the last handful of weeks, I’ve had the pleasure of filling in for David Bahnsen on The DC Today. The format and style of these [The DC Today] writings are a lot different than what I am accustomed to. The focus is much more on current events, tidbits of all things markets, and politics happening around the world today. When asked to fill in, I was reluctant at f...