Thoughts On Money [TOM]

Today is a bit different than normal. Normally, I write an article and then gather a few of my colleagues to discuss the article over a podcast we produce weekly. Today, I flipped the script – Deiya Pernas and I recorded an “unscripted” podcast that I would like to share with you all. No article coincides with our discussion, but rather it was an open dialogue between Deiya and me on a few finance...

Here in Thoughts On Money [TOM], we prefer to discuss relevant topics that are financial planning-centric, timely, and surrounded with misconceptions.  The housing market has become a hot topic recently, with current home prices checking all the boxes for a great topic to discuss here on TOM.    In the last 12 months, the median sales price of houses across the country has jumped 15% - 20%, depend...

Trevor is joined by TBG colleagues Deiya Pernas, Sean Latimer, and Kenny Molina Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

Trevor is joined today with Sean Latimer, Nate Straw, and Drew Dill Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

That first article – Be Aware or Beware – was inspired by a question I was asked while sitting on an interview panel during a Sunday morning church service. I was asked, “What is the number one mistake you see people make with their finances?” Tough question, right? My whole career revolves around talking to people about their money, and I’ve seen some wild mistakes and missteps along the way, but...

A portfolio should be designed and constructed based on your financial plan. This design should be strategic in nature and be built to weather or endure the typical ups and downs of the typical business cycles. One should not be tinkering on a whim because of a spark in appetite, all based on recent performance. There is a good reason why you should never grocery shop when you are hungry. Well, at...

What do Elon Musk, Jeff Bezos, and Richard Branson have in common? They are founders and entrepreneurs; they are billionaires, and they are all competing in this modern-day space race. These three have achieved all their financial goals and much more. Long ago, they surpassed the status of financial freedom. And, at some point, they had to decide “what’s next?” Their “next” was not small – they we...

Often financial planning will lead you to a fork in the road.  You will start by laying out multiple options for different financial objectives.  Through a process of elimination, you will narrow your options down to this or that.    Sometimes one option will create a “better” financial outcome, but your preferences will lead you to go the other route.  This can be a conflicting exercise and cause...

Our intuition leads us to believe that markets are subject to the rules of gravity – what goes up must come down. But, in reality, markets are the summation of American businesses, businesses that measure their results regularly and are striving to outdo last month’s, last quarter’s, last year’s results. Great companies thrive, struggling companies lay by the wayside, and the aggregate tenacity an...

In April of 1985, the world was introduced to New Coke. A corporate faux pas that would go down in history as one of the greatest marketing flops of all time; a what-not-to-do case study taught in business schools across the country. As the tale is told, the Coca-Cola leadership team was nervous about losing market share to competitors. This anxiety was amplified by the PepsiCo marketing campaign...

Trevor Cummings, the author and podcast host of Thoughts on Money, tackles the key topics investors care about the most. Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

Risk Tolerance is one of the most obscure topics in finance. It’s extremely personal and difficult to measure. Our industry invests a lot of time, money, and resources to determine your personal risk tolerance. Why? Because the optimal investment plan (portfolio) is the one that you can actually stick with, not the plan that pencils best in a textbook equation. If it does not suit your sensibiliti...

Trevor is joined by Sean Latimer, Drew Dill, and Nathan Straw Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

2020 offered two key moments that are worthy of reflection. Though 2020 feels like ages ago, right? Many of us are probably not inclined to reflect on a year that we’d prefer to forget. Too often, we use the review mirror as a tool for regret rather than reflection. Here’s the difference – regret leads us to shame and embarrassment about a decision we wish we didn’t make. Reflection allows us to t...

’ve been a sports fan most of my life. I‘ll watch any sort of sport, from the Tour de France to the Olympic Games to Baseball. The athleticism, the competition, the historical moments; what’s not to love? If I had to pick my top two favorite sports, it would probably be basketball and football. I could describe to you many attributes that differentiate these two sports. One has pads and full conta...

What is the best hedge against inflation? (a) Bonds (b) Cash (c) Stocks (d) Gold The answer is “c.” Why? Let’s keep it simple: if inflation is a rise in the price of goods and services and businesses sell goods and services, it would be safe to assume that sales would grow concerning inflation. This is an imperfect explanation because there are more variables and complexities, but the basic truth...

Today, I want to talk about a word in finance that is often misunderstood and/or ignored – liquidity.    There is a language of finance, and liquidity is one of those words that can be difficult to describe; it’s much like one of those words or phrases in Spanish or French that just doesn’t translate well into English.    We hear things on the news about how the Federal Reserve is “injecting liqui...

Growing up, I didn’t know the difference between salad and lettuce. I’d always asked my dad to put salad on my sandwich. Luckily, dad knew what I meant. All this to say, words have meaning, and they can often get lost in translation. There is a lot of vocabulary when it comes to finance, and there is a language of finance. You need to be careful not to misuse these financial terms in a fashion tha...

A surplus in cash flow can be problematic.    Alternatively, when one has more income than expenses, it can be difficult to decide what exactly to do with the leftovers.  Here at The Bahnsen Group, one of the core strategies we implement is a dividend growth strategy.  Many of our clients love this philosophy and its mechanics because it generates a predictable and sustainable income.  BUT, beyond...

I’m married to a planner. I have become well versed in scoping the landscape and communicating to my wife all the possible things that could happen. Many of these things don’t end up happening, but the love of my life appreciates me being her eyes and ears. The reason that books like “What to Expect When You’re Expecting” are bestsellers is that all of us have a little planner inside of us. We kno...

My wife and I have two sons at home, 2.5 years old and 9 months old.  Even at these young ages, we can see how different these two boys are.  They look different and behave differently; they eat differently and sleep differently; they laugh differently and cry differently.  Two brothers, same family, each unique in their own way.    I myself have two siblings, a brother, and a sister.  Each of us...

Growing up, I adopted a negative view of borrowing.  I saw many family members get in over their heads in debt, which eventually led to horrible things like divorce and bankruptcy.  I looked up to many people in my community and at my church who talked about debt as something dangerous or evil.  I always thought it was best to avoid debt like the plague with these exposures and perceptions. When I...

Do you suffer from financial cravings? TOM helps put you on the right financial diet to keep your portfolio healthy! Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com

Over the last few months, many of my Thoughts On Money have revolved around the importance of marrying one’s financial plan and investment management. That is to say, that the financial plan should be the driving force behind how an investment portfolio is designed. Now, I am not talking about a “financial plan,” as in, a 100+ page bound printout that makes its way from your advisor’s office to be...

I come across a lot of people that implement strategies from investors they admire. Much too often, these strategies are constructed without understanding the context or reasoning behind the strategy. This misunderstanding often leads to disappointment, as the outcomes don’t always meet the investor’s expectations. You have goals, and these are often unique goals. These goals revolve around what’s...