This is our 2024 first-quarter commentary.  Nathaniel discussed 3 main topics: US stock market performance, and why the S&P 500 doesn’t truly reflect the overall stock market; inflation, and how it impacts your investments; and lastly, the 2024 presidential election and how it may affect your financial planning.

If you are planning to have a child, or you just had one, there are some financial preparations that you may find extremely beneficial in the long run: 1. Cash Flow: Create a realistic budget and increase your emergency fund; 2. Estate Planning: Pick your guardians, create a trust, or at least complete the free estate planning templates your state provides; 3. Life Insurance: Now that you have (or are about to have) another person who depends on you, please review your insurance needs.  It's...

In this episode, Nathaniel and Tim discussed what the S&P 500 index is, its performance, and does it truly represent the overall stock market.  From January 1 to June 20, 2023, the S&P 500 increased 14.3%.  That's well above the 10-year and 20-year averages through that same time period of 3.6% and 3%, respectively.  "The markets must be doing really well this year then!", you may think.  But why are your 401(k)/retirement accounts not doing as well?  Did you know that the top 9...

In this episode, Tim and Nathaniel discussed estate planning for digital assets.  This is a relatively new concept for older generations.  Most of us are familiar with wills and trusts for cash, real estate, and other investments.  But what about digital assets like Bitcoin, online bank accounts, etc.?  If you are an influencer or work in the media industry, what about your social media accounts, movie/music rights?  Nathaniel and Tim also discussed password management.  We understand that...

In this episode, Tim and Nathaniel discussed private investments: what're their qualifications, why they have income/assets restrictions, and how should one view them.  A couple of research filters to go through: define your goals, understand the vehicles, consider the risk, know the management/leadership, and pay the right price.  Nathaniel made a great point: if you have a small business or part-time side business, the best private investment could actually be your own company.  You know...

Threads is Meta’s latest social media app.  It’s a Twitter-like product with short missives you can share with followers.  It lets you post text, photos, links, and videos.  It reached 100 million subscribers in a record time: within 2 days.  In comparison: it took ChatGPT 2 months, TikTok 9 months, Instagram 30 months, cell phones 15 years, and telephones 75 years.  Tim and Nathaniel discussed from an investor’s perspective, what Twitter’s and Thread’s (really Twitter and Meta’s) pros and...

For this episode, Nathaniel and Tim discussed investments within the music industry.  The earning method has changed in the past decade with streaming services.  Nathaniel used Taylor Swift as a perfect example of how top artists can change the power dynamic with corporate giants.  There are many different types of organizations in the music industry (artists, music production, recording companies, publishing companies, agencies, etc.); which ones will Nathaniel choose to invest with?  He...

In the last episode, we discussed some frequent spending habits we’ve seen, and how we should interpret them.  For this episode, we are going to discuss budgeting.  Before we start, understand that this is going to be an emotional and hard exercise.  Ask yourself, are you really ready to make a lifestyle change if needed?  Be realistic about your expectations and numbers: if not, you are going to fail again and again, and create a negative emotion feedback.  Dan and Tim discussed delayed...

This is part one of our spending habits discussion.  Dan and Tim listed what people call “spending red flags”: frequent small expenses like coffee and restaurants; unused subscriptions and memberships; impulse purchases; and trying to keep up with your friends.  We are not disagreeing with these points, but it’s also important to understand this: our spending is not about the objects/services that we pay for, but more about the emotions behind the purchase.  You have to ask yourself: why did...

The crypto ETFs are not doing too well for the past year.  The fall of some leading players like Tierra/Luna and FTX hurt investors greatly, and the potential criminal fraud investigation is even more alarming.  And now, with the rise of ChatGPT, you can clearly see that crypto is no longer ETFs’ favorite new baby; the money is moving to the AI world.  Investors are piling into shares of graphics chip maker Nvidia, Microsoft, Google, and other stocks that they think stand to benefit from AI...

In this episode, Nathaniel discussed 4 hot industries that he won’t invest in, and what his exceptions are: 1.     No commodities like oil, gold, and silver, etc., but yes to commodity royalties. 2.     No Bitcoin, but yes to blockchain technology or other related industries. 3.     No real estate as a landlord, but yes to professional real estate investment groups. 4.     No cash-heavy and cyclical industries like shipping, but yes to utilities and railroads in the US. Overall, you can find...

The U.S. government has never defaulted on its debt, and it’s unlikely it will default this time either.  But if it were to happen theoretically, it would have severe consequences for the country's economy and global financial markets, from rising interest rates to lower stock market prices, and from higher inflation to the end of the U.S. Dollar dominance.  What can one do to prepare for such a disaster?  Academics have differing opinions, but in real-life practice, our one golden rule is:...

Charlie Munger and Warren Buffett are Nathaniel's all-time favorite investors.  As always, they offered a lot of wisdom (and a couple of zings) at the 2023 Berkshire Hathaway annual meeting.  Tim and Nathaniel discussed the duo's take on: 1. Why are they against "diversification" when everyone else thinks it's the golden rule, and the importance of building up your circle of competence; 2. The pair called Elon Musk a "brilliant, brilliant man", but may "overestimate himself" sometimes; and 3....

For this episode, we asked ChatGPT and Google Bard: "Write a podcast outline on how will ChatGPT/Google Bard change the financial planning industry?"  Here is the second part of each chatbot's outline. Discuss potential concerns and limitations of using ChatGPT in financial planning: o Make mistakes that could lead to financial losses. o Be biased in its advice, which could lead to people making poor financial decisions.  o Not be able to understand all of the nuances of a person's financial...

For this episode, we asked ChatGPT and Google Bard: "Write a podcast outline on how will ChatGPT/Google Bard change the financial planning industry?"  Here is the first part of each chatbot's outline. From Chat GPT: I. Introduction  A. Introduce the topic of how ChatGPT is poised to revolutionize the financial planning industry  B. Briefly explain what ChatGPT is and its capabilities II. Background on the financial planning industry A. Discuss the traditional model of financial planning  B....

In this episode, Ying and Nathaniel discussed the fight between Disney World and the state of Florida.  Back in 2022, the state of Florida passed the Parental Rights in Education bill, aka “Don't Say Gay” law.  Because of Disney World’s pushback, the Governor of Florida sought to take away Disney’s special tax district until he realized that the abolishment of the district would require taxpayers in Orange and Osceola Counties to pick up the tab for services paid by Disney World like fire...

Many studies have been done from quality and quantity perspectives on whether money can buy happiness.  It can, to a certain level.  Caroline recommended reading the book: "Happy Money: The New Science of Smarter Spending" by Elizabeth Dunn and Michael Norton.  The authors discussed 5 ways to actually increase happiness with money: 1. buying experiences; 2. buying time; 3. making it a treat; 4. paying now and consuming later; and 5. investing in others.  How does all that tie in with...

In today's world, with social media's help (or curse?), we are beyond "keeping up with the Joneses."  Billions of people on the internet are our "neighbor Jones" that we are trying to keep up and compete with, from the five bedrooms house in the Valley to the new Porsche, from traveling to Naples on a whim with some friends to the new Birkin special order.  Social pressure spending can get out of control fast.  Dan gave some chilling data: did you know 40% of millennials have gone into debt...

Nathaniel and Tim discussed the collapse of Silicon Valley Bank: what happened and what went wrong.  First, unlike most banks, most of SVB's clients are not retail individuals/small businesses, but VC-funded tech/crypto startups.  As you know, they are having a tough year.  They are burning through cash and thus taking significant deposits out of SVB.  SVB had to sell its long-term bonds/Treasuries at a loss to cover its withdrawals.  The snowball started to roll from there.  Because most of...

Caroline and Tim discussed some highlights of SECURE ACT 2.0 and how it impacts us: 1. The age changes of RMDs (Required Minimum Distributions). 2. Allowing direct transfers from 529 plans to Roth IRAs under certain circumstances. 3. Changes with 401(k)s. 4. 401(k) catch-up contributions. 5. New Roth SIMPLE/SEP IRAs for small businesses and self-employment. 6. Employer's match for emergency savings. All these new rules have nuances/circumstances built around them; please consult an Advisor...

1.Free estate planning documents. 2.Guardianship for minor children (or your pets!) 3.Is Trust right for me? 4.Burial instructions. 5.End-of-life instructions (Living Will). 6.POAs. 7.Asset distribution. 8.Knick-knacks. 9.Communicating with your loved ones about where you store your documents. 10.Routine review.

Some people say that with today's technology, there's no need to have a financial advisor anymore.  Robo/AI advisor has its uses: it's relatively cheaper, it can work 24/7 without any vacation, and the algorithms make objective investment decisions without bias.  But does this mean we no longer need a human touch in financial decisions?  Absolutely not!  We are the information generation, and there's certainly no lack of data or information.  But then what?  How do I interpret the data?  How...

For part II of the episode, Dan and Kennidy discussed how to manage your financial routine as a couple/partner.  Do you join finances?  Do you consolidate debts?  How do you define the roles of finances?  Is one of you taking the lead?  Do you value your partners' non-monetary contributions?  How to effectively discuss financial goals such as college planning, retirement, inheritance, charitable giving, estate planning, etc.?  How do you navigate conflict and what happens when your income...

This is part I of the episode where we discuss how can a couple/partners talk about finances.  A survey showed that 41% of divorced Gen Xers and 29% of Boomers say they ended their marriage due to disagreements about money. Talking about money is important for any couple, whether you are dating, are domestic partners, or are married.  “Even at the dating phase?” you ask.  Yes!  Money means different things to different people.  It may be about security, reward, ability, a means to an end, or...