Welcome to the first Eagle Update!
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Let’s jump right in with recent market swings.
Historically, the market goes up 2 out of 3 years and while most think they can handle the down year or years, it’s a different story when the down years come.
Fees vs Fines From Morgan Housel at Collaborative Funds: “Question: Is that volatility a fee or a fine?"
The last three months of 2018 was the worst quarter for stocks in seven years. The first three months of 2019 was the best quarter for stocks in 10 years.
Fees are something you pay for admission to get something worthwhile in return. Fines are a punishment for doing something wrong. Morgan has reframed this in a simplistic way that puts volatility in perspective. Given the massive growth of the stock market over time, I’d call it a fee rather than a fine!
Your personal goals guide us in determining your risk (volatility) exposure. If your portfolio is causing you to lose sleep at night, we should talk so we can adjust your exposure. (Especially now that markets are back within a few percent of all-time highs!)
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What is a Fee-Only Financial Advisor? This link is to my first blog.
I’ve learned that most people don’t know how or how much their financial advisor is compensated let alone the difference in meaning between fee-only vs. fee-based vs commission.
As I mention, compensation does not create integrity or value, it is, however, wise to eliminate conflicts to every extent possible.
I do believe strongly in the fiduciary oath = putting client interests over our own. It is required for attorneys, doctors, and trustees but not for financial advisors. It’s voluntary for us. Seem crazy right, we don’t have to take an oath to put our clients’ interests above our own! At any rate, my firm is a fiduciary firm!
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Online shopping overtakes a major part of retail for the first time ever This last link is of particular interest to yours truly.
The headline pretty much covers the story, and this is one of the many reasons I sold my hardware store last year and I’m glad I did! That being said, a well-run hardware store in a good location, should be able to withstand this change for years to come.
Thanks for the time this week! I hope you find these updates informative, educational and thought-provoking. If you have any questions or comments on the above, feel free to hit reply and shoot me an email. I look forward to the conversations!
Cordially,
Tim
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PS – I know this was over 300 words, that was meant as original content from me, so let’s say under 500 words all-in! Also, as you read this and the ones to come, you may think of someone who could use this type of advising in their lives. If you think they’d find this email helpful, feel free to forward it to them!
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