EP 029: Finding a Satisfying Second Career with Dr. Russ Dore

February 9, 2018

Dr. Russ Dore of PCS Counseling and Dore Productions sits down with Nick to chat about Finding a Satisfying Second Career. Dr Russ has consulted with hundreds of individuals in transition and shares some stories and takeaways from his experience. Some recurring themes from previous episodes are revisited, such as Blueprinting, Start with Why, Your Retirement Quest author Keith Lawrence, and Certified Retirement Coach Donna Martin. We also learn about Dr Russ' personal journey into his second career with theatre and his production company, with some interesting facts about Henry Ford and William Durant. 

Peak Wealth Management is a full-service Registered Investment Advisor located in Plymouth, MI. We believe by providing education and guidance, we inspire our clients to make great decisions putting them on a path toward fulfillment and their own definition of true wealth.

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EP 028: The 10% Market Correction is Here

February 6, 2018

What just happened?

Since January 26, the stock market is down by over 10%.

Is it over?

Probably not. It’s very difficult to time the bottom and there is usually a longer “bottoming process.”

What do you suggest we do?

Don’t overreact - keep recent perspective as well as historical perspective in mind for the markets. Also, perspective on how this might change your overall retirement plan. Let’s put it this way - imagine we met the week before Thanksgiving and reviewed your retirement analysis on planwithpeak.com. All of you know by now that I assume a future investment return of 5% per year when analyzing your future retirement, which is conservative by historical measures but I like to use a low rate for a conservative analysis. So we met less than 3 months ago, and your retirement plan looked good. You walked out the door feeling good knowing that you are track to reach your retirement goals.  And now here we are today with exactly the same market value. In fact, last night I met with my dad, who is planning on retiring at the end of the this month. I reviewed his analysis with these newly updated market values, and we are still good to go on pulling the trigger on retirement this month. I would also like to add that my mom retired in September 2007, just before the financial crisis meltdown and she is doing just fine a decade later.  Thinking about the losses over the last week is not fun, but at the same time, for most of you it is unlikely that it will affect your long term goals. If you would like to know specifically, send me an email or give me a call and I can update your analysis for you. Remember, you have access to view your plan online at home as well on planwithpeak.com.

Now that I’ve address your own retirement plan, how about perspective on the recent market action? We’ve erased December and January and half of November stock gains. What’s really changed since then? We are actually seeing more growth and better corporate earnings since the last quarter,  which has led to higher interest rates and higher expected inflation which we saw in last weeks jobs report. As the economy has improved, people are making more money and getting raises. This can lead to inflation and higher interest rates. A spike in interest rates quickly is scary for the stock market. So that might be a big part of it. Antoher part could be that over the past couple months the market got ahead of itself.

Let’s take a look at some historical perspectives. The market generally experiences 5% drawdowns 3x per year on average and a 10% correction 1x per year on average and a bear market which is a 20% drop every 3.5 years on average. We haven’t seen a 5% or a 10% correction since January 2016, which was a great buying opportunity. We haven’t seen a 20% bear market drop since 2011. So based on historical averages, we were overdue for one of these drops. The S&P 500 went 404 days without a 5% correction, which is the longest ever.  This one happened pretty quick, which makes it feel even worse.

Furthermore, not only have we not experienced these drawdowns, but we have had record low volatility over the last year - only a couple days where we moved up or down 1% and now it seems like all the volatility has hit us all at once in the past week. Perhaps we are dealing with that pent up volatility.

To drop 10% in one week is rare. The last time that happened was in Sept 2008 when we lost 20% in one week where Merrill lynch, Bear Sterns, Lehman brothers, AIG, Washington mutual, and many others either went out of business, were forced to sell themselves, or were forced to take federal bailouts. This is nothing like that. Back then companies were insolvent and today we are experiencing record earnings for companies.

I spend a lot of time talking about risk with my clients and what they are comfortable with on the downside. As a result I don’t believe any of you are invested too aggressively. If you would like to see if your risk tolerance has changed, please take the Riskalyze quiz. The results will be automatically sent to me.

Is the economy still ok? Are fundamentals still ok?

Remember, your economics professor taught you that corporate earnings are the most important driver of the price of a stock. So far this quarter, about half of the S&P 500 companies have reported earnings with revenue growth of 7.7% year over year and earnings per share growth of 13.6% year over year. Looks pretty healthy if you ask me.

Fourth quarter GDP growth was recently released at 2.6% growth, and the first quarter 2018 is forecasted to show over 5% growth by the Atlanta Fed.

What action to take?

If you have time and you’re aggressive, a 10% correction could be considered a good buying opportunity. Email nick@peakwm.com or call to discuss.

Make sure you’re not taking too much risk in the first place. Click here to take the Riskalyze quiz. I will reach out to you after you take it.

Let’s update your planwithpeak.com retirement analysis and make sure you’re still on track. It helps to have long term perspective to avoid making an emotional decision in times like these.

Still feeling stressed? Call me at 734-681-7575. We are your peace of mind.

Nicholas Hopwood, CFP is a CERTIFIED FINANCIAL PLANNER financial advisor in Plymouth, MI. Financial Planning and Wealth Management. Peakwm.com

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EP 027 Peak Wealth 2017 Year in Review

January 16, 2018

2017 was by far the best year ever for Peak. Join Nick as he reflects on some of the things going on driving growth and what we are working on for 2018. This is your chance to kick the tires and look under the hood on how a successful financial planning practice operates!

Book an appointment with Nick here

Peak Wealth Management is a full-service Registered Investment Advisor located in Plymouth, MI. We believe by providing education and guidance, we inspire our clients to make great decisions putting them on a path toward fulfillment and their own definition of true wealth.

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EP 026 Nick’s Personal 2018 Financial Plan

January 13, 2018

Ever wonder how a CFP manages their own money? Listen as Nick talks about his personal financial plan for 2018. Everything from cash flow, investments, debt, and real estate. January is the perfect time of year to evaluate and update your own financial plan. Let's get started!

Book an appointment with Nick here

Peak Wealth Management is a full-service Registered Investment Advisor located in Plymouth, MI. We believe by providing education and guidance, we inspire our clients to make great decisions putting them on a path toward fulfillment and their own definition of true wealth.

 
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EP 025 Your Second Home: The Anti-Dividend

January 12, 2018

Thinking of a cottage or a condo in Florida? Listen to Nick's personal experience as well as what he has learned from client experiences and why owning a second home is The Anti-Dividend. One other tool which is recommended before buying a second home is to make sure you've clearly spelled out your vision of the future. Check out EP 007 - Blueprinting which is a great place to start. 

Peak Wealth Management is a full-service Registered Investment Advisor located in Plymouth, MI. We believe by providing education and guidance, we inspire our clients to make great decisions putting them on a path toward fulfillment and their own definition of true wealth.

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EP 24 Building Wealth Through Real Estate 2.0

December 26, 2017

Join Nick as he talks Real Estate Investing and updates you on his personal real estate portfolio and why he loves real estate. If you haven't heard EP 006 you should start there. 

Investing in rental real estate is part of the Peak Income 360 Formula. Learn more by visiting our Income 360 page or by listening to EP 009.

Peak Wealth Management is a full-service Registered Investment Advisor located in Plymouth, MI. We believe by providing education and guidance, we inspire our clients to make great decisions putting them on a path toward fulfillment and their own definition of true wealth.

 

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EP 023 Health Yields Wealth 2.0

December 20, 2017

Join Nick and learn about Health Yields Wealth 2.0 where we don't just talk about detox, we do the detox! Learn more about our services at peakwm.com

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EP 022.5 Before Your Meeting - Listen to be Prepared

December 20, 2017

In this two-minute episode Nick will help you prepare for your initial meeting at Peak Wealth. Understand what to expect and how to have the most efficient meeting possible! Learn more at Peakwm.com

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EP 022 What’s the Deal with Mutual Fund Loads? What to Look for in a CFP

November 29, 2017

Listen to the latest edition of Finding True Wealth as Nick reminisces about the industry twenty years ago and reflects on what he would be looking for when selecting a CFP/financial planner. Learn more at peakwm.com.

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EP 021 Top Ten Tips for a Meaningful Retirement

October 9, 2017

Retirement is a major life transition, but its stages are predictable. Sadly, most people don’t think it through all the way. Many retire simply because they hate their job or as soon as they have enough money. But, they work 40-60 hours per week, which is a lot of time to fill. The average retiree watches 43 hours of TV per week. Don’t let yourself fall into that rut. These ten tips can help you better prepare for a meaningful retirement.

 

learn more at peakwm.com

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