Fed Rate Hikes & Refined Reserves The Fed hiked rates for the first time in 3 years. To fight inflation... Hikes generally have negative short-term implications for both equities and bonds: Equities: Higher discount rates lower the current value of future earnings. Bonds: Values drop, because current (older) bonds are now less valuable than newly issued bonds, which pay higher interest rates. And cash? Still trash. My view hasn't changed, and the core ideas from this video still hold: Cash is...
24 days ago • 3 min read
Do You Know About These Hidden Costs? When I left Phillips 66, I had multiple offers from the big banks and brokerage firms. They paid well, had big marketing budgets and nice offices. But I couldn't get past their excessive and often hidden fees. Don't get me wrong, there are great people who work at these firms, and even good advisors. But it's hard to be a great advisor in a system built for the institution rather than the client. While my clients don't have to deal with this, I'm often...
about 1 month ago • 3 min read
Refined Wealth Newsletter by Joe Ward Read Time: 3 Minutes The "Smart" Money Read: The smart money was on the sideline while the market went up 4%. Of course, they are still collecting their "2 & 20" fees- The 2% management fee gets charged whether the fund gains or loses money- Plus a 20% performance fee on the gains (when they exist) What are hedge funds again? Expensive, loosely regulated investment funds with a single objective: make money in the public markets by betting for or against...
2 months ago • 2 min read
Refined Wealth Newsletter by Joe Ward My First Timeshare Presentation Last week my wife and I celebrated our fourth wedding anniversary in Colorado. After checking the weather back home, she suggested we extend the trip through the weekend. I agreed. I found a great deal at the base of a resort that was on our way back. The catch: "you agree to take a 90-minute tour of the resort." I assumed we'd learn something about the mountain, the town, that sort of thing. But I wasn't naive enough to...
3 months ago • 4 min read
Refined Wealth Newsletter by Joe Ward New video covering the most misunderstood financial planning metric among clients and advisors. I cover its shortcomings and why we tend not to use it at all. Instead, when retirement is five years out, we rebuild our client's plan a second time in a different tool. For the biggest decision of your financial life, I'd rather we spend the time to cross-check the numbers, than you have to go back to work. We're always here to listen and offer guidance when...
3 months ago • 1 min read
Refined Wealth Newsletter by Joe Ward Read Time: 2 Minutes A Question No memo this week. Just a question. I have plenty of topics queued up, but I'd rather write about what's top of mind for you or those in your circle. That said, what questions do you have, or what are you hearing from friends, family, or colleagues? Please reply with as much or as little as you'd like. This will help me prioritize topic areas of interest. Until next time, stay the course. Also, to my new subscribers who...
5 months ago • 1 min read
Refined Wealth Newsletter by Joe Ward Read Time: 3 Minutes The Price of Admission Hello Friends! Last weekend I volunteered at the Houston Open. Inevitably a couple of people asked me what I do, and after my response most said: "Oh, you must be getting a lot of calls right now." Nope. You all know volatility is the price of admission for long-term returns. It's a core tenet given the way we invest, and something I dive deeper into during onboarding, because you cannot start doing lifeboat...
7 months ago • 1 min read
Refined Wealth Newsletter by Joe Ward Read Time: 3 Minutes Target Date Funds & Pensions Don't Mix One of the most common mistakes I've seen after reviewing over 300 portfolios is the overuse of Target Date Funds. It's not the worst mistake by any means, but I've met a lot of DIY investors using TDFs without understanding the full ramifications. Here's a quick video detailing why I think they're wrong for most people, particularly if you've accumulated assets outside of your 401(k)....
7 months ago • 1 min read
Refined Wealth Newsletter by Joe Ward Read Time: 3 Minutes March Madness Every year, my family fills out March Madness brackets for bragging rights. But my 18-year-old brother's goal is a perfect 63-0 bracket. It's a lofty goal, but most of us know betterHis odds? Roughly 1 in 9.2 quintillion if each game was a coin flip. But he knows ball, so maybe it's closer to 1 in 120 billion. Nobody has ever done it. Warren Buffett once offered a billion dollars to anyone who could. The issue with this...
7 months ago • 1 min read