79. Inflation vs. Stock Market Returns

Nov 19, 2021

Inflation vs. Stock Market Returns

While these unprecedented times have caused inflation, you may also be worried about your investments or potential investments. As we look through historical data, there isn’t a clear sign that inflation will impact your investments.

In today’s episode, we discuss the current state of inflation in the US, the causes of inflation, and the importance of a written plan. Listen in as we highlight some important historical data to clear up any thoughts you may have had about investing, even with a high inflation rate.

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Show Notes:

31 Year High for Inflation (3:15)

2020’s Impact on Inflation (4:07)

Causes of Inflation (4:22)
1. Demand Pull
2. Cost Push 

Do you need an Inflation Plan? (6:20)

The Market is Motivated by Fear (7:58)

A Look at the Numbers of Inflation: $1 in 1980 is equivalent to purchasing power of $3.36 in 2021. Meaning a 3% inflation rate per year. (9:14)

Monetary Supply vs. Volatility of Money (10:01)

Current State of Spending by the US (12:57)

Thoughts on The $1.2 Trillion Deal by Biden (13:58)

Market in 2021 Compared Past Dates with Inflation (14:38)

Inflation Doesn’t Directly Impact Consumers Investing Into Companies (17:57)

Create an Investment Account and an Income Account (19:04)

Inflation vs. Stock Market Returns Over the Years (19:20)

How to Hedge Against Inflation (21:29)

Traunching Your Money (23:17)

Client Example for Managing Income Gap through Inflation (25:27)

The Importance of a Written Plan (28:22)

Annual Returns in the US Stock Market Over the Years (28:53)

Links

redefiningwealth.info
lswealthmanagement.com
Weekend Read: redefiningwealth.info/weekend-reading
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Ron Stokes:

Welcome to Retirement Talk, the Redefining Wealth show, your source for financial information for pre-retirees and retirees to help you better navigate during these financial times. We are here to discuss thoughts and ideas with some of today’s foremost experts in the field of finance and retirement, as well as discuss trending topics and the impact of major legislation that could impact your bottom line. We will break it all down. These discussions can help you make better financial decisions and be informed so you can live the lifestyle you imagine and make better financial choices. Laura Stover is a registered financial consultant and CEO of LS Wealth Management, as well as founder and owner of LS Tax, a consulting firm. She’s been featured in Forbes, CNBC and the Wall Street Journal.

Ron Stokes:

I’m Ron Stokes. Our topic for today comes from a wealth of common sense on the topic of inflation versus stock market returns. If you would like to learn more on today’s topic, head on over to redefiningwealth.info. Schedule a strategy session with Laura Stover and certified financial planner. Michael Wallen. Here are your hosts for today’s show.

Laura Stover:

Hello, hello, hello, Michael. Nice to see you. I hope you’re feeling better today, my boy. You’re not taking your zinc or something. Every time I speak with you here, day in and day out, you’ve always got a cough or something going on. What’s up with it?

Michael Wallen:

I know. I feel like I was 11 years old again and my voice is changing. So I may actually sound completely different on today’s episode. So.

Laura Stover:

As long as you don’t have those high octaves, then I won’t worry that anything really wonky is going on. But boy, we have a lot to discuss. We’ve had some great conversations with clients the past couple of weeks, people listening. I just want to make a shout out upper state New York. I think someone that was originally from, do you call it the Yippers in upper Michigan? They have that cute little accent I know. And we have a shoutout to the Atlanta area and people all over the United listening to the show. It is such an honor to be with you here today. And our topic today, hopefully, will be spot on if you’re looking to retire in the next 10 years or you’re already in retirement. So hopefully, you’re going to benefit from all of the information we want to, as Michael would say, unpack for you. In today’s show, we are discussing an article from Forbes magazine, hot off the press.

Laura Stover:

This topic is so, so important to everybody right now. Inflation. But we’re going to put it in the context of inflation versus stock market returns. So the headlines obviously make it feel like people are throwing in the towel when it comes to the topic of inflation being that famous word, transitory. The Wall Street Journal just reported recently, we’ve reached a 31 year high now. I know looking at gas prices, Fox Business reported here just recently as the recording of the show, gas prices alone are up 51%. So the Fed’s Bullard sees real risk that inflation remains stubbornly high, and they’re looking forward that it’s still going to be high next year.

Laura Stover:

Now, I’m not sure we can all agree on what is transitory in terms of what that actually means at this point. But it’s hard to deny prices seem to be rising across a very wide range of goods and services in the economy. So let’s set the backdrop a little bit here. Some of this inflation is a result of the trillions of dollars spent last year in 2020, when we had all of the shutdowns and then they had to infuse all that quantitative easing into the economy for it to stay afloat.

Laura Stover:

Now, there’s two main causes when we look at the definition of inflation. It revolves around demand poll and cost push. Both are responsible for a general rise in prices in an economy, just to explain to our listeners, but they work differently. Demand pull conditions occur when demands from consumers pull prices up. And cost push occurs when supply costs forces prices higher. Now, let’s just maybe pause right there, Michael. I hear your telepathic thoughts on that coming. Where are we leaning right now? Would you say it’s kind of a 50/50 between cost push or demand pull?

Michael Wallen:

Well, I think it’s based upon the goods that you’re buying. I think that many people have probably seen or became aware of a lot of the supplies coming into the country where we have a supply chain issue. Those items right now could be coming from a cost push. Because to be able to get those goods, which we know what the cost of the good is, but to actually get the goods distributed from the peers to the retail stores where people can purchase them, that’s going to increase the cost for that distribution. And that’s going to run up a greater inflation on those items.

Michael Wallen:

Demand pull has really came in and looked at… Look at housing. For instance, when we look at a demand pull, we have a low amount of supply. But now, based upon the different regional areas across the United States, we are getting an increase in a demand for housing, where there may be shortfall. And so because of that, we’re seeing prices go up. So I think that you have to look independently at those goods or services they’re being offered and see which direction that it’s going.

Laura Stover:

So most families that we are working with are telling us a lot here lately, their advisor hasn’t given them an inflation plan. If you are taking income and you are retired, that means you are having a cost of about 6% more right now and rising. Now, we are coming into winter in most parts. Well, I guess everywhere, but if we’re blessed to live in south Florida or someplace really nice, most of the time you’re around, winter’s not really a factor when it comes to energy costs. I guess in the hots summers in some of those places, that would be the reverse. But we’re coming into winter. The majority of the country is going to be see a rising cost with energy and gas bills. Winter is generally more costly regardless, but the Fed is now tapering from their quantitative easing, meaning that interest rates are very, very flat, 0 to 25 basis points.

Laura Stover:

So if you are allocated, for example, very heavily in bonds or fixed income, some types of annuities, not talking about income writers, but potentially participation rates, maybe heavy in bank assets, CDs, double E bonds upon maturities, you likely could be receiving a far less, what I would refer to as a real or nominal return, versus where we are right now in this continuing to escalate 6% and rising inflation rates. So one of the biggest reasons we see pullbacks in the market, typically, Michael, is when it’s instigated over fear. Fear really makes the market reactive.

Laura Stover:

So if we start to see double digit inflation, so if we’re at 6% and maybe we’re a few months away, the holidays will see more consumer spending. I think I see in a recent survey too, most people have 5% to 7% more cash right now that they’re sitting on, not necessarily from investing, but just more savings than typical right now. So we may see people start to spend more, which obviously helps this kind of dismal economy, because GDP is certainly not going to continue to grow with some of the spending that we’re seeing plus the inflation factor. So the market so far has not been spooked, and we don’t want to base all of the decisions when it comes to short term volatility. It’s just not all rational, is it Michael?

Michael Wallen:

It’s not. And I think part of that context, you unpacked it right there, Laura. There was several golden nuggets I hope the listeners heard that you were shared there. One is if we look back and we look at what was $1 in 1980, that was equivalent to the purchasing power in today’s dollars of about $3.36. That’s an increase of $2.36 over 41 years. The dollar had an average inflation rate of about 3% per year from 1980 to today, and that’s produced a cumulative price increase of 235.67% if you want to know specific. And that the current year rate is, like you said, we’re at 6.22%. So when we’re looking at that, what we’re seeing is that inflation driving up. And you talked about seeing more cash on the sidelines. What we look at is monetary supply versus volatility of money. Volatility of money is how often is those dollars turning over?

Michael Wallen:

And for years in the past, when the money was going up and the volatility increases, that means the more and more spending of those dollars, the quicker that money is turning over, the higher the inflation rate goes up. So what we’re seeing that happen back in 2008, when we had to go through the recovery process because of the collapse of the financial sector in the market, and we saw inflation go up, what we saw was very little velocity of money. And due to a low velocity of money, and that’s what we’re seeing right now, we’re seeing more money staying in banking accounts, or savings accounts, and money’s not being spent. So we’re hoping that we’re going to see inflation be milder than they’re expecting.

Michael Wallen:

And it really reminds me back of when Harry Truman came out of his cabinet meeting after an exhausting day of looking at the federal policy plans that were being presented. Laura, they had a group of three or four economists that came in and spoke. And as he walked out, he looked over, he looked over at his Chief of Staff and said, “Go out there and find me a one armed economist, because I am tired of hearing, on one hand it’s this, or on another hand, it’s this.” And that’s really similar to what we’re hearing about on inflation right now. We have got pundits on both sides saying inflation’s going to be higher. We’re hearing it’s going to be lower. And that uncertainty, just like consumers have a desire to know certainty about what the market’s going to do, the market needs to have some level of certainty of what they expect the federal monetary policy is going to be, because that can cause contractions of what we see in the market.

Michael Wallen:

But hopefully Laura, this is going to turn out to be a one time spike that falls back to the trends that we’ve been more familiar with. We just don’t know at this time, because we’re coming out of some unknown territory. We’re coming out of what could be a pandemic era that if coming out of that and finding a solution to the COVID virus, unprecedented government spending, based upon that tapering that you were mentioning through the end of 2022. So if we go back and we look at where the pandemic spending started, which was at the end of President Trump’s term, and we look at going through the second year of President Biden’s term, we’re talking about adding $9 trillion to the US deficit.

Laura Stover:

That is significant, but I believe that side of the aisle is insistent, if I’m not mistaken, and correct me if I’m wrong, Michael, they believe spending will solve the inflation problem. Is that not the consensus right now?

Michael Wallen:

We’re seeing a tremendous amount of spending. We just saw a $1.2 trillion bill get passed. There was some bipartisanship that got that bill passed through, but that does not end their desire for spending. Right now, the current administration is looking at multiple trillion dollar bills to be pushed through. So it’s like if you’ve got a sandwich and you don’t feel like you could eat it all in one bite, you cut it up and you eat it in smaller bite sized pieces-

Laura Stover:

That’s called an hors d’oeuvre.

Michael Wallen:

… and that’s what we’re seeing right now. Yeah, yeah, yeah. You’re not eating off the hors d’oeuvre plate anymore. And so what we’re seeing is at the end to the day, they’re still pushing for this huge infrastructure, caveated type of bill that’s going to come through. But if it’s not generating jobs, jobs generate tax base into the government, jobs generate revenue into individuals that allows for those individuals to buy goods and services. If we are not creating jobs, then it becomes spending. I know President Biden mentioned that the $1.2 trillion was going to come at a zero impact to individuals.

Michael Wallen:

Well, if it was a $1.2 trillion bill and there’s actually no cost to it, why did we just not pass the bill and take the $1.2 trillion and apply it to the deficit we already have and reduce our deficit-

Laura Stover:

That’s too logical.

Michael Wallen:

… the reality is… Yeah, absolutely. We’re going to have more expense. It’s going to cost. You can’t spend money and not have to pay it back in the future. So all of those bonds that we bought through the expansion before we started tapering down, they all come with an interest rate and we have to pay the interest on those bonds.

Laura Stover:

Yes. And that’s kind of what I was alluding to. So when you look at the bond market thus far through 2021, now that that tapering’s starting to occur, because bonds are directly correlated with interest rates, there’s an inverse relationship. And so if you’re too heavily invested in some of those areas, you’re probably not too happy with the result right now this year. So I did some interesting research on this topic, Michael, a calendar year return looking at the S&P along with the annual inflation rate, going back to 1928. I know I like history and so do you. There’s really no clear pattern here because the stock market’s supposed to be forward looking, and it is, and inflation involves backward looking data. But even if you did some sort of look ahead, there’s isn’t a lot of indication here in terms of inflation being high or higher than it is right now.

Laura Stover:

Now, the 31 year high, the market, I guess what I’m trying to say is the stock market, when you look back through very high periods of inflation from the past, because that’s really the only gauge that we have to sort of measure things, it has held up fairly well in the past. Let’s just go through a few of these numbers. Can you see the chart I put together here for us? If we look at inflation in 1947, well, the S&P 500, and the market was very small back in 1947, a very different world back then than what we’re in now. We’re much more inter globally connected, but 5.2% was the return in the S&P 500. Inflation was a whopping 14%, 14.4%. And if we look 1980, a little more recently, the S&P returned in 1980, 31.7%. I was in the 10th grade, perhaps. I wish I would’ve invested starting back then if I knew what I know now back when I was 15 or 16. 31 point-

Michael Wallen:

You should’ve been taking your own advice back then.

Laura Stover:

I know. And inflation though was 13.6%. Let’s go to 1974. We know the ’70s were a referred to in most people’s memory as a high inflationary period, while the market was down in 1974, -25.9%, 11.1% inflation. That’s high. That’s high. Now, I think when we look through these numbers, if we look at them as a whole, the market returns, really the negative years were not necessarily a result because of high inflationary periods. So from my perspective, there are two separate issues to some degree. What’s your thoughts on the chart as we look back to history here, 90 years of history?

Michael Wallen:

It is, and you’ve got different time periods, like you mentioned. In 1947, we had just came out of World War II. There was increased inflation because of supply issues at that time. We were starting to do some infrastructure build out in our country, and the market was recovering. When we look at these other numbers, as it correlates into inflation, inflation does not impact directly to what consumers feel confident in investing into companies. Many times, companies are benefited because of inflation. Companies and corporations tend to push out their rising in costs for goods. When they’re manufacturing, they’ll take that higher cost and push it back out to the consumers. So it is a net zero loss to the corporations, but the consumer actually receives it, the higher impact of what the inflation is, the company is impacted by higher profit margins, or at least equal to profit margins. So their earnings reports oftentimes looks just as favorable.

Michael Wallen:

So inflation doesn’t necessarily create a contraction in the market. One thing, as you mentioned earlier, because there are a lot of our listeners on here because we get the phone calls and we’re talking with them at LS Wealth about what they’ve heard about on the show. A lot of times it comes up, Laura, that they’re talking about income planning. And this is one of the reasons I always say that an individual should not really be pulling their income out of their investment account. They should have a separate account that is not tied to the market going up or down, but make sure that that income account is focused on inflation. Let those two be driving differently, because as you mentioned in ’74, when the stock market went down 25.9% and inflation was up 11%. If inflation went up 11$ and your money is strictly in an investment account, and you’re pulling, let’s just say 5%, out of your account, and the market went down 25.9%, that’s a 41% decrease in your buying power out of your portfolio at that time-

Laura Stover:

Yeah. Good point.

Michael Wallen:

… when you combine those two together.

Laura Stover:

Well, eight out of the 17 years. So the moral of the story here is the two are relatively uncorrelated between the investment in the market and inflation. And 8 out of the 17 years were double digit returns when we go all the way from 1947 to, it looks like, about 1982. So that’s about a 9.4% was the S&P five hundreds average returns during that period of time. That’s basically the long term average over the past 90 plus years, not too bad. And 17 years were double digit returns. Only one-third of the time returns were more than 20% when inflation was at the highest. So obviously, those returns are lower on a real basis after accounting for higher inflation, but it’s not a total disaster for stocks when inflation runs hot. You’re listening to Retirement Talk, the Redefining Wealth show.

Ron Stokes:

We’re talking today about inflation with Laura Stover and Michael Wallen. For a strategy session with Laura and Michael, go to redefiningwealth.info and click Review. We take a deep dive into your particular situation. We will meet with you by phone, virtually, or in person. Again, go to redefiningwealth.info. Now, back to Retirement Talk, the Redefining Wealth show with Laura Stover and Michael Wallen.

Laura Stover:

How to hedge against inflation, that is the big thesis, and really, the important part of the learning that we want to cover with today’s show. Some ideas in terms of putting inflation into perspective, we’ve already kind of unpacked. The market and inflation are not directly correlated. However, it does affect your buying power. I think that would be a fair way to coin that and why it’s so important to understand different asset classes. One of the things we’re seeing right now is the bond market, because of the tapering with the quantitative easing in most people that we consider bonds or bond type instruments, in annuities, on some aspects of annuities, but they’re lower yielding vehicles. They’re not designed to compete with equities over time. And year over year, the us inflation rate, it’s a little over 6% right now, and that is the fastest pace since about 2008.

Laura Stover:

So if we look a year ago, the economy was still slowly waking up from that pandemic slumber, I guess, would be a good way to put it. Things like cars, use cars, air fares, that makes up a decent amount or the jump in prices. But I think it’s more important to discuss what’s going on here a little more in depth with the bond market, because we’ve had a lot of discussions with clients over the last few weeks. Let’s talk about interest rate risk and how significant that can be if we overweight to some of these asset classes, and we don’t necessarily want to divorce bonds, but we have to have the right balance.

Michael Wallen:

Laura, one of the things that we talk about when people come in, and we’ve shared this on the show, is really traunching the money, looking at the money at different classifications based upon the amount of risk. Unfortunately, a lot of retirees because they tend to be towards or lean towards risk adversity, they often come in and they’ll tell us, “Oh, I’ve got X amount of dollars that is sitting over in,” whether it be a CD at the bank, or a money market account, or individual bonds, the risk, and they run several different types of risk when it deals with the bonds. But because of low interest rate environments, over the years, bonds have done recalls. They have reissued bonds at lower interest rates. And for many people, they may be sitting out there in bonds today where their yield is actually lower than the inflation rate that what we’re seeing right now.

Michael Wallen:

And I know that for a lot of the clients, we’ve sat down with, they’re looking at that 6% and they’ve sat down and told us, “Well, I’m making a 4% return,” or “I’m making a 4.25% return on this bond.” Well, that’s also in many cases, taxable bonds. So the interest on that is taxable, which reduces for anybody anywhere from 10% typically up to 15% or 25%, based upon what their tax bracket is. That it’s also reducing that down, which even creates the greater gap between their yield and the actual inflation or the rise of cost for those goods that they’re buying.

Michael Wallen:

So for us, I think the important message to share is always make sure that the dollars that you have allocated for your income takes into consideration what the inflation is and what the tax is, so that you’re not being dependent upon your equity dollars to pull from when you’re looking at your income plan. And it’s a strategy. It’s not saying that those items are bad investments, but oftentimes, they’re used in an incorrect manner and it causes for a deficit in the cash needed during those retirement years.

Laura Stover:

Well, that’s where my feathers get ruffled. When you see, we’ll just use a fictitious name, Carrie, the client we spoke with this past week. And she had a balance plan. She was going to need some income, guaranteed income. She wants to retire this year. So a well thought out, matched annuity that met her needs for the income gap that she was going to need to have additional guaranteed income was already solved for. And segmenting out then growth assets and walked real quick through the math equation that we took her through. She kind of got sidetracked by what I referred to as a product piddler. And that was a catastrophic potential situation where if she puts the remainder of her account balance all in the same in an annuity 100%, and there’s no liquidity, and you’re all correlated in the same way, there multiple issues with that whole scenario.

Michael Wallen:

Oh, absolutely. She was looking at the ability to create an income plan that was going to really be pulling about 3% off of… Or the potential returns was going to be around 3%. Well, if we stay in a hyper inflation situation the way we are today, her buying power was not going to be the same. She was not going to be able to meet her monthly budget. And really, it got down to when we really broke it down to her budget, she was going to be somewhere between $250 and $400 a month shy of what her current expenses are based upon where she was thinking about repositioning or relocating her dollars based upon the annuity sales person meeting with her and not really taking anything into consideration other than a contraction in the market.

Michael Wallen:

And we all saw, and what we had shared with her was in 2008, the market contracted. And many people may have said, “Oh, I just can’t tolerate this amount of risk.” But from 2008 to where the market is today, would you have rather been in an annuity that gave you a 3% return over 2008 to 2021? Or would you have rather started in 2008 with a contraction, stayed the course, and looked at where the market is now in 2021? Which one would give you a more favorable situation? And again, we’re looking backwards at what time has already told us, but looking at it, the market has historically outperformed a fixed rate annuity that’s based on interest rates that is being reduced by the monetary policies that we’re seeing today. It was not in her best interest, nor was it even a considered or thought out approach to meeting her current and long term objectives.

Laura Stover:

Well, that’s the problem. Not having the plan, not having a written plan, and not understanding the goal of the money and the framework in which it needed to be used, and a purpose behind every decision with the plan, and not based off of fear. And we all want protection and to earn the most of returns. Who wouldn’t want their money protected? But to earn the most returns that the market could have. And you have to have the right balance. If we look at some timeframes for annual returns on the US stock market, the S&P 500 over that 90 year period of time, just a few interesting dates, 1934 to 1942, the S&P 500, the nominal return was 4.4%. Now, that also was the years where the Depression occurred. So, I mean, there was still a 4.4% nominal return. Inflation was 2.6%.

Laura Stover:

So the real return, though, was 1.7%. If you look then after that year, 1943 to 1965, the nominal return, the S&P returned 15.4%. inflation was 2.9%. So the realized or real return, the net return, was 12.5%. And if we come to more recent times, 2000 to 2008, -3.6% on the S&P 500 nominal return, 2.9% inflation, -6.5% real return. And then to more recent times, 2009 from the recovery to last year, the S&P returned 14.8% on the nominal. 1.6% inflation. See how low we were? No wonder it’s a price shock to everyone. Now, 1.6% last year, and then the real return was 13.2%. So you can see there’s been terrible cycles to invest in the market, but deflation in the ’30s was followed by an inflationary spike in the early 1940s that led to terrible returns. Then you have the huge boom that follows after mainly in the 1950s.

Laura Stover:

And that gave investors spectacular returns for two plus decades. Then inflation spikes in the ’70s, leaving investors with decent nominal returns, but awful real returns. So investors in the US stock market lost more than 35% after adjusting for inflation from 1966 to 1981. And then looking from 2000 to 2008, that time frame was book ended by two gigantic crashes of more than 50%. And when you take into account 3% inflation investors lost close to 7% per year for nine years. So the most recent cycle’s been the best of both worlds, both nominal returns and low inflation.

Michael Wallen:

Now, some people listening to those numbers, Laura, could make a claim that the periods like 1966 to 1981, what we always refer to as the sideways market time period shows, why the stop market isn’t always your best bet. However, if you take a tactical approach to investing, not a by and hold strategy. So if you bought a stock in ’66 and held it to ’81, you may not have sell much value increased at all on that, if any. But I would say that during that time period is why you want to have a tactical approach where you’re looking at gaining alpha. Because if you’re doing that, you are not just in a buy and strategy and hoping that the market is up in the future, but you also, and it goes back to the point I mentioned earlier, if we saw another sideways market like this going forward in the future, and we had a duration of 14, 15 years of a sideways market, don’t have your money you’re dependent upon for your income to be in that type of position.

Michael Wallen:

You want to be able to invest those dollars differently and have more exposure to risk in areas. It could be sector rotations. Back in ’66, we did not have a lot about emerging markets or international. So you do need a well diversified portfolio, because money is being spent somewhere/ and having a good tactical approach, using ETFs today, oftentimes can give advisor and the clients the ability to rotate quickly based upon momentum and put them in a much more favorable situation.

Laura Stover:

Well, we’re not trying to beat the market. We try to minimize downside losses as much as possible on the investment side and get hyper efficient with things like managing taxes and cash flow so we maximize the client’s potential for every financial aspects of their situation and we handle the tax and estate planning in house at LS Wealth. And that team approach ensures that we bring the best well-balanced approach and that framework that’s necessary for each and every client’s unique planning through the redefining wealth process. And that’s a great example with the inflation situation that we’re discussing today. This is a factor when it comes to withdrawals that is definitely correlated to the income planning component of the portfolio, more than the investment side, in terms of making sure a client has the right type of framework for their situation. That is what you need to have in order to live the lifestyle that you envision and imagine through retirement.

Laura Stover:

And so I think what we can take away from today’s show, Michael, the best way to offset periods of those low real returns is by being invested during periods of high real returns. And you need to host strategies and have a plan to succeed, regardless of what inflation does, if it spikes, or if the market has a downturn. You need inflation protected assets. That means price reduction from time to time. Things like real estate equities, and some guaranteed income. And hedging against those things, that’s all part of the puzzle, not relying on these assets in the short term, that’s the power of segmentation in working with a fiduciary based team.

Laura Stover:

It’s kind of the Ray Dalio approach. The famous manager says, “It’s the all-weather portfolio.” Sometimes you have high yields. Sometimes you have low yields. That’s why we want to implement things like flooring or the bucket approach, the tactical management. And make sure that you have the framework so that you can sleep at night through all different life cycles. And think about the bigger picture that’s part of the redefining wealth process. If you’d like to speak with Michael or I and schedule a strategy session, go to redefiningwealth.info, pick a time that best suits your schedule.

Ron Stokes:

Take advantage of a complimentary plan. Know where you stand regardless of the market. Walk through the redefining wealth process and have a clear picture of the key risks you likely will face and achieve a deeper understanding of how to properly plan for these risks with the Redefining Wealth Framework. Schedule a strategy session. Now, by going to redefiningwealth.info and click Schedule.

Ron Stokes:

Redefining Wealth is a registered trademark of LS Wealth Management. Investing involves risk, including the potential loss of principle. Any references to protection, safety, or lifetime income generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This show is intended for informational purposes only. It is not intended used as a sole basis for a financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual situation.

Ron Stokes:

LS Wealth Management, LLC is not permitted to offer, and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the us government or any governmental agency. The information and opinions contained here and provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by LS Wealth Management, LLC. Investment advisory services offered through Optimize Advisory Services, an SEC registered investment advisor. LS Wealth Management is a separate entity.

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