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Portfolio Strategy
Latest Posts
Portfolio Strategy Review Q2 2021
by Jerry Matecun | Jul 15, 2021 | Portfolio Strategy
“A nickel isn't worth a dime anymore.” Yogi Berra Reflation, inflation, or deflation. How about a libation and we call it good? The range of opinions about the future direction of prices we pay for goods and services leaves us with one concern: Are recent price...
Portfolio Strategy Review Q1 2021
by Jerry Matecun | Apr 15, 2021 | Portfolio Strategy
“If you don’t know where you are going, you’ll end up someplace else.” Yogi Berra The consistent theme in these quarterly reports is that sound strategy prioritizes your goals and gives you even greater odds to grow and protect your wealth. Many investment calories...
Portfolio Strategy Review 2020
by Jerry Matecun | Jan 20, 2021 | Portfolio Strategy
“America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves.” Abraham Lincoln The year 2020 is over. Good riddens. A year we will never forget. A Bull market for stocks. A bear market for people. The...
Portfolio Strategy Review Q3 2020
by Jerry Matecun | Oct 17, 2020 | Portfolio Strategy
“A genius is the man who can do the average thing when everyone else around him is losing his mind.”—Napoleon Most major economies appear to be coming out of recession. Many economists believe the worst is behind us. Yet not all sectors of the economy have rebounded....
Portfolio Strategy Review Q2 2020
by Jerry Matecun | Jul 10, 2020 | Portfolio Strategy
‘’History doesn’t repeat itself, but it often rhymes.” Mark Twain An historic quarter in many respects. A Pandemic. Race Riots. A Trade War. Political Chaos. Yet the market so far looks like a “V” recovery. The best quarter since 1998. While the economy appears more...
Portfolio Strategy Review Q1 2020
by Jerry Matecun | Apr 16, 2020 | Portfolio Strategy
When Will We Get Back to Normal The longest bull market in history had been on virtual cruise control since 2009. In March it gave way to the fastest bear market crash in history. Market volatility returned with a vengeance as investors seek to gauge the depth and...
401k & Retirement Planning
Latest Posts
How Long to the Other Side
by Jerry Matecun | Apr 13, 2020 | 401k & Retirement Planning
How Long to the Other Side The market recouped about half its losses over the past two weeks, as investors weigh risks and grapple with when life will get back to normal. Some investment strategists say we’ve hit the bottom; some say this will last longer and be...
Calm, Care, & Caution
by Jerry Matecun | Mar 24, 2020 | 401k & Retirement Planning
Calm, Care, & Caution How to stay calm during challenging times? The late Vanguard founder John Bogle used to say that in times of market turmoil, “Don’t just do something. Stand there!” His point was that panic selling after market declines guarantees loss....
Bear Markets
by Jerry Matecun | Mar 17, 2020 | 401k & Retirement Planning, Investment Discipline
Bear Markets When you compare your 401k balance to three weeks ago it hurts. I know. The record long bull market ended on March 11, and we officially entered bear market territory. A bear market is defined as a 20% decline from peak stock prices. After 11 years of...
SECURE Act Becomes Law
by Jerry Matecun | Dec 31, 2019 | 401k & Retirement Planning, Personal Planning
The SECURE Act Becomes Law in 2020 The Setting Every Community Up for Retirement Enhancement Act (aka SECURE Act) was passed by Congress and will become law January 1, 2020. There is a lot to unpack beneath the surface, so let me give you a high-level summary. As I...
In Plan ROTH 401k Conversions
by Jerry Matecun | Sep 2, 2019 | 401k & Retirement Planning, Personal Planning
Options to Choose, Not Choose, or Defer to a Later Date Not all plans include the so-called “In plan conversions” detailed below, which allow existing pre-tax 401K dollars to be converted to after-tax ROTH 401k dollars. They can be a good way to build tax-free income...
Social Security: Fix or Fumble the Political Football
by Jerry Matecun | Jul 10, 2019 | 401k & Retirement Planning
Social Security – Fix or Fumble the Political Football The Center for Retirement Research at Boston College reports that the Social Security “trust fund” is due to deplete its surplus reserves by 2035. Contrary to sensationalized reports, the authors illustrate the...
Investment Discipline
Latest Posts
The Most Important Investment Decision
by Jerry Matecun | May 18, 2021 | Investment Discipline, Personal Planning
The Most Important Investment Decisions Many investors believe stock picking or choosing the hottest stock fund is the path to wealth and accumulation. Many studies indicate this path produces poor results driven more by behavioral errors (buy high, sell low - also...
Is Cryptocurrency Here to Stay?
by Jerry Matecun | Apr 15, 2021 | Investment Discipline
There has been a lot of controversy and disagreement on the viability of cypto assets like Bitcoin. It's been called the next "store of value" (akin to gold), a highly secure medium of exchange, an innovative piece of computer science, as well as an energy intensive,...
Stock Selection and Changing Market Realities
by Jerry Matecun | Nov 12, 2020 | Investment Discipline
Conviction, Skill, and Market Realities Trying to beat the market to the best ideas has never been easy. And it only gets harder when the market is dominated by large price moving institutional demand. In addition, recent trends indicate the supply of publicly held...
Index Funds Are Marxist and Mediocre
by Jerry Matecun | Sep 15, 2020 | Investment Discipline
The Active Critiques: Indexing is Marxist, Mediocre, and Other Misguided Myths The mutual fund industry has ridiculed index investing for decades. Strong, self-interested economic incentives to defend active funds has given rise to clever propaganda and fear campaigns...
Search for Winners
by Jerry Matecun | Jun 25, 2020 | Investment Discipline
Search for Winners: Skill, Hype, or Hope (Hint: go to Amazon for your fiction) Mutual funds were first formed in 1924. Their original intent was to provide the investing public with broad access to the market. The idea was good at the time, despite a steep 8%...
Rocky Mountain High: A Long Way to the Peak
by Jerry Matecun | Jun 15, 2020 | Investment Discipline
The stock market was looking mostly like a V-Shape until last Thursday. The Federal Reserve made a few sensible observations about the economy, and that prompted a not so sensible 6% decline in one day. You could argue that the 43% increase from March 23 lows didn’t...
Business Valuations
Latest Posts
Interest Rates, Valuation, and Investment Choice
by Jerry Matecun | Feb 10, 2017 | Business Valuations
The benchmark US Treasury bond yield spiked from 1.35% in early July to about 2.50%; almost a 100% increase in 7 months! Will rates continue to spike with the so-called “reflation trade”? How would the interest rate change impact the valuation of various asset classes...
Buyer’s View and Risk of Return
by Jerry Matecun | Nov 11, 2016 | Business Valuations, Exit Planning
I hate to use clichés but when they help clients to understand key concepts that can get lost in technical details – I’ll use em! No pain, no gain; no guts, no glory – are ways to describe the risk vs. return decision. Investors have choices in how to invest across a...
Cash Flow: Vaguely Right or Precisely Wrong
by Jerry Matecun | Aug 16, 2016 | Business Valuations
In explaining how he adjusts a company’s cash flow for investment analysis, Warren Buffet once quoted the economist John Maynard Keynes, “I would rather be vaguely right, than precisely wrong.” Buffet’s comments mean it’s false to pretend that financial analysis is a...
Valuation Theory, Transactions, and Conflicted Views
by Jerry Matecun | May 15, 2016 | Business Valuations
At a breakfast panel I attended, the speaker said that most business valuation work is done for tax compliance and litigation purposes. He noted that these valuations are performed under the fair market value standard, which is highly theoretical and doesn’t work in...
Words and Standards Have Dollar Implications!
by Jerry Matecun | Feb 15, 2016 | Business Valuations
Many business valuations are done to facilitate the transfer or sale of a business. The terms and valuation of internal transfers are often dictated in the buy-sell agreement. This is a common contract in businesses that have more than one owner. The problem is that...
The Importance of the Credible Expert
by Jerry Matecun | Nov 15, 2015 | Business Valuations
Business appraisals are needed in many situations. Regardless of the situation, if your goal is an objective and reasonable result, a competent and credible expert is your logical starting point. A professional who is abreast of current best practices and able to...
Exit Planning
Latest Posts
Buyer’s View and Risk of Return
by Jerry Matecun | Nov 11, 2016 | Business Valuations, Exit Planning
I hate to use clichés but when they help clients to understand key concepts that can get lost in technical details – I’ll use em! No pain, no gain; no guts, no glory – are ways to describe the risk vs. return decision. Investors have choices in how to invest across a...
Family Business Ties: Good, Bad, or Ugly?
by Jerry Matecun | May 5, 2016 | Exit Planning
I was raised in a family business. As the eldest son I experienced the Good, the Bad, and the Ugly! I’ve also had the pleasure and opportunity of working with family owned-business over the last twenty years. Many of their stories go something like this: Once upon a...
Business Succession Plan Considerations
by Jerry Matecun | Feb 5, 2016 | Exit Planning
Most small business owners think about the future of his or her business. Because “the business” is usually the primary wealth generator and a large portion of personal net worth, many estate planning issues interact with business succession planning. A business...
The Purpose of Your Buy-Sell Agreement
by Jerry Matecun | Nov 7, 2015 | Exit Planning
A Buy-Sell agreement (BSA) serves several key purposes for business owners. A well-articulated BSA creates a ready market and liquidity to a selling owner, and should establish price, terms, and financing for the transfer. In short it spells out a process so that all...
Business Exit Planning: Transitions Are Inevitable
by Jerry Matecun | Aug 3, 2015 | Exit Planning
Your business planning, focus, and success has given you income, status, and lifestyle. Yet many successful business owners fail the transition phase, also known as business exit planning. Failure to recognize or acknowledge the inevitable is bad business and has...
Advice That Matters
Latest Posts
The Simplified 401K Plan Solution
by Jerry Matecun | Sep 25, 2018 | 401k & Retirement Planning, Advice that Matters
The owners and plan trustees wanted to increase plan participation rates, especially with the younger, lower earning employees who make up most of the workforce. Due to the nature of the business (120 employees in multiple locations) the broker from a large...
Advice Only a Banker Could Love
by Jerry Matecun | Jan 28, 2018 | Advice that Matters, Personal Planning
Many banks now operate as a one-stop shop for all your financial needs. The convenience factor is seductive. How well does this “all-things, to all-people” boilerplate approach work? This is a tale of a community bank, acquired several times, and now part of a...
The Conflicted Sale
by Jerry Matecun | Jan 18, 2018 | Advice that Matters
A referral from a trusted adviser like one’s CPA usually helps to mitigate risk in selecting an investment adviser. However, just because a CPA works with numbers and is tax savvy doesn’t mean they are fully aware of the many potential conflicts that an adviser's...
When the Message is Clear
by Jerry Matecun | Dec 15, 2017 | Advice that Matters
I was doing a 401k education and enrollment session at one of the health care clinics I service. One of the attendees was especially attentive and she was taking very detailed notes. After finishing the presentation, she approached me for some more information. “I...
Big-Brand Boilerplate Solution
by Jerry Matecun | Jun 14, 2016 | Advice that Matters
A common misconception is that a big brand name financial adviser gives you safety, more resources, and a better outcome for your investment dollars. The set of facts below looks at the reality of big company business models. Corporations look for economies of scale...
Personal Planning
Latest Posts
Medicare Nightmares
by Jerry Matecun | Sep 1, 2021 | Personal Planning
Plan Enrollment Errors: Advance Planning is Good Medicine Combine the federal government with the US tax and healthcare systems and what do you get? One very complicated maze of rules and regulations called Medicare! Medicare’s complex rules are confusing and can...
The Most Important Investment Decision
by Jerry Matecun | May 18, 2021 | Investment Discipline, Personal Planning
The Most Important Investment Decisions Many investors believe stock picking or choosing the hottest stock fund is the path to wealth and accumulation. Many studies indicate this path produces poor results driven more by behavioral errors (buy high, sell low - also...
SECURE Act Becomes Law
by Jerry Matecun | Dec 31, 2019 | 401k & Retirement Planning, Personal Planning
The SECURE Act Becomes Law in 2020 The Setting Every Community Up for Retirement Enhancement Act (aka SECURE Act) was passed by Congress and will become law January 1, 2020. There is a lot to unpack beneath the surface, so let me give you a high-level summary. As I...
In Plan ROTH 401k Conversions
by Jerry Matecun | Sep 2, 2019 | 401k & Retirement Planning, Personal Planning
Options to Choose, Not Choose, or Defer to a Later Date Not all plans include the so-called “In plan conversions” detailed below, which allow existing pre-tax 401K dollars to be converted to after-tax ROTH 401k dollars. They can be a good way to build tax-free income...
What’s an Annuity and Should You Own One
by Jerry Matecun | Aug 31, 2019 | Personal Planning
Annuities often get bad press. Deservedly so in many cases. Not so in all cases. Before you can determine if one might make sense for you, it’s important to understand the very different annuity types. When applied correctly they can be effective income planning tools...
Advice Only a Banker Could Love
by Jerry Matecun | Jan 28, 2018 | Advice that Matters, Personal Planning
Many banks now operate as a one-stop shop for all your financial needs. The convenience factor is seductive. How well does this “all-things, to all-people” boilerplate approach work? This is a tale of a community bank, acquired several times, and now part of a...
Reading For Results
Latest Posts
Different From the Other 300,000?
by Jerry Matecun | Aug 25, 2019 | Reading for Results
Storytelling for Financial Advisors By Mitch Anthony and Scott West I picked up this book because my communication with clients and prospects needs improvement. People in all industries tend to fall back on acronyms, slang, and technical terms that are like a foreign...
Conserving Client Portfolios
by Jerry Matecun | Sep 25, 2017 | Reading for Results
Conserving Client Portfolios During Retirement by William Bengen Written in 2006, Bengen popularized what is known as the “4% Rule.” This work on distribution and withdrawal planning for sustainable retirement income has become the de facto standard against which...
The Remarkable Story of Risk
by Jerry Matecun | Oct 14, 2014 | Reading for Results
Against the Odds: The Remarkable Story of Risk by Peter L. Bernstein “Likeness to Truth is not the same as Truth” I found the historical breadth and depth of this work remarkable as the title suggests. Bernstein takes us on an interesting evolutionary path of...