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Portfolio Strategy
Latest Posts
Portfolio Strategy Review Q2 2019
by Jerry Matecun | Jul 15, 2019 | Portfolio Strategy
Giving Candy to a Baby Since everyone knows the US now has the “greatest economy, the likes of which the world has never seen....” what can be done for an encore? I have some good ideas. First, let’s stimulate the economy with tax cuts. Consumer spending drives 70% of...
Portfolio Strategy Review Q1 2019
by Jerry Matecun | Apr 10, 2019 | Portfolio Strategy
The Rebound from December The business channels keep alarming us about a potential recession and the upside-down yield curve. The stock market ignored the pessimism rebounding from December’s intense selloff. Indeed, stock markets found comfort in the temporary magic...
Portfolio Strategy Review 2018
by Jerry Matecun | Jan 15, 2019 | Portfolio Strategy
They Don’t Always Go Up A market decline was overdue. 2018 was the first year since 2008 that over 90% of major asset classes declined. The December declines were the worst since 1931. The 20% decline from September’s market peak pushed us into bear market territory....
Portfolio Strategy Review Q3 2018
by Jerry Matecun | Oct 16, 2018 | Portfolio Strategy
Q3 Highlights: A judge who likes beer, rising interest rate fear, and an intensifying trade war. The US 10-year bond rate is a good proxy for the cost of money. If you need credit to buy a house, car, invest in a business, etc., the rate matters. For example, when...
Portfolio Strategy Review Q2 2018
by Jerry Matecun | Jul 17, 2018 | Portfolio Strategy
Crypto kept crashing and Trump keeps bashing; except for his pal Vlad. The new tax cuts have bolstered US economic growth in this 9th year of economic expansion. Median forecasts for Q2 economic growth are 3.7%, much higher than Q1’s 2.2%. The policy may be good...
Portfolio Strategy Review Q1 2018
by Jerry Matecun | Apr 13, 2018 | Portfolio Strategy
The Great Melt Up in stocks continued in January, and then it didn’t. After a January peak driven by economic optimism for US tax reform, a swift 10% decline ensued triggered by several factors: an early year rise in interest rates; the tweeter-in-chief’s tough tariff...
401k & Retirement Planning
Latest Posts
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...
Trends & Best Practices in 401k Administration
by Jerry Matecun | Jan 4, 2018 | 401k & Retirement Planning
I thought I would highlight a few trends for you in 401k Plan Administration as we head into 2018. A continued trend and concern for employers is employees who are stressed about their personal finances. This often leads to lower productivity; and for employees who...
Don’t Forget Your People: Beneficiary Designations!
by Jerry Matecun | Dec 4, 2017 | 401k & Retirement Planning
Last month we reviewed some differences and similarities between 401ks and IRAs that can create cost and confusion. Yet another difference you and your employees should know about is beneficiary designations. This applies to 401ks, IRAs, insurance policies, annuities,...
Retirement Plan Differences
by Jerry Matecun | Nov 5, 2017 | 401k & Retirement Planning
Retirement plan accounts such as IRAs, qualified pension, or 401k Plans, all enable participants to grow money tax deferred. Yet distribution options, protection from creditors, beneficiary designations, and contribution limits can vary significantly by Plan type. The...
Managing Your Fiduciary Liability
by Jerry Matecun | Aug 1, 2017 | 401k & Retirement Planning
There are 4 key areas for plan sponsors to understand that will help you manage your fiduciary liability with confidence. Excessive Plan Fees Selecting Imprudent Investments Failing to Follow Plan Document Terms Late Participant Contributions Excessive Fees In the...
Investment Discipline
Latest Posts
Bitcoin, Buffet, and Bubbles
by Jerry Matecun | Nov 27, 2017 | Investment Discipline
What We Know Bitcoin – Selling off 20% today after a meteoric rise. But what is it? Some new store of value? New mode of transacting? How is it priced? I don’t know it well enough to explain it. And I don’t care. It hasn’t been around long enough to tell if it’s a...
DOL Fiduciary Rule and Political Football
by Jerry Matecun | Apr 21, 2016 | Investment Discipline
You likely haven’t paid much attention to the new fiduciary rule being put forth by the Department of Labor. It’s been four years in the making during which time it has been put forth for rigorous review and comment. And quite a political football. The rule basically...
Inflation, Deflation, and Your Assets
by Jerry Matecun | Apr 2, 2016 | Investment Discipline
Current market speculation is that the Federal Reserve will raise rates to keep the inflation genie in the bottle. Or not. Deflationary forces such as a strong dollar, weak commodity prices, and stagnant wage growth are prevalent. Economists are divided: are...
Investment Philosophy: The Why of Our Index Approach
by Jerry Matecun | Nov 16, 2014 | Investment Discipline
Philosophical Foundation Many factors inform our investment philosophy: our experience, excess investor fees, investor emotions, testing data over multiple time periods, careful reading of historical studies, the daily spasmodic CNBC charade of short-term market...
Investment Discipline: How Strategy is Formed and Executed
by Jerry Matecun | Dec 20, 2013 | Investment Discipline
Strategy Overview The purpose of this paper is to provide an overview of our strategic framework, how it is put together, and how various tactics are used in its execution. Investment discipline begins with understanding the best asset mix that will help you to...
Investment Risk: What Risks Are You Willing to Take?
by Jerry Matecun | Dec 10, 2013 | Investment Discipline
Stocks For the Long-Term….What About Your Term? The first reaction to the chart below is – a no-brainer – stocks compound at a much higher rate than bonds and inflation; therefore, put your money in stocks for the long-term! Yet we know that in the last 15 years we...
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...
The Change We Make
Latest Posts
Advice Only a Banker Could Love
by Jerry Matecun | Jan 28, 2018 | Personal Planning, The Change We Make
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 | The Change We Make
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 | The Change We Make
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 | The Change We Make
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 driven by their profit seeking motive at...
Personal Planning
Latest Posts
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 | Personal Planning, The Change We Make
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 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 language to others. Advisers...
Against the Gods: The Remarkable Story of Risk
by Jerry Matecun | Oct 14, 2014 | Reading for Results
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 theory and attitudes toward risk. From the Dark Ages...