Category: Life

YOLO Counts for Something

A brief personal reflection this week but meant to factor in to short-term and long-term personal and family financial planning.

In the past week I was given sad news of the sudden and far-too-soon passing of not one but two old friends. Both were in the prime of their lives with spouses and young children, working and doing good in their families, workplaces, communities, and faiths. Certainly, the last thing on my mind was writing a TGIF 2 Minutes edition about these two people.

But upon further reflection on their lives, it was too compelling not to make a statement about YOLO, or You Only Live Once, and the spending on the YOLO category. I am not certain, but it is likely that these two people lived full lives with few if any regrets. In this light, there is a strong case to be made to figuring YOLO into a budget.

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ESG is Complicated

In trying to find the most ideal title to today’s edition, there were a number of choices:

  • ESG has become complicated.
  • ESG may be complicated.
  • ESG is a bit complicated.

All are true, and the complications started to become more prominent in early 2022. ESG, of course, stands for Environmental, Social, and Governance which are said to be “pillars” on which companies, particularly publicly traded companies, report. The pillars of ESG have been referred to as non-financial risk factors by the consulting firm Deloitte, and the non-financial aspect is partly what brought major pushback to “blanket policies” of ESG in major pension funds and investment funds.

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Doritos in 2024

Looking for Doritos at the supermarket? That may be difficult at certain grocery chains where the chips are being pulled from shelves – so far only in several European countries.* The reasons? Partly, to protest possible “shrinkflation”, that annoying occurrence of a company lowering the amount of product in its packaging but charging the same price (which also could be called a “rip off”). Another reason the grocery chain is choosing not to stock Doritos and several other PepsiCo products is persistent and unreasonable price increases by PepsiCo.

Apparently, consumers and certain supermarket chains concerned with holding on to customers, have had enough with price increases, especially on discretionary items (are Doritos a staple or discretionary?). The move by the grocer Carrefour could be a positive development for consumers in early 2024. What else would consumers, investors and savers like to see in 2024?

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Greatest Chart Ever… Even Better

Long-time TGIF 2 Minutes readers know that “The Greatest Chart Ever” truly is a great chart* with data illustrating reasons to invest – and stay invested – in stocks for the short-, intermediate- and especially the long-term. The chart focuses on US stocks, namely the S&P 500, and lends to globally diversified stock investing as well.

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Two Notable Events of 2023

Taking a stab at listing the “Top 5″ or “Top 10” events of 2023 is challenging – and subjective. Less subjective is highlighting two events that got the attention of nearly all participants in US stock and bond markets in 2023:

  • The rise of interest rates to levels not seen in over 22 years
  • The collapse of Silicon Valley Bank and at least two other banks

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AI Edition – What & Who is OpenAI?

This edition of TGIF 2 Minutes took an extra week to write (and may take an extra cup of coffee to read). Admittedly, because the topic of AI, or Artificial Intelligence, is so complex and fast-moving as nearly anything on our planet. Add the white-hot nature of ChatGPT, the AI system owned by OpenAI, which is a private company recently thrust to the front-pages of nearly every major world news source. Is your head spinning? Read on.

AI, or artificial intelligence, is huge. Sitting down recently with the leader of a significant and complex global organization, it was jaw-dropping to learn the attention being paid to the value and potential of artificial intelligence. Whether in the corporate, educational, media, or government realm AI is being analyzed, tested and used. Its use will only continue to grow.

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Early Thanksgiving Thought

As the saying goes, it has been a year! It is time for an early Thanksgiving message.

Amidst the challenges near and far surrounding us today, I would like to express gratitude to several amazing groups of people:

  • Thank you to my clients, many of whom are also dear friends, who place trust in me to give advice regarding personal and business decisions large and small.
  • Thank you to YOU, my loyal readers of TGIF 2 Minutes!
  • Thank you to my family for their love and unending patience.

Based on the lives of my clients, colleagues, friends, and family I am hopeful for continued achievement of short-, intermediate- and long-term goals.

Finally, I would be remiss not to thank God for Fridays and for the many blessings we enjoy all year long.

Thank you for reading, an early Happy Thanksgiving and TGIF!

This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.

Time for The Greatest Chart Ever

A chart for the ages, nicknamed over the years “The Greatest Chart Ever”*.

Please make sure the chart above shows on your screen! If not, please ask me to email you a copy.

Simply put, the chart summarizes the inevitable volatility that stocks experience year-in and year-out, while still producing intermediate- and long-term positive returns. Last week’s TGIF 2 Minutes touched on similar concepts related to sticking with a 60/40 portfolio.

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Is the 60/40 Portfolio Dead?

A short but necessary reflection on the “60/40 Portfolio”. (Hint for those wanting to move on to the weekend and stop reading here: the 60/40 portfolio is not dead.)

It would help first to define what a 60/40 portfolio is: an overall investment allocation of 60% stocks and 40% bonds (or bonds and cash). But even “stocks” and “bonds” can be too subjectively defined by the average investor. When it comes to a diversified 60/40 portfolio, the stocks category includes globally diversified equities of all sizes (large & small), styles (value & growth) and industries (all tech – not only super-AI tech – financials, energy, consumer goods, etc.). The bonds category can open a huge “can of worms” because a typical bond fund in a 401k account contains far riskier and longer-dated bonds than meant for the “steady, safe” portion of a retirement savings portfolio. Therefore, the bond category can do its best long-term work when invested in high quality, shorter-term bonds and cash instruments. Please ask me more about this topic.

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Deja Vu – Recession or Soft Landing?

Check out the TGIF 2 Minutes (cut & pasted below) from September 2022 when nearly everyone – especially the media – was saying the US was already in a recession. Today, the potential recession scenario seems even more compelling but somehow the US economy has crept along.

Currently in 2023 and in times like this, it pays to keep a sharp eye on spending and debt levels while maintaining a long-term outlook with savings and investments. If the US does creep or crash into an actual recession, emergency funds with calculated levels of cash can soften the blow. The following points are worth reiterating.

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