We would like to share with you our core investment belief at Presilium. We believe that the world is improving every year and that investing in stocks is the best way to grow your family’s wealth over the long-term. The S&P 500 is now up about 300 thousand percent since 1950, which equates to 11.4% […]
March 9th is the 15-year anniversary of the market low during the Global Financial Crisis – one of the most uncertain and challenging times that investors ever experienced. There are three critical lessons from that time that we can use to help us to make future investment decisions. First: These kinds of market events are […]
The S&P 500 just reached a new all-time high! While this is an exciting time, this often coincides with many purported experts clamoring that the market is now severely overvalued, and you must get out before the next major market decline. This is often matched in enthusiasm by an equal number of experts clamoring that […]
Welcome to our 2024 market outlook! We hope that this year is your best year yet. Just like in early 2023, we looked through history for clues on how the market may perform this year. We wanted to find 3 reasons to once again remain optimistic and stay invested in stocks. Let’s start with how […]
Stocks have historically paid much more in income over time than bonds. Please let me show you an example from the past 30 years. Imagine you have just retired. It is 1993 and you need to decide what types of investments are going to generate your income now that you are no longer working. Just […]
A month ago, a wonderful long-time client of mine called and told me that her best friend said that she must sell everything in her account and move it to gold, cash, and other “safe” assets that day. Her best friend said that the market was likely to crash soon, and she should forget about […]
One of the most important decisions you will ever make for your family’s long-term future is the blend of stocks and bonds in your investment accounts. This mix will be by far the dominant driver of your investment returns. It is crucial to choose an investment allocation that matches your financial plan and then rebalance […]
The average American family is missing out on thousands of dollars in interest on their savings held inside of traditional banks. Americans now hold more than $17 trillion at traditional U.S. banks at an average interest rate of 0.46% according to the St. Louis Federal Reserve. They are missing out on a huge amount of […]
There is currently a major market crash underway. This specific area of the market is down more than 40% since December 2021 and you may not even realize it. And we’re not referencing any area of the stock market. We’re talking about bonds. Specifically, bonds maturing in 20 years or more. What’s perhaps most shocking […]
Our clients have done an amazing job maintaining their investment strategy throughout the constant uncertainty of the last 20 months or so. Despite the incessant doomsday coverage from the media, they have hung in there, rebalanced when appropriate, and have been rewarded accordingly because of this. Though it hasn’t been easy, we knew there were, […]
As an investor, our goal should be to get the highest possible return no matter what, right? Wrong. As important as it is to achieve a great return, it can be just as important to achieve a consistently great return. An investment portfolio with a consistent return can actually outperform another investment portfolio that has […]
What happens when you make an investment at the worst possible time; right before a decline of 20% or more? The answer will surprise you. The market can be incredibly daunting. There are so many unknowns because no one knows the future. It can be soaring at all-time highs, Or it can be plummeting rapidly, […]
This week we wanted to show you how Roth Conversions may save you taxes, potentially add a huge amount to your future wealth, and increase the chances to reach even more of your goals in retirement. A Roth Conversion is when you move funds from your IRA to a new or existing Roth IRA. The […]
At Presilium we love to rebalance. Most people think of rebalancing, as buying or selling stock as the market moves up or down. However, rebalancing comes in many different forms. This can mean anything from moving money from stocks to bonds, or bonds to stocks, but can also mean moving funds from one type of […]
At Presilium we have been optimistic all year that the market was going to bounce back from one of the worst years ever in 2022. To do this, we needed to tune out an enormous amount of negative news media. We feel that helping our clients stick to their long-term investment plans is one of […]
One of our favorite hobbies at Presilium is looking at historical market data. After the market’s strong start in the first half of 2023, I wanted to look through history to see how the market had typically performed in the 2nd half of the year after similar first half returns. We looked at the performance […]
We have had lots of conversations with our clients on what are safe vs. risky investments. Though the answer may surprise you, this debate is not even close. For long-term goals, stocks are, by far, the safest investment. For the non-believers, let me show you a few statistics from history. This chart shows the percentage […]
As you likely know, we just began a new bull market on June 8, 2023. A bull market starts when an index, like the S&P 500 closes 20% higher from the low made during the previous bear market. I wanted to take a deeper look with you at what this has historically meant for stocks. […]
The bear market in stocks that began in June 2022 is now officially over. The S&P 500 just closed 20% higher than the low it made on October 12, 2022, beginning a new bull market. Now is a great time to review what happened and see what we can learn from this for next time. […]
Today we wanted to talk with you about the value of the stock market over time. In the short-term, the stock market can be unpredictable and largely based on emotion, moving very quickly up or down based upon subjectively good or bad news; bu, in the long-term the market has steadily marched higher as the […]
Each year, there is a conference called Abundance 360 where visionary entrepreneurs, investors, and executives meet to solve the world’s biggest challenges. It is an all-star group of experts working together to make positive and lasting change. They believe that over the next ten years, humanity will experience more progress than we have over the […]
We are now very close to repeating an economic milestone that has historically led to excellent market returns for stocks. The Consumer Price Index fell from 9.1% to 4.9% since July 2022—a decline of 4.2% —and it is expected to continue to fall until July 2023. The Consumer Price Index or CPI is a measure […]
We have now been in a bear market for 11 months. In October of 2022, the S&P 500 was down more than 25% after making a new high in the preceding January. It goes without saying that bear markets are not fun to go through; however, if navigated properly, they can be an excellent time […]
At Presilium we believe we are preparing for the Dow Jones Industrial Average to reach 350,000- about 320,000 points higher from where we are today. Or around a 920% gain. Most of the retirements that we plan for our clients are at least 30 years long. Consequently, we need to ensure that your investments provide […]
Today we would like to discuss diversification, why it is so important when investing and how it helps you reach your long-term goals. At Presilium, our clients all hold a variety of different types of stocks, bonds, and real estate in their portfolios. This mix matches their financial plan and consequently their short and long-term […]
At the start of this year, we gave you three great reasons to be optimistic about the market in 2023. And so far, we have been right. We had a great first quarter. As we begin the second quarter of 2023, we have two more reasons for you to remain optimistic for the remainder of […]
In our 31st Financial Planning Friday’s episode I wanted to discuss why it is so important not to take the same investment approach that many of your neighbors are using. The American Association of Individual Investors is a non-profit organization that has completed a weekly survey since 1987 where they ask a simple question, Do […]
We live in an age of unprecedented technological progress.In the last few decades, advancements in fields such as medicine, transportation, and communication have transformed our daily lives. We now have access to instant communication with people across the globe, and we can travel to far-flung destinations in a matter of hours. Medical breakthroughs have eradicated […]
Today we wanted to discuss the issue dominating the financial headlines over the past week and the impact it may have on banking going forward: the recent failure of Silicon Valley Bank. Early last week, clients of SVB began hearing rumors that the bank may be in trouble and quickly many of them rushed to […]
This is an emergency drill and it may be one of the most important things you ever do as a long-term investor. Your investment accounts are down 40%, the market seems to be in a free fall, the economy and world are full of uncertainty, and there is no clear end in sight. Now pause. […]
Since at least the middle of 2022, there has been constant debate about whether the U.S. economy is in a recession or is about to enter one. The term “recession” can strike fear into the hearts of investors, and for good reason. Recessions are periods of economic decline, typically characterized by a decrease in economic […]
The S&P 500 just had its best January since 2019 with a gain of 6.2%. This is especially interesting because there is a market indicator known as the “January Barometer”. This barometer, says that the stock returns for the entire year are usually similar to what we see in the first month of each year. […]
You should take lots of days off to enjoy life but your investments, no, they should remain invested, working for you every single day. Once you have developed your long-term financial plan, and have a solid investment strategy, it is critical to keep your stock portion invested no matter what happens in the world and […]
Today we wanted to review all of the crises during the last twenty years. As you’ll see, at the time, each of them would have given us great reasons to not keep our clients invested in stock. Every year had its own unique crises that looked, and felt, brand new to the world and came […]
Today we wanted to give you three reasons that we are so optimistic for 2023. Twenty-twenty two was one of the worst years ever for the financial markets. In fact, the S&P 500 had the fifth worst return it has had in the past 90 years. However, if you are a client of Presilium Private […]
Today, in our twentieth episode, we wanted to discuss and review 2022. Last year was filled with lots of good news but also more than a few negative headlines that made the market one of the most volatile ever. As usual, we took advantage of this volatility and rebalanced our client accounts 27 times; each […]
Today we wanted to talk with you about the yield curve and how it impacts where and how you should be allocating your money kept in cash and bonds. The yield curve is an illustration that shows the interest rates of bonds at different maturity dates. A maturity date is more simply known as the […]
Today we wanted to talk with you about just how powerful compounding over time can be. Albert Einstein said that Compound Interest is the eighth wonder of the world. Our clients are often surprised at how large their investments are projected to grow when we look at their long-term financial plans. When we calculate how […]
Today we wanted to talk with you about the historical market performance after midterm elections. One of our favorite hobbies at Presilium is looking back through history for clues on what may happen now and in the future. We recently finished a heavily contested mid-term election in the U.S. on November 8, 2022 and consequently […]
Today, in our thirteenth episode, we wanted to talk with you about optimizing your accounts that are not invested for the long-term. At Presilium, we want you to get the best possible returns on all of your accounts. These include accounts that you may want to access in the next couple years and consequently want […]
Today, in our twelfth episode, we wanted to talk with you about how important it is to stick with the investment strategy that is part of your long-term plan through both up and down markets, as well as to share data that supports this thinking. There is a popular saying in personal finance that is, […]
Today, in our eleventh episode, we wanted to talk about bull and bear markets and show you a few examples from recent history that may help us to get a better understanding of the current market and where it may be headed next. A bear market is a term used to describe stocks when they […]
Today we will discuss something most people know they should be doing, yet almost no one does on a consistent basis: rebalancing your investment portfolio. Rebalancing, put simply, is moving your portfolio back to your target investment allocation as the market moves up or down. At Presilium, we start each relationship by building a financial […]
Welcome to Financial Planning Fridays, our weekly video series on financial planning, where we work to simplify wealth management decision making for our clients so they can focus on what is most important to them. Today we are going to focus on one of our favorite subjects: investment asset allocation. This is the mix of […]