Financial Detox® Show

In this show you will learn about:- Strategies to extract value from your business while you are building and running it- What tax strategies can you focus on to ensure that you are getting the most value out of owning your own business?- How can an accountable reimbursement plan help you and your sales teams?-What kind of company retirement plans exist to help owners extract value via retirement savings?- Strategies to position your business for selling it-What is EBOC and why does it matter?-What role does net operating income, or profitability, play in getting the best valuation?-What are acquirers looking for? How does this vary across industries?-How to navigate the next phase after business ownership

In this show you will learn about:-          Stats on Inflation:o   Inflation still dominates much of the headlines in the news. Google searches for “Inflation” are up over 100% and has dominated company conference calls by and increase of 350% for S&P 500 companies o   More than half of the total increase in CPI over the past two months has been due to used cars, rental cars, hotels, and airfare. o   These large price jumps in these small categories are due to reopening and supply chain disruptions, HOWEVER both of these are temporary o   When looking back to historical data, the last 30 years have actually experienced very little volatility in CPI and lower than average levels of inflation, (the average being 2.9% since 1926) so we should expect an increase and look at it as a sort of rebalancing. Too low of inflation can also even be a bad thing. o   One thing to point out is how everyone talks about what's been going up in price, however there are some key sectors that have actually gone down in price being health insurance, airline fares, tickets to sporting events o   Health care costs take out a large portion of most people's paychecks and this decrease in costs isn't talked about enough o   All in all, inflation is looking to be more transitory than long term with lumber prices dropping 40% in June alone-          Bondso   Why own them?o   The current status of the bond marketo   10-year Treasury yields have dropped significantly since late May, which at the time were at almost 1.75 to almost 1.2 as of late July (roughly a 30% drop) ○ This leads to the continued push and pull between Growth and Value stocks, however we maintain our barbell approach and direct exposure to Developed Market value stocks-          Real Estateo   What is causing the massive increase in prices locally?o   What are some of the best ways to incorporate real estate into your overall investment strategy given the current market conditions?-          Commodities-          Equities-          Alternative Investments

Welcome to Financial Detox, where host Jason Labrum and co-host Alex Klingensmith simplify the complex, share industry secrets and provide proven strategies designed to take you from financial insecurity to financial independence. Today’s episode begins with an introduction to Jason and Alex and how they began this podcast. The world of financial advisory can feel convoluted and overwhelming, but this show aims to educate listeners and clarify fundamental concepts that will help you achieve financial success and peace of mind. Our hosts dive right into some fascinating topics, beginning with Cryptocurrency and Blockchain technology, and how it will change the way we think of and use money over the next ten years. They discuss the role of government regulation in currency, China’s refusal to accept Bitcoin due to their inability to manipulate it as a medium of exchange, and why socialism always fails as an experiment. You’ll also hear about the importance of allowing free market capitalism to play out, having a diversified portfolio, and investing in Cryptocurrency only if you are comfortable with a higher degree of volatility.Jason and Alex then move on to the very real topic of inflation. Warren Buffett recently stated that we are seeing substantial inflation and higher prices, but Jason and Alex explain that there are ways to adjust your portfolio to prepare for this. Certain assets perform better in inflationary environments, such as inflation protected bonds, real estate, stocks, and commodities. They also break down the four main components of a proposed tax increase under the current administration: Doubling capital gains tax rate; increasing corporate tax rate; increasing state tax rate and decreasing the exemption amount; and changing or eliminating step-up in basis. They explain why increasing corporate tax rates will be prohibitive for business owners, forcing them to spend less on innovation, computers, and hiring employees. Changes in state tax will also involve an estate tax, meaning people will have to pay even more tax on their hard earned income after they pass away, leaving less than 30% for their heirs. Eliminating the step-up in basis also means that those heirs will have to pay significantly more tax on the dividends of their inheritance as time goes on. And doubling capital gains tax simply punishes people for investing, and prevents them from using those gains to invest in local businesses, create jobs, and feed more families. There are certain strategies you can use to mitigate the effects of these possible tax increases, however, so be sure to ask your advisor about incorporating these tactics into your financial plan moving forward.For more podcasts and information, visit FinancialDetox.com. You can also call  (877) 707-8889 with questions, comments, or feedback. Thank you for listening.In this show you will learn about:-Cryptocurrency and government regulation of currency-Impending inflation-Proposed tax increases under the current administrationLinks:Financial Detox website

Show Description: Jason and Alex start off the show addressing a question that has been asked by more than one private client over the past couple of weeks. Given the US National Debt equal to 28.2 Trillion and the Federal Deficit at $4.5 Trillion and tack on all the recent stimulus money and Federal spending, what will be the effects on the market in the next 12 to 18 months? The topic for today’s show is based on the Federal debt, government spending and the effects it will have on the markets. Alex shares his perspective on stimulus money and the concept that stimulus money will make its way back into the market through the purchasing of goods and services. Jason interjects with adding that the real question is when does this artificial stimulus approach end? When will the country get back to making the economy work for itself? Alex reminds Jason that pre pandemic the economy was healthy, maybe the best economy we have ever experienced. Jason adds that the unemployment rates were the lowest across all ethnicities pre pandemic. After the first commercial break Jason and Alex respond to the question with optimism and more detail, stating that the public typically does not care about the current US National Debt, more interested in how much are they able to buy and spend. So, stimulus money will be positive in the short term. However, at some point taxes will have to increase. Jason and Alex spend some time discussing taxes and who pays for what currently and the effects it is having on further dividing our country. Will the current tax structure work to reduce the deficit?  Jason brings up the question where is the government getting money? Besides printing money and with interest rates at all-time lows will servicing the existing debt become an issue. Alex adds that if the government becomes crippled by debt service it will hurt us in other ways. Things that we rely on the government to maintain like infrastructures, national defense, and education.  If the government can borrow money at an incredibly low rate of 1.7% for 10 years, should they borrow a bunch of money and invest it ways to grow a higher rate of return. Alex responds that yes; with the first part of stimulus money, it is a bet on the people. A bet that the people will spend, and companies will invest, increasing the GDP growth. Jason brings to the conversation that free money tends to create laziness amongst many, further debilitating strong work ethic within the U.S.Jason and Alex close the question and show with a strong Intelligence Driven Advisers belief that trying to predict or time the market does not work. Creating a globally diversified investment portfolio that is designed to weather changes within the economy and other unknown events is the best solution to continued success with capital market investing.  In this show you will learn about:- Government Spending- Interest Rates- Investment Diversification

Show Description: Jason and Alex started the show by taking a step back and reminding listeners and themselves why IDA’s team does not pick individual stocks and try to time the market. There are always unpredictable events that will happen with individual companies, such as Cox communication’s internet going down for multiple days unexpectedly. One of the biggest questions that clients and prospective clients have been asking is “What are you going to do to fight back against inflation?” Jason explained one of the main reasons that people are getting nervous about inflation is because the 10-year Treasury yield rose from approximately 0.5% up to around 1.7% in just a few months. Jason and Alex discussed the amount of debt in the U.S. that has grown to over $28 Trillion after the latest stimulus package. They explained how inflation is a general increase in prices and a fall in the purchasing value of money. A few examples of items that would be negatively affected would be food, gas, travel, real estate, etc. Jason talked about the crippling effect of shifting back to a country that is dependent upon other countries for oil and gas production, and this will really hurt the trucking industry and other workers that rely upon affordable gas prices to provide for their families at a sustainable level.  Alex asked a good question to find out what investments perform well during periods of higher inflation. This is a crucial aspect of the financial planning process to ensure IDA’s clients are able to keep pace with the purchasing power through the strategic allocation of their investment strategy. Jason explained how gold and broad commodities, natural resources, hard (tangible) assets such as real estate, and certain types of inflation protected bonds historically have performed much better during inflationary periods. Jason even touched on Bitcoin or cryptocurrencies in general being a good potential inflationary hedge in the coming years. This is still a speculative asset class to an extent, but it could become a more important piece of the overall portfolio in the near future. Jason also explained that now more than ever it is crucial to be careful with the types of bonds to own because we have been in a great 40-year period of bond performance while interest rates have been coming down and have remained low historically. Alex and Jason talked about the importance of not only being well diversified on the stock side of the portfolio, but also being well diversified on the fixed income or bond side of the portfolio.They stressed the importance of meeting with a Fiduciary adviser regularly, like the ones on the IDA team, especially at a time like this, to make sure that one’s financial plan is fully on track. Alex explained how now is not the time to have a large amount of cash in a client’s portfolio if a client’s main worry or risk is inflation. In this show you will learn about:- What should investors do to prepare for inflation?- Impacts of inflation- Types of investments that thrive in an inflationary period- Stress testing an investment portfolio to prepare for inflation

Show Description: Jason kicks off the show with giving an overview of when to look towards the topic to today’s discussion, alternatives. Alternative Investments become a viable option for investing when the public markets start to look too high, and questions arise as to how long this market run up can continue. Alex joins the discussion with stating the reality for most, alternatives are difficult and can continue to stump even the most astute investors. So, Alex opens the discussion with a question for Jason; Who should look to alternatives as an investment vehicle and who should not? Jason responds with clarifying first, what alternative investments are. It is an investment that is not available in the traditional marketplace with traditional liquidity. Traditional meaning publicly traded stocks, bonds, cash, and CDs. Alex reminds listeners that our core investment philosophy at Intelligence Driven Advisers is based on investing in efficient markets, stocks, and bonds. So, Alex reiterates to Jason when do we dabble in alternatives and how do we do that with conviction? Alex confirms with Jason that alternatives are inefficient markets. Inefficient markets are defined as an investment opportunity where you are potentially able to capitalize on the inefficiencies of an investment. Jason adds, finding value where others do not and reminds listeners that with traditional investing, we at IDA believe that the markets are basically efficient, meaning that the price you pay for stock in a publicly traded company is fairly priced. After the break, Jason begins to answer Alex’s question as to why and when to use alternatives in a portfolio by describing non-correlated investments that have desirable return characteristics and how they add diversification to a correlated portfolio.  Shifting the efficient frontier. When to invest in alternatives tends to be hinged on government regulations. Alternative investments have investor qualification requirements based on the nature of the investment. For some alternative investments there is an accredited investor requirement and for “most” alternative investments there is a qualified investor requirement. To be a qualified investor, one must have 5 million dollars of investable assets not including your primary home.  Many alternative investments are illiquid for an extended period where you cannot gain access to your initial investment. The regulations are in place to protect the public. Alex circles the call back to crypto currency and asks if this is a poor man’s version of alternative investing. Jason responds as yes basically and reflects on the E*TRADE commercials where the baby is buying everything with the simple click of a button and ends up losing his investments. Point being, you need to do your due diligence on any investment, especially non-publicly traded investments. Jason spends some additional minutes on crypto currency and on the due diligence he has personally done. Gives his perspective on where the future may be for an alternative currency. Private equity has been a market in the alternatives space that Jason shares insight on. Stating that companies that in the past may have gone public quickly are staying as a private entity for longer than they ever had previously creating demand for private equity investors. Companies are changing ownership two even three times before going public, creating huge private equity capital gains events. Jason and Alex close this week’s show with reiterating the illiquidity of most alternatives and how important it is to be smart with your decisions do your due diligence if you plan to invest in alternatives.  In this show you will learn about:- Alternatives- Crypto Currency- Private Equity

Show Description: Jason and Alex started off the show by saying that we are not going to execute on any investment strategy or implement a philosophy unless they have a substantial amount of data to back this up. They discussed how too many investors implement an investment strategy that is driven and based off emotions, feelings, and news headlines. In an environment like we are in currently with so much uncertainty in the market, the global economy, and from an everyday life standpoint, it is easy to get wrapped up in the rapidly changing news headlines and get uneasy.Jason talked about how one of the most repeated questions that he gets from clients is “what should we do now?”. He discussed how the answer to that question never changes no matter what is going on in the world around us. People should make sure that their financial plan is comprehensive in nature with specific goals being on track, and they have a solid, diversified investment strategy in place to accomplish those goals and ride through periods of volatility and uncertainty. Jason explained how the real question people should be asking themselves is if they should hire an adviser or not. They talked about how the market has continued to go up and for a lot of individuals it seems like it is easy to make a ton of money in the stock market, when this IS NOT the case over longer periods of time. They invited listeners to send their questions to jason@financialdetox.com or call 877-707-8889, and they will send them the Investor Behavior Study. Also, we will conduct an initial complimentary discovery meeting to answer some initial questions, find out about IDA’s comprehensive range of services, and establish if there is a good mutual fit to accomplish their goals and objectives. They also discussed how IDA is looking to grow and has a core mission of helping as many people as possible while not letting the level of service and experience dip for existing clients. Jason did a great job comparing a story of his son saying something he should not have to a classmate and not wanting to admit it was inappropriate to a client not wanting to admit they made an emotional investment decision based on emotions or outside influences when they should not have been reactive. One of the hardest things in life is admitting that you don’t know something, or you need help with something. Our team is able to provide individuals with so much financial peace of mind when they are fully able to let go and allow us to guide them down a path to a prosperous investment experience. They explained how it will not always be smooth, but it will ultimately be successful if we stay true to an investment philosophy and a strategic process.Jason and Alex finished by talking about a client that is still suffering from the trauma of selling at the bottom back in 2008, and how it has taken years of coaching to get him back on track. The ultimate purpose of Financial Detox is to detoxify people from toxic financial guidance or news.In this show you will learn about:- Why should you hire an adviser?- How to achieve a successful investment outcome.- The importance of behavioral coaching.- The road to a peaceful investment journey.

In this show you will learn about:- GameStop Short Squeeze- Options Investing- Robinhood vs Discount Brokerages vs Wirehouses- The Nasdaq likened to a Porsche

Show Description: Today’s show starts off with Jason and Alex sharing stories about trucks and the potential benefits of depreciating company vehicles warming into the topic for discussion. Tax Planning.Jason begins the discussion by reminding listeners that now is the right time to start tax planning for 2021 tax year, while you are doing your taxes for 2020. Alex adds that tax planning is one of the least enjoyable planning exercising and unfortunately most individuals are just happy to get it over with and not investigate forward planning. Alex suggests that when you are with your tax advisor completing your 2020 returns ask for a list of action items that you could have done in 2020 that would have reduced your taxable exposure. Tip #1Max out your retirement savings. Maxing out your 401(k) contribution allows you to defer taxable income. In 2021 you can defer 100% of your income up to $19,500 or 26,000 if you are 50 years or older. Individual Retirement Accounts (IRA) are also an investment vehicle not to be overlooked and can be utilized up until tax filing deadline of April 15th. Contribution limits for 2020 and 2021 in these investment vehicles are 6,000 and 7,000 for individuals 50 years old or older. Jason and Alex continue to share tax benefit options for different types of professions and businesses. Alex introduces Cash Balance and Defined Benefit Plans to the conversation and asks Jason to share his experience working with key self-employed clients on their complex business and retirement planning. Jason shares the benefits of these tax-deferred retirement vehicles and the large dollar amounts that can be deferred when tax planning is executed properly. Jason also touches on geographically relocating in retirement to reduce tax obligations. Alex chimes in sharing his experience while working with business owners and that although these retirement vehicles may be a bit intimidating and difficult to comprehend at first, it is worth checking out because it can be a huge game changer. Profit Sharing in a 401(k) is another component that is worth evaluating and utilizing if you are a business owner. Jason shares a story about a group of doctors and their experience utilizing the profit-sharing component within their group 401(k). Alex adds that the small business owner is the heartbeat of the country and like most individuals they are also looking for ways to not pay too much of their earnings toward taxes. This is a conversation worth starting up with IDA. The best tax advantaged investment vehicles available are offered to business owners. Jason adds that they are not too complex and well worth the time to understand. So please call Intelligence Driven Advisers to start a conversation. The last tax planning investment vehicle discussed is a Health Savings Account (HAS). If you have a high deductible health insurance plan you most likely are eligible to contribute to an HAS account. For 2021, maximum contribution for a family is 7200. Funded with pretax dollars and distributions eligible to be tax free if used for qualified medical expenses. This investment vehicle over a 30-year life span this will generate significant tax savings. Jason and Alex close the show with discussing some of the tax strategies that Intelligence Driven Advisers implements with all clients, specifically tax harvesting and the steps involved in properly executing this strategy. In this show you will learn about:- Individual Retirement Investment Vehicles- Tax advantaged Investment Vehicles for Business Owners- Benefits of Tax Planning

Show Description:Jason and Alex started off the show by welcoming Jim Pupillo, a Senior Wealth Adviser at IDA, who has a ton of industry experience, and specializes in providing his clients with regular Fiduciary advice pertaining to the company retirement and private wealth areas of the business. Jason discussed how the IDA investment committee spends countless hours stress testing and analyzing the asset allocation of the client portfolios to make sure that they are optimized given the current environment. Jim and Jason discussed how the rating systems for investment funds is not always the best aspect of analysis to be looking at when choosing investments.Jim discussed how you cannot just use the star rating of a mutual fund solely and then pick investments for a portfolio. There must be a comprehensive analysis done using numerous different metrics to make sure you know exactly what area of the stock and bond market that fund is targeting. He explained that this is a crucial step in building a great asset allocation. Jim explained that the ratings agencies use either returns based style analysis or holdings-based style analysis, and those are used to determine the fund attributes or factors of a specific fund. Jim also used a great analogy comparing building the appropriate investment asset allocation to building a cake, and you must have the right pure ingredients (factors), proper allocation amounts, and right mix of investments to have a well-built cake.Alex explained how it is our job as a Fiduciary investment management team to filter all the available information and investment options down through a well thought out, precise process to build our client portfolios. Jim stressed the importance of finding a professional who truly knows how to use these investment analysis tools because if they don’t it is like giving a machine gun to a toddler and hoping for a positive outcome. Jason chimed in and said that a lot of investment advisors at some of the larger firms are still constructing portfolios how they were building them back in the 90s and early 2000s, and with no care and concern for allocations to specific factors. Some examples of factors are size, value, momentum, minimum volatility, quality, and profitability, and these specific factors play a crucial role in constructing an investment portfolio. These factors allow us to extract returns from the global financial markets in a well-diversified manner to achieve the maximum risk adjusted returns for our clients.Jim and Jason explained what liability driven investing is and the process of solving for a clients required rate of return. This is so important in the financial planning process to make sure that IDA clients live a financially peacefully life.In this show you will learn about:- Importance of proper mutual fund analysis.- Role of a Fiduciary investment management team in fund analysis and information siphoning.- What is factor investing and why this is extremely important.- The importance of investing to achieve a target rate of return.

Show Description:In this episode, Jason and Alex open the show up to listener questions. Every couple months Jason and Alex collect questions from listeners, clients and firm advisers that are getting asked the most to share on the air.Question #1 - What should I expect from my portfolio if inflation happens?Inflation – Jason shares his thoughts and concerns around printing money and the growing deficit. Alex interjects stating that the government desensitized us with trillion-dollar figures. Regarding your investment, a well-diversified portfolio should contain hedges for inflation built into it. Jason continues with sharing some stories from older advisers from when he first entered the industry and thoughts from the tech bubble.Question #2 – One of the advisers in the firm, proposed a question around Crypto Currency. Is this something that we should be considering within our client’s portfolios? Jason comments, “this is a tricky one” and shares that he does own some bitcoin. Jason also, shares that there is an argument and a case for Bitcoin / Crypto Currency and Block Chain Technology. This is revolutionary technology and the process behind this technology will most likely have an impact on our day to day lives and usage of money. Alex adds that it is a purely speculative investment. Jason adds that currently, it is difficult to add bitcoin as a position within IDA client portfolios. Premiums are high within a bitcoin ETF, but eventually this will change. Jason and Alex add that as Bitcoin continues to stabilize and prove itself, you may want to put 1 or 2 percent of your portfolio toward it as a good inflation hedge.Between questions, Jason shares a new client experience. A new client to the firm that had created significant wealth over his career and is now retired. A client who had always had an advisor but had never received a comprehensive financial plan. For the first time, this investor could see the purpose of his years of investing through planning and “what if” scenarios. Jason closes this story with reminding listeners that too many investors and advisers focus only on the investments and not the planning process. The investment is only secondary to the bigger picture or financial well-being.Question #3 – Based on what the new administration seems to be focused on, what should I be looking out for? Jason responds that you must be willing to tilt your portfolio based on the global macro-economic environment. This does not mean you go in or out of the market completely. You keep your core portfolio is tact and make slight adjustments to remove where risks exist. IDA has the privilege of using a risk analyst tool that is the most sophisticated tool in the industry.Jason and Alex close the show with reminding listeners that whatever administration is in place, people with continue to use Amazon, buy cars, and participate in consumer buying. Human ingenuity will continue to prevail and if you are invested in a well-diversified portfolio you will do well. Especially if it is tied to professional management.In this show you will learn about:- Inflation Investing- Crypto Currency- Risk Analysis

Show Description:Jason and Alex reminisced on Joe Biden being inaugurated as the next President of the United States, and then signed 17 executive actions. Jason talked about there being a real problem in this country where we are being fed information and bias from a propaganda media machine. He said our country is turning more into countries like China and Venezuela, where the government only provides us with what they want us to hear. Alex and Jason talked about the importance of remaining informed as a wealth management team to make sure that our portfolios are representative of the changes in the global macroeconomic environment. Jason specifically talked about how IDA has strategic tilts in our portfolios to accomplish this and remain aligned with macroeconomic themes.Jason talked about the hypocrisy and barrage of misinformation from the mainstream media and difference of media opinions regarding the capitol riots and the “peaceful protests” that were not peaceful in fact. Jason and Alex talked about how 90% of all Americans would agree on most aspects of what they would want in life, generally speaking and politically, and there doesn’t need to be so much hatred and animosity. Alex brought up the great point of controlling what you can control, especially when it comes to investments and one’s personal relationships, because there are so many aspects of this life that we cannot control. They invited listeners to send their questions to jason@financialdetox.com or call 877-707-8889.Alex posed questions surrounding what this new presidency and shift in power means for the next four years from an investment outlook standpoint. Jason talked about how even though there is a Democratic President, House, and Senate there is still somewhat of a balance in power due to centrist leaning democrats in office that hopefully will not just say yes to any radical leaning or socialist agendas. We cannot predict the future, but Jason said that there could be some major shifts in production levels internationally versus the United States, particularly when it comes to oil and energy.Alex and Jason talked about how our firm bases all financial planning and investment recommendations on academic and historic evidence. There is consequential evidence that shows trying to guess and time the market is ultimately a fool’s errand. Our firm specializes in investment and planning strategies that are time-tested, and strategically aligned to provide clients with the most peaceful investment experience. The most important aspect of one’s financial life should be making sure that their financial plan is still on track to never run out of money for the rest of their lives while accomplishing any of their specific goals.In this show you will learn about:- The dangers of the media propaganda machine- What does a Democratic sweep mean for IDA’s investment outlook- Financial planning and investment strategies for periods of uncertainty- The importance of updating a financial plan with regularity

Jason and Alex recap some of the predictions made by strategists in 2020. If there was ever a year that we were reminded of the difficulty of making stock market predictions, it was 2020. To exemplify the difficulty of making market forecasts, we can look in the rear-view mirror at several examples of 2020 market forecasts and see how they turned out. A well-known financial publication surveyed 10 Wall Street strategists to gather their outlook, below are a few takeaways:The consensus of the strategists was that the S&P 500 would rise 4.1% in 2020, a substantial difference from the 18.4% that the index returned, despite all the headwinds faced. Even the panel’s most bullish member undershot where the S&P 500 would end up, estimating the index would rise to 3500 by year end. The strategists predicted that the 10-Year Treasury would end the year yielding 1.89%, a number more than double the 0.919%2 that we saw on December 31st. The strategists also didn’t expect the Fed to lower the federal funds rate to the level where it sits today, a target of 0% – 0.25%. The lowest range any strategist put on the rate was 1.25% - 1.50%. From a sector standpoint, 8/10 strategists were overweight financials going into 2020; the financial sector ended up being one of four sectors that experienced loses in 2020. Only two of the strategists were overweight the technology sector which ended up being the best performing sector. On the contrary, only one member of the panel was underweight energy, the sector that saw the lowest returns for the year.Another interesting highlight was that while the dramatic downturn was swift and steep, with the S&P 500 falling 33.79% from peak to trough, the recovery would be just as quick, as the index followed that up with its best 50-day period in history and returned 70.18% from March 24th through year end. Jason and Alex remind listeners that success in the market doesn’t require making accurate predictions, it requires the ability to stay in the game. An investor who is able to stay disciplined with their financial plan that their adviser sets out for them will be better off than one who constantly makes decisions based on “expert” market forecasts. Then the show gets interesting. Jason and Alex, against their better judgement and purely for entertainment purposes, attempt to make predictions about how 2021 will play out. These predictions are not meant to be investment advice in any way, shape or form. In fact the point they are making is how fun it will be to see how their predictions pan out. Fun being the objective and not meant for a successful, long term investment strategy. Enjoy the show!This information is provided for registered investment advisors and institutional investors and is not intended for public use. Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. This information is not meant to constitute investment advice, a recommendation of any securities product or investment strategy (including account type), or an offer of any services or products for sale, nor is it intended to provide a sufficient basis on which to make an investment decision. Investors should consult with a financial professional regarding their individual circumstances before making investment decisions.Past Performance is no guarantee of future results. Indices are not available for direct investment.

Today’s show kicks off with Jason and Alex introducing guest Rick Labrum, founding adviser to Intelligence Driven Advisers also Jason’s Dad and mentor. Today’s show discusses Smart Goals for 2021. Jason shares a story of how he and his boys applied a S.M.A.R.T. goal to make the game of golf more enjoyable for young players.Using the acronym S.M.A.R.T. to help define a goal.Specific (simple, sensible, significant).Measurable (meaningful, motivating).Achievable (agreed, attainable).Relevant (reasonable, realistic, and resourced, results-based).Time bound (time-based, time limited, tie/cost limited, timely, time-sensitive).After briefly describing the smart goals acronym and how it can be used to structure a goal, Jason and Alex ask Rick to share his thoughts. Rick comments that, it is very structured and that you would probably be successful if you used it, but in addition, it needs to be “Exciting and Fun” and not supposed to look like work. Rick continues that with visualizing the achievement of a goal it should create excitement and the excitement is the motivator to complete the goal. Alex adds how he came up with the topic for this show and shares some of the new year initiatives that IDA has set in place for its employees. After the break, Alex ties the discussion into applying these goals towards better financial wellbeing by providing three actionable goals to ideally complete within 30 days. The thirty-day challenge. Jason interjects and reverse engineers the discussion by using Rick’s earlier comments and asks the question, “Why” or what is the excitable motivator when it comes to achieving financial goals. Rick interjects that it starts with looking back and evaluating what you did last year and to create a list of things that you would like to improve on. Jason adds that incorporating the S.M.A.R.T. acronym to all aspects of your life will provide the necessary structure to achieve success. The conversation goes further into discussing the need for goals in general and the experiences each adviser has had from goal setting reviews with clients. The show closes with presenting the listeners with three actionable goals or the thirty-day challenge:1) Build a comprehensive financial plan that takes into consideration your investments, estate, tax, insurance, cash flow, and forecasts your entire future with the key objective to never run out of money. 2) Determine your target rate of return and savings goals to accomplish your financial plan. 3) Craft and implement an investment strategy that gives you the highest probability of successfully reaching your target rate of return across your lifetime. In this show you will learn about:- S.M.A.R.T. Goals- Levels of Goal Planning- Financial Goal Recommendations

Jason and Alex kick off the show sharing stories of family and staying safe around the holidays attempting to hold on to the traditions that we all have, while recognizing the current COVID protocols. With this intro, the show segues into the “Season of Giving” a discussion around charitable giving and the benefits associated to reduce your taxable liabilities. Alex references some charitably inclined billionaires and the strategies that they have implemented to give back to society. Jason interjects that we are the most charitable country on the face of the earth and that even smaller charitable donations can and will add up. With clients, IDA has been creating family foundations that require (per the client’s wishes) a 5% donation every year to a specified non-profit charitable organization. An awesome way for them to save a little bit on tax, but truly a way to be focused on giving for years to come. There were big changes in 2020 regarding the number of deductions that you can take. The IRS moved the deductible amount to 100% of your Adjusted Gross Income (AGI), up from 60%. In addition, there is discussion around the $300 dollar “above the line” deduction if you choose the standard deductions on your tax return. Alex adds that these adjustments were, in his opinion, a smart foresight by the legislators to recognize that this year will be an incredibly difficult year for non-profit organizations given the business closures and loss of income by many. Alex asks, what can individuals do to participate in charitable giving? Jason responds, that if you are donating to a qualified 501c3 charitable organization, you are participating and will receive the tax deduction. Jason also interjects, that he is a proponent of letting people decide what to do with their money rather than imposing higher taxes. By keeping taxes low and incentivize giving, you will better help the poor and less fortunate. Jason shares his experiences of being a board member of The Boys and Girls Club and the programs the organization has been able to provide. Alex adds his experience from this year’s Boys and Girls Club Gala and the amount of generosity given. Jason closes by saying that if people are left to their own devices, many will be inclined to give. Jason and Alex recap the topics covered, creating a Family Foundation, additional deductions offered in 2020, and individual 501c3 charitable giving. Jason elaborates on how wonderful and rewarding a family foundation can be if set up correctly. Jason closes the show discussing the benefits of donating highly appreciated stock. Gifting a highly appreciated asset to a qualified charitable organization will remove the tax liability on appreciation and allow the recipient to sell the asset with no capital gain tax. Alex adds that this can also be an available benefit when taking required minimum distributions (RMD). Jason reminds the listeners that this is a great time to get with a professional adviser and incorporate a charitable aspect into your financial plan. Which may be the most rewarding legacy you can leave. In this show you will learn about:- Family Foundations- Charitable Giving 2020 Enhancements - Individual 501c3 Charitable Giving- Gifting Highly Appreciated Assets

Jason and Alex talked about our proprietary 401(k) solution called Future Ready 401(k), which is for an any person participating in a 401(k) plan. This 401(k) retirement solution would bring benefits to the participants/employees, human resources department managers, corporate owners, controllers, directors of finance, etc. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889.Alex asked Jason what prompted him to want to create a better 401(k) experience for individuals. They explained that the Future Ready 401(k) experience is one in which all aspects of the 401(k) are bundled into one solution, so it is structed as transparent as possible and designed to make life easier for all parties involved in the 401(k) plan and corresponding processes. Jason also explained that he has been in business for about 22 years and has helped participants with all aspects of their 401(k) plans. This includes the investment selection, retirement education, contribution specifics, and plan design that is involved with the complexities of a company 401(k) plan. Jason continued to break down the main components of a 401(k) plan. This includes the adviser, who makes sure that the plan is fully on track and the investments are maximized, recordkeeper, where the participant goes to login to view their accounts, and the third-party administrator (TPA), who helps the plan with testing and other aspects of the plan. As a full time 100% Fiduciary firm, we do not receive commissions on ANY of the investments that we put our participants hard earned money into, and a lot of the 401(k) companies thrive on revenue sharing structures. In the 401(k) world, Jason explained that we navigate and make sure that we have the best, lowest cost investments for company participants to choose from, and that we provide employees with the highest level of transparency that we can. Jason explained that IDA just reached the incredible milestone of reaching $1 Billion in client assets under management (AUM). A major reason our firm has been able to reach this milestone is because we have constantly invested in the latest and greatest technology for our clients to make sure the client experience is in the top tier in the financial industry. Future Ready 401(k) is an all-inclusive solution to make the 401(k) planning/ongoing implementation processes as smooth as possible. Jason explained that IDA’s 401(k) solution is much different than a bundled solution in many ways. This is because those larger plans tend to be concentrated in that companies’ investment fund lineup, there could be several revenue sharing pricing structures in place, and the plan will typically end up with a 1-800 number customer service line where participants do not have a relationship with a lead adviser, leading to the participant being confused on the best path to retirement and improperly educated on the importance of contributing towards their retirement in the 401(k) plan.Jason and Alex also explained that Future Ready 401(k) provides investment solutions that are based off numerous factors that are tailored to a participant’s specific goals and objectives. This was built based on participants investing and contributing towards specific future goals. This is not just based off a specific retirement year how most target date funds are invested. Jason and the IDA 401(k) team have built a multi-factor approach to 401(k) investing that builds a customized investment portfolio for each participant within a 401(k) plan. This is extremely unique in the industry, and there are very few, if any, advisers that are providing innovative 401(k) solutions to their clients to provide this level of additional value.

Show Description: Jason and Alex started by talking about how this year has brought their family’s closer together with one another. There have been a lot of ups and downs this year and it has been filled with tremendous hardship for a lot of people, and much prosperity for others. Jason talked about how negativity and people having negative attitudes is at an all time high, and how it is almost trendy to talk about the doom and gloom. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889. Jason explained that our IDA team serves a vast range of clients ranging from very high net worth clients to more mass affluent households, and we are always ready to serve new individuals with their financial goals and financial challenges. They made the joke that we work best with clients ages 1 to 100, but it is very true because we provide multi-generational wealth planning to numerous families. Alex talked about how it is very important for people not to fall asleep at the wheel during the holiday months or at the end of the year. There are several tax planning opportunities and deadlines, investment strategies, and other aspects of client’s financial plans that need to be properly attended to by year end.Alex changed the course of conversation to the hardest questions that were received throughout the year. Jason explained that the average year has about 14% volatility in U.S. Large Cap stocks from peak to trough in any given year over the span of the past 40 plus years. He also explained that markets go up and down every day, but a lot of clients had forgotten what market volatility was over the past ten years because the markets have been so strong, especially the U.S. stock markets. Alex brought up a great question that was received by a prospective client earlier in the year amidst all the market volatility. “What does your firm do when there is a once-in-a-generation event like a global pandemic.” Jason reminisced on his answer by explaining that we stick to our core investment philosophy by maintaining a well-diversified portfolio, focusing on strategic asset allocation, implementing the most sophisticated investment tax strategies, and making sure to rebalance to make sure the portfolio is aligned with a client’s financial plan. This investment philosophy is rooted in data and evidence, and it is extremely crucial not to get wrapped up in media headlines. Jason and Alex talked about the countless clients that were reaching out asking if they should get out of the market when the market was down 20-30%. As a result of all the turmoil surrounding the COVID global pandemic and its affect on the global stock market, clients were getting emotional with their investments out of well-justified fear. Alex talked about a client’s investment horizon being much longer than when they simply reach retirement. A client’s investment horizon is really the rest of their lives, so if they are planning to live into their 80s and 90s, then there will be several more periods of market volatility that they will need to be patient through. Jason responded by saying that investing is not easy, and most individuals associate risk of losing their money with volatility. In order to succeed as an investor, you have to remain disciplined and stay true to your investment philosophy. In this show you will learn about:- Lessons learned from 2020- Great questions asked from the past year- Strategies that were implemented in 2020

Show Description: This week’s show starts off with Jason and Alex sharing what they are thankful for and what IDA will be doing as a give back to the community. “Wreaths Across America” a benefit that honors past veterans, by placing holiday wreaths onto their grave sites. The employees of Intelligence Driven Advisers and their families will be placing wreaths on over 400 veteran grave sites at the Fallbrook Masonic Cemetery in Fallbrook Ca. This patriotic gesture leads the conversation into respect for our country and the sacrifices that were made for the better of mankind and the ability to practice freedom of speech. After the introduction, Jason and Alex segue into discussing what it means for a financial firm to deliver value by introducing a Delivering Value Series. This week’s show focuses on rebalancing as a value add. Jason challenges listeners to ask their current advisers how they approach rebalancing their clients’ accounts, to see if they can eloquently explain the process or even have a process in place. Jason continues to explain the basics of rebalancing by using a simplified pie chart with two assets classes only, stocks and bonds. A portfolio made up of 50% stocks and 50% bonds as the initial investment. Fast forward one year and reevaluate the weightings between stocks and bonds. In a positive stock growth year, the portfolio will be out of balance with stocks representing a higher percentage of the total portfolio, say 60%. A rebalance would be required to maintain the original intent of the portfolio (50/50). You would sell 10% of the stocks and with the proceeds buy bonds to rebalance back into a 50/50 portfolio. Alex challenges the thought by asking the question, why would you sell something that has been going up and buy something that has been performing poorly? Jason responds with how important it is to have a rebalance strategy. Yes, it may feel wrong to sell something that is performing well, but rebalancing a portfolio is a necessary ongoing task to maintain a properly balanced portfolio. It cannot be an emotional knee jerk reaction. A systematic approach is necessary and is probably worth on average 1-2% a year. Alex adds that it even ties into behavioral coaching because it can be such an emotional thing. IDA can take an unemotional approach and have processes in place, but if this were his own money, it can be difficult to make decisions to buy and sell without letting your emotions get in the way. Jason reminds the listeners that all clients at IDA have discretionary trading in place. This means the firm trades all accounts on the client’s behalf. Jason continues by giving a more in-depth explanation of IDA’s proprietary rebalancing program called Tolerance Band Rebalancing a software that looks at each individual asset class separately and sets tolerance bands based on historical returns for each asset class. To properly execute this strategy, you must have discretion on all accounts under management. Alex adds that, within the industry, most assets are still traded as non-discretion which is highly inefficient. A non-discretion trade requires an advisor to contact the account owner and receive authorization prior to executing the trade. Jason and Alex close this week’s show with wishing all listeners a Happy Thanksgiving and to be thankful for all we have here in America. Also wishing that all people reconcile their differences, whether it be politically or any other way.Please send questions to jason@financialdetox.com or call 877-707-8889.In this show you will learn about:- Rebalancing- Tolerance Band Rebalancing Strategy- Discretionary / Non-Discretionary Trading

Show Description: Jason and Alex began by saying the main purpose of the show is to help individuals steer clear of toxic advice, prevent them from making great behavioral mistakes, and helping individuals create disciplines and philosophies to think about building wealth. Jason talked about how most advisors do not do tax planning, such as tax loss harvesting in a client’s portfolio, until the end of the year, which may be too late. Many of those advisors have already missed opportunities to save their clients thousands and thousands of dollars over the span of their financial lives.They pivoted and started talking about the TRUE value that we brought to our clients back in March when we had one of the fastest selloffs in market history. It is hard to quantify in numbers the true value of bringing peace of mind to our clients during periods of economic and market distress. If a client makes one of the greatest behavioral mistakes and sells to cash at a market bottom, this is not a few hundred dollar decision, this could be in the tens, if not hundreds of thousands of dollars compounded range of a decision. They discussed that these feelings/emotions are real and justified during these periods of market uncertainty, and it is our job as advisers to be sounding boards and a voice of reason within the storm.Alex explained that we are financial coaches that lead our clients to focus on the things that we can control because there are so many aspects of this rapidly changing world that we cannot control. He also talked about the two key areas of our business that are financial planning and investment management, and even though that does not sound interesting, they are both equally important and crucial to our clients achieving financial success. The financial planning is important because it puts everything into perspective and creates a road map for client’s financial goals and objectives. On the other hand, the investment management is the strategic execution of how we invest our client’s hard-earned money, another crucial role in achieving one’s financial goals and getting to a place of peace of mind.Alex and Jason explained that taxes are an aspect of a client’s financial plan that can be controlled to an extent. They went into greater detail about what tax lost harvesting really is. Tax loss harvesting is when you have a portfolio position that went down temporarily, an example of this would be small cap stocks being down 40% or more back in March, and then you purposely sell that investment and go buy another investment that is not substantially similar to remain in that area of the market because you believe in owning it long term. You can use that loss to offset ordinary income or future/current long/short term gains. They explain how this could save large amounts of tax dollars if executed correctly year in and year out. Alex explained that here at IDA we scan for these opportunities every single day. Even though we do not trade every single day, we are looking for these opportunities regularly. Four major investment companies quantified the value of tax loss harvesting and tax sensitive asset location to be up to potentially 1.5% of additional value directed to client’s pockets. This is a huge deal and is a very important aspect of strategic asset management that is commonly missed by most advisors. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889.In this show you will learn about:- Delivering value through tax planning/execution throughout the year- Quantifying the value that we bring as a Fiduciary Adviser- Tax loss harvesting and the strategic, controllable benefits

Show Description: Jason starts the show with stating that, “if you’ve recently sold a business, have a stock position with a lot of long-term capital gains, or thinking about selling a piece of real estate with a lot of appreciation, you need to listen to this show and pay tons of attention”. Alex chimes in stating, that this is one of those opportunities that is relatively new. Only three years old. Alex mentions the beginnings of 401(k)s and 1031 exchanges as examples. If you have a potential liquidity event coming up, you may want to pump the brakes before paying the taxes and investigate Qualified Opportunity Zone Fund (“QOZs”).Jason explains that basically, three years ago, legislation was enacted through the Tax Cuts and Jobs Act, that focuses on creating growth and job opportunities in underserved communities, into which new investments may be eligible for enhanced tax treatment. Alex adds that this is not only a tax benefit but also provides a new investment to invest in and helps our country. Jason states “Profit with a Purpose” stealing a line from Urban Communities, a real estate partner. He continues that Urban Communities purpose is to totally renovate communities and create an unbelievable lifestyle for their residents with new apartment homes, workout classes and gardens. Alex adds that energy efficiency is also a big topic of this program. Jason circles back, calling out to investors who have sold a business or have a concentrated stock position with large capital gains, QOZs will give you some tax benefits. QOZs have been designated across all fifty states. Currently there are 87 hundred QOZ funds available. However, you need to be careful about who you invest with. Alex adds that there are pros and cons to this and to think about where you are investing. Typically, these are areas where no one has wanted to invest in previously. What are the benefits of this investment? Does this real estate group have a track record of adding benefit to underserved communities?Jason segue’ s into the three major tax benefits of QOZs: deferral of the recognized capital gains, reduction of capital gains, and elimination or tax-free returns on QOZ investment. He further goes into outlining the timing of investment and time periods required to gain full benefits. Alex mentions that from what he is hearing from Jason, this is not something that an individual will be reviewing on their own. A team of investment professionals will be required to execute due diligence and research on all the investment options. He adds that Intelligence Driven Advisers is currently reviewing a QOZ fund that is looking to raise a billion dollars. Big players are involved in this space. Jason adds that real estate developers involved are some of the biggest companies in the country with long track records. Players like, Clarion and Related. He adds that he would ONLY invest in a company or group with a long-term track record. Alex asks for clarification, as earlier mentioned, QOZs have only been around for a short time. Alex and Jason confirm that you should look for companies that have a history in “substantial or original development”. Jason further drills down into the renovation requirements placed on the development companies. Basically, the purchase of a 20-million-dollar building will require an additional 20 million in renovation to qualify as a Qualified Opportunity Zone. Jason goes on to share his personal experience with an investment into an underserved community and how moving it was to see an area that was rundown go through gentrification. Jason continues with breaking down the potential tax benefits with giving examples based on dollar figures and how the deferrals can provide other investment opportunities. Jason closes out the show with stating, there is way too much to cover in a twenty-five-minute show, so please contact us if you have additional questions. Jason invites listene

Show Description: Jason started the show by introducing a special guest Estee Gubbay, who is a luxury travel expert with Luxurist Travel. Thomas Ohanesian, a wealth adviser on the Financial Detox team at IDA, also joined Estee and Jason in the studio. He talked about how everyone is fed up with talking about the elections and all the nonsense that is going on around the world, so it is perfect timing to pivot and talk about wealth management and bearing the fruits of hard work by traveling. Estee is a travel specialist who just wrote the exciting book Your Travel Bucket List, which will be available on Amazon. The book is a combination of a travel guide, self-development tool, and portfolio planner for travel all built into one book. Jason and Estee discussed the challenges and their experiences with writing their books, and how it is a very challenging process that takes a lot of patience over time.Estee talked about how it is the perfect time to start talking about travel again because everyone has been cooped up for so long. Thomas talked about his fortunate experience of being able to sneak in his honeymoon to Thailand and got back February 28th, which was right before the travel lockdown was in effect. Estee talked about whether or not it was safe to travel right now. She explained that it was a big, resounding YES because all the necessary safety precautions at home are the exact same precautions that you would take on a vacation or trip. The travel industry is doing everything they can to make the stay as safe and comfortable as possible, and it is almost like a private vacation when staying at most of these hotels right now.Jason talked about the mission of Financial Detox, which is to help people make smart decisions with their money while maximizing their financial lives. Estee and Jason explained how clients work so hard to earn money and achieve financial success all their lives, and they deserve to spend their money on travel, having experiences, learning about different cultures, and simply enjoying life. They agreed that it is very important to properly budget before heading on a trip, and Estee does a great job of this throughout her travel planning process. A major aspect of the financial planning process is helping clients determine their life’s purpose. Estee talked about how the experience working with her to plan travel is different than most “travel agents” because she helps clients plan for their future planning goals, just like a financial planner does.One of the major value adds that IDA brings is helping clients achieve the best financial lives they can, and typically, at the center of that conversation is talk about travel. They invite listeners to send their questions or call Estee directly at 858-381-7713 to learn more about her comprehensive travel services. For a small planning fee, Estee will help clients with every aspect of planning their next memorable trip! In this show you will learn about:- Fiduciary wealth management and bearing the fruits of hard labor through travel- Estee Gubbay’s book Your Travel Bucket List- Maximizing your financial life through experiential travel- The major role that travel budgeting and goal establishment play in a financial plan

Show Description: Jason starts this week’s show off with an introduction to special guest speaker Brian McArthur from Bridlewood Insurance Services, a Medicare Insurance Agent. Jason asks Brian to set the record straight with the timing of enrollment and the choices available. Brian takes Jason’s lead and explains that Medicare is a deadline driven industry that markets with fear to obtain your business. By age sixty-four, be prepared to receive more marketing material than you could ever imagine. Be proactive and reach out to an agent sooner than later to begin the process of learning what options will be best suited for your health insurance needs. Alex joins the conversation and reinforces the need to speak with a Medicare insurance specialist and adds that the complexities within this space are difficult to comprehend without the support of a subject matter expert. Jason continues the conversation by outlining Brian’s role as a Medicare Insurance Specialist and confirms that you cannot go direct to Medicare to purchase insurance. The purchase of this health insurance needs to go through an agent. Brian continues by stating that one of the values is understanding what the government is going to cover and not going to cover based on a client’s financial outlook. Brian adds that, while he cannot claim to be a full fiduciary as he is a commissioned insurance agent, he always works in the client’s best interest. Jason takes this moment to reiterate the basis of the show Financial Detox and the values that the show is based on. After a short commercial break, the show segues into the planning process for Medicare and the approximate fees a client can expect to pay. Brian spends a good amount of time outlining what one can expect to pay towards supplements and how the expenses can vary given annual income and one-time liquidity events. Jason reviews some of the figures mentioned to drive home the point with listeners that having an income plan and making good choices can help to manage Medicare expenses. Jason adds that so often, he sees clients and advisers approach planning for Medicare expenses as a kind of,” back of the napkin” approach. This lack of detail can create a significant short fall in retirement planning. The show continues drilling into the numbers, with Alex asking, what is the number for Medicare Inflation? With Brian’s response, the show goes into a deeper explanation of Medicare payment schedules. Jason wraps up the show with stating that Medicare is a semi complex decision in retirement that needs to be tied to your financial plan. Given the unique complexities, it is best to work with a qualified insurance agent that specializes in Medicare. Brian McArthur is who IDA uses and recommends. Jason offers to provide listeners with a complimentary investment portfolio analysis/stress test second opinion, and the opportunity to have a draft of their financial plan built out. They also invite clients to reach out for a complimentary initial introduction conversation with Clay Willits to see if there are potential benefits of further tax planning. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889.

Show Description: Jason and Alex started by talking about quantifying how we deliver true value to our clients as Fiduciary advisers. Jason explained how numerous clients have reached out to him because they were very nervous about the market around the election. They explained how some of these behavioral mistakes are not just 1,2,3 percent negative decisions. This could result in much more than 10, 20, 30+ percent negative decisions. Jason talked about not being able to time the market in a reliable manner, and even if you get it right the first time, there are no guarantees that you will get it right the second time. It is the job of a Fiduciary adviser to tell their clients no when they want to time the market, and stand up and protect their clients. Jason explained how his clients are afraid of a Biden win or a Trump win, and the market going down. He talked about the contrarian, strategic approach of buying more stocks when the market goes down because there will be areas of the market that will be cheap and attractive from a long-term return perspective.Jason explains how people should desire to have an adviser that will be confident enough to tell them the things that they do not want to hear. This will ultimately protect them from blowing themselves up from an investment or financial planning standpoint. Jason compares this to a doctor telling someone to stop eating sugar because they are overweight and will die if they continue down this path. Some people would be offended by this approach, but most should appreciate the doctor looking out for their patient’s best interests because they truly care about their health. This is exactly how we treat our clients, while maintaining our integrity and caring attitudes.Jason and Alex discuss how there is an average drop of 14% every year when talking about peak to trough. Volatility is natural and normal and is part of investing. Sometimes it lasts for a very short period, and other times it drags on for a few years. Investing is an emotional journey that is not meant to be fun. They discuss that this can be a miserable, and investors mainly want to know that they are protected, and it will all end up okay in the end. A time horizon is extremely important when implementing the appropriate investment strategy because investing is meant to be a process over time, not based on a moment in time or a single election.One of the major pillars of investing is diversification, and they discuss how this is so important to help smooth out volatility and risk. Diversification is the best way to grow wealth over time. Jason explains that alternative investments can play an important role in a well-diversified portfolio for certain clients. Examples of these types of investments are private equity, private debt, real estate, etc. These investments are in areas of the market that are not publicly traded. There are risks associated with these types of investments, but there are a lot of positives in the private markets. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889.In this show you will learn about:- Delivering value through intelligent asset allocation and behavioral coaching.- The negative effects of timing the market.- The hard truths that come from a Fiduciary adviser.- Alternative investments and their potential role in a well-diversified portfolio.

Show Description: This show launches show number one of the series. “Financial Detox Investing 101”. Jason shares a recent experience while traveling with some individuals who are well versed in business but have been misinformed based on the overload of information when it comes to investing. Information that is presented in multiple mediums, none of which is pointed and direct in helping them understand what they should be doing with their accumulated wealth. Alex enters the conversation by stating that often people will, quoting the phrase, “buy what you know”. People tend to buy stock in companies that they know or products that they use and trust. This series will cover five necessary components. Things that you or your adviser should be doing daily to manage your assets. This show, one of a series of five, will focus on Asset Allocation. Alex and Jason go into defining the different asset classes and how many sub-asset classes there are. Jason directs the focus of today’s show on Large Asset Classes. Alex and Jason will cover Cash, Bonds, Publicly Traded Stocks, and Alternatives. Jason defines Alternatives by offering some examples and Alex adds that this assets class tends to attract investors with exciting products but can also cause the most damage if not properly understood. After the first commercial break, Jason and Alex continue the topic of allocation and use the correlation of life and having multiple things that you enjoy to asset classes and being diversified in how you should invest. Alex poses some question; Why should you use multiple asset classes? Why does it matter? And can I just buy stocks? Jason responds and shares some insight on how the firm builds and manages portfolios along a spectrum. A spectrum that covers all investment needs from capital preservation to aggressive. Alex brings the discussion back to asset allocation and asks Jason to further describe the major asset classes in a typical IDA portfolio and how many asset classes one expects to see. After responding, Jason spends some time discussing bonds and some sub asset classes within the bond market. While discussing the types of bonds available, Jason takes the conversation deeper and touches on yield and the need and desire for some investors and advisers to chase yield. Unknowingly exposing their portfolios to excessive risk. Jason and Alex segue into equites and the sub asset classes within the equities market. Jason shares the benefits of being globally diversified based on historical data, even though the current U.S. equity markets have been a successful investment. Alex closes the show with stating that the point of this series is to learn to control what you can control, diversify, and follow evidence based proven facts and data when building a successful portfolio. In this show you will learn about:- Asset Allocation- Alternatives - Bonds- Equities

Jason and Alex started by talking about how they were excited for the 1st presidential debate, but they slowly became more and more disappointed that Trump and Biden are the best representatives that this country can offer its great citizens. Jason talks about how he was watching the debate with his wife and kids, and they had to turn it off because it was not something appropriate or positive for his young boys to be watching. Alex asked if Jason’s kids Dax -9 and Luke -11 had shared their perspective on the debate, and he talked about how he has observed that his kids and most kids almost always mirror the views and ideas they observe from their parents.Jason and Alex discussed how politics have become a show at this point, and how our country’s founding fathers talked about how it would lead our country down a bad path if we ever got so divided that both parties essentially couldn’t work together in any capacity. They discussed how capitalism is a beautiful thing that can spread prosperity and opportunity for all, but when taken to the extreme it can be very bad if there are no boundaries or regulations. Alex discussed how the media, especially the political-based media, is nearly 99% opinion and is designed that way to rile listeners up. There needs to be more regulations and disclosures surrounding the broad based media sources because it is almost like they are able to put any information, even if it isn’t 100% factual, out to the general public in a convincing manner.Jason and Alex discussed how it is so important to have regulations in the financial industry. The SEC is the governing body over IDA, and we are legally bound and obligated to do what is in our clients very best interests. This is extremely important in our industry because there are so many potential conflicts of interest, especially if an advisor works at a firm that has a broker dealer offering a list of products. Jason explains that most insurance salespeople have product bias, and they tell their clients not to worry because there are no fees and the insurance company pays them.Alex then ties this regulation back to the media and said that they are not paid to report the truth, they are paid to report what will sell. Jason and Alex explain that conflicts of interest are present in the financial world, social media, and all other sources of media. They talked about the importance of seeking the truth no matter what the source is because there is so much information available, and a good portion of this information is bad and doesn’t have the end person’s best interests in mind. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889. In this show you will learn about:- Summary of the 1st presidential debate- The importance of regulations surrounding capitalism and political media sources- The importance of regulations in the financial industry- The conflicts of interest present in the financial world, social media, and all other sources of media

The end of the year is near. The time is now to prep for year-end decisions. Today’s show covers topics around year-end planning and reviews the things that you have control of within your financial plan. Alex starts the show with discussing interest rates. Rates are at historic lows in terms of borrowing and you should be exploring your options to take advantage of this low rate environment.Jason shares a story about a client that he recently spoke with were it did not make financial sense to refinance and to watch out for toxic information. This client was initially led into thinking that since everyone has been talking about refinancing. She should as well refinance. This is not always the case and working with a trusted professional is key. Alex discusses how banking institutions are requiring investment assets to be moved into the lending bank prior to loan approval to potentially qualify for a reduced mortgage rate. Unfortunately, this scenario does not guaranty a loan approval and can disrupt a well-managed investment portfolio. Jason adds, not to mention, the potential tax implications of selling securities with gains to satisfy the lender’s request. Closing take away; be sure to work with trusted professionals that work together to manage your best interest. Jason segued into the topic of paying off your loan early and how it typically does not make good financial sense given the current low interest rate environment and the potential average rate of return in an investment account. Alex adds that those focused on paying off their loan tend to under fund retirement accounts and miss out on compounding interest and growth. Rebalancing your portfolio is the second topic discussed. Jason posed the question, how many clients that manage their own investments, properly rebalance using a strategy or philosophy? AND how many advisers do account rebalancing the right way? Jason further explains tolerance band rebalancing used in Intelligence Driven Advisers (IDA) portfolios and the benefits associated. Alex discusses how this year has been an incredible example of portfolio management through rebalancing and utilizing tax loss harvesting as another component of rebalancing. Tilting your portfolio to stay in line with global macroeconomic themes, is the third topic that Jason and Alex introduce. Where are we in the economic cycle? Politics, protests and movements are events that you need to be aware of, but do not let these short-term events dictate big moves in your portfolio. No, rather, make small tilts. Jason uses the analogy, of fine tuning the frequency of an old radio to make the signal sound crystal clear. Jason provides further explanation of tilting positions within your portfolio. Alex and Jason close the show with reminding listeners to save, given the current COVID environment many activities such as vacationing have been cancelled creating additional cash flow. Individuals should have more money available. Unfortunately, many are spending money on items that they do not need. Instead, use those savings to max out your retirement accounts and add to your investment accounts.In this show you will learn about:- Interest Rates and Refinancing- Portfolio Rebalancing - Tilting Portfolios

Jason and Alex start the show by talking about a movie The Social Dilemma, a film first played at the Sundance Film Festival. The movie was created by a group of tech mogul executives and others members of the major social media companies. They discussed how we use social media for IDA as a business, but they are conflicted internally about whether or not social media is a good arena to share content based on how it is destroying everything good in our country right now.The average child has a cell phone at age 9, and they are exposed to YouTube and all major social media sites at such a young age, where their minds and opinions are molded. Jason humbly expressed that we are not proclaimed social media experts, but we are investment experts. He also explains that these platforms are designed to distract and reward distraction and keep us hooked. This is done at the expense of our well-being while collecting as much data as possible. They are then able to sell more adds and more specifically tailored adds to people, which makes the end company very wealthy. Alex remembered that the movie pointed out that there are only two businesses that call their clients “users”, drug dealers and software providers. This is mildly disturbing when you connect the two because they are using us as individuals to sell ads to the end “user”.Jason and Alex talk about the democracy dilemma. Political polarization and divisiveness are a direct result of content on these social media platforms that strongly promote fear, greed and drive further engagement. Jason and Alex tied this to financial media sources and how the truth is boring. They only make money if they can stir up fear and emotions in their listeners or viewers because it causes them to take action. Most of the time, this is not good action, it is poorly timed, and very costly. They talk about how the right way to invest is not meant to be like going to Vegas to get that gambler’s rush, it is meant to be consistent and reliable over periods of time.Jason talks about how there is so much damage being caused by social media because it is further enhancing the political divide that is present in our country. It is so easy to find information and content that promotes conspiracy, outrage and deception, and these platforms have algorithms that continue to feed more information to the users based on their tendencies. This drives more clicks to make more money at our expense. Alex discusses that the original goal of these companies was to connect people and allow people to congregate no matter where they are geographically located.Jason discusses how Wall Street and the major financial media sources are designed to get people engaged negatively, just like social media sources. Markets and how they operate have evolved over time from the barter system to the efficient markets we have today. Those systems are still necessary, but the toxicity surrounding those systems causesmajor mental health problems for people today. They explain how the biggest companies are making tons of money every day by getting investors convinced that they have all the answers, even if it is not the best way to invest. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889.In this show you will learn about:- The Social Dilemma- The toxic role of social media in people’s lives- The social media dilemma relating to democracy- The mental health issues associated with social and financial media sources

Show Description: Jason and Alex open the show with the analogy, as one problem goes away, new issues arise. Like a never-ending problem. Jason touches on the election and how people choose to process information. Information such as the current issues in our economy and the issues that we are facing as a society. Alex and Jason cover some of the biggest questions that are being asked by clients during these unprecedented times. Jason comments on clients wanting the firm to recognize that, these times feel different and that we are in a period in the market not like anything previous. Jason and Alex continue with discussing the benefits of having an adviser that provides a strategy and a consistent process that guides them through difficult times. Jason continues with discussing the ideologies of Intelligence Driven Advisers (IDA) the investment firm associated with Financial Detox.The discussion Segway’s into how markets perform during election years and if there are any patterns. Jason provides some historical data on election years and states that, what we do know is, “control what you can and ignore what you can’t”.Alex and Jason continue with a discussion on controllable factors within investing. The discussion goes deeper into factor investing and being cognizant to global macroeconomic themes. Jason reviews the concept, Financial Detox. Jason correlates toxic foods with toxic thoughts and how a toxic thought process can cause you to make investment blunders, financial mistakes and potentially destroy your long-term investment returns. Jason refers to a comment that Alex made at the beginning of the show, “problems will keep coming back”. From here the discussion goes into looking back at history and all the radical events that seemed very different at the time, but were they really? In the end, are companies going to continue to produce goods and services and are we as consumers going to continue civilization as we know it. Definitively, yes. The show closes with “yes”, there will always be a Three Headed Hydra out there but stay focused, get a financial plan and stay the course. Jason offers to provide listeners with a complimentary investment portfolio analysis/stress test second opinion, and the opportunity to have a draft of their financial plan built out. They also invite clients to reach out for a complimentary initial introduction conversation with Clay Willits to see if there are potential benefits of further tax planning. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889. In this show you will learn about:- Election Patterns- Controlling what you can control - Global macroeconomic themes and factor investing- Historical events and the effects that they had on the market

In this show, Jason and Alex talk about the importance of integrating and closing the circle of advisers for a client. It is extremely important for a financial adviser to be working with the CPA to collaborate on behalf of the client to make sure their financial lives are maximized. Clayton “Clay Willits” was a guest speaker on the show, and he is IDA’s newest member of the team and leader of IDA Tax. He got his CPA license back in 1984 in CA and has been working in public accounting, tax, and then went back into the private industry as a CFO for several industries. The last 18 years, he has been working with individuals completing their tax returns and assisting with various levels of tax planning. Clay was a board certified flight-instructor.Jason explains that incorporating the tax advice and financial planning together as a one stop shop is so beneficial for our clients. Alex explained how we always bring the CPA in as much as possible even when they are not in house to make sure that the best possible decisions are being made. IDA Tax is the in-house IDA tax division. Jason and Clay explain that this is a powerful proposal to be able to offer a sit-down meeting with both the financial adviser and the CPA in one meeting to maximize the time for the client.Jason, Alex and Clay discuss specific end of the year tax strategies. End of the year is the perfect time for tax planning, especially for business owners that have businesses and business entities such at S-Corps, LLCs, Sole Proprietorships, etc., as they are the individuals that are able to utilize more complex tax planning strategies. Clay explained further that W-2 employees are more limited with their options to save money on taxes. He also stressed the importance of meeting with the CPA in November or December to discuss transactions they may enter into for business purposes such as purchasing a new vehicle or purchasing other capital expenditures to take advantage of bonus depreciation. Jason explains that it is also important for younger individuals making large sums of money to start planning for their retirement now, and there are more complex savings strategies that can be implemented to save much more money on taxes than the traditional 401(k), IRA, or SEP IRA account structures. In the proper situation, a solo 401(k)/profit sharing plan, Cash Balance plan, or Defined Benefit plan can be included, and this could allow clients to save hundreds of thousands of dollars in tax savings over an extended period of time, and also save MUCH more for retirement. These more complex plans must be setup sooner, and the funding doesn’t have to happen by year end. A lot of times this can happen by the time they file their tax return, even if they file an extension.Clay talks about some of the biggest pitfalls for financial advisers in relation to tax planning. One of the biggest mistakes that he has seen is in the timing of realizing capital gains and capital losses. He had a client that sold a piece of real estate for a large gain in one year, but didn’t tell the financial adviser about the transaction, and there were substantial temporary capital losses that could have been realized in the taxable account. Clay emphasized that these losses MUST be realized in the year the gain occurs. This is also known as tax loss harvesting, which this strategy is utilized every day at IDA for our clients.In this show you will learn about:- Introduction to Clayton “Clay” Willits, Lead CPA of IDA Tax- The importance of collaboration between a client’s Financial Adviser and CPA.- Specific strategies for business owners to save money on taxes, and the best time for tax planning.- Some of the biggest pitfalls in tax planning for Financial Advisers and CPAs

Jason Labrum opens the show with a story about a new prospective client who at the end of 2019 had 2.9M in investable assets drop to 900k within nearly nine months. After looking into what the portfolio was comprised of, is was apparent that the client had been working with a broker dealer who had sold them two highly commissionable products. The products were BDCs (Business Development Corporations) and Non-Traded REITS. A commission to the broker upwards of 15%.Alex Klingensmith adds that at a one-million-dollar investment the commission would be paid to the broker dealer first and the client would start with 850k investment. In addition, and unfortunately for this client, these products did not experience the rebound that the market experienced during that nine-month period.Jason and Alex continue the topic of, Investment Products, a discussion that will help their listeners think about, what is being sold to them and who is selling it. Jason adds that you need to be very wary when buying an upfront commissionable product and ask yourself, “How come there needs to be an upfront commission to sell these products”.The two products that are highlighted in this show are BDCs (Business Development Corporations) and Non-Traded REITS. These two products seem to continue to be associated with lawsuits and bad press.Jason begins the discussion on BDCs with a broad overview of the investment product. Alex adds some personal experiences on BDC products that have been brought to the firm by clients and the unfortunate outcomes (small business loans, liquor licenses, and taxicab licenses).The show continues with Jason and Alex opening a deeper discussion in to BDCs.Alex shares some history on BDCs and a look into The Investment Act of 1940 and the amendments that were made in the 1980s to allow for BDCs. Jason and Alex discuss further the lack of rules around BDCs.Jason shares how broker dealers can up sell clients on all the bells and whistles that become available to the BDC investor, like access to private markets and venture capitalists.Alex adds that catch phrases like, “Private Markets and Venture Capitalist” sound cool to the investor and can make them more interested in buying into the product, making a small investor feel like he can invest like “rich people”.Jason closes with what BDCs typically invest in and the speculative nature of the investment.Jason and Alex bring the discussion back to asking, “Why”. Why can this product advertise potential yields of 8% to 10% when traditional bonds are yielding 2% or 3% maybe 4%? You must go back to one of the fundamental principles of investing. Risk and return are related.Jason and Alex segway into Non-Traded REITS stating that these products are popular and that there are a lot of Non-Traded REITS currently being offered.Jason shares that there is a big well-known San Diego advisor whose whole book of business was built on Non-Traded REITS.Jason goes into describing the mechanics of Non-Traded REITS and the similarities to BDCs. He further describes the difference between buying these products from a Registered Investment Adviser (RIA) and a Broker Dealer. Outlining the commission structures associated with broker dealers, calling this “toxic”.Jason sums up the topic of BDCs and Non-Traded REITS with specific reasons to avoid these products. For example, hidden commissions, lack of regulation and no requirement to disclose financials. Jason and Alex close the show with some straightforward advice, “Do not buy a Non-Traded REIT or BDC from anyone other than a Registered Investment Adviser (RIA)”.In this show you will learn about:- Business Development Corporations (BDC) as a commissioned product- Pros and Cons of BDCs- Non-Traded REITS a commissioned product- Reasons to avoid Non-Traded REITS

In this show, Jason and Alex talk about stress testing portfolios and how to invest for the future. This is extremely important given all the uncertainty surrounding potential election results, and the future of our economy. The main goal is to stress test client financial plans and investment strategies to truly achieve financial peace of mind. This allows investors to make good financial decisions by cleansing their financial mindsets to focus on things they can control. Alex discusses that highly contentious elections, civil rights movements, and democracy aren’t new things, but the way that investors and leaders choose to act around those major events is an opportunity to build and improve on experiences from the past.Jason and Alex talk about what a financial plan really is. They define a financial plan as taking all financial information in one’s life and programming it into a very sophisticated software that models out ANY potential scenario. This would include all assets, all liabilities, income sources, taxes, inflation, expenses, all expectations about markets and performance of specific markets, rental real estate specifics, buy/sell business and real estate transactions, etc. Jason explains that the software has the ability to analyze and show the output for ANY potential financial decision, and show the cause and effect relationship between crucial decisions surrounding saving more, spending less, investing more aggressively, retiring at different ages, and insurance coverage just to name a few. Jason compares this to several hundred engineers sitting in a room analyzing a client’s financial situation.Jason explains that it doesn’t matter if someone has hundreds of millions of dollars to invest or five hundred thousand of investable assets, a financial plan should be the cornerstone of any person’s investment strategy. He explains that Monte Carlo analysis is also known as probability analysis, and this involves taking into account hundreds of factors to show what is the probability of success within one’s financial life.Alex explains that one of the number one financial fears is running out of money. The main goal of Monte Carlo analysis is to show the probability of not running out of money, and then good financial decisions can be made based on the proposed outcome. Jason explains a financial plan is run through 1000 random variations and sequences of returns looking back over 40 years of outcomes. If the success ratio is too high, then there are specifics ways for clients to maximize their financial life. Long term goals and objectives and a client’s target rate of return are based heavily on the probability of success.Jason and Alex talk about the Aladdin portfolio analysis tool that has the ability to stress test a client’s portfolio in a wide range of different ways to show what would have happened during historical periods and through potential major economic events/changes in the future.Jason offers to provide listeners with a complimentary second opinion, and the opportunity to have a draft of their financial plan built out. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889.In this show you will learn about:- The accurate definition of a comprehensive financial plan- Monte Carlo analysis and investment analysis tools used to stress test a financial plan and investment strategy- How to determine the appropriate investment strategy and target rate of return for a client- The Aladdin analysis tool and its capabilities to show shocks to an investment portfolio

Markets are at an almost ALL time high, there is an upcoming election and the Pandemic is still present. Jason Labrum and co-host Alex Klingensmith discuss the market and why it continues to tick up. The focus of the show today will discuss New School Factor Portfolio’s and what that means to investors. Markets are forward looking mechanisms- taking all the collective knowledge of the entire universe and the market participants who are researching, analyzing, and forecasting to get a clear picture of what to expect. Today’s topic focuses on the evolution of science in investing- Factor Investing. Invest your portfolio with the lowest possible cost, maximum tax efficiency with the best potential returns for the amount of volatility and risk you are willing to accept. New School Factor Investing is not new in the sense that it’s never been done before, its more of an evolution of science and data and how to best accomplish rates and returns given the lowest volatility possible. Bonds are traditionally bought because they are lower volatility than stocks. Bonds have a lower volatility where stocks have a higher rate of volatility and both have risk associated. So the question becomes, how much of my portfolio should be bonds. What is your target rate of return? In other words what is the return you need to achieve the financial life and the purpose you've set forth for yourself. We help you design that through the financial planning process. And then we decide how much bonds versus equity goes in the portfolio in order to achieve that return with the least amount of volatility possible. What is factor investing? It is the continued evolution of investing that is long time tested, philosophically driven data driven, proven investment strategy. This strategy assumes we will continue to change and model as new information becomes available, as research becomes better, as technology becomes better as markets change.There are certain characteristics of portfolios that have yielded additional returns over time, or there is some measurable benefit to having a portfolio with those characteristics. Factors Include:MOMENTUM, VALUE STOCKS , SIZE FACTOR, COUNRTY DOMICILE, MINIMUM VOLITITLY, PROFITABILITY OR QUALITY OF COMPANIES Factor Investing applies tilts to these specific factors or characteristics that have proven over time to have an impact on return in a portfolio. In this show you will learn about:- When to use Bonds, How to use Bonds, and Why to Use Bonds?- Dollar Cost Averaging vs. Lump Sum Investing- What is Factor Investing?-Risk and Return ARE Related______________________________________________________________________________

In this show Jason and Alex answer questions from listeners. They invite listeners to send their questions to jason@financialdetox.com or call 877-707-8889. The goal of Financial Detox is to provide consumers with access to quality and complimentary financial education.Alex offers sage advice to listeners who have a relationship with a financial advisor: Do not hesitate to ask the genuine questions that are on your mind.He then shares a listener question that has been on many minds: “Considering the upcoming election, what is the plan if things tank?” Jason importantly breaks the question down into 2 parts. First, he educates listeners with the fact that election year outcomes are not correlated to stock market performance. It is impossible to predict how the market is going to perform according to which party in office. Historically the data shows no correlation. Second, the Financial Detox team’s plan is to stick to the long-term financial plan and investment strategy already in place. A common is mistake investors make is changing their investment plan according to the news, events, and hype out there. Alex points out fear and greed naturally, as human beings, cause people to make significant investment mistakes. Jason stresses that investors should take action on a regular basis, as needed, according to an investment philosophy; not in reaction to events. For example, investors should continue to re-balance the amount in each investment according to a target amount.They share a second listener question, which is similar to the first: “Why shouldn’t I make tactical changes to a portfolio?” Dimensional Funds, a respected provider of investment research, uses a metaphor to effectively answer this question. They point out the similarities between making tactical changes in a portfolio and betting on sports; making tactical investment changes in response to news is like betting. Each tactical decision and sports bet take quite a bit of stress, energy and luck; imagine trying to keep repeating that over time. Jason stresses the importance of having a portfolio and an investment philosophy that gets you through good times and bad. Some tactical aspects, such as considering themes like the technology revolution, should be included when creating a portfolio. However, the tactical aspects should not be driven by events; they should be driven by investment philosophy.Jason shares the importance of first creating a financial plan that shows what rate of return need is needed to meet ones’ goals. Only after that is done can an investment strategy be properly created.Alex offers a pressure-free and complimentary video meeting to listeners who are stressed and looking for help in these times of global economic turmoil. Jason cautions that there are huge differences in quality of financial advice; always get second opinions because there are good advisors and bad advisors out there.In this show you will learn about:- Why investors should not change their investment strategy in response to news and events- How election year outcomes are not correlated to stock market performance- Tactical changes that are good for investors to make and which should be avoided- The importance of seeking a second opinion when hiring a professional for financial advice or managing a portfolio on your own.

In this show Jason and Alex debunk the common perception that performance of markets is correlated to which political party is in office. They warn against misinformation out there surrounding this topic; investors may make costly mistakes when they make changes to their portfolio based on prediction of election results.They present historical data, since the S&P 500 was created, that show there is no pattern of market growth or decline according to which party is in office. Jason offers to share this Investing During Election Years report with listeners. Interested listeners should email him at jason@financialdetox.com for a complimentary copy of it.Jason and Alex then stress the importance of focusing on what investors can control, amidst the shut-down of the global economy. They offer a complimentary second opinion to any listener who would like advice on their portfolio, including a risk analysis. The Financial Detox team has a world class risk analysis tool.In this show you will learn about:- How performance of markets is not correlated to which political party is in office- Why investors should be invested for the long run and why they should not make changes based on predictions of election results- Why investors should be discerning of information disseminated by the media- The importance of focusing on what can be controlled in a portfolio amidst the global economic shut down

In this show Jason and Alex educate consumers on how to avoid the common pitfalls of annuities, and the uncommon reasons why one could be an effective part of a portfolio.They begin by warning listeners that most people who sell annuities are highly compensated for selling them, via commissions paid by the consumer. Thus, they prioritize selling them over other financial solutions. Jason offers to listeners free education about annuities via a phone conversation. Listeners can call the Financial Detox team for the unfiltered and unbiased truth about annuities, as they are full-time fiduciaries. They do not sell many annuities, but they do occasionally recommend them to clients when they are appropriate. In the rare case they do recommend an annuity, they do not allow their advisers to take large compensation upfront. Rather, they allow them to take small compensation up front and level it over time so there are no biases to recommend certain products. He also lets listeners know they can learn the unbiased truth about annuities from his complimentary book, Financial Detox, which can be obtained by emailing him at jason@financialdetox.com.Jason warns listeners that seeking advice on or signing up for an annuity from a person who is not a full-time fiduciary should be avoided. Annuity Salespeople who are not full-time fiduciaries typically claim, to the consumers they sell annuities to, that the insurance company pays them. They typically mislead consumers by not truthfully disclosing how they are compensated.Alex then presents pros and cons of annuities, and how their features can be very complicated.They then discuss whether investors should insure their portfolios just as they would insure their cars or homes. Also, whether returns from annuities can be large enough to surpass taxes, inflation, and fees. They come back to their stead- fast principal that annuities do not make sense for most people. They only make sense for investors who truly can’t stomach volatility and can accept the cons, such as dismal returns.Jason ends the show by reminding listeners that the guiding principal for all investors should be to first build a customized financial plan. He stresses the importance of seeking advice from full time fiduciary advisers at businesses who are Registered Investment Advisers, who provide advice on a personal basis. In this show you will learn about:- The common pitfalls of annuities- The uncommon reasons why an annuity could be an effective part of an investors’ portfolio - Pros and cons of annuities- When seeking financial advice, why it is important to seek advice from full time fiduciaries at businesses who are Registered Investment Advisers

Jason and Alex commiserate with the audience on the resurgence of COVID-19 cases across the country. In a world that seems to be changing rapidly they bring the conversation back to focusing on what we can control, taxes and insurance being the focus of today’s show. They start by addressing insurance because many investors are asking about principal protection and alternative asset classes. While annuities do provide principal protection and guaranteed income for life, they explore the various issues that surround them. Jason reminds listeners that one of the things that makes him most frustrated with annuities is the people that sell them and how they fail to disclose their compensation. They also tend to not fully explain how investors miss out on the power of the markets and forego liquidity of their money by purchasing annuities. Alex reminds listeners of his learning experience being in the annuity only industry 15 years ago and how important it is to have a process based financial planning approach to identify whether an annuity makes sense or not. If it does, the financial plan is so helpful in making the initial recommendation and in reinforcing the decision when reviewing and monitoring the plan over time. This process is missing with many annuity salespeople which is highly problematic. The show shifts to the CARES Act next. Jason and Alex speak about the provision where 2020 Required Minimum Distributions, or RMD, has been waived. This presents a significant opportunity for listeners who are 72 or older and have RMD. You do not have to take RMD this year. If you already took it you can roller it back into your IRA. You can also convert the amount into a Roth IRA if you are ok with the tax. Unfortunately, the devil is in the details with IRAs and the CARES Act. The Act also changed Inherited IRAs by shortening the length of RMDs for Inherited IRAs to 10 years. This is a far cry from the previous term of the beneficiary’s life expectancy, which in some cases could be 50 years or more. Jason and Alex go on to explore these tax planning pros and cons and the need for many to see if there are any opportunities to do some tax planning. In this show you will learn about: - The pros and cons of annuities - The importance of using a financial planning process to determine if you could benefit from an annuity or an alternative investment - Tax planning strategies under the CARES Act, especially for those over 72 years old - Whether 2020 is the year to do a Roth conversion

In this show Jason and Alex provide listeners with a high-level process for building an optimal portfolio. They educate listeners on the importance of understanding and applying behavioral science and factors to this process.Jason and Alex begin by sharing where their educational videos for consumers can be found: on the financial detox webpage: https://www.idawealth.com/learn/the-financial-detox-show/ and on the IDA’s You Tube page: https://www.youtube.com/channel/UC_uyRpMCu6GIpq_YiwL_Ibw.They bring to light how important discipline is to investor success. Success in investing requires having a disciplined investment philosophy, and continuously working to improve it. Understanding behavioral finance and factors are vital to this.Jason and Alex discuss some types of behavioral mistakes investors typically make. They highlight regret, due to the importance of freeing investors lives of unnecessary stress and investment mistakes. They discuss how behavioral finance shows people should control the things they can and ignore the things they can’t control.They then educate listeners on what factors are, and share examples of types of factors. Successful investors need to determine which factors have persistent higher probabilities of having better performance, based on long term historical data. Jason shares with listeners that factor index investing is now offered to investors. Traditional index investing is weighted by capitalization (size of business). Now factor investing is available to give investors low cost, tax efficient exposure to stocks with minimum volatility.Jason then brings the discussion back to the vital principal of starting with a financial plan before building a portfolio of investments. First the rate of return needed for a person’s goals need to be determined through a comprehensive financial plan. Only then can the optimal investment portfolio be built to achieve those goals.Alex points out there is an often overlooked easier and more successful way to manage investments through crises: prepare for the worst-case scenario before it happens. It is important to stress test financial plans ahead of crises to have peace of mind throughout the crises. He also reminds listeners tokeep in mind, during crises, that not all publicly traded companies will cease to exist at the same time, and if they do, then we all have much greater problems.They close the show by offering listeners a financial plan and comprehensive risk analysis of their investments, both complimentary. IDA has access to a top-quality risk analysis tool. It deconstructs risk in portfolios, looking at risks to portfolios such as pandemics, inflation, etc.In this show you will learn about:- The importance of understanding and applying behavioral science and factors to investment management- Examples of behavioral mistakes investors are prone to making- How factor index investing is now available to investors- Examples of factors in investing- The importance of stress testing financial plans

Jason and Alex invite special guest Scott Palka to the show, to help small business owners amidst the “new normal” of continuous change. They announce that IDA is now filming all shows, to provide an additional educational resource to consumers.Jason begins the show by introducing Scott, jedi master of helping business owners financially plan. He is the creator of an innovative model that helps small business owners with high level financial planning. This simple, short term projection tool provides a range of estimates for different scenarios, to help business owners make better decisions.Jason points out how difficult it is to be a successful investor without a quality financial plan, and the consequences are even more severe for business owners who lack a proper financial plan.Scott shares a common mistake he has seen small business owners make in these times – focusing on how to accomplish PPP forgiveness, at the expense of focusing on what is going to get the business through the crisis into next year. The modeling tool helps business owners run a variety of scenarios to see what they need to do to ensure viability of the business going forward. He cautions business owners to do this when they have money so they can make adjustments and get to the recovery from this crisis; don’t wait until money has run out to find out the business isn’t working.Jason points out how great the correlation is to financial planning for people’s life savings – projections and scenarios are vital to run for success.Scott brings to light how business owners can get help with financial planning if they do not have a CFO. He offers to share his “do it yourself” modeling spreadsheet and his webinar that shows how to use it, with listeners. Please contact IDA via the "contact us" form in this post if you would like to receive these. He specifies it is designed for business leaders to use themselves to determine directional strategy and model potential scenarios. It is not for sending to financial professionals to use. Scott advises business owners look at the big picture first, then have accounting professionals drill down for more detail.Scott then shares a real-life example of how his model helped a local restaurant create a plan for how to get through the crisis this year.They close the show by sharing the important fact that financial planning helps business owners sleep better at night amidst the new normal of continuous change. Agile businesses will not only survive but thrive. Alex stresses the importance of optimism about the future amidst the different challenges people face from the pandemic.In this show you will learn about:- How business owners can financially plan for different scenarios amidst the new normal of continuous change to survive the crisis and thrive- What types of financial planning business leaders should do for themselves, and what types should be outsourced to accounting professionals.- Some common mistakes small business owners are making and the importance of focusing on financial planning to get a business through the crisis rather than how to get their PPP loan forgiven.- A modeling spreadsheet Scott built (complimentary to listeners), and how it can be used to help small business owners survive and thrive- How running projections and scenarios in financial planning are vital to both personal and business financial success

In this show Jason and Alex present what investors should do amidst all that is happening in the world, in these uncharted waters.They begin by sharing the purpose of the show, which is to advocate for consumers by providing financial education free from any conflicts of interest. Jason brings to light that most financial radio shows’ purpose is to sell commission based, high profit products. IDA does not any sell products, as they are full time all the time fiduciaries who objectively build comprehensive financial plans that optimize their clients’ financial lives.Jason and Alex discuss how relevant Jason’s book, written multiple years ago, is to the present crisis, as it lays out a plan for how investors can successfully navigate uncharted waters amidst crisis. They discuss how important it is for investors to have a financial plan and make intelligent and disciplined decisions with their life savings in uncertain times. Alex educates listeners by suggesting investors block out all noise and focus on the basics of what they need to do to get through the crises successfully. Jason offers a free book to listeners, to help them avoid making common mistakes with their life savings, especially as mistakes are so common during crises.Next Jason and Alex answer a listener’s question: “Why should I continue to invest globally, as international investments have performed dismally over the past 5 years?” They answer the question by sharing the data, that shows trying to time which asset class is going to perform best next is a recipe for failure. Investors are more successful when they diversify in a way that matches their personal financial situation – their financial plan. Chasing performance does not work, as different asset classes perform better in different times and there is no way to predict which will do best at a given time.Jason shares an example of how chasing performance does not work. Most 401k participants pick their investments within the plan by looking at short term performance (1 to 3 years). Alex points out that we are all trained as consumers to do this, i.e. read recent reviews, although it is detrimental to success in investing. Investors succeed rather by investing in a globally diversified portfolio and having, and sticking to, a financial plan that works to achieve personal goals.They close the show with beautiful fact that sticking to basics, your long-term financial plan, in unchartered water not only yields financial success but importantly, peace of mind during stressful crises.In this show you will learn about:- IDA’s mission to provide objective, non-biased financial education to consumers- How important a personal financial plan and discipline are to investor success in uncertain times amidst crises- Why investors should diversify their invested assets globally- Why selecting investments based on how they have performed short-term is a mistake

Jason and Alex begin the show by discussing a concern on many peoples’ minds amidst the pandemic: how will probable inflation from stimulus programs affect our life savings? They highlight the importance of having a plan in place to protect life savings from inflation amidst sky high fiscal stimulus. Not only during a crisis and after, but most importantly before. They begin by explaining why we need to plan for inflation, as inflation is a major way life savings are diminished if not properly planned for. Jason points out inflation has been 4% on average annually over the last 50 years. Bottom line is peoples’ dollars need to earn more or their value will be eroded over time. NBA and philanthropic super star Brad Holland joins the show, bringing an authentic perspective on the challenges families and non-profit organizations, and businesses, are facing amidst the pandemic. CEO of Boys and Girls Club of Carlsbad, Brad shares his concerns about not knowing where the economy is headed, as he works hard to keep the local Boys and Girls Club’s doors open to 800 kids a day who need their services. He also shares his concerns for his own family’s financial lives. One of which is higher taxes. Jason agrees that tax strategy is even more important nowadays, in a portfolio and financial plan.Jason and Alex then present specific financial strategies to keep in mind nowadays. Including the timeless importance of having an optimal plan for your life savings in place before crises, and sticking with it during and after, while rebalancing allocation as needed. They caution investors to not take any wild reactive actions like going into all gold or cash, or changing asset allocation. They end the show by stressing the importance of people having faith in the long-term resilience of capitalism, when making decisions regarding their life savings. And how running scenarios in financial planning, like not having social security benefits in retirement, can help to reduce stress during times like this, and help families prepare for the potential effects of economic crises They also discuss how stocks, commodities, real estate and cryptocurrency perform in inflationary times. In this show you will learn about:- The importance of having a financial plan in place before, during and after times of economic crisis- What you can do strategically to protect your life savings from inflation- How running scenarios in financial planning can help to reduce stress and plan for potential effects of economic crises on life savings

On this show Jason and Alex welcome special guest Scott Heinila, Regional Direction at Producer’s Choice Network. Scott joins the show as an insurance expert, particularly in the field of long term care. They discuss the importance of having a comprehensive conversation in the form of a financial plan in order to be prepared to recommend proper insurance solutions. Jason points out that many insurance professionals in his past experience have tended to do a poor job at this. Instead of assessing the entire client situation, they push insurance products as the total solution, possibly because that is the only licensed specialty that they possess. Scott shares why his firm has developed a niche in long term care mainly as the result of the boomer market demanding it. He shares that the headwind of filling this demand is actually coming from the financial advisers of the boomers. He shares a statistic of a recent study done by Lincoln Financial, a leader in the space. 62% of boomers today are having conversations about long term care with their friends and family, but only 5% of clients are having the conversation with their financial advisers. Scott explains the importance of proper education for both the adviser and the client regarding this conversation. There are many myths surrounding long term care, including the one that misinforms us that long term care is only useful if you are in an assisted living facility. In fact, most claims are for services rendered to people that are still living at home and require skilled nursing, which is covered by their policy. Another one is the lack of education around the traditional “use it or lose it” policies compared to the new “asset based” policies that are becoming more and more popular due to their flexible benefit nature and the fact that the repositioning of assets can leverage their estate far beyond what used to be possible. Anyone who has had the conversation about long term care, or is even thinking about it should tune in to this show.In this show you will learn about:- Expert advice on how to talk about long term care- The reasons why there is lack of information on the topic- The difference between “use it or lose it” and “asset based” long term care- Why long-term care is becoming more and more important to understand and prepare for it

Show Description: Jason and Alex pick up where they left off on last show with other financial advisers as their target audience. They begin by reminding listeners that the Financial Detox team at Intelligence Driven Advisers have a purpose to educate, empower and eliminate toxic financial advice. This purpose rings true in their communication with advisers and investors alike. They begin by addressing the fact that the mega firms that we all know do not tend have a guiding investment philosophy. Instead they are more like a grocery store that has a wide spectrum of products that they offer. Advisers are the shoppers, able to select any product they would like in these stores full of various product types. Their decisions determine what the end client experience will look like. Through both bear and bull markets they are on their own in shopping and building out an investment philosophy. Imagine what the client experience must be like. Another real problem exists with the conflicts of interest that are prevalent in the methods of compensation from the product manufacturers to the firms and their sales force. If one product pays a firm, or their sales force, more than another there will always be a bias that could alter the recommendation given to the client. The show also goes into the importance of establishing a business plan built on the foundation of purpose, values and a vision. Jason shares the framework of the IDA business plan and gives some examples of how decisions are made and based off of it. At times like these when a crisis hits that plan is vital to fall back on and guide us through it, all the while adhering to discipline and processes that were built to stand up to good times and tough ones. In this show you will learn about:-The Purpose, Values and Vision of the Financial Detox team at Intelligence Driven Advisers-How financial advisers are like shoppers in a grocery store and why could be a problem-The importance of having a business plan for your advisory practice

Jason and Alex are almost always speaking to investors, but in this show they shift gears and focus on talking to the financial advisers out there. There are many types of advisers, and advisors, out there. Independent financial advisers, financial consultants at large wire house firms and low-cost brokerage houses, insurance professionals, and the list goes on and on. There are so many types of professionals that work in these various forms, both individually and as teams. The quest to serve clients and provide clients the best possible financial advice unites all of them. Jason shares his story of spending six years at Merrill Lynch, then another six years at Smith Barney, now Morgan Stanley. He recalls the silo environment, the lack of transparency in how the firm received revenue from both clients and the industry, and how that created massive conflicts of interest thus resulting in biased investment experiences for investors. There appeared to be no uniformity on what an investor experience was supposed to look like so advisers were left to pick from a menu of options that seemed endless and riddled with conflicts of interest. There were dozens of advisers in one office, hardly any of which shared the same investment philosophy. This must have been incredibly confusing for the investor. He talks about how he didn’t even know what a fiduciary was at that time and how little education there was about the topic. Alex shares his story of starting out in the insurance industry as his first career out of college. He talks about how his experience during this most recent market drop has been so much different than the prior one in 2009 when his only focus was providing fixed insurance solutions for clients. Owners of fixed index annuities were not nearly as panicked as investors who owned stock and bond portfolios. This short-term reprieve from volatility was replaced with much lower expectations on long term growth. It was only after meeting Jason in 2012 that his eyes were opened to the world of what a full-time fiduciary wealth management client experience was, and how powerful it could be when combined with a comprehensive financial planning process. These stories are shared to personalize their journeys to listeners and remind them that we all have origin stories. Our stories help to guide us in making decisions in how we serve clients. Listeners who are not financial advisers can glean perspective from learning how these foundations drive what financial advisers do for their clients. All advice is truly not created equal.In this show you will learn about:- The financial adviser “origin stories” of Jason and Alex- The difference between advisers who work at large wire house firms and the independent adviser- How working as a full-time fiduciary can truly benefit both the client and the adviser, creating a long term sustainable business model- How working on a team can bring and adviser peace of mind when confronting extreme market volatility

Show Description: Today’s show captures some of the emotions felt by Jason and Alex during the recent shut-in. Jason is fired up and unleashes his opinions and disagreement on some of the recent decisions and news being spread across the country. He talks about why it’s so important to source information and act on confirmed data rather than emotionally charged information that may or may not be true. He points out the potential conflicts that hospitals have in their reporting of COVID-19 deaths and how that might be skewing statistics that many of us rely on to gain comfort around containment of the virus. They also discuss how inconsistent and problematic it is for state and city officials to open, and then close, some beaches and how those decisions may actually be politically motivated rather than objective in nature. None of this disagreement is meant to lack compassion for those who are threatened by the virus. They shift gears away from politics and healthcare and back to their expertise, investing. Investors have been faced with more volatility since the Great Depression and Great Recession in less than two months and it’s completely normal to feel anxiety and the impulse to take action. These emotions stem from our most primal instincts – fear and greed. The world of investing presents us with many decisions to make, what asset classes to own, how much stock versus bonds to own, even whether it makes sense to invest in entire countries or not. With events like these, Jason and Alex reveal their own emotions based on current events and explore their thought process in how important it is to reinforce emotions, information, and ultimately investment decisions with processes and procedures meant to stand the test of time and to weather all storms. Without spoiling the rest of the show, we remind you of the show’s purpose: Educating, Empowering and Eliminating Toxic Financial Advice.In this show you will learn about:- How Jason and Alex feel about certain recent news and decisions being made regarding COVID-19- How to navigate the emotions that we are all feeling and channel them into sound investment making decisions- What the future might hold for investors and how important it is - Will “Made In America” start to matter more than ever before?

Show Description:In this episode Jason and Alex revisit the concept of stress, especially as it pertains to investing. At times like these that test our emotions, it is more important than ever to focus on the things that we can control and accept what we can. It’s also easy to get caught up in the massive amount of information that is everywhere regarding COVID – 19. We are all trying to become experts as quickly as possible, but the truth is that very few of us are qualified sources for this type of information meant to be giving advice to others. The same can be true of those who give investment advice. One of the most stressful things an investor face is being invested at times when markets are dropping. It feels like you are out of control and that you are losing hard earned and saved money. This feeling motivates some to sell out of fear. Then the fear of losing ends and a new, much scarier fear replaces the old fear. The fear of not being invested when the markets recover and skyrocket to new and higher levels than ever before. Investors know that they face this emotional test and know that being invested means a greater chance of accomplishing their financial goals. The actions that we take are ours to control as are the emotions that come along with them. Jason and Alex talk about things that you can do if you did sell and go to cash or move to all bonds when that wasn’t part of your investment strategy prior to the recent drop. They also explore the concept of using annuities and other alternative asset classes to further diversify a portfolio. Some common messages resurface in this episode. You need to have a financial plan that takes all factors into consideration. Your investment strategy should be determined by this plan and when emotions run high the best thing you can do is go back and reference your plan.In this show you will learn about:- The stress associated with being invested compared with the stress of not being invested, especially during extreme market events like COVID-19- Things that you can do now if you did sell at, or near, the most recent market bottom- How to use an evidenced based investment philosophy to support adding an alternative investment to your portfolio

Show Description: In today’s show Jason and Alex start by reminding listeners that in this time of Easter and Passover many people find themselves in a very strange situation. Holidays like these are ones that many of us are accustomed to being together for, and unfortunately many of us can’t this year. One of the positive things that we hope to come away from this with is a much stronger sense of appreciation for sharing these kinds of experiences with one another. We will not take them for granted in the future. On January 11th China state media reported the first known death from what was then an unknown new virus. On January 30th the World Health Organization declared COVID-19 a global health emergency. Since then investors have been on the rollercoaster ride of market swings in the double-digits. Daily! On February 19th the S&P 500 hit an all time high of 3386, dropping by 34% to the most recent bottom on March 23rd. A mere 14 (market) days later (April 9th) it’s up over 25%. Other major indices like the Dow Jones and MSCI All World index were right in line with similar numbers. Jason shares with listeners what The Financial Detox Team at Intelligence Driven Advisers (IDA) was doing before, during and after these major milestone dates. As history unfolds it is more important than ever to have an evidenced based investment philosophy backed by a consistent, measurable process to implement, monitor and execute upon. The team’s mission is “To Steward True Financial Peace of Mind For All”. In this vein IDA is making a bold offer; free investment management and financial planning to all new clients for six months. More details on this offer can be found here. If there was ever a time to evaluate your financial plan and investment strategy, it is now!In this show you will learn about:- What the IDA Client Experience is like (Free for six months!)- What our team was doing for investors before and during COVID-19- What we will be doing for investors after COVID-19- How quick markets swing; 28% in 14 days!

Show Description:On this show Jason and Alex discuss the massive stimulus program called the Coronavirus Aid, Relief, and Economic Security (CARES) Act. One of the components of the Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Another component that peaked the interest of many is the provision to send most Americans direct payments of $1,200, or $2,400 for joint filers, plus $500 for each child. The amount of the payments will be reduced for those with higher incomes. For individuals filing taxes as singles, the reduced amount begins at an adjusted gross income (AGI) of $75,000 per year and is completely phased out at $99,000. For joint filers, the reduced amount begins at $150,000 and payment is eliminated at $198,000. Your AGI will be determined by your 2019 tax filing (or 2018, if 2019 is unavailable). Yet another component that many people have started asking questions about are the provisions that have relaxed some of the retirement account rules. Jason cautions listeners to consider this as a last resort because the impact of using retirement money could have major negative affects on long term financial success. The show is simply not long enough to cover the numerous provisions to the stimulus and Jason and Alex remind listeners that the Financial Detox team at Intelligence Driven Advisers has a network of specialists dedicated to being a resource to any individual or business that has questions or needs guidance on the program.In this show you will learn about:- The CARES Act and a few of the provisions that might impact you- How the Act aims to help small businesses- How the Act aims to help most Americans via direct payments- Some of the retirement account changes that have relaxed some of the rules

Show Title: IQ, EQ and FQ and why FQ Matter Right NowShow Description: This show explores the definitions and relevance of an investor’s IQ, EQ and FQ. Major market events like the one that we have been experiencing these past few weeks puts us to the test on all three. The DALBAR Quantitative Analysis of Investor Behavior Study uncovers data that explains the mistakes that investors make. These mistakes tend to be driven by emotions and have caused investors to underperform broad markets significantly over the past 20 plus years. The show starts by discussing our intelligence quotient (IQ) which is a total score derived from a set of standardized tests designed to assess human intelligence. Next is our EQ. An average EQ score ranges from 90-100, with a perfect score measuring 160. Those who score high on this test tend to demonstrate tendencies to make an effort to understand and empathize with others. Those with below average EQ scores can increase their emotional intelligence by learning to reduce negative emotions. Finally, there is our FQ. Financial Quotient (FQ), also referred as financial intelligence (FI), financial intelligence quotient (FiQ) or financial IQ, is the ability to obtain and manage one's wealth by understanding how money works. Like emotional quotient (EQ), FQ derived its name from IQ (intelligence quotient). Our financial wellbeing is the consequence of large and small financial decisions. A higher FQ score can be obtained and enhanced through education. Jason and Alex help listeners understand the importance of FQ, especially during times like these. In this show you will learn about:- How an investor’s IQ, EQ and FQ all play a role in their investment experience- Why the average investor has underperformed the broad markets - How to improve your Financial Quotient

Show Description: This show marks week three of COVID-19 for our country. These are the times that test us most. On this show Jason and Alex remind listeners that humanity has persevered through many very difficult forms of adversity and we will persevere through this, too. Our ability to do so relies on our resolve to control the things that we can while accepting what we can not. The show focuses on correlating this concept to investing. Jason and Alex start with what we did before COVID. Build a comprehensive financial plan that determined an investment strategy that matches your personal plan. This financial plan and investment strategy would then take into consideration the probability of success of weathering all past major market events and preparing for more of them to come. Now that a major market event has hit, this investment strategy needs to be managed in a way to control what we can. The show provides a few examples of strategies that we can do right now. Strategy one is don’t bet on luck and don’t panic. If you built your portfolio as described earlier, then the investments that you own will recover, and they will recover at different times and different speeds. Selling to cash or attempting to time the market is not a strategy that has proven to yield long term success. Don’t chase sectors or stocks because that too has very low odds of success and relies on luck. Strategy two is a Roth conversion. Depending on your circumstances this might make more sense than ever right now. The conversion will trigger taxation this year, but at a lower value than before. The recovery and appreciation will then take place inside of the Roth IRA, which is tax free forever (provided you follow all IRS guidelines). Strategy three is to actively rebalance your portfolio with tolerance band logic in place. This results in selling high and buying low across asset classes throughout this volatility and all the while bringing your portfolio back to your initial desired allocation. By following a process rather than emotions or luck, this strategy has proven to deliver results over time in both good markets and bad ones. Strategy four is tax loss harvesting. This strategy works in non-retirement accounts only and works by selling a position when it’s down intentionally and locking in a loss. Unlink market timing, you then immediately buy another position that is similar, but not substantially the same, maintaining the initial asset allocation. The investment strategy is thus intact, and the tax loss is locked in allowing you to offset other gains throughout the year. We do not know what is to come and we never will. We do know that the markets will continue to be predictive in nature, moving faster than feels logical and might make us feel helpless at times. We do have control over some things and should strive to focus our time and energy there. We are an amazing species and will persevere through this and come out even stronger than we were before. In this show you will learn about:- Why you shouldn’t bet on luck right now- How a Roth conversion might make more sense than ever right now- How implementing the process of tolerance band re-balancing will guide you through even the most challenging of market times- The benefits of Tax Loss Harvesting

Show Description: This week has brought so much uncertainty and even panic for the American public. In today’s show Jason Labrum and Alex Klingensmith hope to bring some reality to the situation with regards to the financial markets and what this means going forward for investors. During this time the advantages of free market capitalism and the American public’s opportunity to make an action plan have become a huge asset to every American. Although the markets are shaky and declining history shows us, they WILL recover. Even more important if an investor misses the best days of the market, which history shows come during the Bear Markets and the recovery, the returns are so much lower. Getting in and out of the market/ timing the market will harm investors returns. The goal of this show is reinforcing the principles of proper investing. -What to do before major markets events: Have a Financial Plan with a Fiduciary Adviser-What to do during major market events: Don’t panic and make sure you have a fiduciary adviser. Revisit principles of investing and how markets work- Talk with your Adviser-What to do after major market event: Stay the course with your financial planIn this show you will learn about:What should investors do with their portfolios when markets dramatically decline?Why its so important to have a financial plan?"A rear view mirror is only good when you turn it on yourself to evaluate how you behaved during volatile markets"- Liz Ann Sonders- Chief Investment Strategist - Charles Schwab

Show Description: Jason and Alex directly address the recent volatility caused by the Coronavirus. The engine behind the Financial Detox team is their wealth management firm Intelligence Driven Advisers (IDA). The beginning of every client relationship with IDA focuses on setting a foundation of expectations and perspective. Investors should be prepared for markets going up and markets going down. The long term expectation is that they will continue growing as history has shown us. This does not make times like these easier to bear. Jason talks about the average growth of the S&P 500 six and twelve months after previous major disease outbreaks such as SARS, the Avian Flu, HIV, etc. Six months later the average increase was 8.8% higher, twelve months later it was 13.6% higher. These results are not meant to be predictive, but rather to caution investors to take actions based off emotions or information that is not aligned with their personal situations. Another data point that Alex goes on to share was the performance of a diversified 60/40 portfolio post the September 11, 2001. After one year, the portfolio was down 1%, three years later it was up 40% and after five years it was up 81%. The message that they show is meant to communicate to listeners is that while “it is different this time”, it really is not. Markets weather all storms. Focus on what you can control and accept what you cannot. In this show you will learn about:- How markets performed through other major disease epidemics- How markets performed through other major market events- How to control what you can and accept what you can not- What a full time fiduciary adviser can do for you in markets like these