Wide Moat Investing is a strategy of buying the stock of companies that have a sustainable competitive business advantage. This advantage makes it difficult for competitors to wear down and take market share and profit. This term is taken from a moat around a castle. The larger the moat the harder it would be for an enemy to attack the castle. The term wide moat investing was coined by Warren Buffet. There are five characteristics that a company must possess for it to be ...
Using a 529 to Create a Family Education Foundation
One of the questions I receive when someone starts saving for their children’s college via a 529 plan is what happens if their children do not go to college. One option is to have another family member use the funds in the 529 plan to pay for their education. If we take that into account along with the fact that there is no time limit on when the 529 funds have to be used and that the money inside the 529 grows tax-free I created the image below to show how one 529 plan can be used to create a ...
Appearance on the Nadexa Group Podcast
I made a recent appearance on Jen Selverian's, The Nadexa Group Podcast. We discussed - What it means to be a fiduciary - What an engagement with me as a financial advisor starts with - Why understanding your cash flow is important You can view the interview here ...
Power Percentage
Have you ever wondered how efficiently you are using the money you earn? There are many different calculations you can use, but one that’s very helpful is called The Power Percentage. The Power Percentage is a formula that was created by financial planner, Peter Dunn to help determine how efficiently you are using your income and how ready you are for retirement. We’ll look at an example to see how a Power Percentage score is calculated. The first step is to determine your Gross Monthly ...
Annual College Education Progress Report
Our children get report cards at school that show how they are progressing with their learning. As parents we should get a progress report that shows how well a parent is saving for their children’s college education. I started putting together an annual report that projects what percentage of college expenses you can cover based on The expected cost of college in the future How much annually is being saved to their college fund The projected annual return of the college fund To ...
Does Johnny Depp Have Enough Saved For Retirement?
A question I often get helping someone put a a financial plan together is “Do I have enough saved up to retire?” It is a valid question because for most people it’s a daunting decision to pull the trigger to stop working and live the rest of their life off of the assets they have saved up over their lifetime. The answer from me is always, “It depends.” It was recently reported that Johnny Depp spends $2 million a month. $24 million of spending in one year is a lot, however if I google ...
A Debt Winter Wonderland
(By: Matthew DePompeo) Debt is something incurred by many households in America. There are many different types of debt. Some of the most common debts are credit card debts, mortgages, Student loans, and auto loans. Some other less common debts can be personal loans and medical debts. Some debt would be classified as "good debt" and some you could call "bad debt". Credit Card debt is one of the most common ways to accumulate debt and one that usually would be called "bad debt". Debts ...
2017 Key Financial Data
While there's tons of information out there on money and taxes, it can be somewhat confusing and time-consuming to find what you need as you organize and plan your personal finances. Below is a link to a 2017 Key Financial Data reference card, which offers fingertip access to this year's numbers on Social Security, taxes, health savings, Medicare, retirement, college planning, and more. It's an easy, convenient resource that you can post to your bulletin board and refer to whenever you want ...
THE EFFECT OF INCREASED INTEREST RATES
By: Matthew DePompeo On Wednesday December 14, the Fed chair Janet Yellen held a news conference announcing that the Federal Reserve is raising its benchmark interest rate. They raised the interest rate by 0.25%, this is only the second time that they have increased interest rates in a decade, the second of which being in December of 2015. What was the reasoning for the increase in interest rates? According to Yellen the Fed is recognizing the considerable progress the economy has made ...
Markets vs Pundits
Although financial pundits tend to paint a negative (sometimes catastrophic) picture of the markets to the general public, the stock market has maintained a consistently upward trend from the end of 2010 through 2016. Staying invested through short-term market peaks and valleys pays off in the long run, but a lot of people may have a hard time riding out the volatility in light of sensationalized media coverage of the markets. ...
Meet Matthew DePompeo
I would like to introduce you to Matthew DePompeo. Matthew recently joined Bautis Financial as a Client Service Associate. In that role, Matthew will help guide clients through the on-boarding process, initiate and monitor account transfers, help prepare for client meetings, and maintain communication between clients and the firm. Matthew is a graduate of William Patterson University in Wayne, NJ with a B.S degree in Financial Planning. ...
2016 Year End Financial Planning
Every year I send out a checklist to try to put the focus on some areas - like taxes, investments, health care, insurance, and retirement that may need attention before the end of the year. In this article I wanted to highlight an item or two from each area of the checklist and why it could be important to look at. I have curated some articles in each section that dive deeper into each topic. You can obtain a copy of the checklist here Read: 7 Questions to Ask Your CPA Before Year ...
Where is Your Money Going?
I often talk about the importance of getting a handle on cash flow, which is the income you have coming in and where it goes. Getting a handle on your cash flow is the foundation of taking control of your finances. The image below shows how there are different things that will compete for your income each month (or pay period). Do you have structure around how your income is getting allocated and is it marching you toward your financial goals? On the left side of the image you'll see ...
How a Clinton or Trump Presidency could affect the Economy
By Anthony Rubinich In American History, there has surely never been an election quite like this. Between Hillary Clinton and Donald Trump, I wish I could say that the stakes weren’t high. Unfortunately, this is a very important election. The winner of the election will inherit a $19 trillion debt. Never before in the history of this country has there been such a gap between rich and poor. Not to mention depreciating race relations and the threat of radical Islamic terrorism. Don’t be ...
The Next Generation of ETF Investing
By Cody Laska In the age of “smart everything” from phones and watches to cars and even refrigerators, it would make sense for the financial service industry to offer a “smart” product of its own. Adding onto a design that has been around since the 1970s and conceived in 2003 is the Smart Beta ETF. Utilizing strict entrance criteria focused on mathematical calculations, the Smart Beta delivers the best of both of the traditional worlds. The original two options for investors were: the ...
Paradise Lost: The Puerto Rican Debt Crisis
By Anthony Rubinich On July 4th 1776, the American colonies declared independence from Great Britain. In 2016, the island territory of Puerto Rico is fighting for a different kind of independence. As the Revolutionary War was fought with bayonets and muskets, Puerto Rico’s fight for financial independence is being fought with words and money. Unfortunately, this a fight that our island neighbor is losing. On June 30th, the Senate passed a bill to help the Puerto Rico government manage ...
The Four Roles I Play as a Financial Advisor
When you are in college and thinking about different career paths, the possibilities can seem endless. Sometimes, this endlessness can be overwhelming to think about because by choosing one path, it can feel like you're shutting out another and the opportunities it could have brought. When I was in college, I thought I would like to become a high school teacher and athletic coach. I enjoyed tutoring other students and liked playing competitive sports. These two paths seemed like they could mesh ...
Brexit: The Index Case
By Anthony Rubinich On June 23rd, 2016, the British people voted to leave the European Union, the first time in EU history. While to the casual listener this would appear as a seemingly innocuous event, the decision has global economic and social implications. Within hours of the announcement, stock prices plummeted and international markets were sent into a frenzy. The exact story line and the events that led up to the referendum fit the description of a high-octane, political drama. The ...
The Tenets of Ethical Investing
By Anthony Rubinich The opening to the 21st Century has been wrought with one huge corporate scandal after another. From Enron to Madoff, it appears as though good faith and ethical values are hard to come by in a world of suits. However, in light of these scandals, many people have taken to a new stratagem of investing that hopes to generate both high financial returns and progressive changes. According to the Forum for Sustainable and Responsible Investing, “sustainable, responsible and ...
The Rent-or-Buy Debate
Over the last couple years, there has been much discussion on whether it’s smarter to rent or buy a home. For generations, owning a home was a sign of success, a trophy. That changed when the housing bubble burst in 2007, sparking the Recession. From that moment on, the façade of success and financial stability associated with owning a home was broken. As of late, renters account for 37% of American households, the highest since the 60’s. Evidence suggests that renting is a popular trend ...