Hans Blake, CFA, CPA

The Journey Of Becoming A Widow To Financially Guiding Widows

July 11, 2019 by Hans Blake, CFA, CPA

Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview Dr. Kathleen Rehl on becoming a widow to financially guiding widows. Kathleen’s late husband challenged her to accomplish her purpose in life. As a result of his challenge, Kathleen shifted the focus of her financial planning practices. First, as a widow herself, Kathleen knew she needed to change her practice in guiding widows and focusing on them. While Kathleen had the financial background to help her in widowhood, she knew other widows did not. Second, Kathleen knew she needed to write a book. She wrote Moving Forward on Your Own: A Financial Guidebook for Widows to instill financial confidence in other widows. Kathleen desires that her book be gifted to widows in need of the “fog being lifted.” Therefore, she addresses 3 stages of widowhood: grief, growth, and grace. You can purchase Kathleen’s book here.

If you are a recent widow or know of a widow who may be in a financial fog due to the loss of their spouse, we’d love to help lift that fog so you can see your path ahead. On upcoming podcasts, Kathleen will talk about the three stages of widowhood- Grief, Growth, and Grace, so be sure to subscribe by clicking here.

Kathleen Rehl Bio

Kathleen M. Rehl, Ph.D., CFP®, CeFT® wrote the multi-award-winning book, Moving Forward on Your Own: A Financial Guidebook for Widows. Experiencing widowhood herself, Dr. Rehl empowers widows financially™ and inspires their advisors. Her work has been featured in the New York Times, Wall Street Journal, AARP Bulletin, CNBC, USA Today, U.S. News & World Report, Journal of Financial Service Professionals, Journal of Financial Planning, and other publications. Rehl owned a financial planning firm for 17 years before retiring to her “encore” career. She walks an hour daily, practices yoga, enjoys art and music festivals, writes poetry and makes art, loves her grandsons . . . and continues to evolve on her journey.

The Difficulty of Consistently Outperforming the Market

June 27, 2019 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview Larry Swedroe on the difficulty of consistently outperforming the market. Over time, the markets are becoming more efficient, consequently making it harder for active managers to outperform. In this episode, Larry explains some reasons why there’s little to no evidence of persistence of outperformance. We have several upcoming podcasts that will feature Larry, so be sure to subscribe to our podcasts, if you haven’t already.

He breaks the numbers down using an example from Charles Ellis’ white paper. According to Larry, if we look at history, around 20 years ago only 20% of managers were outperforming before taxes. After taxes, it was about 10% and currently, it is approximately 2% of managers outperform before taking into consideration taxes. Unfortunately, no advisor can consistently deliver outperformance in the market. At Intelligent Investing, we believe the dominant determinant of long-term, real-life returns will be the behavior of the client and advisor. This is why we strongly believe in behavioral teamwork.

To learn more about our behavioral coaching, go to our philosophy page. You can also read “The Loser’s Game” by Charles Ellis here. We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books.

Larry Swedroe Bio

Since joining the Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing.

In his role as chief research officer and as a member of the firm’s Investment Policy Committee and Board of Directors, Larry regularly reviews the findings published in dozens of peer-reviewed financial journals, evaluates the outcomes and uses the result to inform the firm’s formal investment strategy recommendations.

Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television shows airing on NBC, CNBC, CNN and Bloomberg Personal Finance. Larry is a prolific writer, contributing regularly to multiple outlets, including Advisor Perspectives and ETF.com.

Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp.

Larry holds an MBA in finance and investment from NYU, and a bachelor’s degree in finance from Baruch College.

My Personal Note from Art Laffer

June 18, 2019 by Hans Blake, CFA, CPA

On June 19, 2019, President Donald J. Trump awarded the Presidential Medal of Freedom to Arthur B. Laffer. This prestigious award is the highest civilian honor, which may be awarded by the President to individuals who have made especially meritorious contributions to the security or national interests of the United States, to world peace, or to cultural or other significant public or private endeavors.

Who is Arthur Laffer?

Arthur (Art) Laffer is an American economist and author who first gained prominence during the Reagan administration as a member of Reagan’s Economic Policy Advisory Board (1981–89). Ronald Reagan was thought to have based his 1981 economic plan on the idea that cuts in marginal tax rates would increase tax revenues. Laffer is best known for the Laffer curve, an illustration of the concept that there exists some tax rate between 0% and 100% that will result in maximum tax revenue for the government. He attracted attention for his supply-side economic theories, which held that reductions in federal taxes on businesses and individuals would lead to increased economic growth and in the long run to increased government revenue.

History of the Laffer Curve

On December 4, Dick Cheney and a young economist named Art Laffer sat at a booth in the iconic Hotel Washington—the same hotel that appeared in scenes from the Godfather II just months earlier. Cheney was U.S. president Gerald Ford’s deputy Chief of Staff and his boss, Donald Rumsfeld, were looking for alternatives to Ford’s plan to raise taxes. According to Laffer, raising taxes was a bad idea. Instead, if Ford really wanted to encourage economic growth, and therefore government revenue, he should consider cutting tax rates.

Laffer drew the famous Laffer curve on a napkin, which showed that starting from a zero tax rate, increases in tax rates will increase the government’s tax revenue but at some point when the rates become high enough, further increases in tax rates will decrease revenue. This occurs because higher tax rates become strong disincentives against earning (and/or declaring) taxable income. Cuts in marginal tax rates could, therefore, increase tax revenues.

Controversial Economist

Most economists agree that there is a point of diminishing returns where raising taxes becomes counterproductive. According to dissenters, Laffer has spent years suggesting the idea that almost any tax cut for businesses and individuals could potentially pay for itself. The real controversy was not necessarily the theory, but rather where the American economy stood on the Laffer curve. Laffer’s theory and the evidence subsequently gathered, caused economists to examine more closely the incentive and disincentive effect of taxes.

My Note from Art Laffer

I studied the Laffer Curve and how taxes affect businesses and individuals as part of the CFA Institute curriculum. I learned that altering tax laws can have unintended consequences as people sometimes want to avoid taxes at all costs (creating more loopholes). There are also psychological effects when it comes to how people view taxes. Economists say a tax refund is bad because you’re giving the government too much of your money. However, if you ask the majority of Americans, they really want their refunds–perhaps as a way of forced savings.

I reached out to Art and asked him to pen something he has learned over the years. Thankfully he sent back his nugget of wisdom on his letterhead and not on a napkin:

“Always remember you make your money in bad times, yet you collect it in good times. Your friend, Arthur Laffer”

We will be sharing more notes of wisdom from famous authors, economists, and businessmen and women. In the meantime, feel free to check out my note from Vanguard’s founder, Jack Bogle.

Rick Ferri’s Financial Heroes

June 12, 2019 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview Rick Ferri on his personal financial heroes. During this episode, Rick highlights renown professionals that left a lasting impression on him. For example, Rick talks about the influence of Warren Buffet and his financial strategies. Rick also recounts the unsung financial heroes and how they impacted his life. At Intelligent Investing, we blend three schools of thought into an insightful, independent, and innovative intelligence. Learn more here.

Check out our previous podcasts with Rick on Tips for Lump Sum Recipients and Practical Tips for Pre-Retirees. We’ll be interviewing Rick on several podcasts regarding index investing, behavioral finance, and practical tips for retirees, so be sure to subscribe to our Intelligent Money Minute podcasts.

Rick Ferri is a fellow CFA Charterholder, Marine veteran, author, and owner of Ferri Investment Solutions. He continues to write books and articles, provide educational webinars, and teach financial lectures.

Rick Ferri Bio

Rick Ferri earned a B.S. in Business Administration and an M.S. in Finance. He also holds a Chartered Financial Analyst (CFA) charter through the CFA Institute. After college, Rick served as a U.S. Marine Corps officer and fighter pilot for 20 years of active duty and reserve service.

Rick’s investment career spans three decades and offers a history of empowering people to achieve their goals. He landed in the brokerage industry in 1989 where he learned the wrong way to invest. As a result of 10 frustrating years, Rick founded one of the country’s first low-fee investment advisory firms. Rick’s firm grew to a sizable business over the next two decades due to the explosion of interest in low-fee investing. This growth provided good-paying jobs to dozens of people and allowed Rick to take on business partners with whom he generously shared his equity.

Ferri Investment Solutions is Rick’s new firm. This modern concept provides even greater value to investors by “unbundling” adviser services whereby clients pay only for the time it takes to assist them. In addition, Rick’s industry consulting firm helps other advisers build their investment practices, and he has launched Core-4 Portfolios to provide simple model portfolios for use by a wide variety of investors.

How To Handle Long Term Care Regret

June 6, 2019 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 1 minute

On today’s Intelligent Money Minute, we’ll interview Beverly Flaxington on how to handle regret when placing a parent in a long-term care facility. Guilt and regret can arise after deciding to place a parent into assisted living. During this episode, Bev provides practical steps to navigating through regret while making this emotional transition. To gain more insight on this topic, here is a previous blog on The Hardest Decision a Child Will Have to Make. Our previous podcasts with Bev highlighted Emotionally Transitioning Into Retirement and Should You Put Your Parents In Assisted Living?

We’ll be interviewing Beverly on several podcasts regarding behavioral finance, and the emotional journeys one can embark on during retirement, so be sure to subscribe to our Intelligent Money Minute podcasts.

Beverly Flaxington, American businesswoman and founder of The Collaborative, holds the trademarked moniker, Human Behavior Coach®. She received this title for her years in professional consulting and the human behavior development industry. Also, Flaxington has authored seven books on personal and professional development.

Beverly Flaxington Bio

In addition to being a coach on changing human behavior, she is a three-time bestselling and Gold-award winning author, an international speaker, behavioral expert, and business development expert.

Bev has created a number of proprietary approaches to changing human behavior and helping companies reach excellence. In addition, she blogs for Psychology Today and answers human-related questions in Advisor Perspectives Magazine.

In 1995, Bev co-founded The Collaborative, a sales and marketing consultancy. The firm provides strategic and tactical support to help financial services and wealth management firms reach higher levels of effectiveness. The Collaborative specializes in delivering effective coaching, training, and proprietary consulting services.

Mitigating Dangerous Investing Emotions

May 30, 2019 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview Rick Ferri on mitigating dangerous investing emotions. During this episode, Rick explains the concept of behavioral finance and the power of recognizing your emotional tendencies. He stresses the value of being introspective in order to avoid reactionary investing. In truth, no advisor can consistently deliver “outperformance.” However, we believe we offer more practical and reliable ways. Read more about our three pillars of thought here.

Check out our previous podcasts with Rick on The Power of Passive Investing and Remembering the Legacy of Jack Bogle. We’ll be interviewing Rick on several podcasts regarding index investing, behavioral finance, and practical tips for retirees, so be sure to subscribe to our Intelligent Money Minute podcasts.

Rick Ferri Bio

Great Ideas to Consider During Retirement

May 23, 2019 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 1 minute

On today’s Intelligent Money Minute, we’ll interview Beverly Flaxington on great ideas to consider during retirement. During this episode, Bev encourages us to view retirement as a new phase, and she provides lists of various jobs and volunteer work ideas for retirees. She stresses finding a profession that sparks joy and excitement instead of the primary objective being money. Our previous podcasts with Bev highlighted Should Financial Advisors Become Life Coaches and Why Retirement Shouldn’t Be Your Only Goal.

Beverly Flaxington Bio

In addition to being a coach on changing human behavior, she is a three-time bestselling and Gold-award winning author, an international speaker, behavioral expert, and business development expert.

The Power of Passive Investing

May 15, 2019 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview Rick Ferri on the power of passive investing. During this episode, Rick defines passive investing and why the biggest investing hurdle is not the market, but ourselves. He highlights the value of spreading risks and rewards in a portfolio rather than attempting to beat the market. At Intelligent Investing we believe in the following portfolio practices: asset allocation, diversification, and rebalancing. You can read more about our wealth management philosophy here.

We’ll be interviewing Rick on several podcasts regarding index investing, behavioral finance, and practical tips for retirees, so be sure to subscribe to our Intelligent Money Minute podcasts.