From Holiday Humor to Investment Tips

As another wonderful Thanksgiving is approaching, I thought I’d use this week’s newsletter to enjoy a tongue-in-cheek situational laugh.

Every family has an “Uncle Rico.”

He’s predicted 17 of the past three recessions.

He’s predicted 35 of the five best-performing stocks this year,

and if you aren’t careful, you might find yourself taking investment advice from your well-meaning, fun-loving, pumpkin pie-devouring, former high school PE teacher uncle.

Uncle Rico is sly.  He’ll find a quiet moment and pull up on you to share his favorite new stock app.

Unsolicited, he’ll provide 3-5 hot stock picks you must get in on.

After all, he’ll point out that his system predicted the rapid run in [insert best-performing stock].

**We’ve all been in this situation, and we’re just having some fun here – Uncle Rico means well, but…

Keep in Mind

  • Uncle Rico likely does not have a written financial plan.
  • It’s extremely unlikely Uncle Rico knows how much money he needs to be financially independent.
  • Uncle Rico usually takes substantially more risk than required to adequately fund the plan (that he doesn’t have).

Closing the Loop with Uncle Rico

Option 1:  Provide a boring nugget of wisdom.

“Uncle Rico, you know that my financial advisor shared with me recently? The worst rolling 30-year return for the S&P 500 is 7.8% annually.

Which means that $100,000 could be worth $951,837 in 30 years!”


Option 2: Offer Uncle Rico another slice of pie or a refill on his favorite beverage (proceed with caution; this could backfire).

Option 3:  Check on the kids.

Option 4:  Enjoy the solitude of doing the dishes.

What We Believe

  • Acting upon a written financial plan is the ultimate safeguard to keep the barbarian of investment behavior away (acting emotionally upon Uncle Rico’s advice).
  • Getting quality investing returns is NOT easy. Investment returns are earned.  It takes faith, patience, and discipline.
  • Your family’s dreams or vision of the future determine your financial plan. Your financial plan determines the portfolio.
  • Your plan dictates how much you should allocate to growth, fixed income, and cash.
  • We believe investment strategies should be low-cost & diversified.

If you or someone you’re close to could use help aligning their finances and establishing a financial plan, please reach out to us, we’re accepting new clients and eager to help.

Happy Thanksgiving!



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