Axis Capital Management, LLC

👻👻 Snap Inc. 👻👻 is down 30% today after another dismal quarterly earnings report. This Pandemic Performer is now down 87% since Sep'21. Some of my clients have single name stocks in their portfolio because they enjoy following the news of the company and watching how the stock performs. This is fine as long as its a small portion of your overall investment portfolio. Other people may have a large concentration of stock from their employer. It is important to come up with a plan to reduce the risk that something goes wrong, while also accounting for taxes in your overall plan. SNAP is just one more example why diversification is so important. Don't do it for the Lols. Do it for your future self.

Is your New Years Resolution to understand where your money is going?? These personal finance apps can help: 1) Monarch Money - Create good money habits with this app, whether you are new to personal finance or not. It has a good mix of features that use automation and some manual work, which helps ensure accountability. 2) YNAB (You Need A Budget) - According to YNAB, the average new user saves over $600 in the first two months of use and $6,000 in the first year alone. YNAB is one of Forbes Advisors’ Best Budgeting Apps and is worth strong consideration for helping meet your budgeting needs. 3) Tiller - For those who love working in spreadsheets and the flexibility they provide, Tiller is for you. After linking your credit cards each item is automatically categorized, making it simple to sort and organize your spending. 4) Quicken Simplifi - Voted the Best Overall Personal Finance Software in 2024 by PCMag! See where your money is going with automatic categorization, track bills & investments, and a whole lot more.

Is childcare costing you $2,000/month?? When it comes to childcare, parents often find themselves at a crossroads, trying to strike a balance between work and family. Here are some insights and considerations to help you make informed decisions: 1. Childcare Options: The childcare landscape offers a range of choices, including nannies, daycare centers, and pre-schools. Each option has its advantages and drawbacks. Nannies provide personalized care but can be expensive. Daycare offers socialization opportunities but may lack flexibility. Pre-schools focus on early education but typically follow an academic calendar. Assess the needs of your child, your family's schedule, and your budget to determine which option aligns best. 2. Budgeting for Childcare: Childcare costs can vary significantly depending on your location and the type of care you choose. It's essential to create a childcare budget that accounts for these expenses. Explore potential tax benefits or employer-sponsored programs that can help alleviate some of the financial burdens. By planning your budget in advance, you can ensure that your child receives quality care without compromising your financial stability. 3. The Stay-at-Home Parent Dilemma: The decision of whether one parent should stay home can be complex. It involves weighing the financial impact against career aspirations and family dynamics. There's no one-size-fits-all answer to this question, as it's a deeply personal choice. Consider your family's unique circumstances and priorities when making this decision. Remember, parenting is a journey filled with choices that reflect your values and circumstances. By carefully considering your options and budgeting effectively, you can navigate the childcare landscape and create a nurturing environment for your child while maintaining a healthy work-life balance.

Small business owners, how are you managing your cash flow?? Cash flow is a major concern for all businesses, especially small ones. When cash flow is limited or unpredictable, it can cause a business to struggle to meet obligations like payroll and vendor payments. This can lead to increased costs due to late fees, more difficulty in obtaining financing, and a lack of confidence from existing customers and investors. Ultimately, this puts the business at risk of failing in the long run. Poor cash flow management is one of the top reasons small businesses fail. Properly managing your cash flow takes time and energy, but it’s imperative to understand where and when your cash is coming in and how it’s leaving.

I love working on plans & portfolios with "Do It With Me" investors. I've found the best way to manage the stress and anxiety that comes with money decisions is to expand understanding around those decisions. This is why every client I work with receives a custom tailored plan and portfolio that fits their unique needs. They get to choose which services they want and don't want. "The majority of investors want personal financial advice but, more than that, they want to be able to interact with their own advice, collaborate with their financial professional, and be involved in their own journey. I find this is true for both younger and older generations of investors. Rather than the “do it yourself” attitude of some young investors who prefer digital advice, or the “do it for me” attitude of experienced investors who prefer a human relationship, I find that most consumers are seeking a “do it with me” approach for both goals-based and long-term planning needs."

People are not stupid. How come financial advisors treat them that way? Most families know how much they make, what they spend their money on, and that they need to save & invest. So why is money such a difficult topic to talk about? Because money makes us anxious. The behavioral component of money sounds complicated, but can be simplified with mindfulness. This is why I try to practice Selfless Listening: showing up to each conversation without my personal bias, judgements, or expectations. What makes a good advisor? 1) Education - narrow the knowledge gap between the client and the professional to help them feel more comfortable and empowered. 2) Communication - the ability to show & explain the different options available to each family in each unique situation. 3) Evidence Based Investing - keeping investment costs low & using diversification. Because the alternative to using evidence is using a crystal ball, and I still haven't found one that works yet.

New Years Resolutions 2024: Personal Finance Edition Below are some ideas for resolutions you can make in the new year. If you have any questions on how to get started, send me a DM. 1. Build an emergency fund: An emergency fund is a savings cushion that can cover your living expenses for three to six months in case of job loss, medical emergency, or other unexpected expense. Aim to save at least enough money to cover your essential expenses, such as housing, food, and transportation. 2. Pay down debt: High-interest debt can be a major financial burden, especially during a recession. Make a plan to pay down your debt as quickly as possible, starting with the highest interest rate debt first. 3. Create a budget: A budget can help you track your income and expenses so that you can make sure you're not spending more money than you earn. A budget can also help you identify areas where you can cut back on spending, freeing up more money to save and invest. 4. Diversify your investments: Don't put all your eggs in one basket. Instead, diversify your investments across different asset classes, such as stocks, bonds, real estate, and cash. This will help to reduce your risk if one asset class underperforms. 5. Invest for the long term: Don't panic sell your investments if the stock market takes a downturn. Instead, focus on investing for the long term and stick to your investment plan. 6. Keep your credit score high. A good credit score can help you qualify for lower interest rates on loans and credit cards. It can also make it easier to get approved for apartments and other rentals. 7. Review your insurance coverage. Make sure you have adequate insurance coverage for your home, car, health, and disability. This will help to protect your finances in the event of an unexpected event.

🚗 Best Places To Park Your Cash🛑 1. T-Bill & Chill – A quick search on Schwab this morning shows 3mo U.S. Treasury Bills available for 5.39% yield. They mature March 2024, at which time you would need to reinvest that money. The interest is also exempt from state tax. 2. High Yield Savings Account – CIT Bank offers a 5% savings account with no monthly fees and only $100 initial deposit. The website is easy to navigate and the mobile app is functional. 3. CDs – There are many CDs offering rates between 5.50-5.75% for 1yr lockup. Check out a site like Bank Rate to find one that is a good fit for you. 4. California Muni ETF – If you have a high tax rate in a state like CA, you may want to look at a muni ETF like DFCA. This one is currently paying 3.58%, but that is the equivalent of 5.51% for someone with a tax rate of 35%. This fund does have more risk than the options above since it invests in bonds with ~3.85yrs duration. Keep in mind that you should not be trying to time the market and move money in-and-out of your long term investments. These options above are for emergency funds, liquid cash needs, or short term investment needs only. The bulk of your money should be invested with your long term strategy in mind.

Behavioral Finance 101: Common Mistakes in Investing When it comes to investing, recognizing common behavioral mistakes can make a world of difference in your portfolio's performance. Here are three major blunders that often trip up investors and how to navigate them. 1. Performance Chasing: The temptation to pick funds or stocks based on recent performance is enticing. However, history shows that top-performing funds rarely sustain their success over the long term. Out of 549 leading actively managed domestic equity funds, less than 3% maintained top-quartile positions after four years. Tip: "Past performance is no guarantee of future returns." When considering an investment, look beyond immediate success. Evaluate factors such as investment objectives, fees, and taxes. 2. Hindsight Bias: The "I should have seen that coming" mindset is common, leading to "herding" behavior where investors follow past successful trends, driven by FOMO. However, chasing investment fads can result in detrimental outcomes, as witnessed during the crash of crypto and NFTs. Tip: Predicting the future is a futile endeavor. Successful long-term investors build a plan and stick to it, avoiding the allure of short-lived trends. 3. Loss Aversion: Our brains are wired to avoid danger, which makes investment losses sting more than equivalent gains. However, reacting to short-term market events usually leads to worse outcomes than adhering to a long-term plan. Historical data emphasizes the importance of staying invested and focusing on the long-term, even during market upheavals. Tip: Focus on time in the market, not on timing the market. Create a diversified portfolio, a long term plan, and focus your effort on things you can actually control. Remember, there's no quick fix to changing human nature, but being aware of these pitfalls can help you steer clear of costly mistakes and potentially enhance your portfolio's performance.