Finding the Needles in the Haystack

on December 03, 2018 |By Steve Musick | Other
One of the benefits of doing in-house research is that you can occasionally spot trends as they're forming. As an investment firm, being ‘early’ in spotting trends means that it could be possible to invest in areas of future demand, which brings the possibility of generating better returns. Since the turn of the century, our Investment Committee has met every Thursday.  Our Investment Committee is a seasoned, knowledgeable team dedicated to managing our clients’ capital. It requires strong discipline to rigorously look at large sets of data with the intent of detecting meaningful trends. In the ever-increasing wave of more and more information, it is a massive task to sift through the ‘noise’ to obtain important and actionable information. Very often, we keep this information to ourselves as a strategic advantage (we have never published or sold any of our research, nor will we). In the case I outline below, our research is becoming validated in others' published research. Like Sherlock Holmes, we think we have discovered something meaningful.  
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The Value of Portfolio Management in Interesting Times

on November 27, 2018 |By Jarrod Musick | Other
One of the values of having a financial advisor is receiving customized investment management. As a firm, we’ve embraced a philosophy of patience and not letting market changes interrupt the planning strategies we’ve built around the long-term goals of our clients.  It also means that it is incumbent on us to be a learning organization that diligently evaluates changes in market conditions. Below are a few key items that we’ve been monitoring and how they’ve contributed to the market volatility we’ve seen so far this year.  
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Building Systems or Fighting Fires

on November 15, 2018 |By Jarrod Musick | Business Owners
Every business owner has found themselves fighting a financial fire in their business or personal life, and sometimes both at the same time. You are not alone, we have all been there. It doesn’t mean that you did a bad job anticipating for it, it means that there was a system problem somewhere within your business model. The good news is that there are ways to build systems and automate most of the implementation so you can focus on growing your business and not fighting fires. It's less stressful and way more enjoyable. And let's face it, we could all use less stress these days.  
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How to Choose a Charity

on November 05, 2018 |By Amy Bertle | Other
Everyone wants to maximize their donations, but we've all heard horror stories of fraudulent charities. How do we know which charities are legitimate and which will help maximize your donation dollars? Some organizations tackle the due diligence, so you don’t have to. Some of the major watchdogs over charities are The Better Business Bureau’s (BBB) Wise Giving Alliance, Charity Navigator, CharityWatch, and GiveWell.  
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Hitting the Bullseye

on November 05, 2018 |By Steve Musick | Retirement Planning
Part of our work as asset managers is to generate sufficient cash flow for regular income.   A long-time client came in for a review last week, and we carefully reviewed her prior year income and expenses. She had managed her cash flows really well - right in line with her budget forecast for the year. Her Destiny Capital portfolio was specifically designed to distribute an exact amount of cash to her from her investments. We send this portfolio income to her bank account as an automatic quarterly deposit. Having an income target such as this allows us to construct the optimum investment portfolio in order to “Hit the Bullseye”. When we do this, her actual financial performance improves.  Having this bullseye allows us to position her total portfolio to function optimally and operate efficiently with only minor changes along the way. It keeps the majority of her capital invested to continue working for her. As a part of each review, we always ask what the next year looks like. In this case, she said "Well, I am thinking about doing something big next year with my kids and grandkids. I want to go see Mickey and Minnie with them in Orlando." She shot me the rough cost of the trip in addition to her standard annual budget. We adjusted her portfolio to make the new quarterly distributions and set aside the Disney trip money she would need for next summer. This is planning!  
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