We are different by design to best serve our clients. You may have some questions!
We are proud to be labeled as a "disruptor" if it means creating a financial company that operates the way it should. Our focus is on digital technology, affordable pricing, and comprehensive client services. At Access Wealth Group, we act as a fiduciary and prioritize your interests in all aspects of our business, including advising, hiring, investing, and innovation. We value honesty and always speak the truth, even when it's difficult.
The factors that cause a significant move in the stock market are:
Market sentiment: This is the overall mood or attitude of investors towards the market. If investors are feeling optimistic, they are more likely to buy stocks, which will drive prices up. Conversely, if investors are feeling pessimistic, they are more likely to sell stocks, which will drive prices down.
Economic factors: These include things like interest rates, inflation, and economic growth. When economic conditions are good, investors are more likely to buy stocks, as they believe that businesses will do well and profits will rise. Conversely, when economic conditions are bad, investors are more likely to sell stocks, as they believe that businesses will do poorly and profits will fall.
Effects of supply and demand: This is the most basic factor that affects the price of anything, including stocks. When there are more buyers than sellers, prices go up. Conversely, when there are more sellers than buyers, prices go down.
In addition to the three factors mentioned, corporate earnings, market valuations, and currency fluctuations also impact the stock market. Our Access Wealth Group tactical models are based on these factors.
Yes. During times of market uncertainty, we may hold the client's assets in cash or partial cash to protect and preserve capital, with the goal of buying when the market dips. In order to achieve a similar goal, we may choose to purchase options for specific accounts.
Beating the S&P 500, also known as "the Market," is challenging but not impossible. Hard work, discipline, mental toughness, and luck can all contribute to success. However, our ultimate goal is not to beat the market. We want to help you achieve your financial goals, such as funding your children's education, saving for retirement, or building your legacy. We will be there to support you through the ups and downs of the market so that you can reach your financial goals with confidence.
In reality, half of our job is to help clients manage their emotions when it comes to investing. As humans, we are emotional creatures, and these emotions can often lead us to make poor investment decisions. For example, we may sell our investments after a market downturn because we are afraid of losing money. Or, we may buy investments after a market rally because we are afraid of missing out on gains.
We understand that it can be difficult to stay calm and rational when the market is volatile. That's why we offer our clients emotional intelligence coaching. We teach them how to identify and manage their emotions so that they can make sound investment decisions.
We also provide our clients with a logical approach to investing. We believe that the best way to invest is to focus on the long term and ignore short-term fluctuations in the market. We help our clients develop a diversified investment portfolio that is designed to withstand market volatility.
We know that there will be times when the market is concerned. However, we will always attempt to provide our clients with a realistic and unbiased perspective. We will communicate with you directly, provide market commentary, and create videos to help you understand the market and make informed investment decisions.
Here are some of the pros and cons of passive investing:
Pros:
Lower fees: Passive funds typically have lower fees than actively managed funds. This is because they do not require the same level of research and trading as actively managed funds.
Lower risk: Passive funds are less risky than actively managed funds because they are not trying to beat the market. Instead, they are simply trying to match the market's performance.
Ease of use: Passive investing is relatively easy to do. You can simply buy a fund that tracks the index you want to invest in and then hold it for the long term.
Tax efficiency: Passive funds tend to be more tax-efficient than actively managed funds. This is because they do not generate as much capital gains distributions.
Cons:
May not outperform the market: Passive funds are not guaranteed to outperform the market. For example, if you buy and hold an S&P ETF, your performance will always be equal to S&P Returns – fees you paid.
Lack of flexibility: Passive funds are not as flexible as actively managed portfolios. if you are younger and have a higher risk tolerance, you may be willing to pay higher fees for the potential of higher returns from active investing.
Suffer the Same Market Risk: Passive funds are designed to match the market's performance, which means that they will also experience the market's ups and downs. At Access Wealth Group, we use a tactical approach to manage our clients' portfolios.
At Access Wealth Group, we invest in passive ETFs and index funds, which have low costs and track market indexes. We also use tactical strategies to manage risk and enhance performance. These strategies may include adjusting the asset allocation of the portfolio, using derivatives, or investing in alternative assets.
An ETF or mutual fund does not provide financial planning advice. If you don't need advice and don't need your financial future protected, then there is nothing wrong with choosing a low-fee index fund.
However, we believe that it is important to analyze market patterns and adjust your portfolio accordingly. We also believe that your portfolio should be designed based on your age and risk tolerance, and adjusted as your circumstances change.
If you are comfortable creating your own financial plan and managing your investments, then there is no need to pay for our services. However, if you would like us to take care of all of this for you, then our fees are a worthwhile investment.
Our fees are generally much cheaper than most active managers because we use new Fintech tools such as AI assistance and other digital tools.
In short, you would pay an additional fee to use our firm because we offer a comprehensive financial planning service that includes:
Financial planning advice
Portfolio management
Asset allocation
Risk management
Tax planning
Estate planning
Retirement planning
And more...
We believe that our services are worth the additional fee because they can help you achieve your financial goals and protect your financial future.
As a fiduciary who previously worked as a broker and insurance agent, I can tell you from experience that clients should want their advice given by a fiduciary. This does not mean that all brokers and insurance agents are bad advisors. However, they are often tempted to push their clients into products that might not be in their best interests, due to sales goals and other incentives. Fiduciaries, on the other hand, are held to a higher standard.
At Access Wealth Group, we are fee-based advisors, which means we are not incentivized to recommend products that are not in your best interests. We want to help you create a holistic financial plan that works for you, and we will not push you to purchase products or high levels of insurance that you do not need.
Here is a brief overview of the different types of financial advisors:
Fiduciary: A fiduciary is an advisor who is legally obligated to act in the best interests of their clients. This means that they must put their client's interests ahead of their own, even if it means losing a sale. Fiduciaries are held to the highest standards of care and must disclose any conflicts of interest.
Broker: A broker is an advisor who is paid a commission on the products they sell. This means that they have an incentive to sell products, even if they are not the best fit for their clients. Brokers are not required to act in the best interests of their clients, but they must disclose any conflicts of interest.
Quasi-fiduciary: A quasi-fiduciary is an advisor who is somewhere between a fiduciary and a broker. They are typically paid a fee, but they may also receive commissions on some products. Quasi-fiduciaries are not required to act in the best interests of their clients, but they must disclose any conflicts of interest.
Insurance agent/producer: An insurance agent/producer is an advisor who sells insurance products. They are typically paid a commission on the products they sell, and they are not required to act in the best interests of their clients.
It is important to understand the different types of financial advisors so that you can make an informed decision about who to work with. If you are looking for an advisor who is legally obligated to put your interests first, then you should choose a fiduciary.
When it comes to investing, the size of your account can have a big impact on your psychology. This is because the same percentage change in a small account can have a much larger impact on your overall balance than the same percentage change in a large account.
For example, if you have a $1,000 account and it gains 10%, you will only have $100 more than you started with. This may not seem like a lot of money, and it can be easy to get discouraged and give up on investing.
On the other hand, if you have a $100,000 account and it gains 10%, you will have $10,000 more than you started with. This is a much more significant amount of money, and it is more likely to motivate you to keep investing.
This is why many financial advisors have account minimums. They know that it is more difficult to keep clients engaged when they have small accounts.If you are a new investor with a small account, it is important to be patient and disciplined. Remember that even small changes can add up over time. And, most importantly, don't give up!
Here are some tips for staying motivated when you have a small account:
Set realistic goals. Don't expect to get rich quickly. Instead, focus on making small, consistent contributions over time.
Automate your investments. This will help you avoid the temptation to skip a contribution or withdraw money from your account.
Track your progress. This will help you see how your investments are growing over time.
Don't compare yourself to others. Everyone's financial journey is different. Just focus on your own goals and don't worry about what other people are doing.
Remember, it takes time and discipline to build wealth. But if you are patient and persistent, you will eventually reach your goals.
If you are an investor seeking a 7% yearly return while being risk-averse, it's important to reassess your expectations. The S&P 500 serves as a benchmark for portfolios with medium to high risk. If you're conservative and prioritize minimizing losses, it's unrealistic to expect the historical 7-8% average return that the S&P 500 has shown. This average includes both substantial gains and losses, averaging out to 7% over time.
Each year, the market averages three separate and distinct 5% declines. These declines are normal movements, and you should not panic when they happen. If you are investing consistently, we will be able to take advantage of these dips and buy more shares at a lower price.
Over the past 40 years, the average intra-year decline has been 13.9%. This means that somewhere within the year, you're likely to see a 13.9% decline in the market. But even with this decline, the S&P 500 has still averaged 7-8% higher for the year.
The point is, we want to help you set realistic expectations for your investments. If you want to minimize the risk of losing money, you should not expect to get a 10% return every year. However, we can help you create a portfolio that is likely to grow over time, even with some ups and downs along the way.
Let's chat and discuss your specific investment goals so that we can create a plan that is right for you.
Politicians often boast about the stock market's performance during their time in office. However, the reality is that the stock market can be strong during times of economic weakness and weak during times of economic strength.
For example, in October-December 2018, the S&P 500 fell by nearly 14%. This happened even though the quarterly earnings per share data were coming in at the fifth-highest levels since 2010. This is just one example of how the stock market can be unpredictable.
In another example, the S&P 500 earnings per share (EPS) for the third quarter of 2019 was down by 4.38% from the previous quarter and down by 6.48% from the same quarter in 2018, the worst quarterly decline in EPS since the fourth quarter of 2015. However, the S&P 500 is still up 24.29% year-to-date (as of November 20, 2019, at 10:33 ET) and up 7.42% over the past 3 months.
The point is that the stock market is unpredictable due to various factors, making short-term predictions impossible. If you are investing in the stock market, it is important to be patient and disciplined. The market will go up and down, but over time, it has always trended upwards. So, stay calm during the tough times and let your investments ride out the storm.
From a behavioral science standpoint, we know that price can have a significant impact on investor sentiment. When prices go down, investors often become more negative and may sell their investments. Conversely, when prices go up, investors may become greedier and more overconfident.
Both of these emotions can lead to poor investment decisions. For example, selling when prices go down can lock in losses, while buying when prices are high can lead to overpaying for investments.
In general, uneducated and emotional investors tend to make decisions that are the opposite of what sound investors do. Our job as financial advisors is to help you manage your emotions and make sound investment decisions. We will help you stay grounded and avoid making decisions based on fear or greed.