Let’s Play “Catch a Falling Knife”

The market's down maybe 10% this week. Let's play "Catch a Falling Knife." So it looks like we're entering official bear market territory, especially when we refer to the peak in early February. We've been here before. We've seen this before and always, it appears obvious with hindsight. But let's do a quick recap of what we know. We know there's a Coronavirus and we know it's pretty likely going to hit all corners of the Earth. We know there are a lot of underreported cases and the most likely fatality rate, especially in Western nations, is probably at or below half a percent. That's significant, but the regular flu is one 10th of a percent. Disproportionately it's affecting males over 65. Interestingly, it's not affecting children that much. I mean, from a very callous point of view - and trust me, this is not where my heart is -...
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What the SECURE Act Means for Your Retirement

On December 20th, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act became law. As the name implies, this law intends to make it easier for Americans to save for retirement. Though this may sound simple enough, as with most laws, the reality is far more complex. The SECURE Act includes changes that affect everyone from beneficiaries of retirement accounts to those with student loans, but the SECURE Act is most likely to affect those either approaching retirement or recently retired. Your unique financial situation will dictate exactly how the SECURE Act will impact you and your retirement plan, but there are a few key changes that everyone should take note of when planning for retirement. To learn more, download the PDF of the article below:       What the SECURE Act Means for Your Retirement

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Coronavirus Strikes Italy – Markets Have the Flu

So now that the Coronoavirus has found its way to Italy, South Korea - unsurprisingly, the U S markets - the global markets have come down with a case of the flu. I'm not going to spend too much time on the topic other than to say, as I've said before, that the history of these pandemics is that the market reacts in the short-term. Then rebalances itself for long-term expectations, which means a recovery. And of all the viruses and pandemics out there, the one that has the greatest potential for short-term disruption, compared with almost no potential for long-term disruption, is the Coronavirus. The victims of the Coronavirus are disproportionately people who are not of working age. One: that is not to downplay the tragedy, the severity and the potential for fear. It is a real potential for short-term disaster, for want of a better word, with small...
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How Will Coronavirus Impact Your Portfolio?

  It's been an interesting week. We've got the Kansas City Chiefs winning the Super Bowl. I don't know what to say about the debacle in Iowa, but really what's on everyone's mind is how will a Coronavirus affect stock markets and your investment portfolio? Now there are precedents, so we can talk about this. The SARS virus, there's Avian Flu and there's Ebola. What are the threats? Why would markets be so upset? Well, the biggest threat we're concerned about is these travel bans - especially in China. One of the things that's been learned with Ebola in Africa is the stricter the travel ban, the harder people will work to actually violate it. The other threat is what does it do to economic consumption and global GDP markets? We do know from history that travel bans rarely work.   We also know from history that this type of...
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Tax Season Tips And Traps

  January means tax time is just around the corner. Here's a couple of pointers that may help mitigate the cost and difficulty of preparing your taxes this year. We've got a lot of different clients with a lot of different desires when it comes to how best to file their taxes. Some clients, every single document, as soon as they get it, they send it to their CPA. Something to keep in mind is when the CPA opens up that envelope, it's going to hack the clock and probably most CPAs have a minimum of 15 minutes, so you can start seeing where we're going here. Bundle the documents. You may send one bundle late January, another bundle late February, and another bundle late March. But bundle the documents because the less envelopes that CPA opens, the less it's going cost you.   The second challenge we have is...
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New Year, New Commitment

It's the end of 2019. Efficient Wealth Management is really proud to announce that we have reached our $100,000 commitment. That's $100,000 of giving to local and other needy causes. For 2020, we want a new commitment, a great new goal to celebrate the new name, Avion Wealth, and the new look. At Avion Wealth in 2020, we've decided our giving commitment is going to be bumped to $202,000. We'd like to celebrate the new year with a new commitment - the $202,000 commitment. We wish you a fantastic new year in 2020. Of course, we always wish you the best of investing success.
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Negative Duration and Your Bond Portfolio

What is negative duration when talking about bonds, and why can that be a good thing? In a fantastic year of rallying asset classes, there's always going to be a negative standout. In 2019, International Bonds was that negative standout. We must remember that though hindsight is 20/20, foresight is not. The challenge when dealing with the problem is that typically last year's laggard holding is next year's top performer, or close to it. You step off the tracks and you run the risk of getting mowed down by a train coming in the other direction. Before we get into the perfect storm that was 2019, let's talk about negative duration briefly. Many of you know from previous videos that duration is inversely related to interest rates. That means in English, when interest rates go up X percent, the value of the bond falls Y percent and vice versa. Interest...
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New Name and Brand for 2020

We’re really excited to share with you today a preview of the new look for our firm in 2020. This will be the last video in which we refer to ourselves as Efficient Wealth Management. You see, the company's ready for a facelift - something to match the quality and class of our world-class client experience. We’re looking forward to the future, and wish you the best of investment success!
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An Exciting Announcement for Our Clients and Friends

The holidays are here. Christmas 2019 is just around the corner and I am so excited about an announcement we'll be making at the end of the week. Hi, my name is Paul Carroll. I'm the CEO and founder of Efficient Wealth Management, a boutique wealth management firm here in South Texas. It's been a fantastic year for equities, and in fact, even bonds have fared fairly well thanks to falling interest rates. We have got major changes in store here at Efficient Wealth Management. We want to be even better for our clients in 2020, and so we're looking forward to an announcement that befits the world-class team, technology and experience we have for our clients. We wish you the best of investment success, and we'll talk to you soon.
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Holiday Spending Tips for 2019

It's that time again: it's almost Thanksgiving, and Thanksgiving means Christmas shopping. Our experience has been once the Christmas shopping has started, any chance of getting the spending under control is over. I want to briefly go over seven tips to help you prepare financially for the holidays. First, try to take a look at what you spent last year. Were you happy with what you spent? If you were, then do what you did last year, that's simple. If not, number two, start making a budget and gift list now. Shopping is an arms race. Once you've bought something for Uncle Fred, you have to spend at least as much for Aunt Mildred or whoever the relatives are, so we need to get this under control right now. Figure out gifts, decorations, foods, activities, donations. Three, set aside the money. Set the expectations early, work from the end game...
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