The Financial Detox® Show

Today’s show captures some of the emotions felt by Jason and Alex during the recent shut-in.  Jason is fired up and unleashes his opinions and disagreement on some of the recent decisions and news being spread across the country. He talks about why it’s so important to source information and act on confirmed data rather than emotionally charged information that may or may not be true. He points out the potential conflicts that hospitals have in their reporting of COVID-19 deaths and how that might be skewing statistics that many of us rely on to gain comfort around containment of the virus. They also discuss how inconsistent and problematic it is for state and city officials to open, and then close, some beaches and how those decisions may actually be politically motivated rather than objective in nature. None of this disagreement is meant to lack compassion for those who [...]

In this episode Jason and Alex revisit the concept of stress, especially as it pertains to investing. At times like these that test our emotions, it is more important than ever to focus on the things that we can control and accept what we can. It’s also easy to get caught up in the massive amount of information that is everywhere regarding COVID – 19. We are all trying to become experts as quickly as possible, but the truth is that very few of us are qualified sources for this type of information meant to be giving advice to others. The same can be true of those who give investment advice. One of the most stressful things an investor face is being invested at times when markets are dropping. It feels like you are out of control and that you are losing hard earned and saved money. This feeling [...]

In today’s show Jason and Alex start by reminding listeners that in this time of Easter and Passover many people find themselves in a very strange situation. Holidays like these are ones that many of us are accustomed to being together for, and unfortunately many of us can’t this year. One of the positive things that we hope to come away from this with is a much stronger sense of appreciation for sharing these kinds of experiences with one another. We will not take them for granted in the future. On January 11th China state media reported the first known death from what was then an unknown new virus. On January 30th the World Health Organization declared COVID-19 a global health emergency. Since then investors have been on the rollercoaster ride of market swings in the double-digits. Daily! On February 19th the S&P 500 hit an all time high [...]

On this show Jason and Alex discuss the massive stimulus program called the Coronavirus Aid, Relief, and Economic Security (CARES) Act. One of the components of the Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Another component that peaked the interest of many is the provision to send most Americans direct payments of $1,200, or $2,400 for joint filers, plus $500 for each child. The amount of the payments will be reduced for those with higher incomes. For individuals filing taxes as singles, the reduced amount begins at an adjusted gross income (AGI) of $75,000 per year and is completely phased out at $99,000. For joint filers, the reduced amount begins at $150,000 and payment is eliminated at $198,000. Your AGI will be determined [...]

This show explores the definitions and relevance of an investor’s IQ, EQ and FQ. Major market events like the one that we have been experiencing these past few weeks puts us to the test on all three. The DALBAR Quantitative Analysis of Investor Behavior Study uncovers data that explains the mistakes that investors make. These mistakes tend to be driven by emotions and have caused investors to underperform broad markets significantly over the past 20 plus years. The show starts by discussing our intelligence quotient (IQ) which is a total score derived from a set of standardized tests designed to assess human intelligence. Next is our EQ. An average EQ score ranges from 90-100, with a perfect score measuring 160. Those who score high on this test tend to demonstrate tendencies to make an effort to understand and empathize with others. Those with below average EQ scores can increase [...]

This show marks week three of COVID-19 for our country. These are the times that test us most. On this show Jason and Alex remind listeners that humanity has persevered through many very difficult forms of adversity and we will persevere through this, too. Our ability to do so relies on our resolve to control the things that we can while accepting what we can not. The show focuses on correlating this concept to investing. Jason and Alex start with what we did before COVID. Build a comprehensive financial plan that determined an investment strategy that matches your personal plan. This financial plan and investment strategy would then take into consideration the probability of success of weathering all past major market events and preparing for more of them to come. Now that a major market event has hit, this investment strategy needs to be managed in a way to [...]

This week has brought so much uncertainty and even panic for the American public. In today’s show Jason Labrum and Alex Klingensmith hope to bring some reality to the situation with regards to the financial markets and what this means going forward for investors. During this time the advantages of free market capitalism and the American public’s opportunity to make an action plan have become a huge asset to every American. Although the markets are shaky and declining history shows us, they WILL recover. Even more important if an investor misses the best days of the market, which history shows come during the Bear Markets and the recovery, the returns are so much lower. Getting in and out of the market/ timing the market will harm investors returns. The goal of this show is reinforcing the principles of proper investing. -What to do before major markets events: Have a [...]

Jason and Alex welcome special guest Mike Battin. Mike is a founder, partner and business attorney of Navigato & Battin based out of San Diego. Casual conversation about intermittent fasting and ketosis transitions into the newly implemented employer law dictating employee classification between independent contractors and W2 employees. This crucial topic affects thousands of California businesses and is a very important law to get right. The previous law consisted of an 18-step test to determine classification. That law has now been narrowed to a three-step test commonly called the ABC test. This makes it easier to navigate but easier to flunk. Mike explains the tests this in detail going into how they measure whether an employer exerts control over the employee, whether the worker has an independent business and regularly engages in that business and if the employee is in the same business of the employer. The ABC test [...]

Politics and investing intersect in this show where Jason and Alex pose a tough but important question to investors. Is your investment philosophy impeachable? Impeachment is defined as the act of calling into question the integrity or validity of something. Markets have been extremely kind to investors in recent history which may be causing many to have a false sense of confidence. A rising tide lifts all boats. One of the more common investment philosophies is to have an extreme home bias towards a US only portfolio. We buy what we know. While US Large cap and FAANG investors have been rewarded by recent market performance, Jason shares evidence over both 10 and 48 year time frames where a globally diversified portfolio performed significantly better than an all US Large Cap one. The lost decade was a clear example of how important it is to think bigger than just [...]

Jason and Alex kick off the new year by reframing the purpose of Financial Detox and conclude that it is “Helping You Make the Most of Your Wealth”. They proceed further by talking about the importance of having a purpose in how you invest and how to best set goals for success. Some studies show that 80% of new year’s goals are abandoned after one month and only 8% of these goals are even achieved by the end of the year. In an effort to help you not become that statistic, Jason and Alex share time tested goal setting techniques such as “The Wheel of Life” introduced by good friend Mark Robertson. Having a balanced approach to goal setting leads to a balanced life. They take it one step further by wrapping in the well-known concept of SMART goal setting and that by using this foundation you will have [...]