The FIEGI (Finances, Investments, and Extremely Good Insight) Report – May 12, 2022

Ryan Fiegi General, Investments Leave a Comment

Hello everyone! If this is your first FIEGI Report, welcome. If you’ve been receiving the email notification of a new Report and haven’t been watching or reading, there’s no better time than now to start. If you’ve been spending 5 minutes every other week becoming more insightful about finances and investments, great job! Let’s keep it going:

360 Insights Spring 2022

Summary: There are 3 articles included in the link above. Feel free to read one, two, or all three. You’ll be better off for it.

  1. Investing Through Emotions
  2. Geopolitical Risk & Your Portfolio
  3. 7 Tips to Control Identity Theft

Conclusions:

  1. The start of 2022 reminds us all how much uncertainty can fill the world. The perceived lack of control can lead to feelings of anxiety and stress. One of the best coping techniques is to focus on what we can control.
  2. Geopolitical risk is one of the risks that comes with investing. One of the best ways to manage it, is to make sure our investments are properly diversified.
  3. Read the list and take the steps.

 

Monthly Quote:

I believe that man will not merely endure – he will prevail. He is immortal, not because he alone among creatures has an inexhaustible voice, but because he has a soul, a spirit capable of compassion and sacrifice and endurance.

-William Faulkner

Ryan FiegiThe FIEGI (Finances, Investments, and Extremely Good Insight) Report – May 12, 2022

The FIEGI (Finances, Investments, and Extremely Good Insight) Report – April 28, 2022

Ryan Fiegi Investments Leave a Comment

“Wow, two FIEGI reports in two weeks, thank you PFG!” That’s what I’m assuming everyone reading this will be thinking to themselves. We’re also back with a new acronym for The FIEGI Report (Finances, Investments, and Extremely Good Insight). We hope you all enjoy:

What Happens to $1 Over Time

I believe the summary and conclusion for the 3-minute video above are self-evident. Just remember, when you think or hear someone say, “this time it’s different,” it’s most likely not that different.

 

Monthly Quote:

“History provides a crucial insight regarding market crises: they are inevitable, painful, and ultimately surmountable.”

Shelby M.C. Davis

Ryan FiegiThe FIEGI (Finances, Investments, and Extremely Good Insight) Report – April 28, 2022

The Fiegi Report – April 21, 2022

Ryan Fiegi Financial Planning, Investments Leave a Comment

You made it! Everyone reading this has either filed their taxes or filed for an extension. Right? If you’re a PFG client, the answer is: Yes. If you have not, stop reading now and go get it done. For all of you that have, we’ve got an older – but always relevant – Report for you:

Should I Invest In…?

Summary: The above article should take you about 7 minutes to read; however, once you’re done, spend an additional 7 minutes and read it again. The advice could save you hundreds of thousands of dollars and countless days, weeks, years of your life.

Conclusion: The answer to your question, “Should I invest in       (fill in the blank)      …,” is: NO! Do not invest in your cousin’s boyfriend’s hot tip. Do not invest in some revolutionary iPhone App. Do not invest in a non-productive speculative asset (I’m looking at you crypto). Do not invest in standalone real estate. (Yes, we said it. Practice building excluded. The article will explain).

Instead come up with an investment philosophy and set of principles that will guide your decisions, and then stay the course:

  • Is the investment a productive public company that is innovating and creating new goods & services for a profit?
  • Has the investment been time-tested with academic research?
  • Is it highly diversified?
  • Are there safeguards in place? (i.e., who is holding the investment, are there audited financial statements)
  • Will this investment require more time & effort on my part as a side job?

If, after all of this, you still want to make that special investment; we’d suggest using only as much money as you’d be willing to lose betting on “Red” or “Black.”

 

Monthly Quote:

“The most important quality for an investor is temperament, not intellect”

-Warren Buffett

Ryan FiegiThe Fiegi Report – April 21, 2022

The Fiegi Report – March 24, 2022

Ryan Fiegi Investments Leave a Comment

Happy Tax Season everyone! Only 25 days left to file your returns… but who’s counting. Here is this week’s Report:

Summary: The short (1:32 minute) video above is from an interview with John Bogle. For those that don’t know, John Bogle was the founder of Vanguard and helped pioneer the philosophy of passive, long-term, low-cost investing.

Conclusion: John’s advice seems easy:

  1. Setup an asset allocation that works for you
  2. Diversify your portfolio
  3. Stay the course, and don’t “peek” at your statements (i.e., pay no attention to what goes on around you)

However, these 3 principles are virtually impossible for the majority of investors to achieve. There is countless evidence that supports the idea that most investors underperform their ability. Why? It’s human nature to try and “pick the winners” and to “peek” at your investments. Don’t be most investors and make bad decisions based on the results you see on your statements. Let PFG help guide your behavior. We’ll stop you from changing course depending on which way the wind is blowing that day. We’ll even help find the cardiologist to be in the room with you when you finally “peek!” 🙂

 

Monthly Quote:

“Don’t look for the needle in the haystack. Just buy the haystack!”

-John Bogle

Ryan FiegiThe Fiegi Report – March 24, 2022

The Fiegi Report – March 10, 2022

Ryan Fiegi Investments Leave a Comment

Welcome to the latest version of The Fiegi Report. If you’ve missed out on any of our previous entries, you can always go back and view them on our website here. With that, we’ll get to this week’s Report.

The Power of the Markets

Summary: The above link is a 2-minute video reminding and summarizing the basics of the markets and how they work.

Conclusion: Harness the power and knowledge of the millions of people investing in the markets every day; instead of adding unnecessary anxiety and risk trying to outguess them.

 

Monthly Quote:

“Someone is sitting in the shade today, because someone planted a tree a long time ago.”

-Warren Buffett

Ryan FiegiThe Fiegi Report – March 10, 2022

The Fiegi Report – February 24, 2022

Ryan Fiegi General, Investments Leave a Comment

We will keep the introduction to this week’s article short and sweet. Enjoy!

The Seven Habits That Lead to Happiness in Old Age

Summary: The article above should take you about 7-8 minutes to read – it is a must!  It describes seven non-financial habits that you can, and should, implement now to be happier later in life.

Conclusion: “Your well-being is like a retirement account: the sooner you invest, the greater your returns will be.”

 

Monthly Quote:

“We’re too young until we’re too old

We’re all lost on the yellow brick road

We climb the ladder, but the ladder just grows

We’re born, we work, we die, it’s spiritual

Enough is never enough

American dream never wakes up

Too much is never too much

We won’t be happy ’til we’re rich and miserable”

-Kenny Chesney (from his song “Rich and Miserable”)

Ryan FiegiThe Fiegi Report – February 24, 2022

Admired Leadership Field Notes

Nate Williams Leadership 1 Comment

Hello friends,

For a few years I’ve been trying to learn and grow as a leader under the tutelage of Admired Leadership. One thing I’ll say I’ve learned about leadership is this: leadership is much more about character and behavior than position or rank. Throughout my life I have seen great leadership from insignificant, undecorated people. I have also seen formal “leaders” (people with position) perform abysmally as a leader (I have been one of those on many occasions).

I have also learned that leadership is pervasive and needed EVERYWHERE! At home, school, church, work, among friends, and in our communities. Leadership applies to large groups as well as to individual, one-on-one relationships.

In my work coaching many people to achieve financial excellence I have learned, through much observation, that a huge differentiating factor in financial success is the ability to lead people. Without question, from a financial perspective, very few investments of time and energy will pay dividends like that of the effort to learn to become a better leader—and it is a skill that can be learned and improved. More importantly, I don’t know of much else that will help you make a meaningful, lasting impact for good in this world than through your influence as a leader. I deeply and sincerely commend this endeavor to you—learn and strive to become a better leader.

Practical tip: a few weeks ago I subscribed to the “Field Notes” offered by Admired Leadership. These Field Notes are written personally by Randall Stutman, one of the most renowned and respected teachers (and leaders) on the topic of leadership. These Field Notes are emailed daily; I have gleaned many great and practical insights from them and I look forward to reading them each day.

You can sign up for the Field Notes for free here: https://admiredleadership.com/field-notes/.

I’ve included below one of the recent Field Notes that I found particularly helpful:

How Can I Do Better?

Seeking feedback immediately after a performance is never easy for even the most seasoned leaders and performers. But you never know what people are thinking unless you ask them. Dodging this feedback by presuming others would tell you if there was something you needed to know means missing valuable information that could make you better. The best leaders push through the discomfort and ask others how they did after each and every performance. 

In her best-selling book about women in the workplace, Facebook COO Sheryl Sandberg recounts the time she was interviewed by legendary broadcaster Tom Brokaw. Because she thought her performance in the interview was below her standards, she asked Brokaw for feedback. Brokaw was stunned. He told her that, in a lifetime of interviews, she was only the second person to ask him for feedback. How can this be? Is feedback so scary that only the most self-secure and humble leaders ask for it?

The relationship between leaders who ask for feedback and leadership effectiveness is extraordinarily high. Requesting feedback may be the single most important thing a leader can do to improve their performance and gain the trust of their followers. Not only does asking for feedback increase mutual respect, it creates a forum for true dialogue, one where leaders can learn how others see them and make sense of their choices. 

For leaders with an intense desire to improve and a commitment to a growth mindset, asking for feedback after a performance is the critical pathway to learning. Given the essential role leaders play on a team, leaders actually need the most feedback, but they rarely get it. We don’t give feedback to leaders unless they ask for it. Even then, we are suspicious that the request is genuine!  We’ve rarely seen this before. 

Imagine a leader with enough self-confidence and the wherewithal to ask others for feedback. Asking for feedback is a leadership act and one that others reward with ideas, insight, and loyalty. Stand out from the leadership pack and try it. “How can I do better?” is a natural question for the best among us to ask after any performance. Time to join the club.

Nate WilliamsAdmired Leadership Field Notes

The Fiegi Report – February 10, 2022

Ryan Fiegi Investments Leave a Comment

I hope everyone found last month’s Report to be helpful in their understanding of those “pesky market headlines” we see everyday. Onto the next topic:

Are Concerns About Inflation Inflated?

Summary: The link above takes you to an article written in the summer of 2021 regarding inflation, but is still relevant today. It should take you about 3 minutes to read – maybe read it twice to fully understand. 😉

Conclusion: “Research suggests that simply staying invested helps outpace inflation over the long term for a wide range of asset classes. Overall, outpacing inflation over the long term has been the rule rather than the exception.”

 

Monthly Quote:

“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

-Sam Ewing

Ryan FiegiThe Fiegi Report – February 10, 2022

The Fiegi Report – January 2022

Ryan Fiegi Investments Leave a Comment

Introducing The Fiegi Report! This new semi-monthly post will include links to articles, videos and short summaries for all to read. It is designed to be a 5-10 minute training to elevate everyone’s collective investment knowledge. I hope you enjoy, and away we go:

Tuning Out the Noise

Summary: The link above has a short 2-minute video reminding everyone to tune out the noise of those pesky “market” headlines; along with further explanation in a short article.

Conclusion: “When faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested. A financial advisor (Practice Financial Group) can provide the expertise, perspective, and encouragement to keep you focused on your destination and in your seat when it matters most.”

 

Monthly Quote:

A fictional meeting between Jeff Bezos & Warren Buffet:

JB: “Warren, your investing strategy is so simple; why doesn’t everyone just copy you?”

WB: “Because nobody wants to get rich SLOW.”

Ryan FiegiThe Fiegi Report – January 2022

Should You Sell to a DSO?

Nate Williams General, Practice Transitions 4 Comments

Should You Sell to a DSO? Heck No!

Over the past several years, dozens of our clients have been approached by DSOs requesting to buy their practice. In the past year, this DSO activity has increased significantly. The DSOs are becoming more aggressive and persuasive in their effort to centralize ownership and power in the dental industry. Dentistry is one of the best, most profitable small businesses in the country, but if dentists aren’t careful, they will give it away.

When asked by our clients if they should sell, we always keep an open mind, investigate the offer, and analyze the numbers. In every case, without exception, our conclusion has been this: unless you want to get out of dentistry permanently, or unless you cannot handle being an owner1, do not sell!

Lest you think I am biased, let me restate my own position. I am a CPA and I own a CPA firm. This position means two things: first, I get to look behind the curtains and see the financial x-rays—the truth of how much money people make and keep. Second, as a CPA, I’m in the business of organizing financial complexity; the more complex a situation, the more money CPA’s make. At one point a few years ago, we were solicited to be the accounting team for a budding DSO in Texas. We declined the offer because we didn’t want to work with the pompous owners; and good thing too as the DSO quickly failed. But it would have been a lucrative contract for us! Many service providers have joined the DSO revolution and are profiting handsomely from it. The same would be true for PFG. Most importantly, in writing this article, I am representing the best interest of dentists.

Then why not sell to a DSO? The reasons are many, where should I start? To answer this question, I am going to ask and answer three critical sub-questions:

  1. What are the motives of those who want to start DSOs, and what are the motives of dentists who want to sell their practices to them?
  2. Why shouldn’t I sell to them?
  3. What can I learn from this DSO revolution and what should I do?

I believe if you can understand the deeper answers to these questions, you’ll see why, time and time again, we have come to the same conclusion: practicing dentists should absolutely not sell to DSO’s!

Read More

Nate WilliamsShould You Sell to a DSO?