proACTION℠ Planning Series
Bonus Episode | What Motivates Ben
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Join Ben Offit, CFP®, for a bonus episode of our proACTION℠ Planning Series, where he talks about his background, and his drive to help others achieve a higher quality of life thorugh Financial Planning.
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Ben Recognized by Baltimore Magazine as a 2023 Five Star Wealth Manager for 6th Consecutive Year
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To receive the 2023 Five Star Wealth Manager award, researched and managed by Five Star Professional, a wealth manager must meet 10 objective eligibility and evaluation criteria associated with wealth managers who provide quality services to their clients. Wealth managers do not pay a fee to be considered or placed on the final list of 2023 Five Star Wealth Managers.
Note: The Five Star award is not indicative of the wealth manager's future performance.
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“Really, Really appreciate your thoughtful, individualized approach” – Clara, Physician
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The S&P 500 finally exited out of the longest bear market since 1948. It took 248 days for the market to close up more than 20% from its most recent low.
MarketWatch, June 11, 2023
U.S. wages outpaced inflation on a year-over-year basis in May by 0.2%, ending the ignominious streak of 25 consecutive months of negative real-way growth.
CNBC, June 22, 2023
A Ukrainian hotline for Russians who want to surrender has received more than 17,000 inquiries since September 2022.
The Wall Street Journal, June 14, 2023
The New York Yankees’ Domingo Germán pitched the 24th perfect game in Major League Baseball history retiring all 27 Oakland Athletics batters he faced over nine dominant innings. Historically, the DOW has had very strong returns following perfect games: The index has been higher 81% of the time a year later, with an average return of nearly 13%.
Barron’s, June 29, 2023
“Justice will not be served until those who are unaffected are as outraged as those who are.”
Benjamin Franklin
“History is one long processional of crazy ideas.”
Phil Knight
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The Haystack Approach to Investing in the Future
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Greetings, loyal readership!
It's my pleasure to keep you informed about the evolving world of finance and investing. Today, let's discuss how major breakthroughs have shaped our world and how we can embrace the future with sound investment strategy.
Over the years, we've witnessed incredible technological advancements that have revolutionized the way we live and work. From the days of dial-up internet to the rise of electric cars, to the advent of artificial intelligence, each era has brought its own set unexpected winners.
Remember the early 2000s when the internet was booming? Back then, it seemed like every .com website had the potential to conquer the world. We had search engines like Lykos, AskJeeves, and Yahoo as the frontrunners, but then, out of nowhere, a funny named company called Google swooped in and became the grand winner.
Similarly, with cryptocurrency, while it's tempting to invest in this landmark technology, just as in the .com era, where countless companies fizzled out, the vast majority of cryptocurrencies will eventually go to $0. It's like betting on which flavor of ice cream will be the ultimate hit while ignoring the fact that most of them will melt away. However, a few may emerge as major winners, much like the rocky road or the chocolate mint that stand the test of time.
With electric cars, we can envision an electrifying future, but we can't predict which specific company will emerge as the long-term winner. Will it be Tesla? Maybe. Maybe not. The point is, don't put all your volts in one battery. Diversify your investment approach to ensure that you're not left stranded on the side of the road when it comes to the electrifying evolution of transportation.
Now, let's talk about the tried and true concept of diversification. Picture yourself strolling through a vibrant market, surrounded by an assortment of tantalizing fruits. You have the choice to either search for that one elusive needle in the haystack, the perfect fruit, or simply enjoy the rich variety the market offers. Well, my dear neighbors, the same principle applies to investing.
Rather than trying to pinpoint the exact companies that will dominate the future, consider owning the haystack itself. This is what you do by owning an entire index – you become the owner of the entire market, including those needles in the haystack! For example, if you invest in the S&P 500, you're already holding a slice of the biggest tech companies out there, such as Apple, Facebook, and Tesla. These companies naturally find their way into the index as the economy evolves. By embracing diversification, you decrease the risk of failure and increase the probability of reward. After all, who wouldn't want a taste of that sweet pie chart with a side of stability?
Now, some folks might argue that concentrated positions lead to higher risk and higher rewards. While that may be true in some scenarios, when it comes to investing in individual stocks, it's like playing a high-stakes game of roulette. Sure, you might hit the jackpot and stumble upon the next Apple or Google, but let's face it, most individual stocks won't bring such fortunes. Investing in an index, on the other hand, offers you a higher likelihood of owning the top companies in the world at all times, minimizing the risk of a single position failing in your overall portfolio.
So, trying to be a fortune-teller with which companies will be the next big winners, take a step back and simply own the index. It's like having front-row tickets to the grandest show in town. You get to participate in the growth of the best companies now and into the future, all while embracing the beauty of diversification.
In the world of investing, the key is to ride the waves of change with a smile on our faces and a diversified portfolio in our hands. Embrace the breakthroughs, chuckle at the unpredictable winners, and savor the fruits of your diversified portfolio.
Disclosures: You cannot invest directly in an index
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S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index.
Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.
NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices.
Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.
Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value.
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Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures
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