Every quarter we publish the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. This report reflects the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. The comments reflect opinions as of the specific date listed above and can change quickly based on market conditions. Tactical Asset Allocation – March 2018
Written By: Rodrigo Lopez
No matter what one thinks of Bitcoin or Blockchain technology, all investors (rookies and grizzled veterans alike) should thank the Cryptocurrency phenomenon for one thing: A crash course in investor psychology. As everyone has different experiences investing in cryptocurrencies, I’ve decided it would be valuable to others to share my experience.
Week 1: I read about Bitcoin for over a year and my curiosity was starting to get the best of me. I decided to spend the entire week researching the pros and cons of cryptocurrencies and the best way to buy and store.
Week 2: After conducting extensive research and teaching a Blockchain 101 seminar in the office, I convinced several other colleagues to take the plunge with me. We opened Coinbase accounts and set a 60/30/10 plan to invest in what we thought was a “balanced” portfolio. The plan consisted of allocating 60% in Bitcoin, 30% in Ethereum and 10% in Litecoin.
Week 3: Timing could not have been worse, we bought Bitcoin at the top – and it was downhill from there. Furthermore, I lost conviction in Litecoin and sold with a 40% loss to allocate the remainder into Bitcoin. I thought, “Hey, Bitcoin has been here for a while, I’ll balance my cost basis and wait for it to rally again.”
Week 4: Bitcoin continued to plummet and every time this happened people said it was a “buying opportunity.” I succumbed twice and didn’t want to continue losing money, so I decided to stay put/hold my positions. I was no longer willing to get caught in the trap once again, even though the thought of 1,000x gains was very tempting.
Week 5: After the famous “crypto bloodbath” of 2018 I learned that discipline, especially in investing, is key. Cryptocurrencies are a completely different story, they do not behave like financial markets and any attempt to analyze them in the same manner is futile.
In less than two months, I’ve lived through a full “market” cycle and learned humility, discipline and restraint. On a more positive note, my Ethereum has rallied almost 50% (Thank you, diversification).
I look forward to sharing my future experiences with novel currencies and hopefully have some upside to share as well!
News Radio 1200 WOAI reports that the Fed has made inserting a manageable amount of inflation into the economy is a key goal in 2018, and Elizabeth Crawford, CEO of San Antonio’s Sendero Wealth Management says a lack of inflation despite strong signs of growth in the economy, is a main reason why much of that prosperity is not making its way to the paychecks of workers.
Anne Buckthal Chilton was featured as a Bizwomen Headliner in Finance and Banking! Click here to learn more.
Written By: Melinda J. Perez
January brings with it a burst of energy, inspiring people to pursue their goals with a renewed drive for the year ahead. And with that in mind, we set resolutions to make our bodies healthier, or to nurture our relationships, or to gain skills that will advance our careers.
Of course, there are many more goals people set; but too often, they forget to include resolutions to improve their financial outlook. When the fact is: Whatever you wish to see improve this year, your finances will play a part in how successful you will be.
With this is in mind, here are five financial resolutions to consider adding to your list for 2018:
1. Pay Off Your Debt
Before you can move forward, you’ll need to look back and see where you’re coming from. This is the time to recover from holiday spending and evaluate your current situation.
How did your December budget fare? Did you stick to it? If not, how long will it take for you to get back on track?
Compile a list of your outstanding debts, and look at interest rates and payment options. Create a budget that will allow you to pay down your debt. It may be that you can instantly see that cutting out coffee trips and subscription boxes will help, or you may need to make larger adjustments—which is something a financial planner can help you with.
Once you’ve prioritized eliminating debt, the next question to consider is: How much can you save?
Growing up my mother taught me to save 10% for emergencies. However, goal-oriented people are more likely to save for something (as opposed to putting money aside for a worst-case scenario that may never happen). In other words, you don’t really want to plan for an emergency. But I bet you’d save for an upcoming trip more enthusiastically.
So, save for both. Have an emergency fund in case you need that mechanical work and your warranty just expired (or in case your heater goes out and it’s actually cold in Texas). And, save for that trip, new car, or down payment too.
There’s no need to be intimidated by the prospect of investing. You can start small: No on one says you need to have be wealthy before you invest—compound interest can help you get there.
As Ed Hart, one of our advisors here at Sendero once said, “Millionaires got to be millionaires by taking a risk at some point in their lives.” Do some research and see what you feel most comfortable with. Let 2018 be the year you take that first step toward investing.
4. Plan for Retirement
Whether you’re in your twenties, forties, or seventies, you should be thinking about saving for retirement. Are you financially prepared to be able to travel the world or whatever your personal dream may be? Ask yourself the following questions:
1. Are you putting away the most you can?
2. Are you participating in your employer’s retirement plan? (Most employers match participation up to a certain percentage, so be sure to take advantage of this free money during open enrollment!) Contributing to your 401k can also reduce your taxable income.
3. If you’re self-employed, are you setting yourself up for a successful retirement?
It’s never too late to bolster your retirement savings, so if you’ve procrastinated this issue, resolve to give it the time—and money—it deserves this year. (And if you don’t the difference between a traditional and Roth IRA, reach out to an expert who does.)
5. Think About Your Legacy
Estate planning is like budgeting: Everyone knows it’s highly recommended, however many people continuously put it off.
To be clear: This financial resolution is just as important as saving. Estate planning will not only give you peace of mind, but help your loved ones as well.
If you have small children, who would take care of them? What about power of attorney: Have you given a trusted person the power to abide by your will and enforce your wishes in the event you cannot?
Make this the year you create or update your will. Visit an attorney to discuss the various estate planning options available and find one that fits your needs.
Much like other resolutions, change will not happen overnight. But the sooner you take steps in the right direction, the sooner you’ll be on the path to change. Tackle the goals above one at a time, and don’t be afraid to ask for help along the way. Reach out to your advisors, CPAs, financial planners and attorneys to make sure your 2018 financial resolutions are met this year.
Congratulations to Lisa Martinez, one of the San Antonio Business Journal’s 2018 40 Under 40 honorees.
Every quarter we publish the current opinions of the Sendero Investment Committee on various asset classes used or considered for client portfolios versus their strategic allocation. These comments reflect opinions as of the specific date listed and can change rapidly based on market conditions. Sendero prepares this analysis as one of the tools used to grow wealth responsibly through a well-designed investment strategy with a tilt towards opportunistic asset allocation: Tactical Asset Allocation – December 2017
When you have a busy career, kids who are involved in multiple activities and a household to run, the thought of incorporating volunteerism into your life is understandably overwhelming. You may wonder why, with everything else you juggle, should you even consider taking on another completely optional commitment? Even if it sounds like a nice idea, how on earth could you possibly fit in one more responsibility?
As the U.S. Senate moves forward with the major tax cut bill, a lot of people are asking, ‘what’s in it for me,’ News Radio 1200 WOAI reports.
Scott McMillian, who is the chairman of San Antonio’s Sendero Wealth Management, says more than you think.
Scott McMillian, who is the Chairman of San Antonio’s Sendero Wealth Management, says, while the change in the year is a random act to the markets, it is a good opportunity for all investors, whether you manage a seven figure portfolio or a 401(k) to make sure you are well positioned.
- Page 1 of 2