It's back! Well maybe...I think. Is that decisive enough for you?
Of course, I am not talking about Jack Nicholson, Jaws or a new Star Wars sequel but Bitcoin.
Bitcoin you say?
Yes, Bitcoin! The darling of 2017 portfolios and cocktail party banter!
Maybe you remember Bob, the guy with the crowd gathered around him at the party who had the crowd memorized with his story of how he turned a $3,000 investment in Bitcoin into a new life as a millionaire. Maybe you hated Bob as much as I did! Darn Bob!
How did Bob do it?
He rode the trend upward to riches. Now Bob was fortunate to investment in Bitcoin before it took off on a parabolic upward move, but Bitcoin may still have a big move left in her. Just maybe!
Here is the deal, nothing moves straight up and Bitcoin took a pretty hard spill, but we are now seeing new life that could once again lift it to its former highs.
The decline was what we call in the business a Pennant Pattern. You can vaguely make out the Pennant between the two dotted lines in the top panel of the chart window.
As luck would have it, price this week moved above the top pennant pattern dotted line, which could be signaling a new price move in Bitcoin.
This move is also confirmed by the earlier trend line break of the RSI (bottom chart panel) and is close to confirming in the middle chart window with the MACD moving averages ready to cross and the blue histogram close to moving above the middle zero line.
Why Do I Tell You This?
This may be a great opportunity to make a pretty good return!
Hopefully, you then say to yourself, "self...what else can Jeff and InTrust Advisors do for me?"
That is why! Simple self interest!
Here is why I believe the opportunity bears watching!
If you measure the left side spread between the flag pattern lines (blue dashed) in the top chart window and then measure up that same distance from the point price broke above that top flag pattern line, it points to at least a retest of the highs.
A retest of the highs in bitcoin would be a 115%+ move from today's close. That would be nice wouldn't it?
How Do I Invest?
Don't call me on this opportunity, I cannot help you with it.
The best thing to do is open an account at one of the many bitcoin exchanges, such as San Francisco based Coinbase, and then make the trade yourself.
Just don't forget us when you have the talk with your future self on the information we provided you and the return you hopefully made on your investment.
Want to know more, download our free report entitled Currency Markets, Bitcoins and Perspective.
Now the disclaimers:
As always, investing does entail risk and this is a speculative trade. There is risk to your principal and our analysis could be wrong or market conditions could change.
Past performance may not be indicative of future performance. We would advise you to seek the advise of your own dedicated financial professional.
Written by: Jeff Diercks
It's here! Summer that is. What a great time to get out there and spent time with the family.
Did you know that according to an eZonomics online poll summer is the season in which Americans spend the most money. Winter is a close second due to the Thanksgiving and Christmas holidays.
No worries though!
I am here to arm you with a 5-Point Summer Financial Checklist that is guaranteed to help you through this expensive season.
1. Examine your budget
One of the easiest ways to save money during the summer is to revisit your budget, assuming you have one. Now I know that no one, except for weird people like me, like budgets but if you don't control where your money goes, it will control you.
So the first place to start is with your budget. If you don't have one there is no easier place to start than with your client website which allows you to set one up almost effortlessly. If you have one, it's time to dust it off.
Once you have your budget, here are the places to focus:
2. Look at Your retirement plan contributions
Have you been putting money aside each month for retirement? While saving any amount is better than saving nothing at all, now's the time to see if you can up those contributions.
Even a small increase can go a long way toward helping you meet your retirement goals. Imagine you're currently allocating $200 a month to your 401(k) and your present balance is $5,000. Assuming your investments generate an average annual return of 8% (which is feasible with a stock-heavy portfolio), after 30 years, you'll have an ending balance of $322,000, which is not bad at all.
But watch what happens when you increase that monthly contribution to $250. All other things being equal, that extra $50 a month will help you grow your balance to $390,000 -- a $68,000 difference.
3. Check up on your investments
Summer is a great time to have a mid-year review. This bull market is not getting any younger and maybe it's time to adjust your asset allocation to account for the added risk that cycle ends can bring.
Have there been any changes in your goals, family or circumstances? These changes should be reflected in your investment allocation so that you can hopefully meet these new goals or circumstances.
4. Adjust your tax withholding or estimated taxes if necessary
Summer is a great time to review where you are versus where you expected to be. If your income is higher or lower than expected, now might be a great time to adjust your salary or wage withholding or, if applicable, your quarterly estimated tax payment amount.
Wouldn't you agree that extra money could come in handy now vs. filing for a refund next year?
If you are pay too much, and you're essentially loaning the government a portion of your hard-earned money for free. If you are paying to little, you may find it hard to come up with the funds later in the year to pay the taxman what you owe. It is a lot easier to pay small increases over the balance of the year than a larger lump sum come January or April.
5. Consider an insurance review
I know that no one likes insurance, but it does deliver peace of mind. However, many times insurance policy premium increases are automatic and over time they become expensive relative to what a new provider might charge for the same policy.
A classic example is auto insurance. Every few years, you have to shop it!
When you do you will find out that the market is so competitive that you are bound to save money. Money that can help pay for that most expensive time of the year, which is why we are doing this in the first place.
Bundling auto, home and flood can also many times save you money.
So now it's up to you. I hope this brief 5-Point Summer Financial Checklist puts more money in your pocket in what is otherwise the most expensive time of the year!
Let us know your thoughts in the comments below!
Written by: Jeff Diercks
There are a lot of misconceptions about insurance. Some people feel naked without it. Some would rather have a root canal than think about it. However, everyone I think would agree that in today's society it is a necessary tool in the financial tool kit.
This month, I would like to present an interview I did with Corey Konsulis, Personal Risk Advisor for USI Insurance Services on the misconceptions many have about insurance.
Corey, tell me a little bit about your background.
I grew up in Buffalo, New York and moved to Florida just as I was finishing up High School. I stayed here through College, met my wife, and started my career in the insurance industry. For the past 4 years, I worked with a small independent firm based out of Tampa. I recently made the transition to the brokerage side of the business and work primarily with highly successful families, individuals and family offices. I provide risk management and insurance programs to ensure that their most valuable assets are protected, peace of mind secured, and potential exposures mitigated.
What do you enjoy most about your work within the insurance industry?
I’m an educator at heart and the most rewarding aspect of what I do is getting to educate clients and professionals about the exposures that are affecting them and their families. I also enjoy solving problems and the complexity that exists within the family office space is rewarding as well. We can get very creative in our programs for family offices and no two are alike. That’s energizing for me!
What would you say are some common misconceptions about insurance programs in general?
I hear this all the time, “I’m not in a flood zone so I don’t need flood insurance.” That is wildly inaccurate. If you live in Florida, you have flood exposure. Although the bank might tell you that you don’t “need” flood insurance, the reality is, all of Florida is a big swamp and with the rise of urban sprawl, the water must go somewhere.
I met with a client last summer, who identified that they didn’t have flood insurance on their primary residence. We placed a policy (very inexpensive), and during Hurricane Irma they experienced severe flood damage. Because we had taken the steps to secure the proper coverage – even though they were told they didn’t need it – they were saved from a $150,000 out of pocket loss.
You know Corey, this is very interesting. I myself just visited with a new client in Louisiana who is still recovering from what they call "a thousand year" flood. They spent twelve months out of their home and have totally rebuilt everything in their home from the roof line down. Fortunately, they had flood insurance. Many others in their own family and their neighborhood were not so lucky and are instead trying to reestablish their lives without any kind of financial help. It is sad to see!
What is another misconception you see frequently?
Another I hear constantly is, “My homeowners policy will cover my valuable jewelry.” Most homeowners policies provide $2,500 in coverage for jewelry, does not cover mysterious disappearance, and is subject to a deductible.
Most households need a separate valuable articles policy to ensure they have worldwide coverage for their important and valuable pieces. We have highly creative ways of structuring these programs to ensure robust and comprehensive protection.
What would you say are some common misconceptions for family offices or the ultra-wealthy?
The list is extensive for these folks. Many assume their excess liability program extends to Board positions they hold for profit or non-profit companies. Unless specifically structured to extend coverage for this exposure, there is no coverage built in to a standard excess liability program.
Many also wrongly assume that their homeowners policy will provide coverage for domestic staff on the property in the event an employee is injured or if a lawsuit is filed against them (homeowner). Separate extensions are required for this sort of exposure and programs like Employee Practices Liability and Workers Compensation are highly recommended. Without these, there is no coverage.
One of the biggest misconceptions has to do with communication. Many assume their Certified Public Accountant, Estate Planning Attorney, Financial Adviser, and Insurance Broker are all communicating with each other. That is very rarely the case. Due to the lack of strategic planning among these professionals, many clients remain exposed and unaware they are at risk.
I’m shocked by this and always push for a consultative approach to risk management that includes all of the professionals associated with the client to ensure that we have left no stone unturned. We’re only as good as the people we surround ourselves with.
Is there any advice you would leave my readers with?
Be proactive rather than reactive when it comes to your risk management and insurance program. Don’t wait for something tragic to happen to find out that your insurance program was not structured properly. Vet your Insurance Broker and work with someone who has experience with clients like yourself and a team of people to be able to provide robust and ongoing support over the years.
Our lives are never static and the same should be said about our insurance and risk management programs. They need to grow and adapt just as we do. Is your current program providing this? Does your current broker have conversations like this with you? Maybe it’s time for a change.
Thanks for your time and thoughts Corey.
The best way to work with Corey is through your advisor, like InTrust Advisors, but if you would like to contact him directly, here is how:
So now it's your turn!
Do you have a story of an insurance misconception that either saved your bacon or cost you money?
We would love to hear it! Please feel free to comment below.