Tuesday, September 8, 2020

Dealing with Grief

On September 4th, it was my son Reese's 31st birthday. Reese lived for 92 days and died of Sudden Infant Death Syndrome. I was blessed to be his father. Losing a son is no easy thing. You hear people say that "no parent should ever have to bury their child." I agree. Especially when it is your first child and they are only three months old. At age 33, I asked myself at the time, "How I am supposed to deal with this?" Truth be told, I didn't know.

Now that it has been almost 31 years, I can look back at it and evaluate how I have dealt with it over the years. When it happened, I suddenly had to wear a theoretical 50 pound vest around me. I am speaking metaphorically of course. In addition, to that, I had to try and be there for my wife. The first thing we noticed was that we each grieved differently. We both realized very quickly that we had to be supportive of each other when it counted. Too many grieving couples develop silos of grief and fail to communicate with each other. This causes one spouse to think the other does not care. Of course, this is patently untrue. It is simple a break down in communication. However, a breakdown in communication during a period of grief will lead to divorce in a lot of cases. Luckily, that did not happen in our marriage.

For several years, we volunteered at a Compassionate Friends group which became a Bereaved Parents group later on. One of the things that immediately slapped me in the face was that there were always people worse off than you. One lady had lost three of her children in a fire. Another son who filled in one night for his friend at a convenience store was murdered on that freak one night. He was working on his master's degree and was going places in life. There were so many heartbreaking stories among these people, but it was comforting to meet other people who have also lost a child. It was a safe place for a time. However, it is not a place to stay for years upon years. You will know when it is time to move on. Your instincts will tell you.

My wife and I discussed what to do next. We still wanted to have a family. Our plan was to have two or three children about two years apart. When we were ready, we got back up on that horse that had knocked us down and had our second son Marshall. Once he was born, it was not easy. We were on pins and needles that we might lose another child to SIDS. He was hooked up to a breathing monitor and I'll be darn if he didn't set that thing off 28 times in the first 30 days. You talk about a guy running a hundred yard dash to his bedroom. I did that a lot. 

Of course, the risk for SIDS is really about the first six months. We did not know anything about SIDS back then, nor did we even know anyone who had a child who died of SIDS. For myself, I went to the local medical school library and read everything that I could find on it. There are influencing factors that I discovered. Premature birth, male, born in winter months, having a cold prior to death and sleeping on their stomach. Reese was born about 4 - 5 weeks early. He was not really what you would call a premature baby, but when he was born, he was held in the neo-natal unit the whole time at the hospital. When the doctor finally showed up 4 or 5 days later, he said "take him home and treat him like a normal baby." I was like, wait a freaking minute. He was in neo-natal ICU for 4 or 5 days and now, everything is fine? The doctor said "Yes. Treat him like a normal baby." Notice how I remember that 31 years later? Of course, I do not have a very high opinion of that doctor. I know. I know. It wasn't his fault that my son died, but damn it! Get your head out of your rear end. You are a "baby doctor" who is supposed to be knowledgeable about things like, oh I don't know, perhaps Sudden Infant Death Syndrome. Reese had all those signs that I discovered in the medical school library mentioned above.

Sorry, I digressed.

My first real experience with grief was when I was a senior in high school and I learned that my father had died. I never knew my father. Although, he had plans to have a relationship with me, because he had moved back to Arkansas from California to become the Chief of Police in Camden. My sister Tami had told me that they moved to Arkansas so he could have a relationship with me when I turned eighteen. Unfortunately, it was not meant to be.

Dealing with the grief of losing my father has been a lifelong struggle. My mother has been absolutely no help. No parent should ever disparage the other parent to their child, especially when they are deceased. After all, they are not a threat any more if they are dead. 

My wife and I had three miscarriages in a row after Marshall was born. These were no fun. We decided to keep trying. We saw that movie "Rudy" and decided that our baby would be named Rudy if it was a boy and Rudi if it was a girl. We were blessed with a girl and both our son Marshall and daughter Rudi are doing well. 

I've lost two brothers and a sister, too. My brother David was killed in a automobile accident at age 32. My sister Tami died at age 53 of health complications from Lupus and doctor approved morphine. More recently, my brother Jon died last year of a heart attack. I begged him to quit smoking, especially since our father died at age 39 of a heart attack and he was a heavy smoker. After Jon had his second heart attack, he had bypass surgery and quit smoking for a short time, but resumed his smoking unfortunately. There was no good outcome to be had.

When I turned age 39, I was wondering if I would make it pass that grim milestone. I had an eerie feeling that year and for good reason. One of my best friends in the world would be murdered and two days later, my step father would die of cancer. My best friend's mother would go on to lose three of her 4 children. One more to ALS and another to murder. Two murdered children in one family. As I mentioned above, there is always someone who has had it worse than you. Remember that.

Looking back, as I am nearing my 64th birthday, I am amazed that I am not in the crazy house. Getting back to the title of this blog, I have dealt with each of these incidents of grief in different ways. For my son Reese, I look at his picture each night that I go to sleep and pat myself on my chest where I used to hold him. On his birthday, we light a candle for Labor Day, since he was born on Labor Day.

For my father, I have researched his life and built a shadow box in his honor. He was a "Rakkasan" or Korea War paratrooper from the 187th which merged into the 101st Airborne. He spent over 10 years in both the Army and the Air Force, then joined the ranks of law enforcement where he served until his death. He was an American hero. I have his pictures on my phone and on my mantle. Further, I have done genealogy on the Allison family and this has been very rewarding to me personally.

For my best friend Mike, I have a beer holder in a drawer in my bath room that holds my hair brush. Every time I brush my hair, I see that beer holder. We were roommates and fraternity brothers and went to the Sigma Alpha Epsilon Leadership School together.

I have pictures of my brothers, David and Jon on my mantle too, along with one with my sister Tami. Whenever the clock strikes 12:12, I think of my brother David. We saw David on 12/12/1993 for the last time at my nephew's first birthday party. On his way home, he was killed in the automobile accident. I do not go by that exit on I-40 often, but when I do, I certainly do not like it. I have a golf tournament award that my brother Jon won along with a picture of him with Eddie Van Halen. I miss my brothers a lot. Both of them were great brothers.

The picture that I have of Tami is one with all of the Allison family except our father. She was always sweet to me and helped me fill in some gaps in regard to my father. It was like that show "Long Lost Family" when I met her in Las Vegas. We instantly connected.

One thing that I noticed about grief is that your friends change. People that you thought were your friends feel too inept to communicate with you, so they slowly slink away. While other people you do not expect have a newfound appreciation of what you have gone through. There is no one answer to dealing with grief. Of course, I could not do it without my faith in Jesus. I am comforted to know that he said "Let the little children come to me." That tells me all I need to know about how Jesus feels about Reese.

Right now, my wife's father is experiencing his last days in a nursing home. More grief to come for my wife and I. My wife lost her brother Jerome at age 57 which was the same age that my step father Hillman died. Unfortunately, grief never goes away, so you have to learn to live with it, like it or not. There is no reason to ruin your life and sink into a depressive state, or get addicted to drugs or alcohol to deal with it, because none of those things will help you. It is more important to recognize grief for what it is, accept it, then keep moving forward living your life. You will never get over the loss of people that you love, but you can choose to live your life and find your own happiness. Little by little, the weight of the 50 lb weight vest will start to dissipate. It will rreturn periodically, but you will get better at removing the weight of it. Stay focused on the future, respect the memories of the past, appreciate the gifts that you received of God putting those people in your life and then live your life in pursuit of your own happiness. Happiness is better than depression any day of the week.

Tuesday, August 18, 2020

There is Hope in #Fintwit

I am a student of prior wars. One of the craziest wars was World War I, sometimes called the Great War. Parts of this war took place in Northern France, Belgium and Southern Germany via trenches. The Germans advanced and dug large trenches over a vast stretch of land and then defended it. The Europeans also dug trenches very close to where the Germans dug their trenches. The Generals on both sides periodically ordered their men over the side of the trenches to advance to the other trenches. If you failed to get out of your trench when ordered, then you were likely to be shot dead right there by your own side. If you got out of your trench, then you were likely to be shot by the enemy. This insanity repeated itself for several years with neither side advancing. All that happened is thousands upon thousands of people were needlessly killed by incompetent military leaders.

Today's political climate reminds me of this trench warfare. Instead of playing out on a battlefield somewhere, it is playing out on Twitter®. This is just pure stupidity in more ways than one. First of all, nobody should believe that their opinion on Twitter matters in the grand scheme of things. Secondarily, if you are espousing your political beliefs on Twitter, then you will most certainly get attacked and perhaps even some will try and cause you to lose your job. This is all totally ridiculous. It really should stop. I have started to see it rear its ugly head in #fintwit. This is disturbing to me, because our industry already has to fight off all these stinking Ponzi schemers. We do not need to be sullying our reputations as a group over mindless political opinions.

Twitter is today's trench warfare. A bunch of people with way too much time on their hands send out tweets and foolishly believe that their words carry a lot of weight. The truth is Democrats do not care about a Republican's opinion and vice-versa. So, I am going to double cancel culture the both of you Democrats and Republicans. Cut it out. You are giving our profession a black eye.

I notice some things about our industry having been a part of it since 1988. For most of my career, other financial advisors have mostly looked at each other as competition. I recently had a financial advisor with an office in my building tell me that we were competitors. I told him that we were not. He disagreed. I tried to reason with him that the people that he knows in his circle are in a different circle than the people in my circle. He was unconvinced. Although, I could have offered a ton of help to this younger advisor, he was totally opposed to the idea of even having a further conversation, much less help from a competitor. I thought how sad. He was trying to branch out on his own, but months later, I noticed that he took a salaried job at Citibank. No surprise.

I met another financial advisor who once told me that he knew how much assets under management that I had. I replied, "You're kidding?" He said, "No. In fact, I have a list of every financial advisor in town and how much they have in AUM on an Excel spreadsheet." I was stunned. Why is this guy wasting his time worrying about what other advisors in town are doing? Seems pretty dumb to me. Must be a male ego thing, I guess.

There are some young people coming up today who are making changes in that attitude. Specifically, Jason Wenk, Tyrone V. Ross, Jr. Dasarte Yarnway, Brittany Castro, Emlen Miles-Mattingly, Douglas Boneparth, Ryan Hughes, Alex Rosenberg, Taylor Shulte, Justin Castelli, Breanna Reish , Alex C. (the Armenian) and Kyle Van Pelt. Forgive me, if I left you out. Those are the names that came to my immediate mind. These folks are all about helping each other. They do online seminars, video blogs and reach out to each other by social media. Others have businesses that help young advisors. These people are doing great things for our industry. I can tell you confidently that the future of the financial profession is in good hands with these young professionals. They get it and frankly, I do not care what their political beliefs are since they have no effect on what they are trying to accomplish and I strongly believe will accomplish. 

Let me know if I can be a resource.

https://riarules.com

https://marianfs.com

Tuesday, July 28, 2020

Who is investing with these fools?

Are people really this stupid? Sadly, apparently so. Some promoter of investments in Texas promised investors a return of 20% per year over two years. In addition, this Texas promoter promised that each investor would potentially receive another $15,000 to $18,000 over five years, plus even more crazy incentives.

I am not sure how many stupid fools invested with this guy, but the Texas State Securities Board's Enforcement Division stepped in and put a stop to it. Or, at least they thought so. The brazen nature of this promoter is unbelievable. While the promoter met with the Enforcement Division, after promising to stop his sham, he was still promoting it to investors on that very same day!

My book, Meet Wall Street. The Reason You're Stupid, 2nd Edition is on sale right now for $0.99 as an eBook at https://books.apple.com/us/book/meet-wally-street-the-reason-youre-stupid/id816020421?mt=11&app=itunes. The subtitle is very apropos for anyone fool enough to invest with this promoter. Hopefully the Texas State Securities Board stopped him before he stole too much money from investors. You can read the press release from the Texas State Securities Board here: https://www.ssb.texas.gov/news-publications/commissioner-enters-order-against-georgetown-promoter-fraudulent-medical.

If you had read my book, then you would not have fallen for an investment promoter like this guy. Let's have a little class on this, shall we? Your first clue to this being a sham was the 20% per year return promised over two years. He was only asking for $50,000 from each investor. That was your second clue. Your third clue was the additional return promised of another $15,000 to $18,000 over five years. Add these clues up and you have a sham investment of a 76% return on your money in five years. How can these guys even say this crap with a straight face? I would report a guy like this so fast they would not know what hit them. I majored in Criminal Justice and I believe in law and order. Besides, I am out here doing the right thing by people and these investment promoter types are ruining it for honest advisers like me.

Readers of my eBook will know that this type of investment violated my rules of investing. One of my rules is to "Keep it Public." By keeping it public, I mean that you should only invest in publicly traded investments listed on a stock exchange.  My other rule is to "Keep it Liquid." This investment was certainly not liquid. Once you gave this promoter your money, then that would likely be the last time you saw it. How are you going to comply with my two rules? This sham investment was not publicly traded and it was not liquid where you can get your money in as little as two business days. Therefore, as readers of my eBook know, this was a big, red flag and they would have never fallen for this investment promoter.

Oh by the way, did these investors check this guy's background? That's what I thought. Another egregious failure. Did they check to see if this was a securities offering registered in the State of Texas or granted an exemption from registration from the State of Texas? Of course, they did not. They just blindly hand their money over to investment promoters like this all the time. You can check an advisor's background at https://www.investor.gov/crs.

Ninety-nine cents will provide you the information to protect you from investment promoters like this guy. Now do you see why the subtitle of my book is "The Reason You're Stupid"? Unfortunately, you are very, very stupid if you invest with someone like this.

You need me in your corner. I am telling you.

https://www.marianfs.com


Wednesday, July 22, 2020

Direct Indexing

There is a new change coming in the area of investing called Direct Indexing. What is Direct Indexing? This is where you invest in a pool of stocks that follows a particular index such as the S&P 500® or the Dow Jones Industrial Average for example. Right now, financial advisors use ETF's that invest in a multitude of different indexes. Generally, most index fund charge fees for managing the funds. Recent competitive pressures have forced a lot of these management fees to come down significantly. These management fees can range from 0.50% down to as low as 0.03%. There are some funds with management fees higher than 0.50%, but for the most part, most of the well known fund sponsors with index funds charge less than 0.50%. If you are investing in one of these ETF's, then this is the fee that you pay the fund sponsor to manage the pool of money.

Direct Indexing is going to change the investing world significantly.  Suppose your financial advisor has you invested in a portfolio of ETF's. The total management fee is based on your financial advisor's fund selections. Let's assume that your total management fee is 0.50% per year. With Direct Indexing and free trading commissions your financial advisor will be able eliminate this 0.50% fee altogether. Now, this is not something that is going to happen immediately, but it will happen. The key to this is two fold. One is zero trading costs and the other big one is the ability to buy fractional shares.

You long had the ability to buy Mutual Funds in fractional shares, but you could not buy fractional shares of ETF's. ETF's trade like a stock. You cannot buy 0.3478 shares of a stock...unless you have a brokerage firm that has the software capability to allow it. The major players like Schwab, Fidelity, TD Ameritrade, E*TRADE and others will soon be allowing you to buy fractional shares in your account, if they are not already. This fractional share issue is the key to Direct Indexing. You may have seen an ad on television for Schwab Stock Slices. This is a form of Direct Indexing, but not the full freedom that financial advisors like me prefer. We want complete freedom to choose as many stocks as we want in each client account. This is when Direct Indexing will really take off.

For taxable accounts, Individual, Joint or Trust accounts, there is a tax advantage utilizing Direct Indexing. Stocks by themselves are tax deferred. After you buy a stock and hold it, you only pay taxes if you sell it. Of course, the amount of taxes that you pay depends on the time period that you held the stock (i.e., short-term capital gain or long-term capital gain) and whether you have a profit or a loss. You can still do Direct Indexing in your IRA and Roth type accounts. There just will not be any tax advantage in doing it. However, you will save in management fees from a formerly all ETF portfolio.

In the very near future, probably in 2021, your financial advisor may come to you to discuss Direct Indexing with you. Direct Indexing will allow you to hold a portfolio of, for example, 500 stocks in fractional shares in your Individual account without having to pay an ETF management fee. This will save you somewhere between 0.03% and 0.50% or higher in fees each and every year. Your financial advisor will be fairly compensated by their normal assets-under-management fee or annual flat fee that they charge. The reason this is true is because, they have to research the 500 fractional share stocks to put into your account! This takes a lot of time and their time is valuable.

I am working on a new relationship with a firm that will be able to offer this sometime late this year or perhaps early next year. It is something that I am personally really excited about. More to come.

Let me know you I can help you today. Visit https://www.marianfs.com give me a call and/or request a Zoom Meeting via email.