The Tragic Loss of Jose Fernandez & Investing

The Tragic Loss of Jose Fernandez & Investing

    by: Brendan Magee

As the weekend approaches and the reality that this is the last time we will get to see Ryan Howard in a Phillies uniform, those who love Phillies baseball can't help but feel a little sad. In comparison, our sadness cannot compare with the grieving that is taking place in the Miami Marlins organization.

Just 24 years old, with a child on the way, and on the verge of a hall of fame career, Jose Fernandez died Sunday, September 25th along with two friends in a late night boating accident.

Reports are that, after an argument with his girlfriend he decided to blow off some steam by taking a ride on his 32 foot fishing boat. In trying to get fellow teammates to join him they declined the invite and  cautioned him not to go out under such dangerous conditions.

Another report is that his neighbor, former pitcher Pedro Martinez, had tried to counsel him in the past on driving his boat. He told Fernandez he was riding too close to the jetty. He told him he needed to be at least 200 feet away from the jetty in order to be sure he stayed clear of it.

Obviously at night, it is practically impossible to see a jetty and man doesn't do well when he collides with one. The consequences of which in this case proved to be fatal for Mr. Fernandez.

So what does this tell investors?  The lesson here is that it is not the problems or dangers that you can see that will cause the most damage. It is the ones you cannot see that cause the most danger, and some times the consequences are fatal.

So what is your best bet in terms of avoiding fatal problems with investing? The answer is to have your focus on the right questions.

How many people have you heard of losing 30, 40, even 50% of their portfolio who had no idea they were in such volatile investments? What if that person would have known to ask, "How can I get a measurement of just how diversified I am? What if they knew to ask, How can I get a measurement of how much risk/volatility is in my portfolio? Perhaps, in advance, they would have known their investments were not right for them. Perhaps they would have known that you can't have control of anything until you get a mathematical measurement of it.

The other key is to have a coach who you trust enough to not only point out your blind spots, but that you agree you will also follow their coaching even if you can't see the value of their coaching. Perhaps if Fernandez had listened he would still be here and all we would have to be sad about is that this is the last time Ryan Howard will play for the Phillies.

Brendan Magee is the founder and president of Inevitable Wealth Coaching. With questions or comments e-mail brendan@coachgee.com or call 610-446-4322.

Trump, Wentz, & Investors-Becoming Seasoned Is Painful

Trump, Wentz, And Investing,

Becoming Seasoned Is Painful

                   by: Brendan Magee


Between the last three Eagles games and the amazing performance turned in by their rookie quarterback Carson Wentz and the hype that surrounded the first debate, my head is spinning. I could only imagine what things are like for Trump and Wentz.

This time last year,Wentz was playing for North Dakota State, not a exactly the biggest of college football programs. Trump was in the midst of a heated primary debate with 15 other candidates. He was not a politician going up against seasoned politicians out for blood. Now they are on the biggest of stages with millions of eye balls focused on their every move.

Now one of the things that Wentz has going for himself is, apparently, his work ethic.
Every morning at 5:45 am Wentz is going over game film of next weeks opponent. His veteran teammates have spoken admiringly of his work ethic. All that being said, there is nothing that can give a quarterback the feel for the speed and high speed contact that goes on between the lines like actually getting on the field and taking the hits.

One thing Wentz had to learn the hard way was knowing when to get out of bounds or get rid of the football before a linebacker could put a big hit on him. Hence, his very first game he took a hit and suffered a fractured rib. Ouch! Fast forward to last Sunday's game and you see Wentz getting rid of the ball and getting out of bounds  before he takes unnecessary punishment.

Trump in his first one on one debate with Hillary Clinton did o.k., but the winner was pretty much agreed to be Clinton. Her victory wasn't a landslide, but by the eye test I think just about every one would give the nod to Clinton. Let's face it, Trump was going into the debate against an individual who has been around politics for 30 years. She has been before Congressional hearings,  participated in presidential and senatorial debates many times over. She has the benefit of years of experience on her side. There just isn't a substitute for that.

I imagine that Trump last night went to bed and replayed several opportunities during the debate that he let slip by. Today, he is going to have to answer some questions about things he should have done or said a little better in the debate. He is, most likely, walking around with a little bit of frustration. Fortunately, he will have a couple of more chances to improve on his performance and most likely he will be better. There is no substitute for actually getting out there and taking your lumps. Prep time is not game time.

It woks the same for investors. There is no substitute for experience. You can't imagine what it really feels like to go through a bear market. You have to actually see a statement or two where your money has gone down by twenty to thirty percent. You have to live with the pain, fear, and doubts. You have to live with the uncertainty as to when your portfolio will rebound. You have to come out on the other end realizing that yes you may have been a little bruised for the experience, but you are better off for having gone through it.


Brendan Magee is the founder and president of  Inevitable Wealth Coaching. With questions or comments e-mail brendan@coachgee.com or call 610-446-4322.

Learn From Arnie-Keep It Simple And It Will All Workout

Investor's, Learn From Arnie,
Keep It Simple And It Will All Workout
by: Brendan Magee

Like a lot of people I was sad to hear of the passing of golfing legend Arnold Palmer. I worked as a fore caddie in the 1981 U.S. Open at Merion Golf Club. and by that time he was pretty well past his golfing prime, but that could not affect the love that his fans, Arnie's Army, poured out to him. When he was coming to the hole I was working on each day all of a sudden the crowds got a little bigger and people hung on his every shot. There was just something about him.

Although his accomplishments on the golf course are impressive, it is his accomplishments off the course that made a lasting impression on millions of people. It was how he treated people that made the difference. It didn't matter if you were the President of the United States of America or a regular hard working individual. He took the time to shake peoples hands and actually take an interest in what they had to say. 

I can remember countless times in interviews Arnie being asked where the motivation came from to treat people as well as he did, and I always remember him saying that his father told him to treat others the way you would like to be treated. Shake peoples hands, look them in the eye, listen to them and help people when you can. He said he always remembered those rules his father taught him throughout his life. Low and behold, not a bad word have I ever heard spoken about Arnold Palmer. 

Investors can learn a lot about investing from the example set by Arnold. Keep it simple, follow a few basic rules and in the long run you will be better than fine. The rules for successful long-term investing- Own equities, diversify, buy low/sell high. Do those things and in the long run you will be successful as an investor. Arnold has almost 75 years as a professional golfer and celebrity to back up his rules and investors can rely on 88 years worth of academic research to back up the rules mentioned above. 

Of course this doesn't mean every day will come up like roses. Arnie lost golf tournaments, some he had in the bag. Investors will also experience years where their investments are taking a beating. Unfortunately, as Arnie's fans sadly learned things do not last forever, good days and bad. Just follow the rules and the good days will far outweigh the bad.

Brendan Magee is the founder and president of Inevitable Wealth Coaching With questions or comments e-mail brendan@coachgee.com or call 610-446-4322.

The Pusuit of Happiness, Really?

The Pursuit of Happiness, First You Have To Figure Out What That Is?

     by: Brendan Magee

With all the protesting going on in the country these days, I started to look back to the founding of our country to see is there something I am missing. The Declaration of Independence says that one of our God-given rights is our pursuit of happiness. It doesn't say that we are entitled to be happy, just that we have the right to pursue what ever it is that is going to make us happy. No matter what it is, within the law, we have the right to go after it. We even have the right that if we find what we are pursuing doesn't make us happy to change our minds and pursue something else. Our founding fathers put the responsibility for our happiness in our hands.

So, Are you happy? If the answer is no, not at all, or not as happy as you'd like to be, I am gong to make a suggestion. Perhaps, you need to figure out exactly what it is that will make you happy. I believe you have a much better chance of accomplishing something after you have clearly defined it.

As it relates to investing, this clear definition is a step that most investors unknowingly step over. We call this defining your true purpose for money.  Now, when first asked this question, most respond with the things they want: A million dollars, to retire by age 50, to own the house at the shore, etc. No doubt these are great things, but I have never seen true happiness come from a new car or any amount of money.

When we are asking this question, What is your true purpose for money? We are really asking what is the true purpose for your life? What is it in life that means the most to you? Again, only you would know what that is, and I do not think you could figure that out over a cup of coffee. It would take quite a bit of intentional effort. Hell, I don't think you could figure it out completely on your own.

Without the answer to this question clearly defined, we start spending money, time, energy, passion, and effort in the hope that our efforts will produce happiness. What a great big pain in the you know what to spend so much effort on something in the hope you will achieve something you will like. What are the odds that your efforts will produce something that truly lights you up? What are the odds that after all that effort, money and time not producing something you love that you are not going to be one angry, frustrated and ticked off individual looking for someone, anyone else but your self, to blame?

Imagine going to a job, putting in a full week worth of work in the hope that you will be paid fairly? Could you imagine your state of mind as you went through the week? You could  be imagining the scene at the end of the week where you don't get paid at all. You could be thinking about what you would be telling your family when you couldn't afford to pay the bills. You could be imagining the feeling of powerlessness about not having had a say about how much you'd be paid for all your hard work.  What's fair is worked out in advance of any work being done. Happiness works the same way whether it's life or investing.

There's one more crazy thing about having defined in advance what it is that makes you happy. Pursuing what makes you happy actually makes you a happier person, now. You don't have to wait to be happy. Just start pursuing what makes you happy. Think about. When you are traveling to a  vacation, isn't that among the happiest commutes of the year? Packing and loading up the car aren't great big pains in the neck. It's work that makes you happy. You are excited to go to the beach or the mountains and have some fun with family and friends.One great thing about happiness is that you do not have to have dime one to experience it. Once you have defined it, merely spending time on it produces happiness. Here is one sad note about happiness. Money can't buy it, either.

So here's your opportunity to win a great prize for the first 5 people who respond with an answer to the question, What is it that makes you happy? Just send us an e-mail detailing what is that makes you happy and what it is about that that makes you happy. Keep is to say 100 words or less and you have won your prize.

Brendan Magee is the founder and president of Inevitable Wealth Coaching. To respond to the question, make a comment, or suggestion e-mail brendan@coachgee.com or call 610-446-4322.

Colin Kaepernick & Investing Where Opinions Don't Matter At All

Colin Kaepernick & Investing: 
Where Opinions Don't Matter At All 

     by: Brendan Magee

You couldn't go two minutes over the past couple of weeks without hearing about Colin Kaepernick and his protest in not standing as the National Anthem was played before the start of NFL games. Both, his supporters and detractors have had their say on the issue.

Thankfully, week one of the N.F.L. season has practically come and gone. Refreshingly, the focus was on the field and not on the sidelines and who was standing, kneeling, protesting, or doing what ever else they may choose to do. The focus was all on the players and which teams had the most points at the end of the game. What a refreshing change.

One of the better analogies on the pre-game shows was given by former Dallas Cowboys coach, Jim Johnson. He said, as coaches we get paid to win football games, period. My focus as a coach was in getting my players ready to play the game, because at the end of the day that is all that matters. He said he did not give too much attention to things happening outside of the teams confines.

Now, who wins the game is totally driven by who blocks, tackles, runs the ball, catches the ball, and who commits the fewest turnovers. Anyone watching the Eagles game yesterday could clearly see that that was the Eagles.

Investing is pretty much like a football game. Everyone has opinions about what should or shouldn't be happening, where the market's going or not going, etc. All those opinions might fill up the television air waves or fill out the pages of magazines, but they do not make one bit of difference when it comes to the success or failure an investor experiences. The results are, purely, behavior driven. An investor's behavior has to be consistent with following the rules on a day- in-day-out basis.

The question is, like blocking and tackling, what are the rules for successful investing? Not your rules, but the academically proven and empirically backed up rules for long-term successful investing?

The first to respond with the correct answer wins a great prize!

Brendan Magee is the founder and president of Inevitable Wealth Coaching. To respond to the question, make a comment, or ask a question e-mail brendan@coachgee.com or call 610-299-3969.

Mr./Mrs. Investor, How Would You Like That Cooked? Just Kidding

Mr./Mrs. Investor, How Would You Like That Cooked? Just Kidding

          by: Brendan Magee

Last week I was in Chicago with a lot of other business owners who were learning how to do a better job of marketing their businesses. As such, I ate my meals in a couple of restaurants. At lunch, I am with a fellow attendee and he orders a hamburger for lunch. The waitress kindly asked him how he would like the burger cooked. At dinner I ordered a steak and the waiter again asked how I wanted the steak cooked.

If you sit down with a financial planner or you invest on your own, you talk about or go over your goals, what you have experienced in the past and liked or didn't like. If you like what you hear from the adviser you perhaps give him or her some money to move your money into new investment products. If you don't like what you have heard you keep your money in your existing investments.

Never though is the investor asked how they would like their investments to be managed. They are never asked what approach they believe would be the best for them. Instead, the investment company takes the money and manages it as they see fit, never even bothering to ask the investor how they want their money to be manged, or even letting them know their is a choice available to them. So why would an investment company keep the investor completely in the dark about how their money is going to be managed?

 First one to respond wins a prize.

Brendan Magee is the founder and president of Inevitable Wealth Coaching. With a response to the question, e-mail brendan@coachgee.com. If you have a question or comment you can e-mail or call 610-446-4322