Onyx Wealth Management LLC

04/25/2023

Submitted sans commentary...

How many countries globally are true democracies? This map showcases the state of democracy in every country worldwide.

09/26/2022

The most important financial advice you will ever receive:

TAKE CARE OF YOUR HEALTH!

Yes, that includes your mental health. ESPECIALLY your mental health.

First of all, the two are linked far more than most of us give them credit.

Secondly, the most disastrous financial outcomes this advisor has ever witnessed have been the result of behaviors that can be directly linked to unresolved and/or unmanaged emotional issues.

Divorce, substance abuse, excess risk-taking - hell, just faulty logic in evaluating prospective outcomes - all of these can frequently be tied back to personal issues that have metastasized into outright disastrous decisions - for yourself AND others - especially those you care about most.

Take care of yourself!

09/23/2022

So, what constitutes a "good" financial plan?

Well, in this planner's opinion there are at least two distinctions:

First, details. The devil is in them, of course. Now, clearly, you don't want to lose the proverbial forest for the trees, but a financial plan is like any other type of analysis - it is only as good as the quality of its inputs and assumptions - garbage in, garbage out.

Second, motivated reasoning. Too many plans aren't really plans at all. They're sales tools. That is not to say they are without value. Even fee-only planners need financial products to implement their recommendations. The question is whether the plan is really designed to cover "all the bases" or if it only goes so far as to justify whatever product is on offer. Both can have their place, but be sure to understand what you expect to get out of the relationship and have a candid conversation with your planner about the pros and cons of the approach they are proposing.

Ultimately, whatever type of plan you receive, it should accomplish one very important thing: it leaves you better off than you were before.

There are literally thousands of different ways to reach the same goal. Just be sure the benefits outweigh the costs - whatever path you choose to get there.

09/22/2022

Been getting a lot of questions about I-Bonds recently.

If you have "excess" savings lying around (think emergency funds over a few thousand dollars or setting aside cash for a major purchase in the next few years), there is nothing wrong with adding I-Bonds to your balance sheet.

Do keep in mind, however, that you will need to hold the bond for at least one year before you will accrue any interest and five years if you want to avoid forfeiting 3-months worth of interest upon redemption. Also, keep in mind that you can only purchase $10,000 of these bonds each year, so they are not going to be very useful for anyone seeking to allocate a significant percentage of a pre-existing investment portfolio to them.

Taxation of the interest is perhaps the most idiosyncratic aspect of these bonds. The IRS actually gives you a CHOICE of whether to report the interest every year or to wait until you redeem the bond! Convoluted tax planning scenarios aside, just the convenience of avoiding taxation of the interest until redemption makes these bonds a relatively hassle-free way to maintain your savings.

Or as I was told early on in my career - if the government is putting a cap on how much you can invest, not to mention giving you a CHOICE on how you will be taxed - it's probably a deal worth looking into!

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09/28/2020

Quick – how is “the” stock market going to do over the next six to twelve months? Now, write it down. Don’t cheat, be specific – which direction and by how much? Now save it somewhere – better to post it, really, for everyone to see and to hold yourself accountable.

08/10/2020

Whatever one's opinion of near term economic conditions, for planning purposes, the long-term projected return on major asset classes is the single most important metric for informed investment decisions. Worth a look...

U.S. GDP fell by a third in the second quarter, underscoring the challenges ahead. Vanguard expects a 2020 U.S. economic contraction of –7% to –9%.

06/04/2020

Adding international stocks has some benefits, but it's not a magic bullet.

05/04/2020

Worth keeping in mind...

Despite fears over a deep recession, lower equity valuations signal higher future stock-market returns, according to our roundup of forecasts from major investment firms.

11/22/2019

Quick, what is the first lesson you learned about what to do if you are ever lost in the woods? If you answered “STOP,” you are 100% correct. The exact same rule should apply to individual investors who are worried that a recession is imminent. The second rule is “don’t panic.” The worst i...

10/01/2019

When you create an investment portfolio, you’ll be asked about your risk tolerance. Here’s what that means and how to determine yours.

05/23/2019

Pretty much sums it up, folks. Shape up or ship out!

Legions of CFPs face a choice: Either act as a fiduciary, as their CFP certification will require as of October 1, or surrender their credentials in order to work for firms that push products upon their customers that meet the weak “suitability” standard.