We wrap up our three-part series on equity concentration with this episode featuring Duncan Wilk of Mercer Advisors, who joins host Doug Fabian to look at highly concentrated investment positions from a risk-vs.-reward perspective.

Hear their guidance on:

· Recognizing when your investment portfolio might be over-concentrated in one area

· “De-risking” a highly concentrated stock position or other type of investment

· The benefits of tax-loss harvesting

· Building a diversified portfolio around a large holding of one company’s stock

· How charitable giving and estate planning considerations influence a highly concentrated position

In this second installment of a three-part series, Jennifer Beck of Mercer Advisors digs into specific benefits and potential drawbacks associated with the four main kinds of equity compensation plans. She and host Doug Fabian also shed light on:

· How various plan types are taxed, and ways to optimize your tax situation

· Examples of “bad behavior” to avoid when participating in an equity compensation plan

· The risks associated with becoming over-concentrated in a single company stock

· Strategies for selling off highly concentrated equity compensation positions to help diversify your investment portfolio

· Why you may want to consider gifting highly appreciated stocks to charitable organizations, donor-advised funds, or your loved ones

In this first podcast of our three-part series on equity compensation, host Doug Fabian and Josh DeForest, advisor, CERTIFIED FINANCIAL PLANNERTM, and a regional director of Mercer Advisors, lay out the potential benefits and drawbacks that employees need to consider. They also explore why it’s crucial to view and manage equity compensation packages through the lens of a comprehensive financial plan.

Tune in to learn more about:

· The four most common equity compensation plans that companies offer

· How the proceeds from different plans are taxed

· The risks that come with accepting company stock or other equity positions in place of salary

· Ways to avoid concentrating too much of your wealth in an equity compensation package

· The three best practices for managing equity compensation awards

In this first podcast of our three-part series on equity compensation, host Doug Fabian and Josh DeForest, advisor, CERTIFIED FINANCIAL PLANNERTM, and a regional director of Mercer Advisors, lay out the potential benefits and drawbacks that employees need to consider. They also explore why it’s crucial to view and manage equity compensation packages through the lens of a comprehensive financial plan.

Tune in to learn more about:

· The four most common equity compensation plans that companies offer

· How the proceeds from different plans are taxed

· The risks that come with accepting company stock or other equity positions in place of salary

· Ways to avoid concentrating too much of your wealth in an equity compensation package

· The three best practices for managing equity compensation awards

In this podcast episode, Mercer Advisors Chief Investment Officer Don Calcagni joins host Doug Fabian to look at how the current bear market is evolving. Tune in for their perspectives on:

• Stock returns in the banking, tech, REIT, and FAANG sectors
• How the market could respond to extended social-distancing restrictions, progress toward a COVID-19 vaccine, and other potential developments later this year
• What the market recovery will look like and how long it will take
• Long-term economic impacts of the U.S. government’s $4 trillion-plus borrowing binge
• Whether retirees should consider moving some money out of stocks in the current climate
• How investors should think about bonds and other fixed-income options during this crisis

This podcast provides an overview of the CARES Act’s wide-ranging relief programs for individuals, families, small businesses, and those who are planning for or in retirement. Jeremiah Barlow, Head of Family Wealth Services at Mercer Advisors, clarifies who qualifies for help and how to access the benefits. Jeremiah also explains how this legislation could influence your retirement savings, tax planning, charitable giving, and estate planning strategies. He and host Doug Fabian conclude with a look at some additional sources of economic relief coming down from Capitol Hill.

• Why investors increasingly factor environmental sustainability, social justice and other SRI considerations into their portfolio management
• The expanding landscape of investment options built around SRI and environmental, social, and governance (ESG) principles
• The tenets of an impact investing strategy that combines SRI and ESG
• Whether SRI and ESG factors influence investment performance
• How Mercer Advisors extends clients’ SRI and ESG portfolio options

Growing up, Alise Kraus watched her mother struggle to make confident decisions about money and find unbiased financial counsel. That experience steered Alise toward becoming a Certified Financial PlannerTM and, more recently, specializing in the unique wealth management needs of female clients at Mercer Advisors.

In this podcast, Alise examines three of the most common obstacles that women—and to an extent, all investors—encounter on their journey toward economic freedom. Then, she and host Doug Fabian lay out six strategies for clearing those roadblocks and asserting greater financial control.

Alise’s encouraging words hold value for anyone who has felt conflicted about their relationship with money or who wants to help someone else—a mother, daughter, sister, friend—take the reins in their financial life.

Long-term care (LTC) insurance is one way to help ease the burden and safeguard your savings. However, there are many factors to consider before you choose a policy. In this podcast episode, host Doug Fabian and guest David Haman, a Certified Financial PlannerTM in the Philadelphia office of Mercer Advisors, discuss:

• The types of LTC support that people often need as they age, from in-home rehabilitation services to a full-time care facility
• The cost of LTC services, which can vary dramatically depending on the level of care required and what state you live in
• The various forms of LTC insurance, different options for customizing your benefits, and monthly premium amounts you can expect to pay
• The tax implications of purchasing LTC insurance, including potential deductibility of the premium costs and taxability of LTC benefit payouts
• How soon to start considering LTC insurance, and how your expected net wealth in retirement may influence the decision

David also explains why people should start by sitting down with their wealth management advisor to create a financial plan, which can help reveal whether a "long-term care coverage gap" exists and what other estate planning options may be helpful.

People who are successful and wise in other areas of their life may still be prone to making poor financial decisions—as many of us have learned from experience. Why does that happen so often? And what can we do about it?

Jill Schlesinger, a nationally syndicated financial columnist and award-winning business analyst for CBS News, shares some answers from her new book The Dumb Things Smart People Do With Their Money: 13 Ways to Right Your Financial Wrongs.

Money tends to be a very emotional topic, as Jill explains in this episode. Fear and greed in particular can cloud people’s financial vision, causing them to act against their better judgment. Fortunately, she says, recognizing these emotional triggers can give us the capacity to change our money management behavior.

Check out the podcast for more of Jill’s insights on:

· How to avoid buying financial products or services that you don’t fully understand

· The difference between objective wealth management advice and a sales pitch

· What families often fail to anticipate or discuss before incurring a heavy debt for college

· Why preparing a clear-cut estate plan and getting other financial paperwork in order is one of the most unselfish gifts you can give your family

More than 650,000 so-called financial advisors in this country are eager to recommend how you should invest your money. However, not all of them are required to uphold your best interests above all.

How do you sort through different companies’ claims to find an advisor who’s truly focused on doing what’s right for you?

In this episode of The Science of Economic Freedom, I delve into why so many investors get poor advice at their expense. My guest Matt Cook, a Certified Financial PlannerTM with Mercer Advisors, shares one crucial reason: Not all financial representatives are bound by the same rules.

About 83% of advisors follow the suitability standard, which allows them to promote their own company’s investment products—while earning a commission on what they sell—provided the investments are suitable for their clients’ goals. By contrast, says Matt, he and other Registered Investment Advisors (RIAs) are required under the fiduciary standard to put clients’ best interests ahead of their own.

Matt provides several other tips for evaluating different advisors, including three questions to ask yourself:

· Am I getting clarity or confusion out of our conversations?

· Do the investment options in front of me feel relevant to my personal situation?

· Is my advisor proactively working to guide me through the various stages in my financial life?

He also talks about what distinguishes comprehensive wealth management from simple investment advice, and how the financial services industry has changed over the past 20 years.

If you’re looking for reliable tools to help you choose a trustworthy guide on your wealth management journey, then give Episode 44 a listen.

In episode 43 of the Science of Economic Freedom, I spoke with Laura Cuber, CFP and Client Advisor in our Chicago branch, to talk about men, women, and money. Laura talks about her experience as a female advisor and working with women client.

Laura walks us through some of the research she has found about women, money, investing, and the impact of gender. Topics included in this episode:

• Gender-based performance, what is it and why do women outperform?

• Do men trade more than women and if so what is the impact on their long-term return?

• How do women’s risk aversion impact their decisions?

• What we can learn about women and investing behavior

• The value of a financial plan and how women tend to focus on this plan more than men

• Actions steps you can take today to get started on your path to Economic Freedom

An opportunity to push the reset button in the new year is great, but how do you actually go about doing it correctly?

In Episode 42 of the Science of Economic Freedom, “Time to Reset Your Financial Goals for 2019,” I provide you with some precise steps on how to do just that.

The process begins with defining a vision for your financial future. What do you want that future to look like? What do you not want that future to look like?

After defining a vision, you need to set concrete goals designed to help you make that vision a reality. Some of these goals are broad, and some are very specific, such as you want to hire a new accountant, or you want to pay off a specific debt.

The next step is to write down three specific goals that you want to achieve in 2019. Examples here could be to save 10% or more of what you earn, or to fully fund your retirement accounts, or to generate $50,000 in spendable income from your existing assets.

Finally, I show you how to “SMART” test your goals to see if they are Specific, Measurable, Attainable, Relevant and if they fit your Timeline.

If you’re looking to reboot your finances and get them functioning properly in 2019, then Episode 42 is for you.

Topics included in this discussion:

• How to reset your financial goals in 2019

• Defining a vision of your financial future

• Setting goals and writing down specific goals to achieve in 2019

• How to “SMART” test your goals

• Examples of how to define, and then refine, specific goals

• Action steps to get your house in order

• Plus, much, much more…

It was the worst year for stocks in a decade, but how bad was the performance of the major indices? What about fixed income investments?

What are the headwinds markets face in 2019? Is the economy slowing, will the Fed raise rates too high, too fast? What about tariffs and the trade war? What about the plunge in oil prices?

To get yourself on the path to economic freedom, you have to know where the markets are. More importantly, you want to know how your investments performed in 2018 relative to the wider markets. It is by keeping your own scorecard that you can determine if you are on the proper path to success. If you severely underperformed, perhaps you need to make some changes.

In Episode 41, you get the essential market scorecard, but you’ll also find out how to use that scorecard to get yourself ready for success in 2019.

Topics discussed include:

• A “tale of the tape” on the performance numbers in key market indices

• The headwinds facing markets in 2019

• Why you need to focus on what you can control

• Setting goals for the new year

• Assessing your personal scorecard

• Action steps to get your house in order

• Plus, much, much more…

How was your 2018 in markets? Well, if you were fully invested in either U.S. or international stocks this year, you probably aren’t thrilled with the outcome. At least, not as thrilled as you were this time a year ago.

In this episode of the Science of Economic Freedom, “How to Prepare for a Successful 2019,” we cover three separate but related segments and tie then them all together.

In segment one, we discuss markets, and specifically the struggles in the markets over the past couple of months. And despite these struggles, I see several positive tailwinds brewing that could lift stocks in 2019.

I segment two, we go over how to assess 2018, not just in terms of the performance of the securities you own, but also how you are doing on your “personal balance sheet,” i.e. how was your cash flow, have you saved enough, did you revisit your assets and liabilities?

In the final segment, I share with you a little insight I gleaned from a recent wealth coaching session. That insight includes the importance of identifying your number one financial goal, and then determining if that goal is being met by your current investment portfolio.

Plus, the five action steps you must to make sure you have a successful 2019.

So, what do these latest price swings mean for the markets at large, and your money in particular? Should you be worried or concerned? Is there something you should be doing now that you aren’t doing?

In this timely episode of the Science of Economic Freedom, “Talking Markets with Don Calcagni,” I have a conversation with the Mercer Advisors Chief Investment Officer that covers, among many other subjects, what’s driving the volatility and why it hasn’t subsided yet.

Topics included in this episode:

• How to keep the market swings in perspective

• Why you should look at percentages, not “points”

• What market sectors have been fueling the selling (hint: FAANGs)

• The yield curve and its predictive properties regarding recessions

• What clients should do now (hint: stay focused)

• How a good advisor can help investors weather market storms

• Avoiding the urge to “do something”

• Plus, much more…

So, what do these latest price swings mean for the markets at large, and your money in particular? Should you be worried or concerned? Is there something you should be doing now that you aren’t doing?

In this timely episode of the Science of Economic Freedom, “Talking Markets with Don Calcagni,” I have a conversation with the Mercer Advisors Chief Investment Officer that covers, among many other subjects, what’s driving the volatility and why it hasn’t subsided yet.

Topics included in this episode:

• How to keep the market swings in perspective

• Why you should look at percentages, not “points”

• What market sectors have been fueling the selling (hint: FAANGs)

• The yield curve and its predictive properties regarding recessions

• What clients should do now (hint: stay focused)

• How a good advisor can help investors weather market storms

• Avoiding the urge to “do something”

• Plus, much more…

The year is almost over, and that means now is the time to think about something very serious.

That something is taxes, and right now, before the year is over, you still have time to manage your tax situation and to minimize the impact of taxes on your economic freedom.

In the latest episode of the Science of Economic Freedom, “Year-end Tax Planning 2018,” I speak with Mark Doran, Senior Tax Director for Mercer Advisors. Mark has over three decades as a CPA helping families, plan, manage and file their income taxes, and that makes him the perfect expert to turn to for guidance on year-end tax planning.

According to Mark, this is the time of year to identify any future financial events that will significantly increase or decrease future years’ taxable income. It’s also the time to come up with steps to minimize your overall tax costs.

In this timely podcast, Mark and I discuss diverse tax issues such as:

• Deferring income and accelerating deductions

• The many significant changes in the tax laws and how to approach them

· Minimizing or eliminating the 3.8% Net Investment Income Tax

· How to harvest capital losses and implement capital loss carryovers

• The new deduction limits and how to maximize charitable deductions

• Using retirement plans to defer taxable income

• The new rules of Qualified Business Income (QBI) and how to plan properly

• Plus, much more…

With a little more than one month to go before the year is over, now is the time to act. If you wait until after December 31, you will miss out on significant opportunities to better manage your overall tax situation come April 15. And after listening to this episode, you’ll be much better prepared to ask the right questions and implement the right actions for your tax situation.

The midterm elections are over, and investors are asking themselves a lot of questions about what the “split Congress” means for their money. We’ve fielded many questions from clients on the implications of the election, and that’s why I know there’s a lot of uncertainty about what this all means for your money.

In this episode of the Science of Economic Freedom, “Your Post-Election Market Update,” I answer the pressing questions on many investors’ minds right now, including:

• What’s next for the markets?

• Did the election results really matter to your money?

• What should I do now with my investable assets?

• Are these, in fact, even the right questions to be asking?

• What questions you should be asking right now.

• The surprising seasonal indicator that’s right an amazing 100% of the time.

• Why the financial news headlines are not your friend.

• Plus, much more.

Political change, just like any kind of significant change, can be uncomfortable psychologically. But as you’ll find out after listening to this episode, there really is no cause for alarm. In fact, the data overwhelmingly skews in investors’ favor.

For most investors, knowing when to sell a stock, mutual fund or exchange-traded fund (ETF) can be one of the most difficult—and one of the most critical—decisions to get right. But how do you know when you should sell? Perhaps more importantly, when should you NOT sell?

In this episode of the Science of Economic Freedom, “When to Sell a Stock, Mutual Fund or ETF,” we discuss the many good reasons to sell along with some of the worst reasons to sell.

Key issues covered in this episode include:

• The differences between selling in a taxable account and a tax-deferred account.

• The reasons why many investors underperform (hint, it has to do with too much selling).

• The biggest reasons NOT to sell, including emotional reactions, market volatility, rumors, politics, etc.

• How to sell for tax optimization.

• When and how to sell when rebalancing your portfolio.

• Why you might need to sell when you are altering your investment strategy and/or when you change advisors.

• How to sell so that your portfolio is in line with your long-term goals.

• Plus, much more.

As anyone who has had to sell a stock, mutual fund or ETF knows, it can be difficult to decide when the time has come for a change. In this podcast, we provide some key principles to keep in mind before you make that critical sell decision.

In this episode of the Science of Economic Freedom, “Volatility Ahead of the Election,” we discuss what you really need to do right now—and you’ll be surprised to learn that it doesn’t have much to do with buying and selling equities.

Some of the key issues we cover in this episode include:

• A rundown of the numbers in the major indices, and how the second correction in the equity markets this year is playing out.

• How to reinterpret hyperbolic headlines and why this market correction is normal.

• How our “factor investing” approach to markets helps Mercer Advisors manage client portfolios during market downturns.

• Should investors be doing anything differently right now from an asset allocation standpoint?

• What could happen to stocks if Democrats gain control of the House of Representatives?

• The prognosis for emerging markets over the next couple of years.

• Why you shouldn’t be worried about the daily action in stocks prices, and why you should be focused on what you are in control of in your financial life.

• The “dos” and “don’ts” of how to approach the markets—and your financial life.

These issues, and much more, are discussed in much greater detail in our new feature on the Mercer Advisors’ website, and it’s our latest client webinar. This webinar was recorded this week, and features Chief Investment Officer Don Calcagni, Chairman Emeritus Drew Kanaly, and Podcast Host Doug Fabian.

To listen to this client webinar, simply click here.

In this episode of the Science of Economic Freedom, “How to Fund College without Going Broke,” I speak with Jamie Block, Certified Financial Planner, CPA and client advisor with Mercer Advisors.

Jamie is an expert at helping clients prepare for, and fund, their children’s college educations. She’s helped hundreds of clients make the right choices for not only college funding, but also for funding their own economic freedom.

Issues covered in this episode include:

• The most common college funding mistakes (hint, it’s waiting too long)

• The importance of a plan that doesn’t sacrifice your retirement

• The common college savings retirement accounts (529 plans, etc.)

• New tax law changes affecting 529 plan

• The investment options in a 529 plan

• The power of compounding when saving for a child’s college education

• How a home equity line of credit can help some families deal with college costs

• A few considerations regarding student loans, interest rates and loan duration

Jamie was a wealth of knowledge on the topic of college funding, so if you or anyone you know have a child or grandchild that needs college funding, then this episode of the Science of Economic Freedom is a must.

Why do you need a financial plan? Everyone basically knows they do, but what’s the real value of having a sound financial plan in place?

The short answer is having a proper, well-designed financial plan can literally change your life for the better, and in ways you may not even realize.

In this episode of the Science of Economic Freedom, “The Power of the Plan,” I speak with Laura Combs, Certified Financial Planner, Mercer Advisors client advisor and Boulder, CO, office manager. Laura is a 10-year veteran of the business, and she’s also a member of the Mercer Advisors investment committee.

More importantly, Laura is one of the most passionate advocates for individuals having a financial plan in place that reflects their personal “mission, vision and values.” Laura’s passionate advocacy for developing client financial plans with an eye toward what’s really important is truly infectious.

Topics cover include:

• The key elements of a good financial plan

• The importance of defining goals and customizing a plan

• How a financial plan helps determine investment strategy

• Defining a personal timeline, risk tolerance and asset allocation

• The evolution and guiding principles of Mercer Advisors’ investment committee

• Reducing bad behavior and avoiding emotion-based financial decisions

• The best practices you can implement now to help achieve economic freedom

I really enjoyed my discussion with Laura, because her passion for planning is both heartfelt and highly informative. If you don’t have a financial plan in place, I suspect this episode will make you think again about why having one is so important.

In this special bonus episode of the Science of Economic Freedom, “Your Financial Market Update,” I dig through the performance details of the major market indices to see how the respective sectors performed last quarter, and year to date.

I also look at fixed income performance, as well as the relative underperformance of international and emerging market stocks. I then look at the fourth quarter landscape, including potential headwinds and tailwinds on this market heading into the end of 2018.

Topics discussed in this episode include:

• Q3 and YTD domestic equity index performance

• Q3 and YTD international equity index performance

• Q3 and YTD fixed income performance

• U.S./China trade tensions

• Economic growth and corporate earnings

• Rising interest rates and tame inflation

• Burgeoning budget deficits

• Looking at the market through the proper lens

On this episode of the Science of Economic Freedom, “Why Cash Flow Matters,” I speak with Al Zdenek, author of the best-selling book, “Master Your Cash Flow: The Key To Grow And Retain Wealth.”

Al is a CPA and Personal Financial Specialist (PFS), and he’s the founder, president & CEO of Traust Sollus, a firm he started over 30 years ago. Don and his firm now have joined the Mercer Advisors family, and that means we get to directly benefit from his knowledge about the importance of cash flow to your overall investment picture.

According to Al, “Cash flow is king,” and that’s because if you have enough cash flow you can live the life you want and provide for you and your loved ones in the future.

Rather than concentrating your financial focus simply on portfolio returns, Al reminds us of the importance of maximizing your cash flow, and he offers some interesting insights on how to do just that.

Some of the topics discussed in this episode include:

• How you can improve your financial decision making

• Financial tips for those in their 20s to 30s

• Tips for those in their 30s to 50s

• What you should do to maximize cash flow in your pre-retirement years (50-65)

• How retirees should approach the issue of maximizing cash flow

• The importance of managing taxes

• Cash flow management for high net worth individuals

• The action steps to take now so you can get a better handle on your cash flow

We’re now in the 10th year of a bull market, and it’s been one marked by historically low volatility. Sure, we’ve had a few corrections since 2008, including a 10% pullback off the highs early this year. And though investors have been conditioned over the past decade to think corrections are rare, the fact is that bear markets, not mere corrections, take place on average about every six years.

Moreover, those bear markets have an average decline of some 33%, and an average duration of 18 months. So, what the good part?

In this episode of the Science of Economic Freedom, “Good Things Can Happen in Bad Markets,” I speak with Don Calcagni, Chief Investment Officer of Mercer Advisors. In this show, Don helps us understand how corrections and bear markets work, and how investors should react during down market cycles. Plus, Don outlines the seven outcomes of a down market cycle that are actually positive for long-term investors.

Topics discussed in this episode include:

• How investor overconfidence and fear of missing out fuel market bubbles

• Why rising interest rates will put pressure on the equity markets

• What the flattening yield curve means, and why it’s important

• The nature of the current bull market

• Recency bias and the loud voice of bear market marketeers

• The five things you must do now to prepare for the next bear market

• Plus, much more…

Do you have a highly concentrated position in a stock, mutual fund or exchange-traded fund (ETF)? Do you have a plan in place to reduce the risk and manage this position in a tax-efficient manner?

In a recent episode of the Science of Economic Freedom, we covered the pros and cons associated with a highly concentrated position, or HCP. And while an HCP can help you build wealth, it can also represent both a threat and a challenge to your financial goals.

In this episode of the Science of Economic Freedom, “Unwinding A Highly Concentrated Position in Equities,” we discuss the tactics and strategies needed to extricate yourself from a highly concentrated equity position so that you can add greater diversity to your holdings while also making sure you don’t sustain a massive tax hit in the process.

Topics covered in this episode include:

• The reasons why investors are reluctant to sell down an HCP.

• Why an HCP is good for asset accumulation, but not for asset protection.

• How to implement “taxable gain harvesting.”

• When to consider “gifting” shares to a family member.

• Options strategies for managing HCPs.

• Using an “exchange fund” to manage an HCP.

• Key questions to ask before you unwind a highly concentrated position.

• Plus, much more…

Many people have an overabundance of wealth tied up in what’s commonly called a “highly concentrated position.” This is basically an asset on your balance sheet that represents a large portion of your net worth.

Some common examples of a highly concentrated position include: A personal residence that you own free and clear, a business that you own outright or are in partnerships with others, an individual stock or mutual fund that has grown large enough to represent more than 10% of your investment portfolio, or stock options in a single company.

Whatever type of highly concentrated position you may have, these can be both a blessing and a curse.

In this episode of the Science of Economic Freedom, “The Pros and Cons of the Highly Concentrated Position,” we discuss the advantages and disadvantages of these situations. And, we do it through the lens of helping you achieving and sustain economic freedom.

Topics covered in this episode include:

• The long-term risks of a highly concentrated position

• Being “house rich and cash poor”

• Business ownership, partnerships and how to plan for the future

• The need to avoid selling at a deep discount

• The tax advantages and disadvantages of the highly concentrated position

• How to assess your personal balance sheet and identify highly concentrated positions

• Plus, much more…

In this episode of the Science of Economic Freedom podcast, “How to Navigate a Stock Market Correction,” we discuss the proper mindset needed to ensure you succeed during the inevitable periods of market weakness.

The fact is that corrections are both normal, and even essential, to the long-term health of financial markets. Even infrequent bear markets can and will happen, so you need to understand this, and keep these things in the proper perspective.

Topics covered in this episode include:

• The importance of a diversified portfolio during times of market weakness

• Why your equity exposure matters

• How to avoid a reactionary mindset

• The need to tune out the hyperbole of the talking heads on financial media

• A brief history of market corrections, bear markets and ugly crashes

• The normalcy of corrections and why their frequency shouldn’t matter

• Guidelines on how to think about an “Economic Freedom” portfolio

• Why following those guidelines can help you prevail during corrective phases

Make no mistake, corrections, bear markets and even crashes are going to happen. But, your mindset, your asset allocation and the diversity of your portfolio all are key to winning the long game. And in this episode, you’ll learn the right tools—both psychological and financial—to make sure your money prevails regardless of market conditions.

In this episode of the Science of Economic Freedom podcast, “What You Need to Know About Medicare,” David Haman, client advisor at Mercer Advisors, returns to discuss his vast knowledge of this government program, a program most of us will participate in when we qualify.

In this detailed discussion of Medicare, David tells us all about the program, including:

• Defining Medicare and its eligibility requirements

• Medicare’s history and its original purpose

• The various “parts” of Medicare, e.g. “A, B, C and D”

• The costs and benefits to Medicare’s different parts

• What is covered, and what isn’t covered, by Medicare

• How to get additional coverage for Medicare’s “gaps”

• Enrollment periods and the importance of knowing the Medicare calendar

• The financial viability of Medicare and its future

• Where you can find help with your Medicare questions

Just like our previous discussion on Social Security, David’s intimate knowledge of Medicare helped me learn a lot about the complexities of this program. And just like his previous episode, I think this one is destined to be one of our most-listened to shows.

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In this episode of the Science of Economic Freedom podcast, “Are You Where You Want to Be on Your Journey to Economic Freedom?”, we start with some eye-openings statistics.

According to my data:

• Only 30% of Americans are financially literate.
• Some 50% of households say they expect to see a decline in lifestyle post retirement.
• While 55% of Americans have access to a 401(k) plan, only 38% participate in their plans.
• Approximately 2 million people in the U.S. overpay their taxes.
• A startling 30% of households have a negative net worth, and live paycheck to paycheck.

Now, most listeners to this show are in a much better place than most Americans financially. But, have you achieved your financial goals? Are you financially independent?

In this episode, we cover some of the strategies needed to both gain, and keep, your economic freedom.

We do this by going through an exercise I call the “Wealth Management Pyramid.”

This exercise forces you to examine your balance sheet, goals, cash flow, tax profile, etc. Doing so can help you see where you are, and help you decide the next step on your journey toward economic freedom.

In this special bonus episode of the Science of Economic Freedom podcast, “Revisiting Factor Investing,” I speak with Don Calcagni, Chief Investment Officer at Mercer Advisor.

Don is an expert on factor investing, and his breadth of knowledge will educate and enhance your understanding of the subject, and the role factor investing can and likely should play in a well-rounded investment portfolio.

In this podcast, you’ll discover:

• An overview of what factor investing is

• Why we believe so strongly in factor investing at Mercer Advisors

• A summary of the “five-factor model” of investing

• How factor investing can be achieved using a variety of investment vehicles, including traditional mutual funds and exchange-traded funds (ETFs)

• Which factors outperformed, and which underperformed, in H1, 2018

• How to think about allocating among the different factors

• Factor analysis as applied to fixed-income investments

• The challenges in the current market environment (e.g. rising rates, yield curve flattening, trade wars, etc.)

• Plus, much more

Don Calcagni is one of the smartest guys in the industry. And, listening to him speak about markets and factor investing is like sitting in on a maestro’s master class. If you want to get a grip on factor investing, this is the episode for you.

In this episode of the Science of Economic Freedom podcast, “The Absolute Best Estate Planning Practices,” I speak with Jeremiah H. Barlow, JD, Head of Family Wealth Services at Mercer Advisors. Jeremiah is an expert in estate planning, and he has a unique way of explaining the sometimes-difficult concepts associated with this subject in an easily understandable, anecdotal, and entertaining way.

In this podcast, you’ll find out:

• The latest thinking when it comes to estate planning for Mercer Advisors’ clients.

• Strategies deployed today that could have a meaningful impact on legacy planning.

• What has changed on the estate-planning front because of the new tax laws.

• The importance of medical directives.

• The best and worst states for estate tax issues.

• The 2012 Supreme Court ruling that changed the law regarding inherited IRAs.

• The benefits of a retirement trust.

• Avoiding the mishandling of beneficiary designations.

• Making sure you adjust your estate plan for legal and life changes.

• Plus, much more.

Estate planning is one of those areas of personal finance that tends to go without attention for years and years, but it shouldn’t. If you want to expand your knowledge of estate planning, a good start is my discussion here with Jeremiah.

In this special bonus episode of the Science of Economic Freedom podcast, “Market Scoreboard for the First Half of 2018, Part II,” we continue to look at the tailwinds likely to fuel the earnings sails, including tax reform, low unemployment, modestly rising interest rates, solid wage growth and modest inflation, as well as a growing global economy that continues to perform despite trade war threats.

Additional topics in this show include:

• Assessing your current market exposure

• How to determine your level of diversification

• The importance over time of having a balanced portfolio

• How to develop a bear market game plan

• Knowing your time horizon

• Plus, much more…

If you want to put a bow on the first half of the year, and if you want to be ready for what’s in store in the back half, then this episode of the podcast is aimed right at you.

How did the markets perform in the first half of 2018? How do you make sense of all the market action through the first half? In this special bonus episode of the Science of Economic Freedom podcast, we go over all of the key market data from the first six months of the year. More importantly, we put that data in context for the individual investor.

Topics in this show include:

• The economic indicators, and why they are very positive.

• The strength of the U.S. dollar and its influence on international markets.

• The Fed’s rate-hike strategy and why “normalizing” rates is a good thing.

• Why market valuations have come down in 2018.

• Why volatility so far in 2018 is normal.

• Why momentum and growth stocks continue to outperform value stocks.

• How to assess your portfolio against the first half backdrop.

• Where the second-half opportunities could be.

In this episode of the Science of Economic Freedom podcast, “What You MUST Know About Social Security,” I speak with one of the best minds in the business when it comes to all things Social Security and Medicare: David Haman, client advisor at Mercer Advisors, and adjunct faculty member at the Widener University’s Graduate School of Business.

In this broad discussion of Social Security, David tells us all about the program, including:

• Retirement benefits, spousal benefits, dependent children and disability benefits

• Qualification for Social Security, and the “credits” model for benefits

• When you should elect to begin receiving Social Security benefits

• The importance of knowing your “full retirement age”

• The financial challenges/looming crisis of the Social Security program

• The importance of finding out your benefits, and how to do so at SSA.gov

• The taxation of Social Security benefits

• Medicare benefits and the medical benefits included in this program

• Social Security action steps

If you’re a woman, but especially if you’re a man, the latest episode of the Science of Economic Freedom podcast, “Women and Money: The Kara Duckworth Interview,” is a must.

Why especially if you’re a man? Well, because if you’re a man, you likely have women in your life that you love. Whether it’s a wife, girlfriend, mother, sisters, daughters, granddaughters, etc., you have women in your life you cherish, care about, and likely feel responsible for.

Yet to help the women in your life address money issues, you must be aware that, generally speaking, women view money and finances differently than men do. This is not just my thesis, it’s the thesis of one of the smartest women in the wealth management business, Kara Duckworth of Mercer Advisors.

Kara has an impressive background that includes professional designations such as Certified Financial Planner® and Certified Divorce Financial Analyst®. Yet perhaps more impressive is Kara’s ability to clearly explain some of the most important issues specific to women and money.

Topics covered in this podcast include:

• Why women are no longer a “niche” market when it comes to money and investing.

• The four “personas” of women when it comes to money and investing, and how Kara has experienced each first hand.

• The critical need for women to be prepared for unexpected, life-changing events.

• Why women tend to focus on life goals vs. percentage returns.

• The importance of knowing the “why” of investing, and understanding the nuts and bolts of balance sheets, cash flow, investment strategies and estate planning.

• The importance of cyber security, passwords and communication between spouses.

• Why it’s critical that women (and men) understand their personal risk profiles, and why risk changes with new life circumstances.

• How men can approach the “hard conversations” about money that so many people tend to avoid.

Apollo is one of the most-interesting guys in the industry, and that’s why I wanted to get his take on why investing, and why investing properly, is so crucial to the achievement of economic freedom.

In this interview, you’ll learn:

In this episode of the Science of Economic Freedom podcast, “The Keys to Wealth Management,” I discuss the seven critical components of wealth management that need to be measured, and that can therefore be improved, if you are serious about creating the financial life you desire.

Topics in this episode include:

• The importance of defining and setting goals.
• Asset accumulation and income streams.
• Liabilities and using debt as a wealth management tool.
• How to properly manage income and expenses.
• How to think about, and manage, the inevitability of taxes.
• Keeping investment strategy in perspective, and why it’s not as important as you might think.
• How to employ proper risk management, and how to think about legacy planning.

Remember, achieving economic freedom isn’t easy. If it were, everyone could do it. To really get to where you want to be, or stay where you want to be, you need to fully understand and integrate the key concepts involved in proper wealth management, and that’s what this episode is all about.

The January pullback in markets has taken a toll on investor confidence. And with stocks still well below 2018 highs, many investors have become jittery about what direction stocks and bonds will take next. Then there’s the headwinds of rising interest rates, geopolitical concerns, domestic political concerns, rising fuel prices, and a host of other causes for concern.

It is during periods such as these, characterized by heightened uncertainty, that investors really need to make sure they have the right investment strategy in place for their long-term goals.

In this bonus episode, I also discuss:

• The importance of an investment plan

• How to tune out negative news.

• How to measure your investment strategy’s performance to see if it’s meeting your expectations.

• A recap of the year-to-date performance of the major indices, including domestic and international stocks, and bonds.

• The “five market conditions” and where we are right now.

• The factors determining equity prices right now (earnings growth, consumer spending, unemployment, household net worth, etc.)

Podcast 14 Email and Notes 02-21-18

How to Use ‘Factor Investing’ to Enhance Your Portfolio

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VIP Member status gives you access to all our special reports, tools and resources. Plus, anytime we publish a new episode, you will be the first to know it, as you’ll receive exclusive VIP Member early notice via email.

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Turning to this episode of the podcast, do you know what “factor investing” is?

While “factor investing” may seem like an obscure term, all it really means is identifying the unique traits of stocks, bonds, mutual funds or other assets, i.e. the “factors,” that have consistently proven to drive market returns over time.

In this episode of the Science of Economic, “How to Use Factor Investing to Enhance Your Portfolio,” you’ll learn about the characteristics that have been identified by Noble prize-winning economist and academics as some of the key factors that drive stocks higher.

Joining me in this discussion is Don Calcagni, Mercer Advisor’s Chief Investment Officer. Don is an expert on factor investing, and his breadth of knowledge will enlighten your understanding of the subject and its potential place in a well-rounded investment portfolio.

Plus, you’ll discover:

• Why factor investing involves objective, quantifiable measures of a stock, bond, etc.

• What factors Mercer Advisors look for first when evaluating a stock. Is it a value or a growth stock?

• Why “size matters” in factor investing.

• How the “momentum factor” operates in stocks, and how it plays a role in an investment’s performance over time.

• The “quality factor,” and how best to measure quality in a company and a stock.

• The “low volatility factor” and why corporate debt levels are a key component.

• Plus, how to blend these factors in an investment portfolio based on where you are in your investing lifecycle.

If you want to find out about factor investing and how it can help you, then this episode of the Science of Economic Freedom podcast is directed at you.

Here are the “Action Step” takeaways from this episode:

1) Go to the website and get the special supplement to this episode on factor investing.

2) Look at your portfolio and determine if you currently have exposure to factor-style investing.

3) Research the various factors investing choices and look to see what your options are from your investment custodian.

4) Send me an email with your questions, show topic suggestions, or other ideas to askdoug@merceradvisors.com.

And remember, if you need personal attention or would like to speak with me directly about your path to economic freedom, then simply contact me for a free, one-hour wealth coaching consultation.

All the best,

Doug Fabian

Client Advisor, Podcast Host

Mercer Advisors

P.S. Sign Up for the Science of Economic Freedom Now

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Show Notes

In this episode of the Science of Economic, “How to Use Factor Investing to Enhance Your Portfolio,” you’ll learn about the characteristics that have been identified by Noble prize-winning economist and academics as some of the key factors that drive stocks higher.

Joining me in this discussion is Don Calcagni, Mercer Advisor’s Chief Investment Officer. Don is an expert on factor investing, and his breadth of knowledge will enlighten your understanding of the subject and its potential place in a well-rounded investment portfolio.

Plus, you’ll discover:

• Why factor investing involves objective, quantifiable measures of a stock, bond, etc.

• What factors Mercer Advisors look for first when evaluating a stock. Is it a value or a growth stock?

• Why “size matters” in factor investing.

• How the “momentum factor” operates in stocks, and how it plays a role in an investment’s performance over time.

• The “quality factor,” and how best to measure quality in a company and a stock.

• The “low volatility factor” and why corporate debt levels are a key component.

• Plus, how to blend these factors in an investment portfolio based on where you are in your investing lifecycle.