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A show about time, money, and finding the freedom to spend them how we want.
Episodes
Monday Apr 15, 2024
Monday Apr 15, 2024
In this enlightening episode of The Wealth Equation Podcast, seasoned financial advisor and host, Maurice L. Wilson, explores the world of high-yield savings accounts. Given the rising inflation rates and the shift in the banking environment, understanding high-yield savings accounts can be pivotal in achieving financial growth and freedom.
Let Maurice guide you on the ins and outs of high-yield savings accounts, how they can earn you a substantially higher interest than traditional savings accounts, and how to leverage their potential in both stable and recessive economic times. With comprehensive discussions on the functioning of the central banks, the role of interest rates, and inflation control, gain unprecedented insights into the financial world.
Furthermore, learn about the benefits of using brokerage accounts for both high-yield savings and stock investments. Whether you're a first-time investor or an experienced entrepreneur, find out about key financial vehicles like Vanguard and Interactive Brokers that are offering competitive returns on cash investment. Discover what an Altruist cash account can do for you and learn how you can effortlessly switch between savings interest and stock market opportunities.
But the lessons don't stop there. Maurice even takes you through the comparative analysis of Certificates of Deposit (CDs) and high-yield savings accounts, offering expert insight into choosing the right option based on your financial needs, circumstances, and market predictions. By unravelling the intricacies of the financial realm, Maurice shows you how to unlock the power of high-yield savings accounts in your wealth acceleration journey.
Dive into this wealth of knowledge, and start solving your wealth equation today!
Wednesday Aug 31, 2022
Wednesday Aug 31, 2022
Maurice discusses how stocks have performed since the Fed speech at the Jackson hole economic forum.
Saturday Aug 27, 2022
Saturday Aug 27, 2022
Maurice discusses the aftermath of Jerome Powell's comments on inflation at Jackson Hole as well as a recession indicator that may help listeners concerned about the future.
Friday Jan 15, 2021
Friday Jan 15, 2021
On this episode of the Wealth Equation podcast, the first of the new year, Maurice briefly acknowledges the roiling of current events before turning to investment advice in the current market environment. With stocks trading high, he focuses on the wisdom required to know when it’s time to sell.
While it may take courage to buy when stocks are low, a different sort of strategy and discipline is required in determining when it’s time to let go. At some point even the most astronomical stocks have a “mean reversion,” a return to prices that are more in line with their “normal” valuation. Maurice highlights three possible options for ensuring your portfolio is set up to maximize opportunity:
- House Money Option. Reduce risk by selling down to your original investment, then pre-determining a point at which to sell the rest. This protects your original investment and reduces exposure to a fraction rather 100% of your gains.
- The Seatbelt Option. A higher risk strategy that includes setting up a trailing stop-limit order at 10% below your investment’s highest price. But beware a caveat: A stock can close at one price on Friday and open Monday at a substantially lower price, leaving your stock open to a sale well below the price point you had in mind.
- The Sensible Rebalance Option. This one is for the long-term investor who is buying famously enduring, evergreen stocks (think McDonalds or Nike). This investment approach involves taking a pause when stocks hit all-time highs and selling in order to re-invest in other elements of your portfolio that have perhaps not performed as well.
To hear more about the “buy low equation” that Maurice references in this podcast, check out Episode 2 of The Wealth Equation: https://podcasts.apple.com/us/podcast/ep-02-the-buy-low-equation/id1492810571?i=1000469254731
Key Quotes:
“Money is made when you buy good stocks – good investments – at low prices.”
“Wisdom comes from experience and a sober look at what’s going on. You have to be wise in selling great investments at high prices. And the first step is making the right assumption.”
“Take advantage when prices are high so you can replenish your portfolio at some great prices. You make a fortune in the market by buying good investments at low prices.”
“The only way to have money to buy at low prices is to begin to take gains at junctures like this in the stock market.”
What We Covered:
0:40 – New Year welcome and quick catch-up on what’s going on at Wilson Wealth.
2:44 – When is it time to get out of the market?
3:28 – The importance of timing in your decision to sell – and the wisdom required.
4:32 – How to figure out when to get out of stocks/investments that have done well.
7:08 – Three options for profiting from and re-allocating investments.
7:30 – The House Money option.
9:28 – The Seatbelt option.
13:30 – The Sensible Rebalance option.
Connect with Maurice:
https://www.linkedin.com/in/mauricewilson
Maurice L Wilson (@therealmauricelwilson) • Instagram photos and videos
Tuesday Jul 07, 2020
Tuesday Jul 07, 2020
Summary:
On this episode of the Wealth Equation podcast, Maurice discusses the mighty Roth IRA and explains why he thinks everyone should invest this way. The Roth IRA was originated by two US senators in 1989, but it didn’t become accessible to the public until 1997. This type of retirement account was created to allow people to contribute money after taxes and not be taxed on the earnings acquired through the investments or when they withdraw their funds.
These accounts are advantageous because of these tax savings, the ability to withdraw the funds whenever you’d like as long as the account is at least 5 years old and you are 59.5, and the function of being able to contribute for the previous year all the way up to the tax deadline. The drawbacks mainly revolve around income limits, but Maurice will discuss the ways to get around those limits on a future episode. Maurice recommends that people invest in Roth IRAs sooner rather than later because he wouldn’t be surprised if the IRS puts more stringent restrictions on these accounts in the coming years.
Key Quotes:
“If you could pay less money in taxes, would you take home more money?”
“The accounts have gotten popular, but, in my opinion, not popular enough.”
What We Covered:
0:42 – Introduction to the mighty Roth IRA
1:11 – History of the Roth IRA
2:32 – What is an Individual Retirement Account?
4:26 – Benefits of the Roth IRA
6:28 – What kinds of investments should you put into it?
7:53 – Downsides of the Roth IRA
8:49 – The future of the Roth IRA
Connect with Maurice:
https://www.linkedin.com/in/mauricewilson
Friday May 08, 2020
Friday May 08, 2020
The Wealth Equation Episode 3
Summary:
In this episode of The Wealth Equation Podcast, your host, Maurice L. Wilson, discusses the value of mispriced assets and how to find them. He begins by defining assets and value, saying that “an asset is something that grows in value, generates income, or both” and “value is a fair return for something exchanged.” He then explains mispriced assets, using education as an example.
Maurice talks about how to find mispriced assets, identifying the mispriced assets in the last two recessions: dotcom companies and houses. He explains that during the current pandemic, the mispriced assets are basically everything! However, there are three areas that are faltering the most: entertainment, travel, and fine dining. Maurice goes over the stock market and its role in identifying mispriced assets. An investor does not have to enter blindly into a sector of business if there are publicly traded businesses in that sector.
At the end of the episode, Maurice advises investors on how to discover companies that are struggling from the pandemic and invest wisely in them. In the space of one morning, an investor can take a look at the Wall Street Journal to find the companies that are faltering, search for privately held businesses in the same sectors, and start conversations with those businesses about investment — taking on a silent partner or having a new majority owner, for example. If you find an asset that is mispriced due to the pandemic but will return to its pre-pandemic value in the future, then you have found a valuable asset at a great price.
Key Quotes:
“An asset is something that grows in value, generates income, or both.”
“Value is a fair return for something exchanged.”
“In the last two recessions, the mispriced assets were obvious. In the dotcom bubble or the technology meltdown, the mispriced asset was the dotcom companies themselves… In 2008, the mispriced assets were houses.”
“The stock market is merely a public record of a business.”
“There are about three areas that are faltering due to the pandemic: entertainment, travel, and fine dining.”
“The investor needs to be able to determine: what is the actual value of that mispriced asset?”
“If you can find an asset that is mispriced as a result of the pandemic, but will return to its pre-pandemic value in the future, then you have found a valuable asset at a great price.”
What We Covered:
0:33 – Introducing the topic: the value of mispriced assets and how to find them
1:30 – What is an asset?
2:24 – What is value?
4:44 – How to find a mispriced asset and the mispriced assets of recessions
7:44 – Three areas that are faltering due to the COVID pandemic
10:00 – Steps a prudent investor can take
Connect with Maurice:
https://www.linkedin.com/in/mauricewilson
Sunday Mar 22, 2020
Sunday Mar 22, 2020
Summary:
Welcome to The Wealth Equation podcast! On this episode of the podcast, your host, Maurice L. Wilson, describes how we can use the quarantining that’s happening as a result of COVID-19 to our financial benefit. Maurice discusses options for making gains in the stock market given the current crisis. Among these options is something called the Buy Low Equation. This equation is essentially the idea of expecting returns from buying discounted stocks. Take the 52-week high divided by the current price equals the return one could expect from that stock once the crisis resolves and the market stabilizes again. Maurice recommends this as an easy way to get into the market without risk of losing much money, as the downturn in the market isn’t related to the company’s performance, but the coronavirus crisis we’re currently in.
Maurice gives some examples of how to apply this equation to real-world stocks (not as actual advice, but strictly as examples). Two of these examples come from airliners, and one from a movie theater chain. He suggests that the best thing about this is that you really don’t even need the stocks to return to their 52-week high in order to make some money.
He also mentions that these kinds of situations don’t happen all that frequently.
Key Quotes:
“What you really want to ask is: how deeply discounted is this stock?”
“You are making up for lost time if you are buying in this environment.”
“The beautiful thing about this moment is that, assuming the market returns to where it was, if you can buy stuff here, you’re getting it where your returns are literally baked into the price you paid for it.”
What We Covered:
0:50 – Using the coronavirus as an opportunity to build wealth in the stock market.
2:20 – The Buy Low Equation
4:15 – How this is like reaching back in time to purchase an older price.
5:30 – Example with the Vanguard Energy ETF.
6:15 – Example with Boeing.
7:30 – American Airlines example.
9:30 – Don’t confuse share amount with how much you can actually invest, dollar amount.
11:00 – As always, invest with risk potential in mind.
Connect with Maurice:
https://www.linkedin.com/in/mauricewilson
Sunday Mar 22, 2020
Sunday Mar 22, 2020
Summary:
Welcome to The Wealth Equation podcast! On this episode of the podcast, your host, Maurice L. Wilson, introduces himself to listeners, describing his career path thus far. When Maurice was preparing to enter college in the 1990s, there was a big push to encourage more African-American students to pursue engineering, which was intriguing to him. After a providential mistake, he ended up pursuing some of his education at Benedict College rather than Clemson University, as he had planned, which ended up thrusting him into a great situation.
He had a few brushes with investing over the years, but it wasn’t until he took a job at Chrysler and his 401(k) plan was being explained to him that he really comprehended deferring income, and his interest was officially piqued. He began researching investing and before long he decided to jump headfirst into the industry of financial advising. He witnessed the popping of the “dot com bubble” and the stock market crash of 2000, which he saw as opportunities for applying the problem-solving skills that he had learned as an engineer. He has now been working as a financial advisor for 15 years, essentially explaining to his clients how to use their time and money wisely to build wealth. On this podcast, Maurice will be teaching listeners his tried-and-true techniques for building wealth, also known as the amount of money needed to generate a stress-free return that produces enough money for you to live the life you want.
Key Quotes:
“A train wreck is more interesting than a successful train ride.”
“It was then that I decided I wanted to do something in the world of investments over engineering.”
“Even though I’m not an engineer in practice anymore, I am applying the principles that I learned in my current profession.”
What We Covered:
0:35 – Maurice’s journey into engineering.
1:45 – His experience at Benedict College.
3:10 – Maurice’s internship at Rolls Royce Aerospace.
5:35 – The turning point in his mindset towards investing.
7:01 – How he made the transition from engineering to investing as a profession.
7:50 – The goal of the Wealth Equation podcast.
9:43 – The wealth equation explained.
Connect with Maurice:
https://www.linkedin.com/in/mauricewilson