The Wealth Group – Austin B. Colby & Associates is a Securities and Exchange Commission registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.
MINNESOTA
14850 SCENIC HEIGHTS RD, STE 100 EDEN PRAIRIE, MN 55344
(952) 937-9423
TENNESSEE
725 COOL SPRINGS BLVD, STE 445 FRANKLIN, TN 37067
(615) 395-8600
VIRTUAL OFFICE NATIONALLY VIA ZOOM
Bachelor of Science in Business Administration and minor in Christian Studies from North Central Universit
“I have always had an interest in personal finance. Having a plan and setting goals for your financial life enables you to accomplish things that otherwise would never be possible. A thousand small steps in the right direction can lead to a life of stability and ability—The Wealth Group exists to help plot that course and keep our clients on track.”
Even as a young adult, keeping her finances in order and planning for the future has allowed Paige to experience wealth as a blessing rather than a stressor. She wants people to know that same freedom, especially when life gets complicated.
I enjoy helping our clients make good decisions with their money. It’s rewarding to watch our clients build wealth with us at their side. When I see a young family cross the $1 million net worth mark — after starting with our team with a net worth of $200,000 — it’s an awesome feeling.
As our clients continue to focus on the things they can control, such as paying down debt and adding money to their investment portfolio year after year, I have noticed that it becomes easier to stomach the (inevitable) bear market. Over my time at The Wealth Group, I have learned that good financial behaviors never go into a recession.
When I’m not at The Wealth Group I enjoy spending time with my wife and three children. Together we like to be outdoors, play sports, and be active participants at our church.
“I am passionate about my work because I think it is important to make wise, informed decisions with our finances as it permeates into all aspects of our lives. Just as people strive to maintain balance in their overall lives, financial wellness and understanding in your personal life is just as important. ”
“I have realized there are so many people in the world today who are unsure of how to save or plan for the future. They live paycheck to paycheck and think debt is normal. We get to help people realize that there’s a different way to live. We get to help people who feel hopeless finally find a clear path for the future while taking control of their finances for the first time. When people are proactive rather than reactive, it’s amazing what can be accomplished.
Karie’s main role is managing the onboarding process for new clients. She works hard to ensure a seamless transition and to make all clients feel welcome and cared for. As the Director of Client Services, she oversees the Client Services team, plans client events, processes monetary transfers, handles paperwork for clients and helps to manage the day-to-day operations of the office.
“I love being able to see and contribute to the confidence in the families we help when they know they are taking the correct steps towards financial independence. I truly enjoy building relationships with people. The work I do with The Wealth Group gives me the opportunity to do this by building a relationship that will last a lifetime.”
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER ™, and CFP® in the U.S.
“I love working alongside the people at The Wealth Group. Additionally, my younger brother (and now boss) and I have wanted to work together for years. When the opportunity arose within The Wealth Group I jumped at the chance. I have always had a passion for personal finance and investing; the transition into this investment-focused role was a natural one for me.”
Developing and stress-testing the firm’s asset allocation models is a passion of Adam’s. You may often find him assessing risk metrics for client portfolios and the broader global markets as well as trading and rebalancing client portfolios.
Investments & Wealth Institute TM (The Institute) is the owner of the certification mark “CIMA” and “Certified Investment Management Analyst.” Use of CIMA and/or Certified Investment Management Analyst signifies that the user has successfully completed The Institute’s initial and ongoing credentialing requirements for investment management professional.
From childhood, I was strongly interested in working hard, making money, and most importantly, saving money. Today, I use that passion to empower our clients to succeed with their money. A lot of people experience unnecessary stress and anxiety in their financial lives.
After college, I worked in a large bank and began investing on my own for the first time. I remember plugging numbers into a Roth IRA Calculator and realizing the power of compounding from an early age. I was amazed at how [seemingly] easy investing was…not realizing that bear markets are what make investing challenging. A few years into my career as a financial advisor, the Great Recession (2007-2009) hit, and I gained a lot of crucial experience in a short period.
Those lessons from the Great Recession will stick with me for the rest of my life. I learned not to over-extend myself on real estate, to never sell out of stocks during a bear market, the power of being 100% debt-free (including no mortgage), and also the opportunities in stocks that arise from the ashes of a deep bear market.
Proverbs 11:14 says, “Where there is no guidance, a people falls, but in an abundance of counselors there is safety.” We aim to be those counselors that provide knowledge and safety for our clients.
A good financial advisor should have the heart of a teacher. Through our relationship, we aim for our clients to grow in knowledge and mastery over their finances. We want them to be the driver of their financial plan, with us as their sidekick/coach to help them realize their plans and goals.
I have been quoted as a financial expert in Fox Business, U.S. News & World Report, Yahoo! News, GOBanking Rates, Lifehacker, and Business Insider.
More important than my role at The Wealth Group is my position as a redeemed son of God, husband to Krista, and father to five children.
“I want people to succeed at life and that includes guiding them to achieve sound money management. I enjoy helping individuals and businesses make beneficial decisions in regards to money and investment management. Long range planning is one of my professional passions and moving people from the thought of retirement to the reality of retirement is something I enjoy assisting our clients with.”
Paul has more than 25 years of experience advising business owners and affluent individuals about their finances. Paul has achieved the CERTIFIED FINANCIAL PLANNER™ designation. Being a CFP® professional enables him to help clients focus on what is important to them. He has also earned the Chartered Retirement Plan Counselor (CRPC®) designation, which demonstrates his expertise in the area of retirement financial planning for individuals.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER ™, and CFP® in the U.S.
“I believe every family can achieve their financial goals if the path to do so is clear. This work of building paths and guiding clients along those paths is my passion, and it brings me tremendous joy. After twenty years of doing this, I am more excited today than ever about helping families with their finances. Helping one family at a time make good choices makes a difference. I believe that wholeheartedly and am thankful for the opportunity to serve so many people in this capacity.”
Austin is the owner and visionary behind The Wealth Group. His #1 responsibility is to lead our team in devotion to the mission: providing quality financial planning and investment management to the firm’s clients.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER ™, and CFP® in the U.S.
Are Valuations Unreasonably High?
By Mike Earl, CFP®, CPWA®
The most common question we have heard from clients in 2017 is some variation on this one:
“Is the stock market due for a drop?”
For some clients, their concerns relate to uncertainty about policy decisions of the Trump Administration. For others, fears stem from endless media reports about the stock market making new all-time highs. For others, it’s a well-placed understanding that bull markets don’t go on forever (true).
Let’s take a look at the historical record. Historically, here are the frequency and magnitude of losses for the S&P 500 (data from 1928-2016):
The last 20% decline we saw for the S&P 500 Index was the 57% decline in the Index from October 9, 2007, to March 6, 2009. That was the second-worst peak-to-trough decline in US stock market history (next to the Great Depression, which witnessed nearly a 90% decline from top-to-bottom of the market).
In spite of not having a 20% decline since 2007-2009, we have had several meaningful declines since the Great Recession:
Since we know that meaningful stock market declines are bound to happen at not-so-infrequent intervals, should we be doing something about it? The short answer is no. We cannot predict when the the declines will start, nor can we predict when those declines will end. If you’re trying to time the next correction, you have to guess right twice: when to sell out of stocks (or reduce stock exposure); and when to get back into stocks.
With that foundation in place, let’s review where the overall stock market stands today. Are stocks “rich” (i.e. expensive) right now? Are we simply experiencing a “Trump Bump”, as many commentators have called it? We don’t think so. There are plenty of stocks that offer reasonable valuations right now. And while Consumer Confidence is at its highest level since 2000, we aren’t seeing bubble-level optimism across the stock market.
You might think of companies like Amazon and Tesla as examples of irrational exuberance in the stock market, but we see those as exceptions today, not the rule. Alphabet stock (Google) trades at a Forward P/E ratio of 23.4, in spite of having grown earnings historically at a rate of 36.8%.
Would you believe me if I told you Coca-Cola stock is 60% more expensive than Apple stock today? Or that Procter & Gable is 80% more expensive than Intel? Those are both true statements:
Forward P/E on selected stocks from the Dow Jones Industrial Average:
I am not making any judgments about whether any of those stocks are good or bad buys. Rather, it is fascinating that a historically fast-growing company like Apple is cheaper to buy (based on stock price divided by earnings per share) than Procter & Gamble. Apple makes iPhones; P&G sells toiletries. P&G is a great company in many respects, no doubt. But this illustrates how there are still many value opportunities in the market today. That’s why Warren Buffett recently pumped many billions of dollars into buying Apple stock.
Overall, the average forward P/E for the 30 stocks in the Dow Jones Industrial Avearge is 16.5. That number means stocks are not a screaming buy; nor are they significantly overpriced.
Does this guarantee that a correction will not come our way for the remainder of the year? Absolutely not. But, it does tell us there are plenty of attractively-priced stocks within the overall stock market. If we think these companies will continue to create new products, grow revenues, and expand their customer bases, then we should be investors in these companies.
Of note, we do not buy individual stocks for our clients. Rather, when our clients own stocks, they own them as part of a basket of hundreds of different stocks, so that single-stock exposure is minimal (less than 1% of any given client portfolio).
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