Welcome to Fusion Fix-It Fridays, the podcast that simplifies financial strategies, hosted by Jonathan Blau, CEO of Fusion Family Wealth. In today’s episode, Jonathan tackles “The Myth of the Risk of Stocks.” Drawing on over 30 years of experience, he challenges the common fear that investing in stocks jeopardizes retirement savings. Instead, Jonathan explains why the real risk lies in inflation eroding purchasing power—what he calls "the disease of money." You’ll learn how long-term investments in great companies, like those in the S&P 500, can outpace inflation, while bonds, often considered “safe,” may diminish wealth over time. If you’ve ever wondered how to make smarter investment choices, this episode is for you. Let’s get started!

IN THIS EPISODE:

• [0:21] Jonathan’s topic is the myth of the risk of stocks
• [2:00] Investors selling into a temporary decline because of fear of risk
• [4:51] Bonds freeze the value of your dollar during inflation
• [10:02] Jonathan’s recommendations
• [13:07] Becoming antifragile and fighting “this time is different”

KEY TAKEAWAYS:

• The "risk of stocks" is often misunderstood. Long-term investments in diversified portfolios, like the S&P 500, are not inherently risky if left to grow through temporary market declines. Instead, the absolute risk lies in failing to protect purchasing power against inflation, which bonds cannot adequately do.
• Stocks vs. Bonds Misconception: Conventional wisdom often misrepresents stocks as risky and bonds as safe. However, over the long term, stocks consistently outpace inflation, protecting and growing purchasing power, while bonds risk eroding it due to fixed returns and inflation.
• The Psychological Barrier: Investors' fear of stock market volatility often stems from psychological misconceptions rather than historical evidence. By selling during temporary declines, they create permanent losses, highlighting the need for a shift in mindset to embrace long-term growth.

GUEST BIOGRAPHY:

ABOUT THE HOST: Jonathan is the President and CEO of Fusion Family Wealth, founded in 2013 to focus on behavioral finance and guide clients toward rational financial decisions. A sought-after speaker in wealth management, Jonathan previously held senior roles in tax and estate planning at Arthur Andersen. He has a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island, Jonathan is active in the local business community, supports causes like the Middle Market Alliance and Sunrise Day Camp, and enjoys boating with his family.

RESOURCE LINKS

Fusion Family Wealth - Website

Jonathan Blau - LinkedIn

DISCLAIMER

Please Note: No individual has been provided nor promised any direct or indirect economic benefit for sharing Fusion podcasts/articles/opinions. No post should be construed as any assurance that a reader will find the podcast/article/opinion beneficial. Please click below for important disclosure information.

https://www.fusionfamilywealth.com/disclosures

Risk, Inflation, Purchasing Power, Fusion Family Wealth, Investment, Wealth Management, Behavioral Finance, Behavioral Investment Counseling, Investor Behavior, Stocks, Bonds, Volatility, Safety, Growth, Wealth, Psychology, Diversification

In this insightful episode, Jonathan sits down with his father-in-law, Fred Gold, a seasoned CPA and business advisor with over 40 years of experience, including a distinguished tenure as a Partner at Arthur Andersen LLP. Together, they explore Fred’s financial journey, the cognitive biases that influence decision-making, and the lessons learned from overcoming challenges like regret aversion and familiarity bias. Beyond financial insights, the conversation delves into the importance of family values, the distinction between eulogy and resume virtues, and Fred’s perspective on living without regrets. Stay tuned as Jonathan concludes with a heartfelt discussion with his wife, Amy, reflecting on her father’s enduring wisdom.

IN THIS EPISODE:

• [2:08] Fred shares his financial business journey
• [5:22] Making a financial decision based on cognitive biases
• [12:10] Discussion of regret aversion bias and overcoming a bad decision
• [20:08] Discussion of internal benchmarks and the importance of integrity
• [26:08] Fred discusses a pivotal decision in his career
• [29:35] Fred shares that he has no regrets in life, and Jonathan visits with Amy, his wife and Fred’s daughter, about how the conversation went with her father

KEY TAKEAWAYS:

• Cognitive biases, such as familiarity and recency, can distort financial decisions. To minimize risks and regret, evaluate decisions objectively, consider worst-case scenarios, and diversify investments.
• Biases like familiarity, recency, and regret aversion can skew financial decisions. To avoid pitfalls, evaluate risks objectively, consider outcomes, and use strategies like diversification or stop-loss measures.
• Living by internal benchmarks fosters authentic happiness and meaningful success. Prioritizing family, values, and character over societal metrics leads to fulfillment. Treating everyone respectfully highlights the timeless importance of integrity in life and work.

GUEST BIOGRAPHY: Fred spent 40+ years as a CPA and business advisor, primarily as a Partner at Arthur Andersen LLP. He led the Long Island practice and managed the enterprise audit practice in Metro New York, earning clients' trust as their most trusted advisor.

ABOUT THE HOST: Jonathan is the President and CEO of Fusion Family Wealth, founded in 2013 to focus on behavioral finance and guide clients toward rational financial decisions. A sought-after speaker in wealth management, Jonathan previously held senior roles in tax and estate planning at Arthur Andersen. He has a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island, Jonathan is active in the local business community, supports causes like the Middle Market Alliance and Sunrise Day Camp, and enjoys boating with his family.

RESOURCE LINKS

Fusion Family Wealth - Website

Johathan Blau - LinkedIn

Fred Gold - LinkedIn

Please Note: No individual has been provided nor promised any direct or indirect economic benefit for sharing Fusion podcasts/articles/opinions. No post should be construed as any assurance that a reader will find the podcast/article/opinion beneficial.

Please click below for important disclosure information.

https://www.fusionfamilywealth.com/disclosures

Welcome to Fusion Fix-It Fridays, hosted by Jonathan Blau, CEO of Fusion Family Wealth. In today’s episode, Jonathan dives into the uncertainty trap—the harmful reliance on financial predictions that many investors pursue to find certainty about their financial future. He explores how the financial industry has shifted from selling products to selling advice and how this advice often feeds the illusion that certainty can be bought. Jonathan will explain why financial forecasts are frequently unreliable and how investors should focus on preparation rather than prediction to navigate the unpredictable nature of the markets. Listen to Jonathan’s insights on avoiding the uncertainty trap and taking a more resilient investment approach.

IN THIS EPISODE:

• [0:21] Jonathan’s topic is financial predictions and the inevitable uncertainty
• [2:04] Firms are selling the illusion of certainty regarding consumer investments
• [3:00] Beware of financial predictions and instead work on the preparation for the uncertainty
• [8:22] Discussion of the Bond Market, which will be less favorable
• [9:31] Bottom-line investment advice

KEY TAKEAWAYS:

• The financial industry's reliance on predictions to sell advice and products perpetuates the illusion of certainty, which cannot be achieved. Forecasts about market timing or economic performance with studies showing their accuracy are no better than chance. Investors often fall into the "uncertainty trap" by prioritizing predictions over sound financial preparation.
• Relying on financial forecasts, especially those from seemingly credible and articulate forecasters, is often counterproductive, as their accuracy is comparable to a coin flip. Instead of seeking predictions, investors should focus on preparation and resilience to navigate unprecedented events and uncertainty effectively.
• The idea that uncertainty can be heightened at specific times is misleading because uncertainty is constantly inherent in every moment. Media narratives suggesting otherwise can create unnecessary caution and anxiety for investors. Recognizing that ever-present uncertainty helps foster a more grounded and resilient investment approach.

ABOUT THE HOST: Jonathan is the President and CEO of Fusion Family Wealth, founded in 2013 to focus on behavioral finance and guide clients toward rational financial decisions. A sought-after speaker in wealth management, Jonathan previously held senior roles in tax and estate planning at Arthur Andersen. He has a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island, Jonathan is active in the local business community, supports causes like the Middle Market Alliance and Sunrise Day Camp, and enjoys boating with his family.

RESOURCE LINKS

Fusion Family Wealth - Website

Jonathan Blau - LinkedIn

Please Note: No individual has been provided nor promised any direct or indirect economic benefit for sharing Fusion podcasts/articles/opinions. No post should be construed as any assurance that a reader will find the podcast/article/opinion beneficial. Please click below for important disclosure information.

https://www.fusionfamilywealth.com/disclosures

Uncertainty, Financial Predictions, Preparation, Fusion Family Wealth, Investment, Wealth Management, Behavioral Finance, Behavioral Investment Counseling, Investor Behavior, Illusion of Certainty, Financial Forecasts, Market Timing, Financial Planning, Investor Resilience, Economic Trends,...