Monthly Archives: September 2014

Let Matson Money Work For You!

Mark Matson is the founder and CEO of Matson Money, Inc., an investment advisor firm created in Cincinnati in 1991 that manages close to $5 billion dollars for investors across the U.S. Through Matson Money, Mark has spoken up for the implementation of the Free Market Portfolio investment strategy, which he claims has “helped thousands of investors nationwide to take a more prudent, long-term approach to investing and growing their wealth.”

Matson Money is an RIA (Registered Investment Advisor) firm that offers a family of mutual fund “funds of funds” that take advantage of the management skills of independently managed mutual funds. The Matson Money team boasts an approach to investing that is based off of Nobel-Prize winning financial and economic principles. Mark feels that “every investor should understand and feel confident about their investment approach.” Let’s review some of the core values that Mark Matson relies upon when striving to get the most for your investment:

1.  Integrity – Matson Money is founded on the principle of consistency in actions, decisions, and in everything they do.

2.  Education – According to Mark, “we never want to stop learning, growing, and creating new ways to help investors. It applies to our investors who we continually develop new tools and educational programs for every day. And it applies to our advisors who we constantly provide new educational tools and training for on an ongoing basis.”

3.  Entrepreneurial spirit – As a small business, they understand that individuals and their unique creativity are catalysts for true change in the world. Matson Money encourages the entrepreneurial spirit of not only its own team, but the independent advisors they work with as well.

Mark’s team wants to dispel the belief that you need a lot of money in order to effectively meet with a financial advisor. While there are plenty of “do it yourself” investment strategy websites, Matson Money does not believe that this is the best method, especially when handling money management for a family, cashing in your social security, or readying yourself for retirement. There are coaches and experts, not just in the Matson family, that are much more equipped to guide you through these situations. According to Mark, “while 23 percent of people seek help through a financial advisor, only 27 percent of that number actually follow through and invest in that strategy.” You shouldn’t pay an advisor and then ignore them, so if the trust isn’t there – it’s time to find a new team to help you.


Capitalism 101

When you talk about educating investors, Matson Money believes that Wall Street does a terrible job of it. They teach people how to buy stocks, how to do this, do that, but nobody really talks about what’s underlying all this: Why would you even want to invest?

So I’ve created a little talk that I call Capitalism 101, which I could paraphrase by saying, “how is wealth created?” And I’m talking about true wealth, like the wealth, GNP of a country. Not “moving this guys’ money from his pocket to your pocket.” You might get rich but that didn’t create any wealth. So when you really stop and think about it, you ask, “Well, what is really needed in a country’s economy to make that economy grow and create this wealth?”

And the one that comes to mind first is skilled labor. We take countries like a lot of the Asian countries, but China is a great example over the last 20 years. A lot of skilled labor, allowing them to produce a lot of product quickly. Next, you’re going to need every economy needs, raw materials. That’s why China needs those raw materials from Australia and vice versa. Canada, Australia, Chile, Norway, these countries generate a lot of wealth just by having natural resources and selling those resources to the latter.

The third thing that’s needed is money, financial capital. And where and who is supplying financial capital to this whole system. It’s investors. So by supplying this capital to the whole system and the wealth being created, you as an investor, are entitled to your share of that increase in wealth. Now, unfortunately most investors don’t get what is truly their fair share. And that’s a big part of what my message has been over the years is, “how do you go about getting that?”

Advisers have a huge role to play because of their job. They’re not there to create wealth. And we know they’re not there to pick stocks, you know, or time markets or do those traditional things we call active management – none of that is creating wealth anyway. The adviser’s role is to make sure the investors, who are supplying the financial capital, are getting their fair share. So I call it a defensive strategy. The economy creates the wealth, the adviser structures the investment solution that enables the investor to get a fair share and then brings discipline to the whole process.

Is Your Financial Advisor a Con Artist?

While most financial advisors out there are trustworthy, there are those select few who will do anything to get their hands on their clients’ money. Think of the many people who suffered at the hands of Bernie Madoff and those like him. How are people supposed to avoid scammers like that when making investments? Mark Matson encourages prospective investors to closely vet their financial advisors. Mark Matson and his company want all investors to understand that financial advisors may be people who have no qualms about ripping off their clients.

This issue is more prevalent than most people realize, and investors want to know how and why this happens. They find it hard to believe that others are willing to take advantage of them and make the mistake of trusting advisors enough to hand over their money and expect that it will be handled with integrity. Investors assume that everyone is just like them; they want to believe all money managers are normal, empathetic, average people who will handle their money with the same care that they would take with their own. However, con artists do not see the world this way.

Mark Matson says that, “40 billion dollars a year is lost to people whose money is getting stolen, not just mismanaged.” Industry con artists are only interested in stealing their clients’ assets, and what they are doing is essentially a crime. However, as Matson advises, there is no end in sight. It will continue to happen over and over again if people do not become more prudent in choosing who handles their hard-earned cash.

Mark Matson’s mission is to put this to a stop and he reviews the best way in which that can be done. Matson says, “If you aren’t careful and don’t take the time to understand prudent investing, you will set yourself up to be a victim.” This couldn’t be truer. In addition to the con artists, there are many legal ways for financial advisers to gamble clients’ money away. Since many of these people can’t be held accountable or brought to justice, it is up to the investor to be savvy enough to say no to shifty risk takers and fraudsters. Matson feels that it is “a horror movie all on its own” and that investors are the only ones with the power to put an end to it.

For Mark Matson, the Complaints in Real Estate Could Be Many

Are you in the market to make money? If so, you might want to stay away from real estate – that’s at least according to Mark Matson, founder and CEO of Matson Money, INC, a Cincinnati-based investment adviser firm. Mr. Matson was recently on Fox Business’s “Money with Melissa Francis,” where he argued that choosing real estate over equities could possibly be the worst investing mistake one could ever make. His contention goes against popular opinion among investors, who believe that real estate represents the more favorable investment opportunity. However, he does have a few points that support his argument. Let’s take a look at some of the reasons Mark Matson has complaints about real estate:

Real Estate has not performed as well: Since the Bear Market Bottom, the median price for homes has gone up by 11%. Do you know how much stocks have increased in that same time? The Dow Jones Avg. has actually gone up by 150%. Those who invested in equity around this time made a ton of money. And that’s not an acute trend.

Liquidity is dependent on the market: Getting out of stocks is one thing. Even if you do lose money, you can usually get out. On the other hand, getting out of a housing investment requires another player. While a home might be a more fun investment, you do have to put money into the home for upkeep. You are also dependent on demand. If you have a down market, like we saw in the mid-2000s, you might not be able to get the price you want for your home – if you get an offer at all.

Millenials are not buying homes at the same rate as other generations: Many Millenials were badly hit by the recession. Between not being able to get a job because of a down market to incurring huge amounts of debt to finance their degrees, many Millenials are hesitant or unable to purchase that first home. Additionally, many are bypassing home purchases to remain flexible in their careers and other life pursuits. The home may not be the American dream anymore, and if the demand isn’t there, neither are the prices.

Is Mark Matson right? Is choosing real estate over equity the worst investing decision you can make?

One of Mark Matson’s Biggest Complaints Is Investors Caving into their Fears

Fear can be a good thing. It is a product of evolution. When our ancestors perceived an actual threat, their bodies responded in kind. Their brains when into a hyper-focused state that allowed them to better perceive their surroundings. Their heart rates went up to increase oxygen flow, and the Fight or Flight response kicked in to best react to the threat. This was a means for survival against predatory animals or other humans. When there is danger, fear is a good thing. However, this might not always be the case, especially when investing.

Complaints Mark Matson often has concern fear-based investing. We can become influenced by our fears of what might happen next rather than staying in the present and allowing our actions to dictate our futures. One case of this is the worry many investors had after a rather dull first quarter of 2014. A few months ago, Zack Shepard joined several other investors in a panel discussion on the first quarter on Neil Cavuto’s show on Fox Business. His main message was for investors to feel the fear but invest anyway.

Mr. Shepard pointed out the fact that, historically, there is no set direction for the market to go in after a flat first quarter. Each time it has happened, there were different variables that influenced where the market would go. He, therefore, told investors to listen to the fears they might have about the market, but think about what makes the most sense long-term. Investors should take a look at their portfolio and make smart long-term investments in equity that have the potential to sustain them twenty years from now, rather than worry about what happens next month.

Investing wholly based on fear is a self-fulfilling prophecy; it will only cause you to lose focus of what you should be doing to sustain long-term growth. In the appearance referenced above, Zack Shepard made the case that we shouldn’t worry as much about what might happen after a flat quarter, because each instance of a flat 1st quarter is different. Historically, equity investments have helped make investors a lot of money. Investors should remember that as they make moves to create their own little American Dreams.

A little fear is great in many situations. However, it sometimes isn’t when it causes you to take your eyes off the prize. In the case of this first quarter lull, it makes sense to acknowledge the fear but to invest anyway.

3 Simple Tips for New Investors

After years of thinking about investing in stocks, you’re finally ready to get started. While this process can be very exciting, it can also be extremely stressful and come without the concrete assurances that you may want. Nobody can tell you which stock will be the most profitable, or which one can withstand the test of time. One of the most common complaints Mark Matson hears from new investors is that they really don’t know where to start, or that they aren’t sure that they’re doing things correctly. While there are no secret methods for always choosing the best stocks, there are ways to have more confidence in your investment choices.

Have the right expectations

A lot of the anxiety that first-time investors experience can stem from having unrealistic expectations. If you assume that investing in the right stock will get you rich fast, you’re most likely going to be very disappointed in the future. Returns on your investments can take a long time to see, and you need to be patient if you want to actually reap any benefits. Don’t assume that you need to focus all of your time and money on one stock; it’s usually good to diversify, even in the beginning of your investment career.

Think like a business owner

If you want to get a good handle on your new investments, then view your stocks like you’re the owner of a business. Stocks aren’t just things that people trade – they represent ownership interests in companies. Manage your stocks like you would manage a business yourself. Read and analyze financial statements, and pay special attention to every yearly update that you receive. Keep abreast of trends in the market, and try to keep an open mind and use some foresight when it comes to the future of your stocks.

Recognize bluster

Whether it’s because of media hype or general popularity, it seems like there’s a new hot stock every month that promises to bring its investors wild riches. It doesn’t take a market genius to see that some stocks can have their value seriously overestimated. So how do you determine which have real potential and which are going to flop? There’s no one answer to this question. Before making any decisions, take a close look at the industry and see how likely the company is to do well. Has their progress been slow and steady or very sudden? When in doubt, always choose steady climbers with a record of stability, even if on a regional scale. If you still aren’t sure, avoid the stocks entirely and go for something more secure.