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Sophia Ojha 11/16/24 Sophia Ojha 11/16/24

The Presidential Cycle and Your Investments: What Every Beginner Investor Needs to Know

Navigating Market Seasons Like a Monk

Once upon a time, in a serene monastery nestled in the mountains, a wise monk named Tenzin shared a story with his disciples. “Every year,” he said, “there are four seasons — each with its own unique beauty and challenges. The secret to a flourishing garden is understanding when to plant, when to nurture, when to harvest, and when to rest.”

Investing, much like tending a garden, has its own cycles. One of the most interesting yet lesser-known cycles is the Presidential Cycle — a pattern that shows how stock market performance tends to ebb and flow based on the U.S. presidential term. Today, we’ll explore what this means for you as a beginner investor, and how you can use this knowledge to grow your financial garden, one mindful investment at a time.

Understanding the Presidential Cycle: A Brief Overview

Just as monks (and gardeners!) observe the changing seasons to plan their gardens, savvy investors observe the four-year Presidential Cycle to strategize their portfolios. Here’s the essence of it:

First 2 Years of the Presidential Term: Historically, these years are more volatile and challenging for the stock market. New presidents often introduce policy changes, tax reforms, or regulatory adjustments that can create uncertainty among investors. Think of this phase as winter — when conditions can be harsh, and it’s best to be cautious.
Last 2 Years of the Presidential Term: The markets tend to perform better in the third and fourth years, especially the pre-election year. Why? Presidents, eager to boost voter confidence, often implement economic stimulus, pro-growth policies, or favorable legislation. This is like the arrival of spring, bringing optimism and new opportunities for growth.

Historical Data Speaks Volumes

Let’s look at the numbers. Since 1930, the S&P 500 Index has shown an average return of around 4% during the first two years of a presidential term. In contrast, the last two years often yield stronger results, with returns averaging about 10% to 13% during the pre-election year, according to IG andKiplinger.com.

This pattern isn’t just a coincidence; it reflects how politics can influence economic policies, corporate sentiment, and ultimately, market performance.

And get this: these stats work no matter which party is in the White House over the long term!

Mindful Investment Strategies for Each Phase

Now, how can you, as a beginner investor who enjoys the calm of meditation, leverage the Presidential Cycle to your advantage? Let’s break it down:

Phase 1: The First Two Years (Navigating Winter)

In the initial years of a new president’s term, the market often faces headwinds. Policies are shifting, and the future can feel uncertain — much like navigating through a thick fog. This is a time to be cautious and embrace a defensive strategy:

Focus on Stability: Consider investing in stable, dividend-paying stocks or sectors that are less sensitive to political changes, such as utilities and consumer staples.

Diversification is Key: Just as a monk diversifies his daily practices — balancing meditation, chores, and teachings — diversifying your portfolio across various asset classes, such as with the Serenity Portfolio I have written about on this channel, can mitigate risk.

Meditative Insight: During this volatile period, practice patience. Remember the Zen saying, “Sitting quietly, doing nothing, spring comes, and the grass grows by itself.” Sometimes, the best action is no action — resist the urge to react impulsively to market noise.

Phase 2: The Last Two Years (Embracing Spring)

As we enter the second half of the presidential term, optimism usually blooms. Economic policies become more favorable, aiming to boost the president’s popularity before the next election. Think of this as spring — a time of renewed growth and opportunity.

Growth Potential: This is the time to consider growth-oriented investments, such as technology stocks or emerging markets, which may benefit from pro-business policies.

Rebalance for Growth: Just like monks adapt their meditation routines and gardeners replant their flower beds as the seasons change, you may want to rebalance your portfolio to capture the upside potential during this favorable market phase.

Meditative Insight: Embrace the flow of abundance. As the Buddha said, “The mind is everything. What you think, you become.” Approach this phase with optimism, but remain mindful of your long-term goals.

Current Outlook: Where Are We Now?

As we stand at the beginning of a new presidential term, it’s crucial to understand that the market often experiences a cooling-off period during this phase. The past two years have been above-average years for the stock market, with exceptional growth rates driven by fiscal stimulus and the beginning of a rate-lowering cycle of the Federal Reserve. However, history suggests that the early years of a new presidential cycle can be marked by slower growth and increased volatility.

Expect Slower Growth Ahead: Given the exceptional returns we’ve seen recently, it’s unlikely (though not impossible) that the market will sustain the same level of growth in the next 12–24 months. New administrations often focus on policy changes and fiscal adjustments, which can introduce uncertainty and dampen investor sentiment in the short term.

Why This Matters for Your Portfolio: As we brace for this period of potentially slower growth, now is a good time to revisit your investment strategy. We may want to adopt a more balanced or even defensive approach, focusing on a combining assets in a way that can weather economic fluctuations. A balanced risk profile will be key as we navigate this early phase of the presidential cycle.

Looking Ahead: While the next couple of years might present challenges, remember that the market is cyclical. Historically, the latter half of the presidential term tends to be more favorable for stocks, driven by pro-growth policies aimed at boosting voter confidence ahead of the next election. Our goal is to stay patient, mindful, and strategically positioned so that when the market momentum shifts, we are ready to capitalize on new opportunities.

By understanding the presidential cycle, we can align your portfolio to not only protect your wealth but also position it for growth as the cycle progresses.

The Power of Mindfulness in Investing

While the Presidential Cycle provides valuable insights, remember that no strategy is foolproof. The market, much like life, is full of surprises.

This is where mindfulness and a long-term view come in. Just as monks practice meditation to stay centered amidst chaos, you too can use mindfulness to stay calm and make informed decisions, even during market volatility.

Here’s a simple practice:

Mindful Investment Check-In: Before making any investment decision, take a moment to pause. Close your eyes, take a few deep breaths, and ask yourself: “Does this align with my long-term goals?” This pause can help you avoid impulsive decisions driven by fear or greed.

Conclusion: Tending Your Financial Garden

As the wise monk Tenzin said, “A garden that is well-tended will bear fruit in its season.” By understanding the Presidential Cycle and applying mindful investment strategies, you can navigate the seasons of the market with confidence. Remember, investing is a journey — one that requires patience, wisdom, and a touch of serenity.

I hope you found this exploration of the Presidential Cycle insightful. If you have any questions or want to discuss how to optimize your portfolio for the upcoming market cycle, feel free to reach out here: https://pineridgewealth.com/#ask-a-question. Together, we can navigate these financial seasons and achieve your investment goals.

This article is intended for residents of the United States only. Not all of the products and services mentioned on this site may be available in your state.

The information in this article is not an offer or solicitation of an offer to buy or sell specific securities. Nor is it an endorsement or recommendation of the specific securities mentioned. It does not constitute personalized investment, financial, legal, or tax advice. Nor should it be misconstrued as a solicitation of investment advisory services. It is for informational and educational purposes only and presents the author’s interpretations and opinions which are subject to change without notice.

Research for this article was done thoroughly from sources the author believes to be reliable and trustworthy, but the author cannot guarantee that the presentation is complete or correct.

Investments in stocks, ETFs, and other securities can lose value. There is no guarantee that this information will lead to investment returns or profits. Historical results and analysis are not a guarantee for future results. Model portfolio returns may not be achievable by all investors.

Each person’s situation is unique. Please seek professional advice from the qualified financial advisor of your choice about your investment decisions, and your attorney and accountant concerning legal and tax questions.

My firm Pine Ridge Wealth LLC (PRW) is an investment adviser registered with the State of North Carolina. PRW may only conduct business with residents of the states and/or jurisdictions in which it is properly registered.

Neither PRW nor its representatives are affiliated with the issuing companies or fund sponsors mentioned in this article. However, PRW and its representatives may own, plan to own, or otherwise have an interest in individual securities mentioned in this article, and may benefit from you buying these particular securities.

For further information, including PRW’s current full-disclosure brochure, see www.pineridgewealth.com.

Sophia Ojha 11/9/24 Sophia Ojha 11/9/24

The 6 Meditation-Inspired Investing Principles

How training your mind can lead to financial peace and stability.

A young monk approached his teacher with a worried expression. “Master, every time I sit to meditate, my mind races with thoughts. I think about the chores I haven’t done, the conversations I had earlier, even whether I left the monastery gate unlocked. I’m always distracted!”

The master smiled gently and said, “Come with me.” He led the young monk to a bustling market in the nearby village. The noise was overwhelming — vendors shouting, children playing, animals braying. “Now, meditate here,” the master instructed.

The young monk was puzzled but followed the instruction. He closed his eyes amidst the chaos. After a few minutes, the master asked, “How do you feel?”

“Distracted, confused, anxious,” the monk replied.

The master nodded. “This market is like your mind. It will always be noisy. Your task is not to silence it but to find stillness within it. Just as the market will never be completely quiet, neither will your mind. Learn to be still, even when surrounded by noise.”

Have you ever noticed how your mind races when you sit down to meditate? Thoughts swarm like a chaotic market, and your attention bounces between them, trying to keep up. Investing can feel the same way. Many of us are swept away by the noise of financial news, market fluctuations, and the emotional rollercoaster of gains and losses. But just as meditation helps us find peace amidst the chaos, mindful investing can bring clarity and calm to your financial decisions.

Before we continue, keep in touch and sign up for my newsletter here.

Here are six meditation-inspired principles to transform your investing practice:

1. Emotional Reactions Cost You Returns — Practice Patience

Did you know that the average investor underperforms the market due to emotional decisions? Many investors buy high when euphoric and sell low when panicked, which leads to underperformance.

Think of it like meditation: when thoughts arise, the impulse is to chase after them. In investing, emotions like greed and fear are the thoughts that lead us astray. But a mindful investor, much like a seasoned meditator, learns to observe these emotions without acting on them.

To truly understand why we react emotionally in investing, it helps to look deeper — not just at our thoughts but at our very human nature. Our entire being is wired to chase pleasure and avoid discomfort. Knowing this, we can be compassionate with ourselves, understanding that learning to invest wisely is a gradual process, much like meditation.

Key takeaway: Each time you recognize an emotional reaction in the markets and choose not to act on it, you’re training your mind. Over time, this practice reduces the cost of impulsive decisions.

2. The Market, Like the Mind, Thrives on Stillness

Financial markets often feel like that chaotic village market: unpredictable, noisy, and overwhelming. But here’s the truth: it’s not the external world that’s chaotic, but our reactions to it. Just as meditation helps us observe our thoughts without identifying with them, a mindful approach to investing allows us to see market trends without overreacting.

By applying what we practice on the meditation cushion — cultivating awareness of the present moment — we learn to observe financial news and market fluctuations with detachment. Instead of getting caught up in every rise and fall, we remain grounded, adhering to our long-term strategy.

Key takeaway: Observe the market like you observe your thoughts — without reacting.

3. Focus on the Long-Term

Meditation teaches us the value of focusing on the present moment, but it also instills the wisdom of impermanence: everything changes. Markets rise and fall, but over time, they trend upwards. A mindful investor takes the long view, focusing on years and decades, not days and weeks.

Consider index investing: instead of trying to time the market, mindful investors may choose total market investments or broad indices like the S&P 500. This approach leverages the natural growth of the economy without the stress of constant decision-making. It embodies the concept of “Investing in Absence,” where you set your strategy and step back, letting time and the market do the work.

Key takeaway: Just as discomfort in meditation passes, so do market downturns. Trust the long-term process.

4. Use Mindful Pauses Before Making Financial Decisions

A helpful technique borrowed from meditation is the “pause.” When faced with a financial decision, pause, breathe, and give yourself space to respond thoughtfully rather than react impulsively. This practice of intentional pause can transform your investing approach, reducing stress and enhancing clarity.

Key takeaway: Practice mindful pauses. The space between stimulus and response is where wisdom lives.

5. Simplify Your Investments to Reduce Anxiety

Meditation helps declutter the mind, allowing us to focus on what really matters. The same principle applies to investing. The more complex your strategy, the harder it is to maintain peace of mind. Over time, I’ve learned that simplicity in investing — just like in meditation — leads to better outcomes.

I call this the Serenity Portfolio — a simple, well-diversified approach designed to be “set and forget.” By simplifying your investments, you reduce anxiety and free up mental space for what truly matters.

Key takeaway: Keep it simple. Simplified portfolios lead to a simplified mind.

6. Be Kind to Yourself: Investing Is a Gradual Learning Process

Just as you wouldn’t expect to achieve enlightenment after a single meditation session, you can’t expect to master investing overnight. Both are lifelong practices of learning, adjusting, and growing. Be compassionate with yourself and remember that progress, not perfection, is the goal.

Each time you resist the urge to react emotionally to the market, you’re making progress. Embrace the journey of becoming both a mindful meditator and a mindful investor.

Key takeaway: Be kind to yourself. Investing, like meditation, is a journey of gradual growth and self-compassion.

Ready to Transform Your Financial Journey?

By training your mind to steady the market inside of you, you will find not just financial success, but also a deeper sense of inner peace. Start with small steps. If you don’t already meditate, begin with a simple daily practice. If you do, apply those same principles to your financial life.

To dive deeper into how mindfulness can revolutionize your investing approach and bring you closer to financial freedom, order my book Investing in Absence: How to Ignore the Markets, Come Out Ahead, and Have Peace of Mind While Meditating for 3 Months.

Order Your Copy Here

Let the journey of mindful investing be your path to both wealth and wisdom.

Sophia Ojha 10/24/24 Sophia Ojha 10/24/24

Balancing Return with Preparedness: Investing in Peace of Mind

🧠 Ever think about how prepared you are for life’s unexpected moments?

Recently, I had to evacuate due to Hurricane Helene, and the experience left me with a profound realization. As I passed by people standing in line at a gas station where cash had now become the only accepted form of payment, it hit me: I had grown so accustomed to the convenience of digital payments — cards, apps, automatic transfers — that I had overlooked a crucial aspect of preparedness.

In that moment, I saw what I had been missing.

Many of us have our investments neatly organized — funds growing steadily through interest, dividends, and compounding over time. But what happens when life throws a curveball? What if the tools we rely on, like cards or online banking, suddenly become inaccessible?

Here’s where the idea of balancing return with preparedness comes in. When we set aside cash for emergencies, we might be giving up the opportunity for financial returns in the short term, but we’re making an important investment elsewhere: in peace of mind.

The Trade-Off: Return vs. Preparedness

Cash that sits in a drawer or a safe isn’t earning interest or compounding like the rest of your investments. It’s easy to see this as a missed opportunity. But in reality, that cash is invested in something equally valuable — your ability to weather a crisis without scrambling.

By keeping a small (or large) cash reserve, you’re essentially investing in preparedness — and that has its own unique return: peace of mind, security, and resilience when faced with the unexpected.

In our fast-paced world, we’re constantly encouraged to maximize returns, take advantage of market growth, and let our money work for us. But true financial wellness isn’t just about chasing returns; it’s also about creating a solid foundation that allows you to navigate uncertainty with clarity and confidence.

Safe, Accessible, and Usable: How to Keep Cash for Emergencies

If you decide to keep cash on hand for emergencies, it’s not just about setting it aside. You need to ensure that the cash is safe, accessible, and usable when it’s needed most.

Safe: The first priority is to protect your cash from fire, water, wind, and theft. Consider storing it in a fireproof and waterproof safe. This will give you peace of mind knowing that your emergency reserve won’t be wiped out by the very disaster you’re preparing for.
Accessible: In a crisis, speed matters. Your cash needs to be accessible at a moment’s notice — whether it’s to quickly pay for gas during an evacuation or to cover repairs. Keep it somewhere you can grab it quickly, especially if you might need to evacuate in a hurry. The last thing you want in an emergency is to waste time trying to retrieve funds.
Usable: Here’s a common mistake: people tend to store large bills, thinking it’s easier to carry $100 notes than $20s, $10s, or singles. But in an emergency, those big bills can be hard to use. Think of situations like paying for gas, groceries, or small repairs — vendors may not have change. Keeping a good mix of small denominations — singles, $5s, $10s, and $20s — ensures that you’ll have cash that’s easy to use. Reserve larger bills like $50s and $100s for specific purposes, like buying equipment (a generator, for instance), transportation, or emergency lodging.

A Personal Story: The Power of Being Prepared

During our evacuation from the hurricane, I was fortunate to have a mix of $5 and $20 bills with me. It made a world of difference. Not only was I able to pay for gas along the way, but I also had enough on hand to help my neighbor repair a flat tire.

He had generously volunteered his time and equipment to help us get out of the disaster zone, and being able to give him gas money and cover the repair costs was more than just practical — it was a way to show appreciation and keep things moving smoothly in a chaotic situation.

This experience showed me firsthand how important it is to be prepared — not just for myself, but to help others in a time of need. And that’s one of the biggest returns on your investment in preparedness: the ability to stay calm, focused, and even generous when the unexpected happens.

Balancing Brain Expansion with Grounded Preparedness

It’s easy to focus on expanding our minds, growing our portfolios, and embracing the convenience of technology. But balance is essential. Our brains may be wired for adaptation and growth, but they also need practical tools to stay grounded when life gets chaotic.

Preparedness, in all its forms, is a mental hack. It gives us the clarity and peace of mind to navigate crises without feeling overwhelmed.

In a world that’s constantly pushing us to chase bigger returns, let’s also remember to invest in simple, foundational habits that keep us resilient — like keeping an emergency cash reserve.

Take Action: How Much Cash Will Make You Feel Secure?

Now, it’s time to ask yourself: What would make you feel secure in an emergency? How much cash would give you peace of mind if your digital systems went offline?

Start with a small amount and build from there. Something like $5 in a safe place at home; then add $5 with every paycheck. Whether, after collecting it for a while, it’s enough for a week of essentials or enough to cover unexpected transportation needs, having cash on hand can be the difference between a smooth transition and a stressful scramble.

Your financial wellness isn’t just about growing your wealth — it’s about balancing return with preparedness. And in that balance, you’ll find peace of mind.

Ready to Talk It Through?

If this article has sparked some thoughts about your own financial preparedness and you’d like to dive deeper, I invite you to book a 30-minute Wealth Coaching Session with me. Whether it’s balancing your investments with real-world preparedness or creating a strategy that brings you peace of mind, we can work through it together.

Let’s ensure you’re not just financially secure — but ready for anything.
👉 Book your session here.

Sophia Ojha 10/22/24 Sophia Ojha 10/22/24

The Hidden Vulnerability of a Cashless World

Why (and when) cash is still king

In our increasingly digital world, we rely on convenience. Cards, contactless payments, apps — all make transactions fast and easy. But what happens when that digital world is suddenly taken away?

I recently had to confront this question head-on. Hurricane Helene hit my region hard, and we were forced to evacuate. Power lines were down, communication networks failed, and as the storm passed, something became painfully clear: digital payments were no longer an option.

Stores, gas stations, and essential services had switched to cash-only transactions. With card readers offline and ATMs out of service, it didn’t matter how much credit you had access to — cash became the only way to access what we needed: food, water, fuel, and other essentials.

I was relieved to find I had $150 at home, but in the midst of a long evacuation, that wouldn’t take me very far. Thankfully, a kind neighbor topped it off, handing me $77 he had stashed in his kitchen drawer. That money made all the difference. Not only did it help my wife and I evacuate, but it also allowed us to help a rescuer repair a flat tire on his truck during the process.

It was a humbling reminder: when the systems we rely on fail, cash becomes your lifeline. And while $227 got us through the worst of it, having more cash on hand would have put us in a better position to stick it out longer or help others more effectively.

The High Price of Being Unprepared

Let’s say you find yourself in a situation like mine. You’ve evacuated due to a natural disaster, and you’re relying on gas stations and stores to get by. But without cash, you have no way to pay. Your credit cards, your digital wallets — they all depend on the infrastructure that’s no longer functioning.

What happens if you can’t get the supplies you need?

You’re stuck in the storm — literally and figuratively — without access to gas, food, or water.
You experience heightened stress, not just from the crisis itself, but from the financial uncertainty it brings.
You’re left scrambling, asking others for help or hoping things will be restored before your situation becomes dire.

I was lucky to have a neighbor who could offer help, but what if no one else around you has cash to spare? You might find yourself in a precarious position, unable to buy the essentials you need to stay safe, calm, and secure.

The bottom line: Having enough cash on hand in an emergency is not a luxury — it’s a necessity.

Why My Story Matters: Lessons from Hurricane Helene

I didn’t come to this realization overnight. I’ve spent years working at the intersection of money and mindfulness, advising clients on how to grow their wealth while also maintaining a sense of balance and peace of mind. But my evacuation during Hurricane Helene made me realize that, in times of crisis, financial preparedness takes on a whole new meaning.

When my wife and I evacuated, we were able to manage with the $227 we had on hand. That cash helped us leave our home, refuel the car, and even assist a rescuer when his truck broke down. But I couldn’t help thinking about how different the situation might have been if we hadn’t had that cash — or if we had had more.

More cash would have allowed us to stick it out longer, ride out the storm with more comfort, and even help more people along the way. That experience reinforced a truth I now share with all my clients and followers: just as we prepare our minds through meditation, we must prepare our financial lives for the unexpected.

I’ve seen firsthand how financial security impacts peace of mind. It’s one thing to discuss wealth management in theory, but it’s another to live through a situation where your financial preparedness — or lack of it — directly affects your well-being.

The Simple Yet Powerful Solution: Keep Cash on Hand

Here’s the solution, and it’s simple: Keep some cash on hand for emergencies. It’s a practice that’s been somewhat lost in the age of digital payments, but in crisis situations, cash is still king.

Now, I’m not here to tell you exactly how much you should keep in reserve. That’s a personal decision based on what makes you feel secure. For some, it may be $500; for others, it might be $2,000 or more. The key is to think about your own needs:

How much would cover 1 to 2 weeks of essential expenses?
How much would make you feel calm and secure if digital payments were unavailable for an extended time?

Reflect on what would give you peace of mind in an emergency — whether it’s a natural disaster, a power outage, or another unexpected event.

The Calm Before (and During) the Storm: The Benefits of Being Prepared

When you’re financially prepared, you’re not just holding onto cash — you’re holding onto peace of mind. Here’s what happens when you’re ready:

You stay calm during emergencies. You don’t have to worry about scrambling for resources or relying on others for basic needs.
You feel secure, knowing that no matter what happens, you can take care of yourself and your loved ones.
You focus on what truly matters — whether it’s protecting your family, securing your home, or navigating your next steps — because you’re not bogged down by financial anxiety.

Having cash on hand in an emergency is a small act of preparedness that delivers significant peace. Just as in meditation, where we prepare our minds to stay centered in the face of challenges, financial readiness keeps us grounded in times of crisis.

Final Thoughts: Your Peace of Mind Starts with Preparedness

When it comes to financial preparedness, there’s no one-size-fits-all answer. But there is one truth: being ready for emergencies, both mentally and financially, ensures you stay grounded no matter what life throws your way.

How much cash would make you feel secure in a crisis? Take a moment to reflect, and make sure your financial safety net is ready for whatever comes.

Sophia Ojha 10/3/24 Sophia Ojha 10/3/24

A Personal Update (Hurricane Helene Evacuation)

Dear Friend,

I hope this message finds you well. I wanted to take a moment to share a personal update with you.

My wife, our five cats, and I have just come through an intense experience with Hurricane Helene. Our home area (Busick, NC) was hit hard with over 30 inches of rain and high winds, leaving us without supplies, water, or power, and the 1.3 mile long access road to our home destroyed. Thankfully, we’ve been evacuated and are now safe and sound at a friend’s house, for which we are deeply grateful.

We are incredibly fortunate, but there are many in our community who have lost everything—homes, cars, and even loved ones. Thousands are still stranded without basic utilities, and while efforts are underway to restore normalcy, it will take months. In the meantime, I am working to rebuild my life and business. While we have safety now, my goal is to get back on our feet and restore independence, so I can support our community when rebuilding begins.

Through this storm, we’ve been shown incredible kindness from unexpected sources, and now, as we begin the journey to rebuild, I’m ready to work remote and would like to offer my expertise and services to anyone who could use a helping hand with their finances or investments.

If you'd like to know how you can best help us right now: buy from or hire me.

How I Can Serve You:

1. Pre-Order My New Book: Investing in Absence

I’m thrilled to announce the upcoming release of my book, Investing in Absence: How to Ignore the Markets, Come Out Ahead, and Have Peace of Mind While Meditating, coming out by the end of the year. This book is perfect for meditators and anyone seeking financial freedom without the constant stress of market fluctuations. It introduces a simple yet powerful approach to investing that allows you to step away from the markets—whether you're on a three-month meditation retreat or just living your life—while still growing your wealth.

For a limited time, you can pre-order the PDF edition for just $10, and it will be delivered straight into your inbox. This book will help you balance your financial success with inner peace, providing a roadmap to long-term investing that doesn’t demand constant attention.

Pre-order here: https://pineridgewealth.com/investing-in-absenc e

2. Investment Management

As a licensed, registered investment adviser since 2023, I specialize in building risk-balanced, diversified portfolios designed to grow your wealth and generate passive income. My approach is aligned with your best interests, acting as a fiduciary with no commissions, only a flat management fee of 1% per year.

Typically, I work with clients who have portfolios of $100,000 or more, but right now, I’m reducing that minimum to just $10,000 to make it easier for more people to benefit from my services. My first client who started with me in November 2023, has seen a +17% return on her portfolio, and I’d love to help you grow your wealth in a similar way. (The long-term average return of my model Serenity Portfolio is about 11% annually, so we have had an above-average run so far.)

Email me here to enquire more information: cristof@pineridgewealth.com

3. Financial & Investment Coaching

If you prefer a more hands-on approach to managing your finances, I also offer coaching sessions to guide you through financial planning, investment strategy, debt repayment, retirement plan reviews, and more. My clients have used this service to save thousands in fees and boost their portfolios by tens of thousands. The sessions start at $125.

Whether you need a second set of eyes on your portfolio or strategic advice on budgeting and retirement planning, I’m here to help you navigate your financial journey.

Book your Zoom session here: https://pineridgewealth.com/wealthcoaching

If you’re interested in any of these services or know someone who could benefit, I’d be honored to work with you. With everything now set up remotely, I’m fully available to meet and assist you via Zoom and secure online access.

Thank you for all the support and encouragement you’ve shown us. We appreciate you more than words can express, and I look forward to the opportunity to give back by helping you grow your wealth and achieve your financial goals.

Warmly,
Cristof Ensslin
Founder & Investment Adviser
Pine Ridge Wealth LLC

cristof@pineridgewealth.com

Sophia Ojha 8/5/24 Sophia Ojha 8/5/24

The 4 levels of positive energy 🍀 for your money

The higher your energy level, the more abundance will come your way.

Photo by Artem Sapegin on Unsplash

Everyone wants money… 💰

That’s neither good nor bad inherently because money is energy.

Pure energy.

Its user (YOU) infuses it with intention and gives it meaning.

You can infuse it with negative or positive intent.

Let’s talk about the positive since that guides a constructive way to handle your money.

There are 4 levels of positive energy 🍀 for your money.

First, I’ll define them, then I’ll share a model of splitting up your money into these four energy levels.

Level 1️⃣ : SUSTENANCE for your present self (anything you absolutely need for yourself and your family for everyday life, such as paying for housing, transportation, food, clothing, health, a sustainable level of everyday fun, and debts)

Level 2️⃣ : GROWTH for your near-future self (anything that would improve the life of you and your dependents, such as saving and paying for education to create more income, down payments for a car or your own home, home maintenance and improvement, vacations, and extra payments to high-interest debt)

Level 3️⃣ : WEALTH for your far-future self (anything that is further than 5 years out, such as investing for your retirement or your kid’s college tuition, and getting completely debt-free)

Level 4️⃣ : EXPANSION beyond yourself (anything that does good for others and the world without you having any direct benefit from it; make no mistake: you will benefit socially and emotionally, and if you believe in karma you know that generosity is the root of all good the good things happening to you in the future)

The higher the level, the higher the energy.

The higher the energy, the better the results for your life and happiness.

But giving all your money away (Level 4) is hardly a reasonable strategy — unless you want to become a monastic.

Neither is it sustainable to spend it all on sustenance. That’s called “living from paycheck to paycheck”. It results in stress at home and dependence on work no matter your income level.

Finding the right balance is the way to go.

Everyone will have a different mix. Your balance will all depend on your personal situation.

May the following mix be seen as a starting point for your process to infuse your money with the highest possible energy.

For Level 1️⃣ : Use 50% of your income for SUSTENANCE. If that’s not enough, work on increasing your income (see level 2) and simplifying your life, such as letting go of luxuries, downsizing your dwelling or getting a roommate, or replacing your SUV with an economy car (you get the drill: not easy stuff but doable if you want to up your money energy level)

For Level 2️⃣ : Use 20% of your income for GROWTH. Have dedicated accounts for each subgoal (emergency fund, vacation savings, down payment savings, etc.).

For Level 3️⃣ : Use 20% of your income for WEALTH. Yes, that includes your 401(k), your Roth IRA, and your regular investment accounts. Let it grow and don’t touch it until its use purpose nears.

For Level 4️⃣ : Use 10% of your income for EXPANSION. Every major tradition of the world suggests giving a certain percentage of your income altruistically. My wife and I started giving 10% of our income away to charitable causes while living on $1K a month in a 460 sqft apartment. It did miracles: It sowed the karmic seeds for better times and made us happy in the moment.

The higher your energy level, the more abundance will come your way!

Best wishes for your journey to infuse money with the highest possible level of energy!

Sophia Ojha 7/14/24 Sophia Ojha 7/14/24

[Season Finale] 5 Factors of choosing the right ETF

July 14th 2024

Master these 5 and you will get it right 99% of the time

There are five main factors for choosing the right ETF for your investment portfolio.

1) The index that the ETF tracks should represent the asset class that you want to invest in (e.g. the S&P 500, the price of gold, or US treasury bonds)

Make sure that your chosen ETF covers the index you want to invest in.

It is super important.

Some ETFs sound alike but are very different. Some names of ETFs indicate something that may or may not be the true focus of the fund.

So, make sure you have the right underlying index.

If the ETF doesn’t follow an index at all, it is an actively managed ETF. It takes even more expertise (and some luck) to find the right active manager.

Stick with passive, index-tracking ETFs.

That way you know what you’re getting into and usually incur substantially lower costs (i.e. expense ratio). Double-win!

2) The ETF must “replicate” the index, meaning it buys the actual components of the index, not placeholders like futures or other derivatives

The fund must buy the actual components of the index, not placeholders like futures or other derivatives.

If it’s an S&P 500 ETF, it should buy all 500 stocks of the S&P 500 index. If it’s a gold ETF, it should buy physical gold. If it’s a 2-year government bond index ETF, it should invest in real 2-year government bonds.

That is called “replication”.

Replication lets you, the investor, indirectly own the companies/commodities/bonds/etc. for real.

It’s important to avoid introducing other types of risks such as counterparty or credit risks.

3) The ETF’s expense ratio should be as low as possible, ideally in the single or very low double-digits (so you get to keep as much of your money as possible)

Managing an ETF undoubtedly costs money: salaries, research costs, other admin, etc. need to be paid. However, it should cost the investor as little as possible.

That’s what a fund’s “expense ratio” expresses.

The most popular index funds charge as little as 9, 5, or even just 3 basis points (1 basis point = 0.01%).

5 basis points, for instance, means that management fees of $5 per $10,000 worth of the ETF are deducted annually.

The most affordable actively managed ETFs cost around 25 to 30 basis points. That’s 5–6 times as much as the lowest charging passive funds. And many charge way more than that!

An active manager has to consistently outperform the market average (i.e. the index) to make their higher fee worth the investor’s while.

80–90% of all actively managed funds don’t reach that goal, statistically. So, stick with passive!

4) How much money the ETF manages (called assets under management): generally, the more the better, with a minimum of $10M (otherwise the risk of it closing is too high)

The biggest ETFs in the US (and the world) manage several hundred billion dollars.

Size matters.

Size expresses general investor interest and implies two things:

Liquidity (easy buying and selling)
Fair pricing throughout the trading day (less chance of overpaying when buying and receiving too little when selling the ETF).

Size also reduces the risk that a fund may be closed down by its manager because running it is not worth their while.

If an ETF cannot win the interest of at least $10 million, it may become under pressure to be closed down.

Why?

Say, an ETF charges 10 basis points in expense ratio and has $10 million in assets under management. That’s $10,000 in revenue for the management form. To run a fund, paying managers, traders, software, data feeds, regulatory and legal fees, etc., will easily cost that much money. Where there’s no space for business profit, the business must go out of business sooner or later.

When an ETF closes, you get paid out your share of the current value of the ETF’s assets under management.

That means you don’t have control over the timing of the sale. Plus, it’s a taxable event that may not fit in your tax plan at all (unless held in a tax-deferred account).

Sticking with the larger ETFs will most likely avoid such unexpected events.

5) How many of the ETF’s shares are traded daily on average: the more the better, so you can buy and sell it easily and cheaply

Heavily traded ETFs are more likely to exhibit a fair value in their market price than thinly traded ones.

Plus, the difference between the immediately available prices for buying and selling shares of the ETF (called the Bid-Ask spread) is usually lower the more trading volume there is.

If you select an ETF that is traded more than an otherwise equal competitor, you can reasonably expect to incur lower implicit transaction costs (i.e. the lower Bid-Ask-spread) and receive a more reliable price — which benefits your bottom line as an investor.

Are these 5 factors all there is to selecting the right ETF?

Well, there are more factors to consider if you want to get all nerdy.

But if you master these 5, you will get it right 99% of the time.

Thanks for reading.

Shine your light,
Cristof

—

This article is intended for residents of the United States only. Not all of the products and services mentioned on this site may be available in your state.

Research for this article was done thoroughly from sources the author believes to be reliable and trustworthy, but the author cannot guarantee that the presentation is complete or correct.

For further information, including PRW’s current full-disclosure brochure, see www.pineridgewealth.com.

Sophia Ojha 7/4/24 Sophia Ojha 7/4/24

Best ESG US Small Cap ETF in 2024

XJR vs ESML

ESG stands for environment, social, and governance. It’s been an investing theme since 2004 and has gathered more than $30 trillion under management according to Wikipedia.

Most of the money is invested in large companies, so-called large-caps. I showed in last week’s article that large-cap ESG investing can keep up with the broad market.

But there are small-caps, too, that are good corporate citizens.

Investing in smaller companies has paid investors a higher return in the very long term. That is likely to continue because investors need to be compensated for the additional risk that’s to be endured when investing in this part of the stock market.

This article compares two US small-cap ESG ETFs to see which one is best.

What’s going on here?

We’re comparing XJR with ESML, two ETFs that invest in the ESG space and select only US small-caps for their portfolio.

XJR

The iShares ESG Screened S&P Small-Cap ETF has existed since September 2020. It follows the S&P SmallCap 600 Sustainability Screened Index.

According to the index’s fact sheet, it excludes companies involved in controversial weapons, small arms, tobacco, and fossil fuels.

As of this writing on July 5, 2024, XJR has $73 million in assets under management. The three largest of its 615 holdings are Abercrombie & Fitch (ANF), Fabrinet (FN), and ATI (ATI). It charges an expense ratio of just 0.12%.

A hypothetical investment of $10K on its inception date (September 22, 2024) with dividends reinvested would have grown to almost $15.8K (after the ETF’s expenses but before taxes and other potential fees such as brokerage commissions or advisory fees), see the following chart.

Chart of the value of a hypothetical investment of $10,000 in XJR on 9/22/2020, according to Morningstar

ESML

The iShares ESG Aware MSCI USA Small-Cap ETF has been in existence since April 2018. It tracks the MSCI USA Small Cap Extended ESG Focus Index.

The index’s fact sheet states that the index “targets companies with high
ESG ratings in each sector. Tobacco, Controversial Weapons, Producers of or ties with Civilian Firearms, Thermal Coal and Oil Sands are
not eligible for inclusion.”

As of this writing on July 5, 2024, ESML has $1.6 billion in assets under management. The three largest of its 917 holdings are Casey’s General Stores (CASY), Janus Henderson Group (JHG), and KBR (KBR). It charges an expense ratio of just 0.17%.

A hypothetical investment of $10K on September 22, 2024 with dividends reinvested would have grown to a bit more than $15.3K (after the ETF’s expenses but before taxes and other potential fees such as brokerage commissions or advisory fees), see the following chart.

Chart of the value of a hypothetical investment of $10,000 in ESML on 9/22/2020 (not ESML’s but XJR’s more recent inception date, for better comparison), according to Morningstar

What does that mean?

Laying both ETFs into the same chart, you see that they correlate highly.

Chart of the value of a hypothetical investment of $10,000 in ESML and XJR on 9/22/2020, according to Morningstar

However, youth has a tad more energy:

XJR, since its inception, has outperformed its two-year older brother ESML.

The risk levels were comparable, by the way, with a 3-year standard deviation of 21.37% (XJR) and 21.11% (ESML).

Since both, the performance and expense ratio, are better, XJR looks preferable over ESML for the long-term investor who wants to invest in ESG-filtered US small-caps.

Why should you care?

ESG-screened small-caps have outperformed their broader market peers.

Comparing ESML from above (ESML instead of XJR because of its longer history) with IJR, one of the oldest and biggest non-ESG-filtered US small-cap ETFs (why IJR, see here), you can see the additional return in the following chart.

Chart of the value of a hypothetical investment of $10,000 in ESML and IJR on 4/10/2018 (ESML’s inception date), according to Morningstar

Investing with a conscience feels good and makes good karma. For the ESG-aware investor, this stance has paid off in terms of portfolio growth, too.

None of us knows what the future holds. But with our earth getting warmer and political and social issues boiling up, ESG small-caps outperforming their non-ESG counterparts may very well continue.

Thanks for reading.

Shine your light,
Cristof

This article is intended for residents of the United States only. Not all of the products and services mentioned on this site may be available in your state.

Research for this article was done thoroughly from sources the author believes to be reliable and trustworthy, but the author cannot guarantee that the presentation is complete or correct.

For further information, including PRW’s current full-disclosure brochure, see www.pineridgewealth.com.

Sophia Ojha 6/27/24 Sophia Ojha 6/27/24

ESGV vs. VOO: Is ESG investing in or out?

Does making good karma with your investments pay off?

ESG stands for environment, social, and governance.

ESG investing means that you care about the impact that your capital makes. It’s most prominently used for stock market investing but can also be applied to bonds, commodities, and other asset classes.

It’s been a growing investment theme ever since it was incepted by the UN in collaboration with major financial institutions in 2004. According to Wikipedia, more than $30 trillion is under management using the responsible investing approach.

That’s a lot of money.

How does it perform?

How risky is it?

This article looks into a US ESG ETF and compares it with the broad market.

What’s going on here?

One of the leading ESG stock market ETFs is the Vanguard ESG US Stock ETF, ticker symbol ESGV.

According to its latest fact sheet dated March 31, 2024, ESGV

Has $8.4B under management — quite a heavyweight.
Costs the investor only 9 basis points (0.09% or $9 per $10K market value) per year in expense ratio to access the world of US ESG equity investments through this ETF.
Is a passive fund tracking the FTSE US All Cap Choice Index. The index uses screening criteria for environmental, social, and corporate governance (ESG) aspects.
Is invested in a current total of 1,436 different stocks.
Has produced 15.15% annualized return over the last 5 years, and 31.43% in the last 12 months.
Incurred a standard deviation of 18.71% — a figure that measures risk (the lower the better).

What does that mean?

Let’s put ESGV in context. A good comparison would be an S&P 500 investment and a total market investment.

Over five years, ESGV has performed virtually identically with VOO, one of the leading S&P 500 trackers.

A hypothetical investment of $10,000 in either of the two ETFs on June 27, 2019, would have grown to more than $20,300. You can see this in the following chart.

5-year chart of a hypothetical investment of $10,000 in ESGV and VOO, according to Morningstar

In the post-pandemic stock market rally, ESGV had a bit of a lead. But it gave it up again during early 2022 and lagged by the end of that year. Since then, ESGV and VOO have been neck-a-neck.

Consequently, the picture looks quite similar if we look at only the last 12 months. Hypothetical investments of $10,000 each in ESGV and VOO on June 27, 2023, would have grown to virtually the same amount today. See the following chart.

1-year chart of a hypothetical investment of $10,000 in ESGV and VOO, according to Morningstar

In terms of risk, VOO would have been a tad lower and thus better. Its standard deviation of 17.6% beats ESGV’s 18.71% by more than a whole percentage point.

Why should you care?

If it’s important to you to care for how your money is used, an investment in an ESG-driven stock selection process looks like ticking two boxes at once: making a market-like return and doing good with your capital.

If we broadened the comparison from large caps (S&P 500) to the total market (e.g. ticker symbol VTI), ESGV would not only have matched the market. It would even have outperformed it.

The index that ESGV tracks specifically excludes stocks of certain companies related to weaponry, “vice” products such as gambling, alcohol, and tobacco, as well as potentially harmful energy such as nuclear power, coal, oil, or gas.

Your money would also not go to companies that do not adhere to certain environmental, labor, human rights, and anti-corruption standards. Even companies that do not meet a minimum level of diversity are excluded.

So, do you care and want good returns (with a tad more risk)?

ETF Nerd Summary

Doing good deeds, acting with a conscience, making good karma, and avoiding harming people and the rest of nature, seems to pay off not just in life generally but also in investing.

ESG investing, as represented by ticker ESGV in this article, has grown its investors’ money in a very similar fashion than a mainstream S&P 500 investment would have.

With the earth heating up and social conflicts seemingly on the rise, this trend of the last years may very well continue.

Thanks for reading.

Shine your light,
Cristof

This article is intended for residents of the United States only. Not all of the products and services mentioned on this site may be available in your state.

Research for this article was done thoroughly from sources the author believes to be reliable and trustworthy, but the author cannot guarantee that the presentation is complete or correct.

For further information, including PRW’s current full-disclosure brochure, see www.pineridgewealth.co m.

Sophia Ojha 6/13/24 Sophia Ojha 6/13/24

Now Is Where the Future Is Made

Sow now what you want to harvest down the road

Photo by Francesco Gallarotti

Now is where the future is made.

I read this quote by a Buddhist monk called Ajahn Brahm the other day. It was on the T-shirt that my wife brought me as a gift from the meditation retreat she’d gone on.

“Now is where the future is made” is the unofficial motto of The 5-Day Nest Egg Challenge (starts June 17), too.

Why?

Because the seeds you sow right now, given enough nourishment, will grow into big plants and trees with gorgeous flowers and juicy fruits on them.

Similarly, what you do now regarding your financial future will yield you unbelievable benefits down the road — through the power of consistency and compounding.

That’s especially valuable for us solopreneurs and self-employed folks who cannot rely on any corporate retirement plan. We have to take our financial future into our very own hands!

Finding the right balance between living in the now and caring for the future version of yourself is crucial. And it means something different for each and every one of us.

In my event The 5-Day Nest Egg Challenge I’ll go in depth about all this — for you. We’ll be live at 2 pm ET each day from Monday through Friday of next week (June 17–21).

I’m looking forward to seeing you on Monday!

Shine your light,
Cristof

Simplify Your Life & Align with Your True North

Choose Your Path

Navigating Market Seasons Like a Monk

Understanding the Presidential Cycle: A Brief Overview

Historical Data Speaks Volumes

Mindful Investment Strategies for Each Phase

Phase 1: The First Two Years (Navigating Winter)

Phase 2: The Last Two Years (Embracing Spring)

Current Outlook: Where Are We Now?

The Power of Mindfulness in Investing

Conclusion: Tending Your Financial Garden

How training your mind can lead to financial peace and stability.

1. Emotional Reactions Cost You Returns — Practice Patience

2. The Market, Like the Mind, Thrives on Stillness

3. Focus on the Long-Term

4. Use Mindful Pauses Before Making Financial Decisions

5. Simplify Your Investments to Reduce Anxiety

6. Be Kind to Yourself: Investing Is a Gradual Learning Process

Ready to Transform Your Financial Journey?

🧠 Ever think about how prepared you are for life’s unexpected moments?

The Trade-Off: Return vs. Preparedness

Safe, Accessible, and Usable: How to Keep Cash for Emergencies

A Personal Story: The Power of Being Prepared

Balancing Brain Expansion with Grounded Preparedness

Take Action: How Much Cash Will Make You Feel Secure?

Ready to Talk It Through?

Why (and when) cash is still king

The High Price of Being Unprepared

Why My Story Matters: Lessons from Hurricane Helene

The Simple Yet Powerful Solution: Keep Cash on Hand

The Calm Before (and During) the Storm: The Benefits of Being Prepared

Final Thoughts: Your Peace of Mind Starts with Preparedness

How I Can Serve You:

1. Pre-Order My New Book: Investing in Absence

2. Investment Management

3. Financial & Investment Coaching

The higher your energy level, the more abundance will come your way!

1) The index that the ETF tracks should represent the asset class that you want to invest in (e.g. the S&P 500, the price of gold, or US treasury bonds)

2) The ETF must “replicate” the index, meaning it buys the actual components of the index, not placeholders like futures or other derivatives

3) The ETF’s expense ratio should be as low as possible, ideally in the single or very low double-digits (so you get to keep as much of your money as possible)

4) How much money the ETF manages (called assets under management): generally, the more the better, with a minimum of $10M (otherwise the risk of it closing is too high)

5) How many of the ETF’s shares are traded daily on average: the more the better, so you can buy and sell it easily and cheaply

XJR vs ESML

What’s going on here?

XJR

ESML

What does that mean?

Why should you care?

Does making good karma with your investments pay off?

What’s going on here?

What does that mean?

Why should you care?

ETF Nerd Summary

Sow now what you want to harvest down the road

Simple and Aligned

Simplify Your Life &
Align with Your True North