December 11, 2019
Viewing entries tagged
Financial Planning & Investing
December 5, 2019
Is it the right time to invest?
S&P is up 25% with a pullback
ACWI up 19%
NASDAQ up 27%
While there may be great returns, you need to still be focused on long term investing
Even 1 month ago the S&P is up 3%
market changes short term
Time in the market and time in investments
The next recession stocks may get "hammered" but really in recessions the market is up
2020 wont be as good as 2019 because this last year started with a pullback
Talking dividend stocks and interest rates
December 4, 2019
December 3, 2019
Year end planning
Investors at some level will have COST
Two businesses in the investment world
retail
advisory business- RIA
Do your research and then make your decisions
Year end checklist:
tax loss harvesting
look at what has been appreciated in stock
don’t write a check!
Gift stock as deduction (don’t pay any tax on that gain)
you can give appreciated assed instead of giving cash.
cash is done in cost basis.
you have a gain that you would pay tax on
November 21, 2019
November 20, 2019
November 14, 2019
November 12, 2019
Portfolio construction is incredibly important
You sometimes have no idea what is owned in a mutual fund
you only have the option to sell the whole fun
Make sure you are updating your wills and trusts
If you are a do it yourself type investor there are a lot of things you could be missing
having an advisor can be extremely beneficial
SMA
separately managed account
allows for more flexibility in your investments
November 7, 2019
Investors are making bad investment decisions
Theory: bonds are less risky than stock
in theory the bond owners get paid before the stock owners if the company goes out of business
Many investors focus on ROR but they really should be focusing on how well does my portfolio perform against inflation
Teeter totter affect
time value of money
the bond will go back down to value as the maturity gets closer
as interest rates go down value of bonds go up
"I thought our money was safe in bonds"
were in a spot where interest rates were going up
Historical returns of bonds have been horrible
Risks people don’t understand when it comes to bonds:
After every correction we've had, the market has gone higher
The biggest risk to investors is themselves
November 6, 2019
If people are out of the market they have "sold"
Thesis: those who are on the sidelines will at some point move back in
nervous investors have stocked 3.4 trillion dollars in cash
assets into money market funds has grown by 1 trillion dollars over the last 3 years
People are as nervous as they were right in the middle of the financial crisis
Investors go to cash because the "stock market is too risky"
When you own stock; you are a business owner
Investing is about a process, not guessing
There is always a bull market somewhere
there will always be businesses on sale!
Everyone loves warren buffet but no one wants to take his advice
The power behind knowing what you own and why you own it!
you don’t want to know until you’re in a position that you want to know
November 5, 2019
October 30, 2019
Completing the last 3 disturbing trends
Motley fool article from April
First 3 trends: US credit card debt rising, 46% of Americans are confident they will achieve their retirement goals, Americans aren't following a budget
4. Car loan delinquencies are climbing
7 million Americans are 3 months behind their car payments
average new car payment is $523 a month
5. Emergency reserves
40% of US adults don’t have savings to pay for a $400 emergency
Weekly bull/bear report from the AAII
notably very bearish
beginning to see bullishness increase!
investors must understand
Investors continue to be negative and bearish while the market continues to hit all time highs
Markets are undervalued!
long term thinkers... don't try to guess when you should start investing
October 29, 2019
Not a fan of pooled investments (ETFs, MFs)
Credit card conversation
go find a credit card company that has a 0 interest transfer balance
you should never charge more on a credit card that you cant pay off at months end
Start saving even if it is a small amount
it is a HABIT
Only 46% of people feel like they are ready for retirement
COMPOUND INTEREST
let it grow over time!
The Rule of 72
how long it will take for an investment to double
Credit card debt is rising because people don’t budget!
Think first spend later!
Roth IRA or a tax deferred account?
October 23, 2019
October 22, 2019
October 17, 2019
Jack in the box stock market
People and their investments
The emotions of the investors got in the way in september
October is starting out to be a great month for investing despite being long term investors
People are too worried about whats going to happen in the market and what Trump is going to do
Investor sentiment is the lowest its been
Might see a big swing upwards for equities
Cyclical bull and bear markets
Recession, rates, locked in rates
People make decisions based on what they see on the news; that needs to stop and investors need clarity!
October 15, 2019
October 9, 2019
Guest: Nicole Flaherty; Attorney
Trust and estate lawyer
Common mistakes that people make in their estate
Example: Prince's estate issue
prince did not have a will, or it could not be located
must be safe guarded
why you should attend the seminar to avoid the issue!
Mistakes:
failing to plan
What happens if you don't have a will?
state statutes decide where your money goes
goes to probate from there
How often do you review your will and trust?
overlook your legacy planning once a year
you don't have to always change something but making sure its all on track
October 8, 2019
Guest: Nikki Rohloff; CPA from Roach Associates
Panelist from our upcoming Tax Planning Seminar
Work with business owners and small businesses
if its just a W2 employee there isn't much value add
Chatting about partnerships and S-Corp
new tax laws
15% tax for self employment
What changed in the tax laws?
Consumer is led to the idea that things should be as cheap as possible
Nothing is free!
October 1, 2019