To take advantage of ups and downs in the price of stocks, many investors, including myself, utilize Dollar Cost Averaging (DCA) as a strategy. DOLLAR COST AVERAGING: is an automated and disciplined investment strategy. It removes emotions from the investment process because you are investing a fixed amount of money at set periods. As the price of an ETF, Mutual Fund, or stock varies from month to month, you acquire the ...
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Many investors both institutional and individuals sold in October 2018. What about you? I am not smart enough to guess the best time to get out and return to the market, so I held my positions. I have survived numerous corrections, like this October 2018, where I lost significant PAPER Net-Worth. BY recognizing my inability to time the market and just sit still, my Net-Worth increases most years. Taking No Action ...
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I interviewed one of my readers, a California physician. Let’s call her Dr. C. She is blessed with two very bright and beautiful children and kind enough to share her money management journey and lessons learned. I share this interview as an opportunity for my readers to learn about other’s earnings, saving, and investing successes and lessons learned. INTERVIEW 1. When did you decide to become a doctor? What ...
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I fear failure and have sometimes avoided risk and MY OWN DREAMS. Imagine all the great things that would NOT have happened in the world if so many denied their dreams due to fear. Some of you have expressed your fears in starting to invest. People find change to be difficult and that makes us hesitate to take actions to reduce debt, build emergency savings, fund 401-K plans and ...
Read MorePhoto by Melinda Gimpel on Unsplash Many of you may have heard Aretha Franklin, left an ~$80 million estate and DID NOT leave a will. You also may recall Prince, died without a will, leaving behind a ~$200 million estate. And both of these singers’ estates will continue to earn royalty income for decades. It’s up to the court’s to decide who gets what. In reality ~55% of people WHO ...
Read MoreLast week reader’s question- is it too late to invest in FANG? My Response- {Keep reading}, DO YOUR RESEARCH, but it is not too late. Lets start by defining “FANG”. I believe Jim Cramer created this acronym. It stands for Facebook, Amazon (many ask why not Apple), Netflix and Google (which changed it’s name to Alphabet to emphasis the company is multi-dimensional). How often do you use the above four companies? ...
Read MoreI have recently read several articles stating cash is awful. It concerns me so much, I am willing to make the ultimate sacrifice and take that EVIL cash off your hands. Just mail that evil paper money to me! In reality, we use cash to buy assets that hopefully will increase in value AND beat inflation. Every investment I have made (good and bad), came from cash - home ...
Read MoreIn this week’s blog I am talking with the ladies. Guys join in as this is about your sisters, daughters, wives, etc. And you BEST care! Ladies, I have a serious question. Why are you allowing men to add more money to their investment accounts and gain PROFIT on their investments while you sit passively on the sidelines? I am referring to men and women with equivalent income. Research shows ...
Read MoreSome of you are off to a terrific start! Let’s look at potential accomplishments: • You are employed or own your business and have a steady and growing income stream. • Have paid all education loans off. • Contributing (HOPEFULLY AT MAXIMUM LEVEL - $18,500) to your 401-K. If not at maximum level of your 401-K you are using your annual raises to increase your participation percentage in your 401K until you reach maximum amount of ...
Read MoreRecently, a reader asked the above very good question. I am providing a brief summary response and then more details. SUMMARY RESPONSE {DETAILS BELOW} The key decision point is NOT how much you put down. The best and safest move is to put 20% or more down if you can afford the TOTAL HOMEOWNERSHIP COST, discussed in detail below. Paying 20% or more as a down payment avoids paying Private Mortgage ...
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