Americans aren't saving enough. That's not all their fault. The Fed has kept interest rates low, depriving savers of decent rates of return on their savings. And a decade of misguided monetary policy hasn't managed to get wages growing very much. So many Americans who would prefer to retire, cannot. They are being forced to work into old age, and today elderly Americans are twice as likely to be working as they were in 1985. Bloomberg's Suzanne Woolley reports: Just as single-income families began to vanish in the last century, many of America’s elderly are now forgoing retirement for the … [Read more...]
Jesus: His Life
I’ve been watching Jesus: His Life on the History Channel. … [Read more...]
Happy Easter: Meet the Man behind the Sweet, Parisian, Macaron
Standing on the steps of the Madeleine church in the 8th arrondissement, looking down Rue Royale, you can see the Place de la Concorde. Where Rue Royale meets Rue du Faubourg Saint Honore, across the street from Gucci, you’ll see the mint green awnings of maison Ladurée, home to the macaron (pronounced mah-kuh-ron)—meringue like cookies, the color of Easter eggs, sandwiched with an emulsified filling. Groupe Holder is the private baking—not banking—conglomerate owned, founded and controlled by 77-year-old Francis Holder. The company is comprised of Ladurée’s 85 shops in 50 countries, the … [Read more...]
GNMA Update and My April Rage Gauge
If you didn’t lose your patience and held your bonds over the last year, then you know it was a perfect example for why you own them. Case in point, Vanguard GNMA ended the last 52-weeks up 4.46% and its recent 30-day SEC yield was 3.06%. The catalyst for much of the recent gains? The midterms and the Fed—socialists storming the castle, and pathetically lower rates. Whether you own treasuries, agencies and/or corporates, avoid the temptations of predictions or your gut. Because you just might end up being wrong. My April Rage Gauge has backed-off from last month, making it a perfect time to … [Read more...]
New Jersey Opens a New Front in the Fiduciary Fight
Over the last few years the battle over the fiduciary duty of financial advisors has been fought at the federal level, but now New Jersey, a state that is home to many financial firms, is opening a new front in the war. New Jersey's governor wants to force financial firms registered in New Jersey to adopt a fiduciary standard. I encourage all investors to find advisors held to a fiduciary standard, as it's the only way to ensure an advisor has the clients' best interests in mind. Other advisors held to the much lower 'suitability standard' could be more willing to fill their clients' … [Read more...]
How Are You Protecting Your Identity?
The number of Americans impacted by identity theft annually grew 33% from 12.6 million in 2012 to 16.7 million 2017. Lifelock reports that data breaches are having the greatest impact on victims: Nearly 60 million Americans have been affected by identity theft, according to a 2018 online survey by The Harris Poll. That same survey indicates nearly 15 million consumers experienced identity theft in 2017. So, yes, the crime of identity theft is relatively common. And it’s probably safe to assume it won’t be dropping anytime soon. Why? Data breaches. While there are many stories of … [Read more...]
Happy Tax Freedom Day!
It's April 16th, and yesterday Americans' income taxes were due to the IRS. Coincidentally, today is Tax Freedom Day, and until today, the average American has been working to pay off his taxes for 2019. According to the Tax Foundation, "Tax Freedom Day® is the day when the nation as a whole has earned enough money to pay its total tax bill for the year." The Tax Foundation breaks down exactly how much time Americans spent paying off the different types of taxes in 2019, writing "This year, Americans will work the longest to pay federal, state, and local individual income taxes (42 days). … [Read more...]
Are You Benefiting from the Miracle of Compounding in Your Life?
Once you venture down the path of self-reliance and survival, you quickly realize it can be an expensive endeavor. Stop. Take a deep breath. This is a marathon. Set your own pace. I try to eliminate the financial stress on you and your family every single day by helping you avoid the costly investing mistakes that cause distress for many. For example, in my recent series I wrote to you about long-term investment success that is easy to understand but hard to do. And I’m not talking about the guy you know who timed the market perfectly. The next time he tells you that ask to look at his … [Read more...]
Dead or Alive? The Future of Long-Term Investing: Part IV
The answer to the question of whether long-term investing is dead or alive comes down to my favorite three letters in the alphabet: Y.O.U. When I speak with investors, most of our conversation is about what’s going on at that moment in their lives: Driving to their second home, getting ready for an exercise class, recovering from hip, knee or shoulder surgery, running to a meeting, running (walking) to rehab, or winding down from a busy work trip or a European tour. With so much attention today given to robo-advisors, financial planning and one stop investing, it’s hard to know which way … [Read more...]
Dead or Alive? The Future of Long-Term Investing: Part III
“If the phone doesn’t ring it’s me” -- Jimmy Buffett It’s funny how time heals temporary temptations and laps of reason. I wrote the piece below on October 16, 2014. Then the Dow was down from a recent peak and investors were scared. But those who followed their long-term investment plan and didn't panic, made it through. Yesterday the Dow closed at 26,157.16. Investors who panicked and sold missed all that. Tomorrow markets could drop again, but if you prepare yourself with a diversified, income focused portfolio and the determination to stick to an investment plan that avoids risk whenever … [Read more...]