Update- Summer 2018 Read!

 

Hi kids, yes it has been a while. It has been busy and the markets are basically going who knows where after a 10% correction in the Dow the last few months. Will the Dow skyrocket to new highs? Will the usual summer doldrums be the story this summer? My opinion? NO. No one can predict market direction but my opinion is the usual summer flats will not occur, replaced by a market that is all in, barring any Washington surprises of course! We are positioned long the markets (positive) and I remain that way until I see signs otherwise. More on the show in August and clients can contact me anytime. Potential or interested parties can also contact me for a meeting at no cost and review your investments at (530) 559-1214. Takes only a hour or so with no pressure (not the way I work) and just straight forward, no nonsense, easy to understand discussion. 

Here are some articles I penned that are just hitting the airwaves that are so important! 

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Slow goes the market this summer? Nope, not in my opinion- read on.

 

There are many ways investors and financial advisors build investment Portfolios. From drawing on a “hunch” to the most technical mathematical analysis known to man, the way people select what stocks to buy literally run the proverbial gamut. There are highly sophisticated methodologies and computer algorithms to the outright bizarre
Method of real leaves and astrology.
I once had a client who shook dice-like wooden cubes to tell her whether a selection I had made should be bought or sold.

There are more common approaches of course. Diversifying between a number of asset classes or holding a large quantities of assets are common approaches.

Buying a handful of individual stocks might be another. A common method by some advisors is to stack up a bunch of mutual funds in a wide variety of different classifications and then perhaps adding in some fixed income type of securities like bonds and preferred stocks.

Then there is a whole slew of investors that just buy what is in the news or on TV or that listen to stories over the office water cooler or take the latest hot stock tips from well-meaning friends and relatives.

Some buy stocks scheduled to pay dividends and some live off the income of a bond portfolio.
I’ve seen others who just keep whatever it is they may have inherited from mom or dad.

Whatever the method, one thing holds true. None of them are foolproof or guaranteed to succeed.

Sure there are some strategies that may perform better than tossing wooden dice but don’t bet the farm on that conclusion either. The Wall Street Journal holds a dartboard throwing contest and compares the results of stock picking that way to professional money managers.

The results are not as conclusive as you might think thus proving that successful stock picking is an elusive talent to even the most experienced of professionals.

In conclusion, whether you select your own stocks or hire a professional money manager to
do it for you, make sure you monitor the portfolios performance in both down and up markets and realize portfolios will not always perform as expected due to sheer complexity of the markets and the dynamics that drive them. The prudent direction is no matter your portfolio is doing, make sure it’s price swings, otherwise known as volatility, is within your risk tolerance level.

In other words, if its movement either up or down are making your catch your breath every so often, your allocation method might not be suitable for your particular tolerance level and mindset.

Believe me, I’ve seen them all and I can honestly say not one method is foolproof.

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What you save for retirement is not as important as just doing it!

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How much have you saved for retirement?


If you’re like the majority of Americans, probably not enough to retire comfortably.
In actuality the figures of how much people have squirreled away for their golden years is disturbing.
In order to better grasp the problem at hand facing many Americans, the first question to be asked is how Much does one need to have in order to retire in the lifestyle one is accustomed to.

Right from the get go we become astutely aware of how much of a problem we have as a nation of greying individuals.

From a survey by bankrate.com an eye popping 61% of those asked didn’t know how much money one needed to save for retirement.

Ouch. That’s a big problem.

Obviously not having a clue of how much money you will need erects a huge barrier to actually preparing for the so called golden years. It’s hard to prepare when you don’t know how much gold you’ll need!

In the same survey. 8% of those queries responded they never plan to retire. I’m not exactly sure what that means but assuming not everyone enjoys their job enough to do it until they kick the bucket, it’s a foregone conclusion that some of these folk already know they don’t and won’t have enough retirement money when their Walking canes arrive in the mail.

The amount one needs to relax into their rocking chairs for the duration obviously varies from person to person but from a Fidelity statistical survey comes more dire news: People ages 40-49 have saved an average of $91,000, ages 50-59 $152,000 and ages 60-69 their savings average $167,700.

Doing some simple math and assuming you live to 80, and stop working at 69, using the $167,700 figure, you’ll get about $1200 a month. Better hope the portfolio sees some growth. Retire earlier or not having saved as much only paints less desirable picture.

Taking into consideration that nearly half of Americans have no savings at all from a study by the Economic Policy Institute and the picture turns into more of a depressing illustration of just how badly things will be for many.

Social Security will of course help but will leave much to be desired when it comes to fully funding your days on the porch swing. Add in some medical costs which is likely a forgone conclusion and you kind of get the overall impression many people are going to have to rely on public assistant and the kind hearts of their friends, neighbors
And relatives to survive.

Social Security was only designed as a supplement but like many concepts in life, what meant and what was morphed by the minds of some are two entirely different things.

The fact remains if you want to have a better afterlife (as in post working) you better get your  rear end in gear and give some serious grey matter to the issue, then regularly add some of the green stuff  to a retirement account somewhere.

Anything you save will be better than nothing and each penny of it will go to helping you and you alone into a better life after you stop working.

After all, having some plan is better than having no plan at all. And if your plan revolves solely around what others have planned for you, odds are you will be sorely disappointed.

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DECK WORN OUT? 

 

 

Kyle my straight A student son and named athelete of 2018 is bound for UC Irving. Him and my also straight A student son who is a bit BIGGER than Kyle are both having just a few weeks to do deck work at a huge discount to other contractors. They can only do a few and give bids right away. Save a ton- these boys are good at it and fast. Powerwashing anything like fences, driveways walkways, to painting and their excellent refinish old decks! Or weedeating or gardening at a fraction of the cost and they SHOW UP.  Call us. They dont have tons of room but first come, first serve. References available and photos as well. See the flyer. Kyle is pictured with a Congressman and had a Senate Internship and too many accolades to mention. His brother?  Same ol'.  Both amazing kids and dependable and want to work.

Here is his brother on a mission trip consoling the kids in Mexico on the trip. These are amazing boys. Help them realize their dream.

 

 

All for now and watching the markets so you dont have to!

Marc