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...]
Archives for April 2019
Americans Did Actually Get a Tax Cut, Despite the Spin
Despite what most Americans may have heard in the news, the vast majority of taxpayers did get a tax cut from the 2017 Tax Reform signed by President Trump. Sahil Kapur and Laura Davison report for Bloomberg: When the law passed, McConnell said, “If we can’t sell this to the American people, we ought to go into another line of work.” He added that the GOP merely needed to tell the public “that you have more money in your pocket.” Perceptions But an NBC/Wall Street Journal poll this month showed that just 17 percent of Americans believe their taxes have been cut. A Reuters/Ipsos poll in … [Read more...]
Could an EU-US Free Trade Deal Happen in 2019?
The economies of the European Union and the United States are the largest in the world. A free trade agreement between the two would create the largest free trade bloc in history. Reuters' journalist Philip Blenkinsop reports that European Trade Commissioner Cecilia Malmstrom suggests a deal could be done by the end of this year. He writes: BRUSSELS (Reuters) - The European Union is ready to starts talks on a trade agreement with the United States and could conclude a deal before the end of the year, European Trade Commissioner Cecilia Malmstrom said on Monday. Malmstrom spoke after EU … [Read more...]
In Wine and Investing, One Must Get the Big Picture Right
There are few subjects studied by so many, but still so little understood as investing and wine. Nearly everyone you meet has an opinion on both, but start getting specific and you realize the pool of knowledge isn’t deep. You don’t need to be an expert in either, but it helps to get the big picture right. In February of 2011 I wrote: Medieval Monks Terroir (teh-RWAHR). Literally “terrain” in French. David Downie in Food Wine Burgundy explains that originally terroir was used to refer to the particular qualities that soil and climate bestow on wine. The French word climat designates a … [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...]
Early Signs of Stress in the Private Equity Market
At The FT, Patrick Jenkins sounds a warning about the private equity market. He suggests that the recent flurry of retail failures is a sign that all is not well in private equity. He writes: Few commentators today are forecasting an imminent housing crash. But something similar may be threatening a segment of the global economy — with potentially more serious consequences. The private equity market, which relies on leveraged borrowing much like a mortgage on a house, is showing some early signs of stress — and you do not have to look far to spot it. The UK high street is under pressure … [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...]
Are You Retired? Have You Seen These Six Tax Changes that could Affect You?
At The Wall Street Journal, Anne Tergesen explains six changes to the tax code in the 2017 tax reform law that could especially affect retirees. She writes (much abridged): 1. Higher standard deduction: Many retirees, especially those who have paid off mortgages, take the standard deduction. For them, one positive change is the near-doubling of this deduction, or the amount taxpayers can subtract from their adjusted gross income if they don’t itemize deductible expenses including state taxes and charitable donations. 2. A tax break for charitable contributions: Retirees who take the … [Read more...]
Dead or Alive? The Future of Long-Term Investing: Part II
Ask anyone if they’re a long-term investor and nine out of ten will tell you they are most definitely long-term investors. That is, unless something crazy happens to the market. It’s like the profile pieces you read about someone’s workout and eating regimen. Every minute of the day is carefully planned, and it seems every person profiled sticks to salads topped with salmon and the occasional piece of dark chocolate. In the real-world, life gets in the way, and it gets messy. OK, maybe it’s doable if you don’t have kids, or a job, or grandchildren, or any other fabric of life that makes it … [Read more...]
Do Investors Want ETFs with Fewer Disclosures?
Asset managers have been begging the SEC to allow them to hide their ETF holdings for years, with the simple argument that they can't deliver market beating returns if all their competitors know what they're holding at all times. Currently ETF managers are forced to disclose their holdings each day, but the disclosures haven't allowed for managed ETFs to take off because managers can't maintain secrecy. A new decision from the SEC could change all that, allowing managers to hide their assets better, but do investors even want that? Annie Massa and Rachel Evans report at Bloomberg: After more … [Read more...]