When BMW came to America looking for a place to build its award-winning SUVs, it landed in South Carolina. One of the driving factors pushing BMW, and other foreign automakers like Volvo and Mercedes-Benz to South Carolina, rather than Michigan, the traditional home of American automaking, was that South Carolina is a right to work state with low taxes. If you haven't already heard about South Carolina's business-friendly atmosphere, read here: Right to Work South Carolina is Flooded in Jobs Where to Live to Make a Living? Try this Southern Gem Southern States on Tax Cuts: Bring it … [Read more...]
These Stocks Just Crossed an Ominous Threshold: Your Neighbor Probably Owns Them
You read here about the late Jack Bogle’s concerns with index funds. Now they’ve crossed an ominous threshold: the market cap of the top five companies in the S&P 500 index represent 18% of the total index capitalization, higher than any time on record, including the Tech Bubble. Those five companies include Apple, Microsoft, Alphabet (Google), Amazon, and Facebook. When mutual funds and ETFs have a mandate to buy an index of stocks, like those in the S&P 500, research and analysis go out the door—there’s zero analysis—because the purchases are required. In replicating an index, the … [Read more...]
You’ll Love This if You’re Dreaming of an Active Retirement Life
My clients are ski bums. Well, not exactly, considering they own their own place in the Tetons. But rising before dawn, queuing up for the first tram, especially on powder days, is a ski bum’s life. That’s why it was no surprise to receive this email: Hi EJ! Snow over a hundred inches so far in 2020! Every day a powder day! Several more days for this storm cycle! We have been very happy with your care of our financials. Skiing has been fabulous. More powder tomorrow! Will give you a call when we come up for air! When they get home in the spring, to Lake Champlain, they … [Read more...]
What You Need to Know about the Secure Act and Your RMD
You no doubt heard about the Secure Act, an unpleasant piece of legislation passed by Congress on their way out the door before Christmas break. The law became effective on January 1, 2020. What this means to you is that if you didn’t turn 70 ½ before Jan 1, then you don’t have to take your required minimum distribution (RMD) from your IRA until you turn 72. Understand, if you’ve already begun taking your RMD prior to Jan 1, and are under age 72, you still need to keep taking it. Also note, qualified charitable distributions (QCDs) from IRAs can still be made if you’re 70 ½ (up to … [Read more...]
See the Truth About Who You Really Are as an Investor
You know how powerful the mind is—the power of mind over matter. That’s why I revisited this article in the New York Times: “Mind May Trump DNA in Exercise and Eating Habits:” If you tell people they have a genetic predisposition to a low capacity for exercise or a tendency to overeat, explains the article, their bodies respond accordingly. When it comes to investing, your mind makes you feel certain ways about the stock market which can lead to some big mistakes in your asset allocation. If you take the time to understand how you felt in brutal markets like those of 2000 and 2008, … [Read more...]
Migration: Where High-Tax State Exiles Are Going
“Where are high-tax state exiles going?” asks the WSJ’s Review and Outlook. “Zero income tax Florida drew $16.5 billion in adjusted gross income last year.” It’s a trend you and I have been watching for years and will continue to see as Democrats ruin the fiscal health of the states they’re leaving. The good news is that the inflow will give states like Florida more representation in D.C. The bad is they packed bankrupting politics in the U-Haul. The Editors at The Wall Street Journal write: Many have also fled to Arizona ($3.5 billion), Texas ($3.5 billion), North Carolina ($3 … [Read more...]
Trump Right on the Money with Iran
“Finally, to the people and leaders of Iran: We want you to have a future and a great future — one that you deserve, one of prosperity at home, and harmony with the nations of the world. The United States is ready to embrace peace with all who seek it.” Watch the entire speech here. Originally posted on Your Survival Guy. … [Read more...]
2020: Markets Still Dependent on Fed Liquidity
Fed liquidity is the grease that’s making this market run. When the grease runs out or fails to work, will the market melt-up come to an abrupt end? This is uncharted territory, which to me means you need to make sure you have your risk tolerance figured out before it’s too late. Michael S. Derby reports for The Wall Street Journal (abridged): After a dimming in demand for Fed money just after the start of 2020, this week has seen increase operation sizes. On Monday the Fed added $76.9 billion. Analysts at Wrightson ICAP said money markets may see frictional pressure Tuesday. That may explain … [Read more...]
You Achieve Big Gains When Wall Street Misses the Boat
Your best move in 2020? Turns out it’s what we’ve been saying all along: invest for the long haul in rock-solid companies. According to Jason Zweig in his Intelligent Investor piece “How You Can Get Big Gains That Wall Street Can’t,” investing for the long haul actually works but is more difficult to do. Take mutual funds and ETFs with a set mandate to invest in smaller companies for example. “Small-company mutual funds that owned Amazon when it was tiny had to sell it once its market value grew into the billions,” explains Zweig. “Otherwise it would have dominated their portfolios. … [Read more...]
The Silver Lining in the Iran Conflict
Originally posted on Your Survival Guy. … [Read more...]
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