"Are you calling to tell me you bought a Treasury yielding five percent?" my client asked. "I wish," I responded. "I remember when they were yielding ten percent," he said. "But then again, inflation was that high too." "Do you guys handle taxable accounts?" He asked. "Yes, we're not picky." "I've got a lot of money in CDs. When they mature, it's just sitting in cash doing nothing." From there, we started talking about quality stocks and bonds and how a combination of the two could work as a long-term source of income. Maybe we don't get all of the income we want and dip into principal. … [Read more...]
ESG Funds: You Invest, They Win—Here’s Why
You work too hard to have your savings messed with. You have enough on your plate as it is. Between keeping track of the rules for Roths, IRAs, RMDs, it all adds up. You read about ESG funds that are supposed to be “good” for the environment and wonder, “But, are they good for me?” In my series for you, “You invest, they win,” you wonder. You may also wonder about my concerns with Vanguard being too big. “How do you know if it’s too big?” you ask. “Well, it might be too big,” I respond, “if your phone rep is greener than a recycling bin and working in a room the size of a football field.” If … [Read more...]
Biden Seeking to Turn 401(k)s Into a Wealth Redistribution Scheme
Joe Biden wants to use the 401(k) system to redistribute wealth from wealthy taxpayers to lower-income savers. Daisy Maxey reports for Barron's: President-elect Joe Biden hopes to encourage lower- and middle-income workers to save more by changing the existing tax preferences for savings in retirement accounts. A divided Congress is likely to hinder his plans. Currently, workers contribute pretax dollars to 401(k) or 403(b) retirement savings plans, then pay taxes when they withdraw money in retirement. This upfront tax break is more valuable for richer households because they fall into … [Read more...]
Richard C. Young Helped ME Get Re-Centered
I had a great talk yesterday with a prospective client who is ready to come aboard. He's a successful entrepreneur and triathlete coach. He said he doesn't just stand on the side and coach. He's in the pool, figuring things out with his athletes. I like that. For example, if he sees a problem with an athlete's swim stroke, he gets in the pool to copy the problem, and then he works on drills to correct it. It's a hands-on approach that puts him in the shoes of his customers. "I miss Richard C. Young's Intelligence Report," he said. "It's the reason I have the savings that I do." "I … [Read more...]
Is Your “Wealth” Manager Lending out Your Cash and Charging You 2%?
Is your broker making money lending out your cash? Because in times like these, banks are making money any which way they can. Thankfully Fidelity is not a bank. You can rest assure they’re not loaning out your cash. What are you sure about today? I’ll tell you what I know. First and foremost, we need to come to grips with low interest rates. This is more troubling than you think. When interest rates are this low, the average investor (not you, I hope) can’t sit still and just earn a couple percent. The average investor needs more. The average investor will think nothing of lending it … [Read more...]
“I’m a Plodder,” A Prospective Client Told Me Yesterday
“I’m a plodder,” a prospective client told me yesterday. “I like what you wrote last week, I read your stuff.” “Thank you,” I said. “Plodders are especially welcome in times like these.” In case you missed it, I wrote: Why You Should Listen to These Wise Men in Times Like These OCTOBER 30, 2020 BY E.J. SMITH - YOUR SURVIVAL GUY I recently received this message from a client: EJ, it was great talking to you yesterday. While doing a little reading last night I came across a quote I thought you might like. The Old Testament book of Proverbs was compiled by King Solomon who many … [Read more...]
At Age 90, He’s Compounding Some Big Numbers
In speaking with a prospective client over the last couple of weeks, I’m here to tell you, the key to his success is TIME. At 90 years old, he’s compounding big numbers. He’s been doing it for years. He credits my father-in-law’s Richard C. Young's Intelligence Report for his success. “It kept me on course,” he said. The reason we’re talking now (we also spoke five years ago) is that he lost his wife. He feels it’s time to make sure the portfolio is in good hands for his kids. “They don’t have a lot of interest in this stuff,” he said. “But they understand the Richard C. Young's Intelligence … [Read more...]
Don’t Sweat It When She Asks, “Do We Have Anything to Watch Tonight?”
OK, we all know the real battle in your day begins when one of you asks, “Do we have anything to watch tonight?” Your palms sweat as dinner’s ready, and you have no idea what “you’re” going to watch. The last place you want to be is on the couch, dinner in front of you, toggling around tiles on your TV with not a clue what you’re looking for. I feel your pain. You can only watch the Crown so many times (I’m on our third loop around the empire). Unfortunately, investors get that exact sweaty palm feeling when they start punching in the ETF and mutual fund quotes on their computer to do a … [Read more...]
What if You Don’t Have to Cut the Cord to Pay Less?
When you look at your monthly statement, do you feel like you have a good handle on what’s going on? You punch in an ETF or mutual fund symbol, but it doesn’t tell you much. It’s like trying to pick a show on Netflix—let’s see what this is about—only to realize five episodes in that it was a waste of time. Your time is valuable. You deserve to know what’s going on from day one. Today you have advisors selling you blueprints that sound good, but then you realize they’re stuffing your portfolio with ETFs and mutual funds that charge you a fee on top of what you’re paying the advisor. A lot of … [Read more...]
When Isn’t Money Tight? Read More to Find Out
If you’re like most investors I speak with, you’ve put in your time. You’re in retirement or well along the road to planning for it. You’ve made sacrifices. You’ve put the kids through college or have saved enough to do so, and you feel like you’re over the hump. That’s a great feeling. It’s what you imagined that first time you sent a check in to invest. The idea that someday you’d be able to enjoy it. It’s a special moment. For many others, that moment may never come. That’s because, from my vantage point at least, investment advisers don’t spend enough time understanding why investors do … [Read more...]