I like this story about Ollie's, a fast growing retail outlet that sells nothing online and focuses on selling “Brands at drastically reduced prices." It reminds me of Building 19 which used to sell “Good Stuff Cheap!” The trick was not to go in looking for something, but to just go in and come across something at a too good to resist price. My mom loved Building 19 and the stock market and even to this day is always careful with her money. At Forbes, Abram Brown reports on the success of Ollie's: The sheriff’s deputy arrives early, assuming his position before 9 a.m. He stands silently, in … [Read more...]
The Best States for Retiree Taxation
If you have a few minutes I believe your time will be well spent reviewing this piece I posted back on February 16, 2018. During your working career you can make adjustments on the fly. Paychecks are still coming in, and you can cut some spending to shore up holes in your savings plan. But once you retire, there's no more income to offset any unexpected spending you may have done. That's why you must be acutely aware of how you position yourself and your money in retirement. After you have invested your money to best avoid risk, the biggest threat to your income is taxation. Retirees … [Read more...]
Think Long and Hard about where to Raise Your Family
Your ability to act and stand-up against higher education (as in higher cost), federal, state and local taxes and the politicians that enact them has never been more necessary or crucial to your family’s long-term survival and prosperity. It’s preposterous to believe those living in ivory towers and the politicians controlling your tax dollars know better than you. They don’t. You are the best caretaker for your family and for your money. That’s why it concerns me when blue states, in particular, come after your hard-earned money due to their misappropriating taxpayer dollars for … [Read more...]
FOMO
FOMO: the fear of missing out. Never let emotions drive your investment bus. Despite this sage advice, that's exactly what many investors are doing, reports Amrith Ramkumar at The Wall Street Journal. He writes: Investors are putting more money into U.S. stocks as 2019’s rebound continues, a shift that some analysts expect to drive markets higher despite the recent rally in government bonds and an expected slowdown in economic growth. Optimism about trade talks and the Federal Reserve’s signaled halt to interest-rate increases propelled the S&P 500 to its best quarter since September … [Read more...]
The Arithmetic of Losses: A 68% drop this Century
In his April 2000 issue of Dow Theory Letters, the late-great Richard Russell wrote about the arithmetic of losses noting that Nasdaq had dropped about 68% from the previous year’s peak. To get back to even, he noted, Nasdaq would have to climb more than 170%. As many of you know that didn’t happen for a long-long time. “Note that CNBC,” explains Russell, “and many other sources continue to talk about a stock’s climb in percentages. But this can be misleading and frustrating. Example: you buy a stock for $50. In the bear market it drops to $2—you’ve lost $48 plus commissions. Then you … [Read more...]
How Many “Retirees” Will Keep Working?: Half Haven’t Saved a Thing
An incredible 48% of Americans aged 55 and older haven't saved a thing for retirement. I've asked the question "How Many “Retirees” Will Keep Working?" and it appears that the answer is, a lot. Despite this disturbing proportion of Americans who haven't saved a bit, the numbers are actually getting better. In 2013 the percent of older Americans who hadn't saved anything was 52%. Bloomberg's Ben Steverman writes: Two in five of such households did have access to a traditional pension, also known as a defined benefit plan. However, 29 percent of older Americans had neither a pension nor any … [Read more...]
Is a Four-year College Degree Really the Best Plan in Today’s America?
Millennials are burdened with student loans they can't repay, college degrees that don't get them jobs, and no clear path forward. Is a four year college degree really the best plan for America's high school graduates today? The former host of Dirty Jobs, Mike Rowe thinks not. He has started the Mike Rowe Works Foundation to "make work cool again." Here's a little about what Rowe is doing: America has become slowly but undeniably disconnected from the most fundamental elements of civilization—food, energy, education, and the very nature of work itself. Over the last 30 years, America has … [Read more...]
Bad Blood
If you want an inside look into how money is lost then read Bad Blood by John Carreyrou. It reads like fiction about blood testing start-up Theranos and its founder Elizabeth Holmes where high profile billionaires and investors with “access” lose every penny invested. Read extended excerpt from Wired here: ALAN BEAM WAS sitting in his office reviewing lab reports when Theranos CEO and founder Elizabeth Holmes poked her head in and asked him to follow her. She wanted to show him something. They stepped outside the lab into an area of open office space where other employees had gathered. At … [Read more...]
Can Private Equity Really Save Sinking Pension Funds?
In The Wall Street Journal, Jason Zweig tells the story of Calpers, the nation's largest pension fund, and the nation's growing investments in private equity. Like Calpers, many pensions are hoping to meet unrealistic return expectations (something I have written about many times, including here, here, here, and here) by investing in private equity. The problem is, it isn't a sure bet that private equity will be able to produce the returns necessary. Zweig writes: Still, the future for private equity might not be as lucrative as the past, with money gushing in and with buyouts priced near … [Read more...]
Here’s How States Can Double Their Manufacturing Job Growth
In an analysis of new data published by the U.S. Labor Department, the National Right to Work Committee found that states with Right to Work laws had a manufacturing job growth advantage of 2:1 compared to forced unionism states. NRTWC writes: Last week, the U.S. Labor Department issued updated and revised annual data for payroll manufacturing employment in each of the 50 states. The newly-published figures for 2018 show that 6.76 million manufacturing jobs — or 53% of all factory jobs across the U.S. — are located in the 27 states that have passed and implemented Right to Work laws … [Read more...]