UPDATE 11.30.23: Have you added fixed income to your portfolio yet? After over a decade of loose monetary policy, some investors have forgotten about the benefits of fixed income in their portfolios. Some younger investors have come into adulthood having never experienced bond yields worth sinking their teeth into. Now they can. Don't miss a generational opportunity in fixed income. Originally posted April 14, 2023. As you can see below, you’re witnessing a generational opportunity in fixed income. Attention retirees and those soon to be retired—don’t miss the boat. Because when you … [Read more...]
Are Investors Ready to Pounce?
Investors waiting to pounce? Not buying it. They finally have rates they can sink their teeth into. They’re in no rush to take on more risk. At least, that’s not what they’re telling me. In The Wall Street Journal, Jack Pritcher suggests investors are looking for more risk. He writes: Stocks and bonds have surged in November. With record investor balances in money-market funds, some analysts are optimistic that they have more room to run. Everything from technology stocks to junk-rated company debt has been rising after an encouraging inflation report reinforced bets that the Federal … [Read more...]
“Inflation Is Killing Me,” He Said, “No It’s…”
“Inflation is killing me,” he said. “No, it’s not,” I said. “You have income coming into your account, a sizable portfolio, and yes, maybe asset prices are off, but the cash flow is solid.” The cost of everything has been up, but now deflation is certainly a risk to consider. What we worry about today often doesn’t come true tomorrow or the next day or year. May we all live long enough to be eaten alive by inflation. You’re still able to put food on the table. The key is to have a plan and stick to it. To look at your overall portfolio yield and how it did through some rough … [Read more...]
Investing Habits of the Fairly Wealthy: #3 “Promiseland”
Are you committed? Committed to being a fairly wealthy, highly successful investor? Then this habit is for you. Because I believe you can reach your “promiseland.” I believe you can live your dreams. But can you keep them? Because investing is a lifelong, multi-generational endeavor. Imagine how you’ll feel when you have enough to retire and no longer worry about where your income will come from. I wish I could say it happens the minute you retire. But when the paychecks stop, a new anxiety begins. Having guided hundreds of investors through their retirement lives, my happiest clients … [Read more...]
Are You Guided by the Prudent Man?
In the September 2015 issue of Richard C. Young's Intelligence Report, Dick Young wrote: The Prudent Man Rule is based on common law stemming from the 1830 Massachusetts court formulation Harvard College v. Amory. The Prudent Man Rule directs trustees "to observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital invested." Since I started our family investment management firm in 1989, I have operated … [Read more...]
A Word or Two about Your Survival Guy’s Money
Your Survival Guy wants to share a word or two about my money. For one, I eat my own cooking. I don’t hope for my money to do something for me. I don’t bet on markets. I don’t gamble. I don’t use leverage. I don’t look at prices. I basically look at my account here and there, see the income coming in, and that’s it. Sometimes, my portfolio is higher than the last time I looked, and sometimes, it’s not. I have a consistent investment plan in place, one I’ve had my entire adult life. It’s simple. I save a third, spend a third, and pay taxes with a third. I don’t have any debt. I own my … [Read more...]
Investing Habits of the Fairly Wealthy: #4 “So far…”
Your Survival Guy and Gal recently celebrated their 25th wedding anniversary. Before we were married in Key West, surrounded by family and friends in the southernmost state, we were anxiously watching the tail end of hurricane season. Right before the big day, Tropical Storm Mitch hit, rerouting some flights to Miami, making the drive south on Route 1 far from beautiful as causeways were closing left and right just after crossing. Somehow, everyone made it in time for our rehearsal dinner. And the next day was one of those days after the storm, beautiful. That made everyone even happier, … [Read more...]
Meet Our Dog Louis, We’re One of Those…
Our dog Louis is 12 years old going on two. I have a theory. You see, Your Survival Guy and Gal are empty nesters—both kids away at college—we’re home alone (not to be confused with economically free). And then there’s Louis. The house all to himself. No kids to take the attention away from him. He couldn’t be happier or more needy. He rules the roost and loves it. When we walk him, we’re often asked what kind of dog he is. “Australian Labradoodle,” I say. “Oh, you’re one of those people,” they yell. Kidding. They don’t say that, but I know they’re thinking it. “What makes him … [Read more...]
Are You Looking for Investment Counsel? 2 Questions
Are you looking for investment counsel? If you are, then Your Survival Guy recommends asking these two questions first: "Are you a fiduciary?" and "Who is your custodian?" Because once you get the answers to those two questions, a lot of confusion and heartache can be avoided. Here's why. When you work with a fiduciary, you work with someone who is required by law to make investment decisions in your best interest. On the other hand, those held to the less strict and more common suitability standard are not. They can, for example, put your money in a similar product with higher fees because … [Read more...]
Investing Habits of the Fairly Weathy: #5 Math
Dear Fairly Wealthy Investor, You might be better off staying in bed. It's that bad. One morning, you wake up, and there's a full-page spread in the Wall Street Journal on the perils of a balanced portfolio. It reports how owning stocks and bonds in a 60-40 mix is dead. Nonsense. And it's not just them. When you're in the business of selling newspapers, newsletters, or email subscriptions, it's what gets attention that sells. Which is a disservice to you, my valued reader. You and I know investing is hard because we know the work it takes to save 'til it hurts. These guys are about … [Read more...]
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