In speaking with a prospective client yesterday, he told me he’s been in Richard C. Young’s Maximizers portfolio for years. He said he uses an advisor but told him, “Here’s what I want to own, can you do it for me?” And he did. Fast forward—after making a big contribution to the account this year, his “guy” wants to put the money in some hedge fund deal. My new client said, “Don’t do a thing.” The “guy” was chasing money–chasing money with other people’s money. What’s there to lose, right? In times like these, you need to protect your assets like they’re the last ones you’ll ever … [Read more...]

How did you learn how to make money? In reviewing a package of financial documents with a prospective client last week, he included his social security estimates. It was like finding a piece of gold as far as I was concerned. Why? Because it showed me that he began working at age 16. I was able to see what he made of himself during a lifetime of work. It’s better than reading a best seller. I said to him, “It’s nice to see how much you’ve been able to save all these years, but what stands out the most is I see you started working when you were 16-years old.” He replied, “I guess that’s what … [Read more...]

If you’re not a client of mine, and know someone that’s loaded with tech stocks, help them take a look at the overlap in their portfolio. Have them look at their mutual funds and ETFs, and read the prospectus. Look at the top ten holdings. Chances are they’re all loaded with the same small group of GROWTH stocks. Remember, even trees don’t grow to the sky. There’s a shelf life, there’s a limit. If you stick with a VALUE approach (you are if you’re with me) then you’re building in discipline, like a New Year’s resolution, by sticking to a plan. Combine this approach with the Prudent Man rule, … [Read more...]

Do you remember how much you paid for your first home? Pretty amazing how things have turned out, don't you think? If you bought back in the 70s, you probably spent some multiple of your annual salary that wasn't outrageous. Yes, you probably carried a mortgage with an interest rate many multiples higher than today's, but did you ever think you'd be where you are today? Did you think interest rates would be this low? Probably not. You were too busy. You were your own survival guy. You most likely didn't buy a home to sell it to some sucker at a higher price. You bought it because you needed … [Read more...]

You read in these pages (read here, here, here, here, and here for starters) how you can end up paying twice for investments. The first charge is the mutual fund or ETF expenses like the expense ratio (and god forbid 12b-1 fees and other loads). Then there is the fee investors pay to their advisers. All in all, it can add up to more than two percent a year. It’s like ordering a Happy Meal and paying the guy in front of you to place your order. You can do better than that. Now, many advisers are taking their clients' money to invest in "model portfolios." Dawn Lim reports for The Wall … [Read more...]

Your Survival Guy is just getting by down here in beautiful Key West. This sunset pic above is from high above Louie’s Backyard last night where Becky and I had a chance to reflect on life for a while. Because it’s times like these you need to take some time for YOU. You need to take a step back. Take a deep breath. Look out into the ocean and figure out how YOU are going to keep moving forward. It’s too easy to dwell on what’s wrong. It’s unhealthy to be stuck inside your brain. Instead, I want you to be thankful for what is RIGHT in your life. Today, I want you to make time for you. … [Read more...]

I was talking with a client yesterday. He emailed me earlier in the afternoon. The subject line read “New Customer.” His neighbor recently retired. She has a lot of company stock. She asked him what he’s doing with his money. She was intrigued by the “Armadillo” approach. I’ll let you know how our talk goes. Until then, I want to share with you the rest of my conversation. I’m so impressed with my client. He’s built his business over many years of hard work by taking small steps. Being in technology, he’s benefitted significantly from COVID. But he was ready for it. He was preparing all of … [Read more...]

"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...]

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...]