Saturday, December 31, 2016

Predicting an Awesome 2017

"It's time to make money again." ~ comment after the election by hedge fund manager who supported Hillary Clinton

I'm looking forward to a great year financially in 2017.    Many investors  believe the new administration will foster a stock market boom (and perhaps bust) in the coming years.   Being invested will result in great returns.

First, I think that the U.S. government will return to support business and economic development instead of being a significant hindering factor, as it has been.   This will lead businesses to invest more, which in turn will grow the economy.

Second, I think U.S. consumer will be more willing to spend due to a better expected economic future.   Personally, we spent more this holiday season than in past years.   Based on traffic I saw around local shopping malls, I think more people spent more than in previous years.

Third, I think the U.S. government will significantly increase infrastructure spending.  Really.  This will bring much needed improvements to the infrastructure and help build economic optimism.

Fourth, the vilification of people who work hard and make significant incomes will end.  It will once again  be OK to make money, even lots of it.

Fifth, a risk-on mentality is returning, because the possibility of high rewards is returning.   This will lead more investment and asset valuation increases.

At this point, I'm not yet ready to go all in.  But I am much more willing to put more funds in stocks and other investments, for the potential of excess returns.

For more on Reflections and Musings, check back Saturdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, December 18, 2016

The Return of Economic Optimism

Economic sentiment seems to be improving significantly.  Since the election, the stock market and interest rates are higher.  Real estate also seems to be doing better.  According to Zillow, our house value has increased 30% to its highest estimated value since 2007.  Also, businesses seem to be more positve about their future than before.

Positive sentiment doesn't necessarily translate into improved economic results, but it is a good start.   Optimistic expectations often lead to more investment, which leads to postive economic outcomes.

I'm looking forward to good year for our investments in 2017.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Tuesday, December 13, 2016

Trading Ideas for After the Fed Meeting

I have no idea what impact the Fed meeting will have on stocks and bonds.  But I am ready to take action for a major move in either direction.

I expect the Fed to raise interest rates.  Past that, I have no expectations.  I have no predictions on the magnitude of the increase or the tone of the Fed notes.   So the markets may react either positively or negatively.

Option 1.   The stock and bond market react negatively.   I have a list of stocks that I will try to purchase at lower prices.    Sectors that I am considering are:  Biotech, Pharma, Utilities and Consumer Staples,   These have been the laggard sectors since the election.  I've been waiting for them to go lower.

Option 2.  The stock market reacts positively.   I will use the opportunity to trim shares in positions with significant gains.   At this point, I would reduce holding mainly in the total stock market ETFs, financials and oil stocks.   These have rallied signficantly since the election and I expect a short term top is near.   If material stocks surpass recent highs, I would also consider selling some of these.

Option 3.  The markets are flat.   I will make small selective purchases of a few stocks I have been following.

I expect Option 1 will occur, so I will take the George Costanza opposite choice and go with Option 2.

For more on Ideas You Can Use, check back Tuesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, December 12, 2016

Finally Profiting from Out of Favor Energy Stocks

In late 2014,  I started to buy oil stocks which had fallen significantly.   In 2015, I continued to buy as oil stocks fell further.    In 2016, I continued to buy as some oil stocks reached new lows.  Then the pain became to great and I stopped buying.

With the recent speculated OPEC (but not yet delivered) cut backs in production, oil stocks have been on a tear lately, advancing as much as 20% in a day.  During this time, I have been selling parts of positions into the rally.   I was skeptical that the stock rally was sustainable at such high rates of gain.

However, the gains have been continuing, I have revised my outlook.   It seems this rally may be more like the 1.5 year rally in 2013 to mid 2014, where many oil stocks rose to new highs.  If history repeats, oil stocks may continue to rally throught 2017, which would be great.

So for now, I'm going to let our oil stocks ride and maximize our profits.  For some of the big gainers (e.g. about 100%), I may lock in some gains and take some profits.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Saturday, December 10, 2016

I'm Not This Smart

"There is nothing like quite like a bull market to make people think they are smart." ~ Jim Rogers

Since the 2016 election, my stock investments have been going higher.   Some stocks have gone up as much as 100% during that time.  About 95% of my new purchases in the past couple months have risen in price.

I am just not that good of an investor at picking stocks.  It's the market that is rising  I've been lucky to make some buys just before the election and am benefiting from those purchases.

Right now, I believe this market advance will last at least until the end of 2016,since upward momentum and stock market conviction has returned.  I think the S&P will continue to rise and reach 2300 by year end as I forecast in A George Costanza Stock Market.

After that who knows what will happen, but my inner George Constanza predicts a 20-30% advance for the S&P :-)

For more on  Reflections and Musings, check back Saturdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Thursday, December 08, 2016

Amazon's Future of Shopping

Amazon Go, the cashierless grocery store, is another step in the evolution of shopping.   For my grandparents, store inventory was stocked in a back room and retrieved by the store clerk.  When I was a child,  shopping was self service, with payment at a central cashier.  Self-serve checkouts came after I became an adult.  Now, Amazon has advanced to no checkout.

There are some concerns that this will be the end of cashier jobs, of which there are 686,000 in the grocery industry.  That may be true.  However, there will be thousands of other jobs created.   As I read it, the technology is based on a number of cameras and sensors tracking the shopper through the store, and interpreting the shoppers actions to determine what is being purchased.   These cameras and sensors will need to be maintained, audited and periodically replaced.   Also, more security will be needed to update systems as hackers try to game the processes.  That will create numerous new job positions, although probably not directly transferable for displaced cashiers.

In addition, there may be opportunities for new higher value service positions that improve the shopping experience: for example, food concierges, who can help diets, recipes and other food related areas to differentiate stores from self serve status.  When the routine work is automated, knowledge based services will still be of value, IMHO.

It will be very interesting to watch how this experiment evolves, and its impact on the future of work for my children.

For more on Crossing Generations, check back Thursdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Wednesday, December 07, 2016

Financial Education Books

My brother-in-law asked my spouse what I might like for Christmas.  Usually, I don't have any good ideas.   However, this year I gave it some quality thinking and decided to request one of two investment books.  The first book is Common Stocks and Uncommon Profits and Other Writings by Phillip Fisher.   Warren Buffet claims to have used the principles in this book for his investing.  The second book is The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham.   This is the classic textbook for value investing.

I have not read either book and based on reviews, I thought they would help improve my investing knowledege and results.





Disclosure:  No compensation was received for writing this post.  If  purchases are made through the above Amazon.com link, I may receive compensation as an Amazon affiliate member.

For more on The Practice of Personal Finance, check back Wednesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Tuesday, December 06, 2016

Hunting for Value

Despite the stock market being near or at all time highs, there is still opportunity to find stocks on sale because they are out of favor, despite no fundamental changes in the companies' businesses. For example, REITs, consumer staples and utlility stocks have been going lower, getting close to 52 week lows.   While I understand the reason for the decline is that interests are expected to rise, it seems to me the stocks have been beaten down more than would be appropriate.  

So I've been buying small amounts of stock in these three sectors.  As usual, I may be early and the stock will be decline further.   However, I do expect the good companies in these sectors to rebound and these stocks also pay a good dividend (3-7%) which is a bonus while waiting.

Stocks I am considering:   Procter & Gamble (PG), Duke Energy (DUK), Phillip Morris (PM) Realty Income Corporation (O), National Retail Property (NNN), Game and Leisure Property (GLPI) and W.P. Carey (WPC).

Disclosure:  We own PG, DUK, PM, O and, NNN.  We may take positions in GLPI and WPC in the next 72 hours.

For more on Ideas You Can Use, check back Tuesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, December 04, 2016

The Return of Economic and Financial Hope

My sentiment about the economy and financial opportunity has significantly improved in past month.  To me the reward/risk ratio has significantly increased for people invest money, invest resources, and invest personal effort for financial gain. Financial opportunity will greater for more people, and more money can be earned.

The pendulum is swinging towards rewarding people for the results they can deliver.  Personally, I have typically done better in a meritocracy (e.g. school, sports) where results mattered more, than in a bureaucracy (e.g  major corporations, government) where politics mattered more.

I am looking forward to having many more opportunities for financial success.

For more on New Beginnings, check back Sundays for a new segment.


This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, November 14, 2016

Trading the Rotation

The market reaction to the election has been interesting.  Previously high flying stocks such as utilities, telecom, gold miners and REITs have been knocked down, with some getting close to 52 week lows.  Similarly, bonds have taken a big hit.   Previously beat up stocks such as financials, biotechs, and materials are rising, some by as much as 50% versus a couple weeks ago.  Energy stocks have been mixed, some have bounced and some are still down.

In the weeks leading up to the election, I was taking the opportunity to buy some beaten up stocks, that I already own.  Some of these have now rallied over 40%.   Since I don't think the Trump rally is sustainable, I plan, as a hedge,  to sell off some of the recent purchases for a profit, while keeping my core holdings.  That way if the market sells off, I will have locked in profits.  If the market continues to rise, my core holdings will benefit.

In addition, I will be looking to purchse stocks in higher dividend paying stocks that have been beaten down (and are now on sale :-) since the election:  REITs, utilities, telecoms, and consumer staples.  Despite the concern about rising interest rates, I still believe locking in 3-5% dividends is still a good strategy at this time.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Wednesday, October 05, 2016

My Solution for Running in Place Frustration

Lately,the market seems to be having a lot of activity, but little movement in total value of our accounts.   When one sector goes up, another sector goes down, resulting a wash.  Lately, material, gold and utility stocks have been falling, while oil stock are rising.  This is just the opposite of what was occurring a few months ago.

Based on this activity, I will start taking trading positions in some of our core equity holdings.  That way when the stock rotates upward, I can take some profits and repurchase the trading position when the stock falls.   However, I will only trade shares in excess of the core position amount.  That way when the market resumes an upward trend, the core positions will all benefit from the market advancing.

For more on  The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Tuesday, September 13, 2016

The Fed Conspiracy

"People love conspiracy theories." ~ Neil Armstrong

Here's my Fed conspiracy theory:   Despite guidance to the contrary, the Fed won't be raising interest rates for the next few years.   The Fed will continue to keep jawboning about raising rates to keep exuberant asset bubbles from forming, but will continually find a reason not to do so when the time comes.

If the Fed really intended to raise rates, it could have done it by now, several times given the relative strength of the economy.  So I don't believe the Fed really wants to raise rates.

In the meantime, I will use the volatility caused by the Fed jawboning to purchase good dividend paying stocks as they decline and to lock in higher interest rate on long term CDs.

For more on Ideas You Can Use , check back  Tuesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Wednesday, September 07, 2016

On Staying Invested in this Bull Market

"The reports of my death are greatly exaggerated." ~ Mark Twain

Despite the constant negativity from pundits, this bull market, which is the second longest at 7 -1/2 years, keeps grinding upwards.  This has been the most unloved bull market ever.   However, since March 2009, the best strategy has been to be invested in a diversified equity portfolio or a total market index and to add funds during any pullback or correction.

I, unfortunately, haven't been that brilliant.   Only about 25% of our funds are invested in equities,   However, I have been good about keeping that portion mostly invested, with only occasional instances of small profit taking.  Keeping the percentage of funds invested low had been worth the lost opportunity cost.  I have low anxiety about the funds that are invested, and therefore can sleep well at nights.

Despite warnings about the imminent end of the bull market, I will continue to keep about about 25% invested.   When the bull market does end, and it will, I will be able to bear the loss and be prepared to invest in the inevitable recovery.

For more on The Practice of Personal Finance, check back Wednesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, September 05, 2016

One Way to Time the Market

The Holy Grail of investing is to get in just before the market rallies and to get out just as the market tops.  Although I have had occasional flashes of success (such as selling before the 2011 correction), I have not been able to consistently make the right call.   The toughest part is deciding when to get back in the market after getting out.

So now I use a different approach to time the market.  Whenever the a stock I own rises significantly, I may sell off part of the position.   If it rises further, I sell off another part.     This continues until I until I sell out of the position.   Similarly if a stock in which I am interested in buy falls, I may buy a small position. If it fall further, I add another small portion.  I do this until I have reached my target position.

An astute investor might note that the commission costs of each trade may make this approach prohibitively expensive.  My solution is to do this trade in commission free ETFs offered by the major discount brokers.   I can trade as little as one share with $0 commission cost.  The only caution is that some brokerages have a minimum holding period of 30 days, which is not that difficult to meet.   Some brokerages have no minimum holding period, which offers even more flexibility.

I have been doing this timing trade with a total market index ETF.   Right now I am selling off small positions, because I expect to be buying back at a lower price soon.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Saturday, August 13, 2016

What Would George Costanza Do In This Market?

"...if every instinct you have is wrong, then the opposite would have to be right." ~ Jerry Seinfeld to George Costanza in episode 86.

This market is unbelievable. All three major indices closed at new highs on the same day this week. The last time this happened was in 1999, just before the dotcom crash which was followed by the 01/02 bear market.

Every investing instinct I have is telling me the market is too high, that this is too good to be true, and that a market top is near. A correction has to be coming soon.

My instincts are screaming, "TAKE PROFITS NOW!"

However, every sell instinct, except for one, since the 08/09 crash has been wrong. The only one that I acted on correctly was in August 2011, but then I stayed out of the market too long.

So I am going to do the George Costanza opposite. I'm going to stay in the market, for the most part. However, I will use the opportunity to reduce my holdings in company stock, sell some losing stocks, and take some profit in stocks that have advanced significantly.

Otherwise, I'm going to brace myself and hold tight. I may even hold my nose and invest more fund in equities should the market pull back.
For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, July 31, 2016

Make or Break Tuesday

My company announces earnings on Tuesday before the market open.   I have a vested interest since I hold employee stock options that expire 1-1/2 months.   If the earnings report exceeds expectations, I may get a nice bonus.  If the earnings disappoint, I'll have to settle for less, maybe much less.

I fully expect my company to disappoint.  It would take a small miracle for the company results to beat expectations. Therefore,  I should sell on Monday prior to the earnings announcement.

However, I plan to take the George Costanza approach of doing the opposite.  So I am going keep my stock options until after earnings.

For more on  New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, July 17, 2016

Dividends Higher Than Interest Again

1959 all over again? Why this could be another historic moment for the market reports that for the first time since 1959 the S&P dividend yield is higher than the 10 year bond yield.  Prior to 1959, the S&P dividend yield was almost always above the 10 year bond yield.    However, since 1959, the 10 year bond yield has always been higher than the S&P dividend yield.

I found this article interesting, since all I have ever experienced is the 10 year bond yield  being above the S&P dividend yield.   So I assumed that was the norm.  I guess I accepted the explanation that dividend stocks had earnings growth, which led to a higher total return than bonds.

So what does the flip mean?  To note, both the S&P dividend yield and the 10 year bond yield are  about half of what they were in 1959. Are bonds now considered ultra safe investments again and yields will fall further?   Are stocks about to rise or fall significantly shortly to revert to the mean?  Is inflation unlikely and deflation more likely in the future?

All great questions to ponder.  My answers and yes, yes, and yes.

For more on New Beginnings, check back every  Sunday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Tuesday, July 12, 2016

Irrational But Not Exuberant

The best thing I can say about this bull market is that there is no exuberance.   In fact, this is the most unloved bull market ever as there is very little investor confidence in the strength of every rally.   On the other hand, just about everyone agrees that this market is irrational, i.e. there are very few fundamental reasons that support the current market value.

Markets can be irrational for quite a long time.   However, market exuberance can only be sustained for short periods, and often end with a bear market or crash.

For now, I'm staying long with this irrational market since no exuberance in sight.   I'll be looking for signs of exuberance, such as relatives and friends telling me about their killings in the stock market.  At that point, I'll protect our gains by reducing our exposure to equities, and hopefully protect some of our gains.

For more on  Ideas You Can Use, check back every Tuesday  for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, July 11, 2016

Building a Cash Cushion

While I have enjoyed the recent stock market rally, I have no confidence in the market's ability to continue advancing.  So as the market advances, I have been taking profits in accounts that have been hitting new highs, and maintaining the original account balance.  That way I stay invested and take profits.  So if the market goes up, our investments will participate. If the market goes down, I have protected some profits.

 At first, I would wait for a 5% gain before taking out funds.  Now I am taking out funds with as little as a 1% gain.   Since the accounts are like a mutual fund with a 1.25% expense fee,  there is no commission charge when I sell a small portion to raise cash.  I have been doing this since 2012 and have taken as much as 40% out, while maintaining the original amount invested.   However,  I do have one account that is losing about 10% net after accounting for the funds taken out.

I plan to do this until I have withdrawn about 50% of the original investment to create a cash cushion.   After that I may let the investments ride until they gain 25-50% before taking additional funds out.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, July 10, 2016

A George Costanza Stock Market

"...if every instinct you have is wrong, then the opposite would have to be right." ~ Jerry Seinfeld to George Costanza in episode 86.

Based on Jerry's comment, George resolves to do the opposite of what he would normally do and he turns around his life and becomes successful.  It seems the current stock market continues to do the opposite of what many people expect.  Maybe doing the opposite of what is expected will lead to success:-)

This past Wednesday, I decided to take the George Costanza approach to stock market predictions.   I thought there was no way that the S&P 500 would close above its weekly high of 2126,  So I predicted to an investing colleague that the S&P would close above the weekly high this past week.  Although, it didn't look likely after Thursday's decline, the S&P rocketed Friday to 2129, a new weekly high.

It worked so well this past week, I will apply  the George Constanza approach a couple more times.  Here's what my instincts tell me:

First, with the S&P within a few points of an all time high, I think another new high is likely.  However, the S&P earnings and economy do not support further market strength.  So the advance will not be sustainable, and the market will pull back even if a new high is made.

Second, while my company stock is at a new 52 week high, it is still 9% below its all time high. I don't think the fundamentals of the company support the current price.  So I believe it will also likely correct in the next few weeks and not reach a new high.

Normally, I would be preparing myself for the expected decline. However, the stock market seems to consistently do the opposite of what is expected. So this time, I'm going to do the opposite and plan on both the S&P and my company stock breaking through to and sustaning new highs, even though I don't think it is likely to happen.

If this is really a George Constanza market, we may even see 2300 for the S&P, but, of course, I don't expect that could happen this year.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, July 04, 2016

Taking Profits While Waiting for a Correction

"Don't look a gift horse in the mouth."  - old adage

I've been pleasantly surprised by the extremely fast recovery (4 trading days) from the Brexit correction.   I was expecting the downturn to take at least 3-4 weeks and maybe 3-4 months.  I was planning to buy some stocks at lower prices.  The downside was the execution of stock options a a lower price.

I missed the one day buying opportunity last week on Monday.

My plan now is to sell some of my trading positions into the rally.   Oil stocks, gold stocks and total market ETFs are showing good gains.   In addition, I will take some losses in biotechs that have fallen significantly since 2014.   I also will execute stock options at a faster rate, since my company stock hit a new 52 week high twice last week and is up over 30% from its 52 week low in September 2015.

However, I still do expect a market correction sooner than later.  So I am still ready to make some purchases if the market should decline.   My focus would be to take positions in large cap biotechs,  and financial stocks and increase my positions in dividend paying stocks and total market ETFs.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Tuesday, June 28, 2016

Dealing with an IRS Notice

This past weekend, I checked Where's My Refund and learned that the IRS had revised our 2015 tax return and reduced our refund by about 10%.  The IRS would be sending me a notice this week with the details.  Per usual protocol,  the IRS offered two options:  accept the adjustment and do nothing or dispute the adjustment if I didn't agree.  Many people I know just accept the adjustment rather than deal with the IRS.   I, on the other hand, assume I will dispute the change since based on experience as a tax preparer, I have found the IRS is incorrect (at least partially) about 80-90% of the time.

Here is my approach to dealing with an IRS notice.
  1. Understand the exact reason for the adjustment.  Fortunately, Where's My Refund provided the details of why my return was changed.  It specified that an incorrect number had been transferred from Schedule D to Form 1040.
  2. Check a copy of the return.  Since I do our return by hand, I always make a copy to keep for reference.  Upon inspecting my return, I notice that I forgot to put parentheses around a negative total.   So the IRS calculated the total as positive, even though a math check would have shown the value was negative.
  3. Call the IRS early in the day.  On Monday morning, at 7:05 AM, I called the IRS and was connected to a representative in less than 5 minutes.  I tried calling back at 7:45 AM and was disconnected due to "unusually high call volume" and instructed to call back at another time.
  4. Determine what needs to be done to correct the error.   Since the only error was a missing negative sign, the adjustment was categorized as a "math error"  and could be corrected over the phone.  The representative agreed with my explanation of the missing negative sign and recalculated the results, which matched my original return.   So the error was corrected, and my original refund was reinstated.   If needed, I was ready to file an amended return, but that wasn't necessary.
Granted, I have several years of experience working with the IRS, which makes the interaction less daunting.  For example, most people I know would rather stick a pin in their eye than interact with the IRS.  However, I have found that the IRS is usually very good at arriving at the same position I have once all the relevant facts have been presented to them.

For more on Ideas You Can Use, check back every  Tuesday for a new segment.

This is not financial or tax advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, June 26, 2016

No Fed Rate Increase for a Long Time

My cynical conspiracy theory is that the Fed won't be raising rates for the next five to ten years, but they can't let us know.  Otherwise, asset prices will increase significantly and create numerous financial bubbles.  So the Fed will officially keep talking about raising rates, but use every negative event to delay delivering an actual increase.

The Brexit vote is exactly the public reason the Fed needed to avoid raising rate in the near term, and even, for the next two years.  In the meantime, the Fed will keep jawboning about being data dependent and keeping an imminent rate increase in front of investors.

Ben Bernanke was right that interest rates won't be increasing during his lifetime.

For more on  New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Saturday, June 25, 2016

People vs. Political Elite

Brexit, the vote heard round the world.

To me, this may be the beginning of the end for the political elite who have be ramming their view of the world on the masses in their respective countries, while personally benefiting financially.   Obama, Clinton, and even Sanders are part of that political elite.  So are Ryan, McConnell, Pelosi and Reid.   It seems to me, none of them have worked in a real job to know what it's like for most of us.

I like the idea of a referendum and the government leadership resigning if the voters do not support the leadership's point of view.   Perhaps, the U.S. would benefit from a few referendums; gun control, immigration, etc.  

Unfortunately, I doubt any of the U.S. political elite would resign if a referendum went against their policy positions.  

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial or political  advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Friday, June 24, 2016

Uh-Oh

Will the unexpected Brexit lead to a financial crisis of 2008 magnitude?   While I wasn't concerned yesterday, the unfolding of events today have caused me to revise my thinking.   Not unlike 2008, there has been a lot of complacency in the market, despite ominous signs of potential issues and then a critical event which led to an unstoppable downfall of the market.  

At this point, the Brexit vote may be that critical event in 2016.   The next few weeks will be telling.   For now, I will be maintaining our current investment holdings,which is, unfortunately, what I also did in 2008.     However, during that time, I will be evaluating whether to increase our investments in equities or to sell some positions in our trading account to lock in profits.

For more on Reaping the Rewards, check back Fridays for a new segment.


This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, June 20, 2016

Real Estate Investing Progress

Part of my strategy for creating steady sources of income in retirement is to own rental property.  My goal is for rental income to cover 25% of our retirement income.   At this time, I have met that goal through a partnership interest in a industrial building that I inherited from my parents.   This investment has worked out well since the real estate has a property manager and requires no direct involvement from me.

Given the return of this property is 10%, I've been considering increasing our rental real estate holdings through buying 2-3 family homes for rent.   However, after a few months of searching, I have not found a property financially comparable to the property I already own.  The main reason is that most properties are priced to deliver at a low return of 4-6% that is only slightly higher than the return of some good dividend paying stocks.  Also,being the sole landlord would  require high involvement on my part.

 Low return and high involvement isn't what I want to sign up for in retirement.  Also, I recognize that, eventually, any individually owned property will need to be sold to access cash, which can also be challenging.

So for now, I plan to only buy a rental property if the return is high (greater than 8%) and if low involvement is required from me.   A pretty high bar, which very few properties will meet.  However, I plan to keep looking just in case one become available for purchase.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, June 19, 2016

Father's Day Thoughts

I'm a very lucky dad.  I have two great kids and a great wife. Ever the late bloomer, I became a dad late in life.   I'm so very glad I did.

My dad, who passed away 10 year ago, would have been 90 this year.   I always thought he would be there.  And then suddenly, one day he was gone.   I still miss him very much and remember everything he did for me and the great times we had together.

Hopefully, my kids will have similar great memories with me.

For more on New Beginnings, check backs Sunday for a new segment.

This is not financial or parenting advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Saturday, June 18, 2016

RIght Place and Right Time

In retrospect, many of my successes have been the result of being in the right place at the right time for my particular set of strengths.   Recognizing this, it's important for me not to mistake this success due to chance with success due to superior skills.

The difference to me is the following.   Success by chance is not consistently reproducible.   Success by skill can be reproduced, even under different or challenging circumstances.

Recently, our investments in the stock market have been doing very well.  Several of our personal accounts have reached all time highs, despite the market indices not exceeding previous highs.   Our success has been due primarily to buying beaten down oil and material stocks over the past year.   Clearly a case of being in the right place at the right time.

In 2014, I picked in a stock that went up 10X in a little under two years.   It was a biotech stock and again it was right place at the right time.

If it were superior skill, I would be able to replicate these results.  However, historically, I haven't been able to do so.  So I don't make the mistake of take more risk because I erroneously believe that I have superior skill.

For more on  Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Saturday, May 07, 2016

Unlimited Free Entertainment

I am looking forward to the campaigns for the 2016 elections, especially the presidential elections. Typically, I have avoided any content related to elections.  However, this year it will be fun watching:
  1. Republican National Convention
  2. Republican Party infighting.
  3. Republicans distancing themselves from Trump.
  4. Trump debating Clinton.
  5. Trump tweets.about Clinton.
It's already started.  House Speaker Paul Ryan said in an interview that he's not ready to support Donald Trump yet.    Trump responded by saying, "I am not ready to support Speaker Ryan's agenda."

I expect the entertainment value to increase as the election gets closer.

Best of all, it will be free.

For more on  Reflections and Musings , check back Saturdays for a new segment.

This is not financial, entertainment or political advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Thursday, April 28, 2016

Maybe No Retirement for Our Children

Coming soon: The Worst Investing Returns in 30 Years leads me to think that retirement, as we know it today, may not exist in the future.  With stock market returns lower, social security potentially being cut, the likely end of corporate pensions, future retirees will need to depend on themselves to increase savings early to have sufficient funds in retirement.

Given that the median retirement saving today is $60,000,  it doesn't seem likely young worker's today will save sufficiently to retire.

The new normal may be working for one's entire life.   And we may need to prepare our kids for that potential outcome.

For more on Crossing Generations, check back Thursdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Saturday, April 16, 2016

A Relevant Fable

My boss once told me a fable that described a major issue with our company.  It went something like this:

Our company would traditionally come in last place against two of our competitors in an annual crew race.   After several years, we decided to hire a consultant to determine how to increase our chances of winning.  The consultant studied the three teams for several weeks and came back with the following report.

"Competitor A has average boats, average rowers and an average coach.   However, they work together and win a few races each year.   Competitor B has above average boats, above average rowers and an above average coach.  They practice regularly, work well together, and win almost half their races each year.

Your team has the best boats, best rowers and the best coach.   They practice hard regularly.  However, for some reason when the race starts, they all row in different directions.   Thus, winning no races each year."

We both laughed after my boss told me the fable, because, although exaggerated, had quite of bit of truth to it.


For more on Reflections and Musings, check back Saturdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Thursday, April 14, 2016

22 Best Colleges for the Money

 The 22 Best Colleges for Your Money  by Business Insider shares the colleges with the best return based on Payscale's ROI (Return on Investment) methodology.  Number one on the list is the California Institute of Technology.  Number twenty-two is Harvard.

I'm happy to find that alma mater is ninth on the list.  Our daughter, with a tiny bit of  parental influence,  has made it her top choice for now.   However, she is still many years away from college.   And it is much more competitive than when I applied, with acceptance rates now being in the high single digits.

If she should attend, I will be prepared for sticker shock.  Today, the cost is about six times what I paid.  It will probably 7-8 times what I paid by the time she attends.

For more on  Crossing Generations, check back every Thursday for a new segment.

This is not financial or education advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Wednesday, April 13, 2016

Brilliance and Market Gains

"A bull market makes everyone look brilliant." ~ Wall Street saying

Right now, I look brilliant.  The investment accounts I personally manage are at all time highs.  I'd like to attribute the results to my personal brilliance, but I know that's not true.   More than likely, our accounts are riding the current rally up like many other stocks.

So while I am enjoying our continuing gains during this rally, I am still cautious.  For now, I am holding most of the positions we have and selling small amounts of some the commission free ETFs.  That way, we can continue to benefit from the rally, while doing a little profit taking.

At this point, I believe this rally will break down below its previous high, making it a bear market rally.  However, since I know I am not brilliant, my conviction on the stock market direction is not particularly high :-)

For more on The Practice of Personal, check back Wednesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Tuesday, April 12, 2016

An Inflection Point

In the next few weeks, the stock market will either bust out to the upside or tank to the downside. To me a downside move has a higher probability.  After all, the bull market is waning and the current rally may be of the bear market variety.  And there haven't been many positive catalysts recently.

With earnings season just starting, the direction of the market may change suddenly.  So there is a small chance of a breakout to the upside.

It's too tough for me to call right now.  So I'm going to hold and wait for a confirmation of market direction. Until then, I hope to enjoy the rally and do a little profit taking.

For more on Ideas You Can Use, check back Tuesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Friday, April 01, 2016

Retirement and Political Involvement

Due to connections from a Princeton classmate, I've received an interesting offer to work on the Trump presidential campaign and, perhaps, even take an appointed position should he be elected.  It was an interesting offer that was worth considering.

On the upside, I would be able to make connections with some high powered financial people.  I would also get introduced to some very high level politicians.  Both of which would be helpful for my own financial goals.

On the downside, I would be despised forever by my spouse's family who are all liberal, hard core democrats, and union members.   It would also be the antithesis Princeton as exemplified by alumnae Sonia Sotomayer and Elena Kagan, who are U.S. Supreme Court justices.

After given the matter some thought, I decided it would be something interesting to do after being retired for a little over 8 years.  It would be a fun last hurrah.

So this morning I told my daughter that I was taking  position with the Trump campaign and traveling to Idaho.  In addition, I said we would need to move to Washington D.C. this fall if Trump won.  Needless to say, my daughter was not excited about moving.

Fortunately, for her, today was April 1, and I got to say "gotcha!"

For more on Reaping the Rewards, check back every Friday for a new segment.

This is not financial or political advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, March 14, 2016

Definitely Not Buying

I have stopped buying equities and index ETFs and will wait until the next pullback before making purchases again. Given the events of this week (presidential primaries, Fed meeting), I expect there may be an outcome that disappoints the traders in the stock market.   So I may not need to wait too long before starting to make some purchases again.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Saturday, March 12, 2016

From Pain to Gain

Buying stocks in January and February this year has been slightly less painful than sticking a pin in my eye.  I was implementing my strategy of buying good companies whose stock had higher paying dividends.  However, I was continually punished as my purchases sunk further for several more weeks.   Near the bottom, with my confidences waning, I stopped making additional purchases.

When the pain to too great and I stop buying, the market usually bottoms and reverses itself.   So now I am enjoying some good gains as the market rallies.   In fact, I sometimes think I should have bought more, but I know better.   Placing more funds in equities would have put me above my threshold of financial pain.  

I still believe this rally is of the bear market kind, a respite from the selling pressure.   So I continue to use the opportunity to take some profits and lock in some gains.

Because I expect the pain will return shortly.

For more on Reflections and Musings, check back Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, March 07, 2016

Selling into the Rally

Although I have enjoyed the stock rally, it looks, feels and smells like a bear market rally.  Some of my beaten up stocks were up 10, 25 and even 120% on Friday.   So I'm taking this opportunity to lock in some profits by selling.   If the market continues to rally, I will continue to sell the total market ETFs  that we acquired over the last two months.

I expect that I will be able to buy back at lower prices when the bear market continues with its next downward leg in the next couple months.

For more on Strategies and Plans, check back Mondaysfor a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, February 08, 2016

Trickling Funds into ETFs

We continue to trickle in funds to commission free dividend paying ETFs such as VNQ, VYM, VTI, FEU, SCHB and SCHD.   Since these ETFs are commission free, I can buy as little as one share at a time.  That way we can incrementally increase our investments without significant risk.   In fact, in today's market, we usually get to buy some cheaper shares a few days later.

These ETFs also pay dividends of 2-4%, which help mitigate the volatility in the current market.

Disclosure:  We own shares of VNQ, VYM, VTI, FEU, SCHB and SCHD in our investment acounts.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Saturday, February 06, 2016

Economic Slowdown or Recession?

Most economists seem to think the U.S. economy is just slowing down, but not heading towards recession.   However, the stock market seems to be forecasting a recession.

So which is it?

On one hand, the data indicates a slowing, but still positive, economy.   No contraction of GDP is sight yet.

However, individual stocks seem to be portraying a different situation.   Many stocks have been falling several months, with some down as much as 90% (e.g. oil and materials sector stocks).  Even the previous market leaders, technology and health care.  For example, Netflix is down about 38% from its all time high in December 2015.    Amazon is down about 28% in the same time frame.  Yesterday, Linkedin and Tableau both fell about 45% after disappointing earnings.

Either the stocks were extremely overpriced for perfection, or the economy is headed for a recession.
I think we are at an inflection point.   If the market continues lower, a recession is likely coming.  If the market demonstrates a major reversal in the next couple weeks, a slowdown could be the  explanation.

For now, I continue to remain cautious, waiting for market to show a clear direction.

Disclosure:  We own shares of Netflix.

For more on Reflections and Musings, check back every Saturday  for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Wednesday, January 20, 2016

Dollar Stock Menu

"Buy when there is blood in the streets, even if the blood is your own." ~ Baron Rothschild

Baron Rothschild was a British nobleman that made a fortune by buying during the panic that followed the battle of  Waterloo against Napoleon.

2016 is looking pretty bloody for the stock market and my blood is part of the mix.  I am buying cautiously at this point, making small purchases of commission free index ETFs and select dividend paying stocks.  I believe there is still more significant downside risk than upside potential and will wait before putting significant funds into equities.

In preparation for the further decline. I am making a mental list of falling stocks that that I'd considering buying at a $1/share price in the near future.  I recall that I had a chance to buy Ford stock at $1/share during the 08/09 crash.  Today, Ford is a $12 stock and paying a $0.60/share dividend.

Perhaps, the upcoming bear market will create similar opportunities with the current batch of falling stock valuations.  One area of consideration is the oil/gas and materials sectors, where stocks that were previously around $50+/share are now in the low single digits.  Another area is biotechs.

Disclosure:   We currently own Ford, which was purchased in the last few months.  We also own several stocks from the oil/gas, materials and biotech sectors that have fallen to the low single digits.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Tuesday, January 19, 2016

Waiting for More Clearance Prices

For the past couple weeks, I've been buying stocks on sale, at significant discounts of 20-50% off on average.   I've even been getting a few stocks at clearance prices - up to 90% off.

I think its time to stop buying on sale and wait for the inevitable clearance since there are few buyers and equities are in low demand.   I think the next two weeks will bring more prices down to clearance levels.

It will be worth waiting a couple weeks to see if I can get more stocks at clearance prices.

For more on Ideas You Can Use, check every Tuesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Monday, January 18, 2016

Retirement Financial Security

I used to think having a large amount of investment assets would create retirement financial security.   Then came the 08/09 financial crisis.   This event has caused me to rethink depending mostly on stock market capital gains to support us in retirement.  Gone are the days of 7- 8% average returns for the stock market.

After a little more than 8 years of early retirement, I am revising our investments to create a steady stream of retirement income from our savings: a retirement paycheck.   Unfortunately, money market rates are less than 0.1% and short term CDs are about 1% and won't be returning to 5% during my lifetime.  I've outlined my current thinking in Creating Steady Sources of Income in Retirement,

Recently, I've been taking advantage of the stock market volatility to increase our holdings of dividend paying stocks.   With the current sector corrections, I've been able to purchase energy stocks with dividend percentages ranging from mid single digits to mid teens.  As the market falls further, I plan to continue adding to a few of these positions, and initiating some new positions with stocks from other sectors.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, January 17, 2016

Bracing for a Bear Market

"The beatings will continue until morale improves." ~ unknown

The market decline has been relentless for the first two weeks for 2016.  It will likely continue this week and maybe even for the entire month.   In the worst case, the low oil prices will lead to a financial crisis similar to 2008, despite all the new regulations implemented by the Federal government.

For now, I expect sellers to be in charge of the market, driving the indices down another 5 to 10%.  During that time, I will continue to invest in increments, buying small lots of a commission free total market ETF and small positions in dividend paying stocks.  I am still following my rule of only buying one or two positions a day since stock prices will likely be lower in the future.  In addition, I won't make any purchases on days the market rallies.

I will continue to buy incrementally until the market indices reach a 20% decline (S&P - 1707,78, Dow - 14681, Nasdaq - 4185).   At that point, I will decide if stocks are just on "sale" or if "clearance" prices are likely to come. Depending on my answer, I will either continue to buy, or move to the sidelines.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Sunday, January 10, 2016

Lions, Tiger and Bears...Oh my!

 Last week's stock market results, as well as the decline of many cyclical stocks over the past year, appear to be foretelling a dramatic end to the latest bull market.   In addition, North Korea has allegedly detonated a hydrogen bomb, Saudi Arabia and Iran will likely compete on oil production, and George Soros observed the economic environment seems eerily like 2008.

All that's needed is an end-of-the-world-prophet to proclaim the apocalypse will happen in 2016.

Seriously, I don't doubt the likelihood of another bear market occurring in the near future.  In fact, I think the potential is high for a steep market decline to continue next week.  I've been bracing myself for a significant fall in the market for a couple years now.   So even though a market crash will be painful, it will be a little less so since I've been expecting it.

This week, I will continue to buy small positions in a total market ETF and a few 3%+ dividend paying stocks.   But given the increased negative market sentiment, I will be further lowering the target purchase price points for these ETFs and stocks.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2016 Achievement Catalyst, LLC

Friday, January 08, 2016

Life Didn't Get Easier in Early Retirement

I always thought that life would get easier as I got older.   After all, I would have the benefit of more years of experience with the passing of time.  So retirement would be the easiest time in my model.

I was wrong.  Here of some of the reasons for us.
  • Finances -  Our early retirement if funded entirely by our savings since neither of us have a pension nor are old enough to collect Social Security yet.   The stock market volatility since 2007 has created greater uncertainty (and stress:-) on whether we have sufficient savings to fund a retirement for 30-40 years.  This has required changing the strategy of primarily depending on equity appreciation to a strategy using more equity dividends for income.  
  • Children -  We started late with having children, adopting just before and a few years into early retirement.   Raising children in today's world is a bit more complex than when my spouse and I were growing up.  When I was a child, there were less options, less distractions, less choices to make.  As a result, I was more focused on a few things and (I think) easier to raise as a child.
  • Maintenance - We have more stuff that requires periodic maintenance: house, cars, appliances, electronics.  Electronics seem to need replacement every 3-5 years  Also, many appliances shorter lives of 5-8 years, versus 15-20 years, and therefore requiring replacement several times during retirement.  Finally, many of the new items are more complex, and require more instruction effort to use.
  • Health - In the past three year, my health situation has changed, requiring significantly more effort on my part to maintain good health: new diet, more medication, and more intervention.   I expect the effort to continue to increase as I get older.
  • No complaints.   Just an observation from our 8 years of early retirement.  And  an acknowledgement of a change in one of my paradigms.

    For more on Reaping the Rewards , check back every Friday for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2016 Achievement Catalyst, LLC

    Wednesday, January 06, 2016

    Investing in a Volatile Market

    This continues to be a confusing market but I want to continue putting more funds into dividend paying stocks or total market indices.   I am using an approach of buying small quantities each time to minimize the risk of the market or the stock declining further.  To minimize costs, I am buying commission free ETFs or using free stock trades from broker promotions.

    First, I am buying commission free ETFs that are offered by my brokerage.   One brokerage has not holding requirement and another brokerage has a 30 day holding requirement.

    Second, I am buying small stock positions in select dividend stocks with commission free trades.   That way if the stock falls further, I can add to the position at a lower price.   Several brokerages are offering commission free trades for opening a new account or adding to an existing account.

    These approaches give me a bit of psychological support as I make the investment,  Of course, neither of these strategies will protect our purchases against a significant decline.

    For more on The Practice of Personal Finance, check back Wednesdays for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2016 Achievement Catalyst, LLC

    Monday, January 04, 2016

    2015 Wealth Builder Ratios

    Here is our 2015 Wealth Builder Ratios update. During  2015, the Dow, Nasdaq and S&P500 indices were down 2.2%, up 5.7% and down 0.7% respectively. My company stock was down 12.8%.  Our investment portfolio decreased in value by 8.0% due mostly to my company stock.

    Overall, the returns were very poor for our investment portfolio.

    For more details on the relevance of these ratios, please see this How Much Is Needed To Be Wealthy - The NUMBER.

    Ratio and Target
    2014
    2015



    Comments
    Retirement Income to Salary
    Target=0.8
    2007= n/a
    2008= n/a
    2009= n/a
    2010= n/a
    2011= n/a
    2012=  n/a
    2013=0.84
    0.880.79This is the new metric that I'm using which is based on a 4% withdrawal rate of the liquid assets in our retirement and savings accounts.

    The target I'm using is a 0.8 ratio, which would be 80% of our pre-retirement pre-tax income.   With the decline in our portfolio, we fell below a 0.8 ratio.  
    Investment
    Income to Salary
    Target=0.8
    2007=3.41
    2008= -5.47
    2009= -1.38
    2010=1.29
    2011=0.5
    2012=2.02
    2013=5.89
    0.99-2.07In the transition, I will report this metric for 2015 even though I have replaced it with the Retirement Income to Salary ratio.

    -2.07 is the biggest decrease in this wealth ratio since the Great Recession. This was caused primarily be a decline in my company stock of 12.8%.
      
    Savings to Salary
    Target >20
    2007=23 2008=16.7 2009=15.3
    2010=16.6
    2011=17.1
    2012=19.1
    2013=25.0
    26.024.0In the transition, I will  report this metric for 2015 even tough I have  replaced it with the Retirement Income to Salary ratio.

    Almost all  of the loss was due to decrease of my company stock.


    Debt to Salary
    Target=0
    2007=1.51 2008=1.46 2009=0
    2010=0
    2011=0
    2012=0
    2013=0

    0

    0
    We said bye-bye to our mortgage on May 20, 2009. Eliminating a mortgage payment reduced our monthly expenses by 24%.

    My financial goals for 2015 were:

    1.  Maintain a Retirement Income to Salary ratio >  0.8.  (below target at 0.79)

    2.  Maintain an Investment Income to Salary ratio > 0.8. (below target with -2.07)

    3. Maintain a Savings to Salary ratio of 20. (exceeded target with 24)

    4. Maintain Debt to Salary Ratio at 0. (met target of 0)

    (For reference, Salary refers to gross salary just prior to early retirement in October, 2007.)

     #1,  #2 and #3 were directly correlated with how well our stock, bond, and CD investments returns. With the decline of my company stock, our portfolio had a negative return worse than the indices.

    2015 was a very humbling investment year.   I continue to reduce my company stock holdings to prevent a similar deviation from the indices in future years.  In addition, I am migrating towards building a portfolio of higher dividend paying stocks

    I will only keep goal #1 and #4 for 2016.  I believe these will be better and less volatile measures. At this point, I am slightly optimistic about the economy and the stock market.

    For more on Strategies and Plans, check back Mondays for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2016 Achievement Catalyst, LLC