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3 Tips to Become a Successful Investor

3 Tips to Become a Successful Investor

By in Asset Allocation, Automatic Saving, Bond, Budget, Investing, Mutual Funds, Stocks, Tips, Video | 17 comments

Easy Investing Tips  “Investing should be like watching grass grow or paint dry. If you want excitement, take $1,000 and go to Las Vegas.” Paul Samuelson Investing and Financial Success I had the pleasure of being recruited at an important financial conference to give my best finance  and investing tips. It was not only fun to talk about what works in wealth building, but also great to do it ‘on camera’. I love to share the ways to become a successful investor and the more you get the steps and strategies to build wealth, the fewer financial stresses you experience.  Smart small and you’ll be amazed at how a few money changes can lead to big financial results.  Here’s where to start. 1. Spend with Intention Intention is everything- Set priorities first. Every pay period you receive a certain amount of income. How you spend those dollars determines not only your today, but also your tomorrow. Every dollar spent is a trade off between having something today or having much more in the future. Think about how to save money for the future. Take $1,000 today from your monthly paycheck and invest in your future. In ten years, that $1,000 today at a 6% return (achieved by investing in a diversified investment classes portfolio) may grow to $1,819.40. Keep that $1,000 invested today growing 40 years for  retirement and that same $1,000 invested today at a 6% return (achieved by investing in a diversified asset classes investment portfolio) may grow to $10,957.45. Do you want to spend $1,000 today on a couple of months luxury car payment or drive a more affordable model and boost retirement spending by $11,000? Every dollar spent is a vote on your lifestyle. Spend today, sacrifice wealth tomorrow. 2. Start Saving and Investing Early The greatest contributor to future wealth is time in the markets. You may not care about your future today, but taking a small amount of your earnings, investing them with a diversification strategy in index funds allows you to have a financially successful life today and tomorrow. Make every dollar work hard for you now and tomorrow. 3. Keep Fear at Bay and Start Now {to Become a Successful Investor} Sign...

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Behavioral Finance; Is Your Mind Hurting Your Wallet? Webinar

By in Investing, Mind and Money, Video | 0 comments

May Webinar: Behavioral Finance: Is Your Mind Hurting Your Wallet? May 15, 2014 at Noon-1:00 pm Pacific Time Click here to register for the free webinar. How to Become $60,000 Richer By Thwarting Mental Money Errors (maybe) Do you consider a tax refund free money? When you receive a money gift, do you spend with abandon? Has your retirement account been allocated the same way since its inception? Do you refuse to sell a losing investment until you get back to “even”? If you answered yes to just one of these questions, you will benefit from “Behavioral Finance: Is Your Mind Hurting Your Wallet?” Most of us consider ourselves to be rational decision makers. Yet there is an abundance of research which indicates that humans regularly make irrational money decisions. Some of these decisions are insignificant, others may mean the difference between a comfortable retirement or reliance on Social Security. Behavioral Finance is a relatively new field that explains financial decisions with psychology-based theories. This webinar will uncover common behaviors which appear quite rational on the surface and yet lead to less than optimal financial outcomes. The webinar is based upon the work of Kahneman, Tversky, Richard Thaler, author of “Nudge”, and other noted scholars. Click here to register for free webinar, “Is Your Mind Hurting Your Wallet”. How Your Mind Steals From Your Wallet Behavioral finance research proves there is a grand disconnect between how rational we think we are and reality. Investors frequently overestimate their investing ability. We regularly hang on to a losing investment, waiting to sell before we get back to even. Let’s take a look at how loss aversion, a behavioral finance concept, hurts your wallet. Beware of Loss Aversion We are loss averse by nature. We feel worse after a loss than we feel good after a win. Because of this loss aversion, we try to avoid losing. Most investor’s have bought a stock or a fund, only to watch the price decline after our purchase. When that unfortunate price drop occurs, many investors go through this same litany of questions. Take a look at a real life circumstance:   Nokia was the premier cellular phone company for years with a market share greater than all its competitors...

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12 Cheap Fun Activities for the Holidays

By in Saving, Tips, Video | 6 comments

12 Free Winter Activities “Overspending is as certain a part of the holiday season as overeating. But pushing away from both the table and the cash register at least a little bit sooner can make the post-holiday hangover hurt a little bit less.” Jeffrey Kluger Say “No” to Holiday (Over) Spending No is not a bad word. Show discipline and restraint with your kids and you’ll earn their respect. 12 Free Holiday Activities Have your best holiday ever and don’t blow the budget!  Set your intention and everything else falls into place. This holiday season we are committed to enjoying a break and spending time at home. Grilling out, going for walks, making crafts, watching old movies, going to the beach, and playing games are on our family “to do list”. Schedule in low cost and free holiday activities and they will happen. You’ll enjoy the season and not break the bank. Here are some ideas to get you started (Step away from the mall): 1. Make a craft with stuff from around the house. Get the glue gun out, paper, crayons, cardboard, old stickers and see what evolves. Visit Pinterest for inspiration. 2. Bundle up and go for a hike. Walk, take the bus, or get in the car and go to a local park. 3. Pull out the cards and board games, pop some popcorn, and play. 4. Bake: A gingerbread house, cookies, cake, pies, or candy. Input some ingredients from around the house into the computer and see what recipes emerge——–> then cook. 5. Write a story. Do it yourself or with your kids. Type it up, add some pictures and print it out as a momento. 6. Do experiments. Follow your pet around and log Fido or Tiger’s activities. Analyze their habits just like a scientist. No pet? Search online for science experiments. 7. Make a family video and upload it to YouTube. If you don’t want to share it with the world, you can mark it “private”. 8. Dance and sing. Put on your favorite music and have a family party. 9. Have a family giving activity. Donate toys, serve at a homeless shelter, collect clothes for the needy. Help others and you benefit....

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JOSHUA RAUH ON UNDERSTANDING THE STOCK MARKET

By in Investing, Stocks, Video | 7 comments

Stanford University Professor Teaches Free Retirement & Pensions Course & Links (October 14, 2013 – December 13, 2013) This video introduces the topic of stock market investing for retirement. In five minutes Josh Rauh shows the risks and rewards of regular long term investing in the stock market. Whether you sign up for the free course or not, there is investing wisdom in this brief video. Save Money, Build Wealth, with MOOC’s Massive Online Open Courses or MOOC’s give students across the globe the opportunity for elite educational experiences for free. Fall, 2013 Josh Rauh, esteemed Stanford University Professor is offering, The Finance of Retirement & Pensions (October 14, 2013 – December 13, 2013) through the NovoEd platform.  The eight-week course teaches the financial concepts underlying sound retirement and pension fund management. The trend towards open coursework with MOOC’s is exploding with the opportunity to take courses from Ivy League Universities.  In MOOC’s: The Top 10 Sites for free Education with Elite Universities, these prestigious universities; Harvard, Yale, UCLA, and Duke are listed amount those offering free courses. With education linked to higher lifetime earnings this is a wealth building benefit that cannot be overlooked. If you don’t enroll in Joshua Rauh’s course, promise yourself that you will boost your skills by taking a free course this year. Education is a top method to boost long term earnings, and free education from elite universities is priceless. MOOC Links Huffington Post writes about MOOC’s Advice for Middle Aged Seekers of MOOC’s, by Cathy N. Davidson, The New York Times Beyond the Buzz, Where are MOOC’s Really Going? by Michael Horn and Clayton Christensen, Wired.com Investing Links Get the Very Best Stock Fund Managers for Cheap (but there’s a catch) at Monevator How Simple or Complex are Your Finances? My Money Blog Meet the Hedge Fund Manager Who Asks, Why are you Not Indexing? William Ortel at the CFA Institute Blog Annuities; Everything You Need to Know, The Frugal Toad Things I Would Tell a Young Investor, Save and Conquer The Rolling Stones & Mutual Fund Investing by The Chicago Financial Planner Money Links How to Handle a Lifestyle Downgrade, Family Money Values Teaching Your College Student the Wonders of Good Credit,...

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8 Steps to Creating a Diversified Asset Classes Portfolio

By in Advanced Investing, Asset Allocation, Automatic Saving, Bond, Investing, Mutual Funds, Stocks, Video | 8 comments

Part 2: What are the Steps to Creating a Diversified Asset Classes Portfolio? In Part 1: “What is the Best Investing Method”  you learned the best investing method and why to invest with index funds in a diversified asset classes portfolio in line with your risk tolerance. Today you will learn the steps to take to create a diversified asset classes portfolio. Future articles continue with the how of implementing this research tested diversified asset classes portfolio. You’ll benefit from my decades of successful investing experience by using this proven and successful step by step approach. The only thing I get out of this is the satisfaction of knowing that you are learning smart money strategies. The great part about structuring this type of investment portfolio is that once it is complete, it requires minimal attention. That means, you can feel confident that your investment portfolio is in place. You will be confident that part of today’s income is regularly going to fund tomorrow’s expenses. Taking control of your investing today eliminates financial worries tomorrow. Asset Allocation with Diversified Asset Classes Investing is for Long Term Goals Invest today to have money for your future wants and needs. Investing is only for long term goals. If you need money in five years or less, then place those funds in a short term certificate of deposit, Government I bond, or money market mutual fund. Investing offers the opportunity for higher returns, but along with those higher returns, comes more volatility. You don’t want the money you need for a home down payment in three years to drop in value in year two. Steps to Creating a Diversified Asset Classes Portfolio Here’s the overview. In future articles you’ll learn exactly how to implement each step. Step 1: Where do I place my long term investable funds? Now that you’ve heard the warning, only invest with long term funds, let’s talk about where to put your investment funds. If your workplace offers a workplace retirement fund such as a Roth IRA, 401(K), or 403(B) where you contribute part of your pre tax salary, then that is where to open your investment account. It’s preferable to contribute the maximum amount allowable by law as...

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HOW TO GET RICH-3 TIPS TO CREATE WEALTH

By in Asset Allocation, Automatic Saving, Investing, Saving, Video, Wealth | 2 comments

How to Get Rich – Book Trailer How to Get Rich; Without Winning the Lottery (previously sub-titled Wealth Building Guide for the Financially Illiterate) is a great start for those with money woes. If you don’t have a money smart mom, dad, friend, spouse, or mentor, I want to fill the role. I was blessed with financially astute parents and received a great education on top of their wisdom. Please take a moment to check out these 3 wealth building secrets and get a free look into the How to Get Rich book! In the video you’ll get some actionable tips and a taste of the wealth building secrets in How to Get Rich; Without Winning the Lottery: Just a hint, would you like to change one lifestyle habit and have $70,000? It involves snacks. (That’s all I’m going to tell your for now) Would you like to drive a Lexus for the price of a Kia? There’s a hint about how to do it in this video. Let me be your money mentor! Learn wealth building basics in a few hours here. How to Get Rich from “Step 3: Spend Your Way to An Awesome Life” In a few years, these spending tweaks can fatten your bank account to more than $100,000. Enjoy these how to get rich tips from page 55,  How to Get Rich; Without Winning the Lottery: “Adjust spending patterns a bit, and see how you can become rich. If I told you that by cutting back your rent and car payments, you could afford to buy a home within five years, would you be interested? Take on a roommate or two, and move to a more affordable apartment. Those two spending choices could cut your rent payments to $700 per month. Buy a more affordable car and slice your auto payments in half. Make these two lifestyle changes and free up $1,550 per month.Divert that $1,550 per month savings into an investing account funded with a broad based stock index fund with an average annualized 7 percent return. (Be aware that investment returns go up and down, and your return may be less than projected.) At the end of five years, your money could grow...

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