Sorry for the gap since my last post to this Blog. But things have been tight in the market and there has not been much to share. So today I am going to address "Where To Make Money Now In the Market".
To answer that you must look at your portfolio and determine what kind of investor you. Are you a conservative, moderate or aggressive investor. Are you a beginner, intermediate or savvy investor. I will try and address all this today in my Blog posting.
If you a novice investor and more geared toward conservative mutual fund holding, you portfolio your financial advisor most likely has you in a conservative managed fund product, or you have mutual funds that are mixed with bonds and stocks or you have about as much or more invested in bond funds as you do stock mutual funds. For the basic or new investor in the market I suggest you continue on this path this year. Mutual Funds or good Managed Accounts consisting as I just described are going to be where you need to stay. For no various type investor are we going to see the big gains and percentage increasing our portfolio's as we did last year.
The intermediate and moderate investor should follow the same outline I have give as the conservative or more novice type investor. A moderate investor takes on a little more risk than the conservative investor in their portfolio. Those people approaching retirement or who are already retired should focus all their money invested or the over whelming amount into a conservative or slightly moderate category. Those who are retired need to depend on their investment for income during their retirement year, not so much on growth. Some growth is good, too much is certainly not to the retiree's advantage. Stick with the mutual funds.
For the younger or savvy investor that is more aggressive in their portfolio I recommend a good aggressive Managed Account or mutual funds with the over whelming being large and small cap stock funds. Also throw a little into a good Emerging Market and International Mutual Fund. A savvy investor is also going to be that person that like some individual stocks in their portfolio. You can be a young, savvy and aggressive investor or an older or even retired savvy investor. But I maintain or a small amount compared to the rest of my portfolio in individual stocks due to their added risk. I stay away from food stocks usually and penny stocks. You want individual stocks that are going to pay good dividends. Dividend stocks have a history since time to out produce stocks that do not pay dividends. Go with the odds and keep them in your favor as much as you can.
Mutual Funds this year overall are going to be better than individual. Of course their are always excepts. I play the individual stocks with my small holding, mainly in GOOD stock splits using my own solid formula. I am NOT a day trader. But I do keep individual stocks on the short term and take my 15 to 25 percent profit and sell it off and start looking for a new stock or stock that is going to make me money with a fairly fast and short term of having to hold it. But I never cash out for anything less than a 10% profit as it is usually not worth it selling at that percentage. Over the past year I have taken off (cashed in) for over 30% profit in my individual stock holding and never taking out money that would put me below my initial investment in my individual stock funds. Don't ever be afraid to take money off the table and side it into your pocket for play money, but never take off the table an amount that dips you below your initial investment for your individual stock account. Personally, I have all my individual stocks with Scottrade and separate from my other accounts with my financial advisor and that company. I can make much cheaper trades with Scottrade than I can with JP Morgan/Chase so why not save money for yourself instead of to someone else is the way I look at it. Your money is your money regardless of what financial institution holds the account for you.
Hope you find some of this information useful today.
Gus S.
Disclaimer:
Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
Thursday, June 5, 2014
Friday, May 2, 2014
Twitter Drops Like a Rock
Hello everyone. It is now time to readdress Twitter (TWTR). Guess it is now time to say, "I Told You SO".
I warned all my readers in a couple of my old blog entries to steer clear of Twitter and not to buy. That it was extremely over valued when it came on the market on it's very first day of trading.
Why did I give this advise in previous blogs entries? Because of what you are starting to see now begin to take form just as I said it would.
1. Extremely over valued stock.
2. Disorganized management and mismanaged company.
3. Lack of innovation by it's management and leadership.
4. Because it continues to operate in the red and the company makes no profits.
I have been reading several articles prior to writing my blog entry today. Some experts are finally starting to agree with me in what I shared with you a long time ago. And NOT to consider buying Twitter until it hits around the $15.00 per share mark as I also advised you. Twitter is up a little in the market today at $39.35 per share. A big drop from it's 52 week high of $74.73. Well if you bought into Twitter and you sold it at or around it's 52 week high I guess you are a lucky hero, if not you are losing your shit like so many others...that would not include me as I saw all the warning signs and passed on buying this stock.
Although Goldman Sachs still recommend it Twitter as a BUY, I think there view is overly optimistic at this point until Twitter drops to the $15.00 range.
http://news.yahoo.com/twitter-stock-slumps-50-percent-goldman-deutsche-bank-050209455--sector.html
Others experts take a much less optimistic view of things like myself and are finally says what I said from the beginning.
http://blogs.marketwatch.com/cody/2014/05/01/twitter-is-all-but-doomed/
Hope you find this update about Twitter interesting and possibly helpful.
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
I warned all my readers in a couple of my old blog entries to steer clear of Twitter and not to buy. That it was extremely over valued when it came on the market on it's very first day of trading.
Why did I give this advise in previous blogs entries? Because of what you are starting to see now begin to take form just as I said it would.
1. Extremely over valued stock.
2. Disorganized management and mismanaged company.
3. Lack of innovation by it's management and leadership.
4. Because it continues to operate in the red and the company makes no profits.
I have been reading several articles prior to writing my blog entry today. Some experts are finally starting to agree with me in what I shared with you a long time ago. And NOT to consider buying Twitter until it hits around the $15.00 per share mark as I also advised you. Twitter is up a little in the market today at $39.35 per share. A big drop from it's 52 week high of $74.73. Well if you bought into Twitter and you sold it at or around it's 52 week high I guess you are a lucky hero, if not you are losing your shit like so many others...that would not include me as I saw all the warning signs and passed on buying this stock.
Although Goldman Sachs still recommend it Twitter as a BUY, I think there view is overly optimistic at this point until Twitter drops to the $15.00 range.
http://news.yahoo.com/twitter-stock-slumps-50-percent-goldman-deutsche-bank-050209455--sector.html
Others experts take a much less optimistic view of things like myself and are finally says what I said from the beginning.
http://blogs.marketwatch.com/cody/2014/05/01/twitter-is-all-but-doomed/
Hope you find this update about Twitter interesting and possibly helpful.
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
Thursday, April 24, 2014
Apple INC. Announces 7:1 Split
Things are shaking up at Apple INC. (AAPL). They have announced a whopping 7:1 stock split, plus an a dividend increase of 8% and will be increasing their annual buy back of stock by 50%. Yes this is all good and the spit is exceptional to my formula to buy in. After the spit on for stockholders of record prior to June 2, 2014 the price should drop to the $75.00 range. Currently the stock is selling today for the $567.13 range. So a little pricey. But if you have some cash to invest or duds in your portfolio you are wanting to get rid of, now is the time and load up as much as you can afford on Apple. After the split at a price of around $75.00 per share I see little in the future but this stock continuing to climb. Wait for a nice increase you are comfortable with of around 15 to 20 percent and take your profits, unless you wish to hold for the long haul, which may not be a bad idea.
What prompted this unexpected 7:1 stock spit announcement that caught all analyst by surprise? Well, they had an awesome 1st quarter in sales with the opening of new foreign markets for the iPhone of which they made a killing. Also for all the other standard reasons that a company deems that it is time to split the shares for themselves and investors.
Apple INC. is a solid tech stock in the market. There is even talk of Apple INC. becoming a member of the 30 stocks that make up the Dow Jones Industrial Average and kicking out Cisco that does not represent to true form anymore. Apple is the worlds most valuable company, making it posed to join the DJIA.
Hope this information is useful and perhaps the opportunity you were seek. I have put my money where my mouth is on Apple INC. and have bought in waiting for this split.
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
What prompted this unexpected 7:1 stock spit announcement that caught all analyst by surprise? Well, they had an awesome 1st quarter in sales with the opening of new foreign markets for the iPhone of which they made a killing. Also for all the other standard reasons that a company deems that it is time to split the shares for themselves and investors.
Apple INC. is a solid tech stock in the market. There is even talk of Apple INC. becoming a member of the 30 stocks that make up the Dow Jones Industrial Average and kicking out Cisco that does not represent to true form anymore. Apple is the worlds most valuable company, making it posed to join the DJIA.
Hope this information is useful and perhaps the opportunity you were seek. I have put my money where my mouth is on Apple INC. and have bought in waiting for this split.
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
Thursday, April 17, 2014
Good Stock and Mutual Fund Gambles for 2014
Okay, not all of the stocks and mutual funds we are going to talk about today are really "Gambles" but good or fairly safe prospects too. But the question often is what do I do with my money set aside to invest with in 2014. Of course that depends on you. Are you a new or basic investor or like more conservative options? Or are you the younger, savvy, growth orientated investor? I will try and find and talk about options for both.
So lets look at some Individual Stocks first. I love dabbling a small amount of my portfolio in Individual Stocks. This is not something I recommend for the newer or more conservative investor. You need to stay with more conservative Mutual Funds options and we will talk about that shortly.
Individual overall are not expected to do well in 2014 due some rides on the roller coaster in the market. Are there profits and good deals out there? Absolutely, we just have to find them with good research and market watching. Right now is still a pretty good time to buy. So let me talk about a few gems I think I may have found for us.
Allied World Assurance (AWH): I currently hold shares in this stock with the intent to purchase a few more. But you need to be on the ball and do this quick, but there is still time. They having an annual dividend increase of 35% to be paid quarterly. On May 1, 2014 they are going to vote on a 3:1 Stock Split. You would need a shareholder of record by May 12, 2014 and the split would take place on May 22. Voting has already started. I just voted a couple of days ago to approve the split with my shares. This proposal is expected to pass easily. This stock has been upgraded to a Strong Buy. Industry: Property and Casualty.
Mueller Industries (MLI): This stock recently split and is currently down a little today, but has been holding pretty steady. I say now is a pretty good time to buy, especially if you missed the recent split. Their is little place for this stock to go except slow growth in your portfolio for the future. This is most likely not a stock for you right now if you are a someone that turns stocks over quickly for profit, like me. But if you want in for the long haul this is a pretty decent opportunity for you to get in and buy. Industry: Metal Fabrication
Majesco Entertainment (COOL): This stock is on the NasdaqCM. So a little better that an OTC stock...but not much. I normally stay clear of these, but this is a gamble I am softly going recommend you take. There is room for growth here. Definitely a take your money and run stock. Nab a 10% profit and get out. Basically a video publish company for Nintendo, Wii, PlayStation 3 etc. They have stood the test of time in the market thus far and are in a good sector to be in. The buying season right now is not good for video games, especially since there are no big hit games that have come out since just before Christmas. But wait, there is hope. This stock is at half its current 52 week high and summer is coming. Kids will be out of school soon and come mid to the end of June what will happen? After the kids have bugged mama to death by this time she starts buying video games for the kids to keep them occupied and give her a break. Then we always have the holiday season to look forward to. This is a stock I have added into my current holdings in moderation. I would not recommend you bet the farm here. Industry: Multimedia and Graphics Software.
Nabors Industries (NBR): Here is a high quality gem in the rough, but the color is black...black like as in oil. A Cramer top pick for 2014 and I agree with him on this one. The company went from drilling in the United States and is now moving to a global presence in the sector. The stock is near it's 52 week high, but don't worry. The recent expansion and continued growth as a global player makes them a good candidate continued growth. Best thing is the price of the stock. You are going to be pleased with a price tag in the $25.00 range. A nice little stock with good potential in the market. Industry: Oil and Gas drilling and exploration.
Other Stock to Consider: TSN, CRVL, HAR
Now for the growth orientated investor and those wanting to be more conservative with Mutual Fund.
Amana Income Investor (AMANX): I would not really call this an "Income" fund. It really is a stock growth fund with its largest holding in healthcare and Industrial. I have personally owned this mutual fund in my portfolio for over 7 years. In 7 years it has increased 84%. I'll take it! It is THE BEST overall performs in my mutual fund holdings over time. I would certainly recommend this fund on a long term basis in your portfolio. As it is a stock fund in bad years such as 2008 it can take a beating, but it always rebounds with vengeance. The healthcare holdings of this fund make it appealing as there will always be healthcare growth over time.
Principle Capital Appreciation A (CMNWX) Another nice stock fund but its largest holdings are in technology and financial. It has been on a nice run over time with good continued grow potential as technology stocks continue to hold up the market and financial institutions continue their recovery. Year to Date this fund is up 2% and last year was up 32%
T. Rowe Price Health Sciences (PRHSX) I have been wanting to add this to my portfolio for years. What a fool I am and what a fool you will be if you don't. This is a stock fund with 94% of its holdings in healthcare stocks. Again, healthcare is here to stay. People will always need healthcare in one form or the other. This fund has solid holdings in good companies and had excellent diversification within the healthcare sector. Over the last 5 years it has seen a 30% return and is currently up 6% year to date. This would be a very wise choice for any portfolio.
Oakmark (OAKMX): This is a widely diversified stock fund heaviest in financials. Not something in my portfolio, but a good fund to get into. It has consistently out performed the S&P and should be poised for good growth potential over time. The 5 year average is 25% and year to date it is up over 2 percent. I feel this would be a nice addition for most portfolios.
Blackrock High Yield Bond (BHYIX) Need to cover and protect you holdings with a nice bond fund? Here is one I would go with. It is 83% bonds and about 8% in stocks. This has been a nice bond fund over time with a 5 year average return of almost 19%. Year to date it is up 3%. I would recommend this as a buy to all portfolio. For the savvy, new or more conservative investor it should be a good choice for anyone.
Other Mutual Funds to Consider: SPY, JMUEX, PQIAX, PEMGX, FGRAX, FKINX
Hope you find some of these recommendations useful and possible choices for your portfolio. This is a mere sample of what is out there. Do your research and find some winners!
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
So lets look at some Individual Stocks first. I love dabbling a small amount of my portfolio in Individual Stocks. This is not something I recommend for the newer or more conservative investor. You need to stay with more conservative Mutual Funds options and we will talk about that shortly.
Individual overall are not expected to do well in 2014 due some rides on the roller coaster in the market. Are there profits and good deals out there? Absolutely, we just have to find them with good research and market watching. Right now is still a pretty good time to buy. So let me talk about a few gems I think I may have found for us.
Allied World Assurance (AWH): I currently hold shares in this stock with the intent to purchase a few more. But you need to be on the ball and do this quick, but there is still time. They having an annual dividend increase of 35% to be paid quarterly. On May 1, 2014 they are going to vote on a 3:1 Stock Split. You would need a shareholder of record by May 12, 2014 and the split would take place on May 22. Voting has already started. I just voted a couple of days ago to approve the split with my shares. This proposal is expected to pass easily. This stock has been upgraded to a Strong Buy. Industry: Property and Casualty.
Mueller Industries (MLI): This stock recently split and is currently down a little today, but has been holding pretty steady. I say now is a pretty good time to buy, especially if you missed the recent split. Their is little place for this stock to go except slow growth in your portfolio for the future. This is most likely not a stock for you right now if you are a someone that turns stocks over quickly for profit, like me. But if you want in for the long haul this is a pretty decent opportunity for you to get in and buy. Industry: Metal Fabrication
Majesco Entertainment (COOL): This stock is on the NasdaqCM. So a little better that an OTC stock...but not much. I normally stay clear of these, but this is a gamble I am softly going recommend you take. There is room for growth here. Definitely a take your money and run stock. Nab a 10% profit and get out. Basically a video publish company for Nintendo, Wii, PlayStation 3 etc. They have stood the test of time in the market thus far and are in a good sector to be in. The buying season right now is not good for video games, especially since there are no big hit games that have come out since just before Christmas. But wait, there is hope. This stock is at half its current 52 week high and summer is coming. Kids will be out of school soon and come mid to the end of June what will happen? After the kids have bugged mama to death by this time she starts buying video games for the kids to keep them occupied and give her a break. Then we always have the holiday season to look forward to. This is a stock I have added into my current holdings in moderation. I would not recommend you bet the farm here. Industry: Multimedia and Graphics Software.
Nabors Industries (NBR): Here is a high quality gem in the rough, but the color is black...black like as in oil. A Cramer top pick for 2014 and I agree with him on this one. The company went from drilling in the United States and is now moving to a global presence in the sector. The stock is near it's 52 week high, but don't worry. The recent expansion and continued growth as a global player makes them a good candidate continued growth. Best thing is the price of the stock. You are going to be pleased with a price tag in the $25.00 range. A nice little stock with good potential in the market. Industry: Oil and Gas drilling and exploration.
Other Stock to Consider: TSN, CRVL, HAR
Now for the growth orientated investor and those wanting to be more conservative with Mutual Fund.
Amana Income Investor (AMANX): I would not really call this an "Income" fund. It really is a stock growth fund with its largest holding in healthcare and Industrial. I have personally owned this mutual fund in my portfolio for over 7 years. In 7 years it has increased 84%. I'll take it! It is THE BEST overall performs in my mutual fund holdings over time. I would certainly recommend this fund on a long term basis in your portfolio. As it is a stock fund in bad years such as 2008 it can take a beating, but it always rebounds with vengeance. The healthcare holdings of this fund make it appealing as there will always be healthcare growth over time.
Principle Capital Appreciation A (CMNWX) Another nice stock fund but its largest holdings are in technology and financial. It has been on a nice run over time with good continued grow potential as technology stocks continue to hold up the market and financial institutions continue their recovery. Year to Date this fund is up 2% and last year was up 32%
T. Rowe Price Health Sciences (PRHSX) I have been wanting to add this to my portfolio for years. What a fool I am and what a fool you will be if you don't. This is a stock fund with 94% of its holdings in healthcare stocks. Again, healthcare is here to stay. People will always need healthcare in one form or the other. This fund has solid holdings in good companies and had excellent diversification within the healthcare sector. Over the last 5 years it has seen a 30% return and is currently up 6% year to date. This would be a very wise choice for any portfolio.
Oakmark (OAKMX): This is a widely diversified stock fund heaviest in financials. Not something in my portfolio, but a good fund to get into. It has consistently out performed the S&P and should be poised for good growth potential over time. The 5 year average is 25% and year to date it is up over 2 percent. I feel this would be a nice addition for most portfolios.
Blackrock High Yield Bond (BHYIX) Need to cover and protect you holdings with a nice bond fund? Here is one I would go with. It is 83% bonds and about 8% in stocks. This has been a nice bond fund over time with a 5 year average return of almost 19%. Year to date it is up 3%. I would recommend this as a buy to all portfolio. For the savvy, new or more conservative investor it should be a good choice for anyone.
Other Mutual Funds to Consider: SPY, JMUEX, PQIAX, PEMGX, FGRAX, FKINX
Hope you find some of these recommendations useful and possible choices for your portfolio. This is a mere sample of what is out there. Do your research and find some winners!
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
Saturday, April 12, 2014
The Aging Investor
I have not spent a lot of time talking about the older investor and what they should be thinking about in the future with their investments. I am going to address that for you a little today.
As we age and our lives change, so should your investment strategy. You should be looking more for stability and retirement investments and less towards grow or riskier mutual funds and individual stock holdings and start making a transition into safer and more conservative choices in your portfolio. But when do you know to start changing these positions?
Starting to change positions in your portfolio varies depending on your future plans and when you will select to retire. Are you going to retire at 62 or 65 or even 70? We need to talk about that a little first.
Men in the overwhelming majority have shorter life spans than women. That should be a know fact I need not have to explain. For the average man, if you are making a low to mid range salary ALWAYS retire at age 62 and start collecting your Medicare and Social Security Benefits. The reason why is the odds are in your favor that if waiting until age 65 or 70 to retire you will never live long enough to make up the difference in payment had you retired at age 62. No one says you cannot continue to work or volunteer to keep yourself busy, but you will be limited on how much money you can make without being penalized. Make sure to work part-time and stay under that limit. When you turn 65 you can continue to get full Medicare and Social Security Benefits and can return to work without penalty and work as many hours as you want to if that is your desire.
Women live longer in the overwhelming majority than men do. So my advise differs for this reason. If making a lower or average income you should remain employed until 65 before making future decisions about your retirement. Why? There are two main reasons. One is obvious, women live longer and the other is women in our warped society tend to make less than men, even when performing the same job. Sorry, but I can't change that fact.
If you are in a HIGH tax bracket making $250, 000.00 or more per year AND you have invested wisely during the course the course of your life and sit on a nice portfolio, then you have to think about things and consult your financial advisor as if it is to your advantage to retire if you do not have your heart set on retiring. Your options are more flexible and open than the average income earner.
So we are going to focus on men and women in the low to high average income bracket as they are the ones that find themselves needing more options and advise for their future.
SINGLE Men: Follow my advise above. Single men I will assume following that advise will retire at age 62. Thus you have to start thinking about things earlier. In your early to mid 50's you need to start converting your mutual fund holds out of grown into more balanced and conservative Mutual Funds and not be so focused on growth. Your time for growth has come to an end. A good conservative or balanced Mutual Fund will still grow but perhaps not as well as a growth fund in a bullish market. If you have Individual Stocks you need to begin to sell them off and move those funds into the more conservative Mutual Funds. Around the age of 60 single me need to look at moving things out of the conservative Mutual Funds and move your holding in to Income Mutual Funds. I personally use FKINX as I am in the age brackets we are talking about. I am below the age of 62, but retired. So I am making slow progress into moving my assets into this income funds. This fund is very hard to beat and the best I have found currently on the market bar none. Even my personal financial adviser was shocked to this find. I am very proactive in my portfolio choices. Once you officially retire at age 62 most if not all your assets should be in this and/or other solid income funds. I like FKINK (Franklin Fund) because I know it is solid and have been around since the 1930's and currently is yielding some nice dividends for me each MONTH. Once you retire you can take a monthly, bi-annual, quarterly, or annual payment in dividends. I never advise taking out more than the dividends you earn that will dip into and decrease you principle.
SINGLE Women: Petty much everything is the same as the Single Men, but you have to factor in a 3 year difference in retirement age. So take everything I said about the Single Men and add 3 years to the ages I quoted. That simple.
Married Couples: Sorry to say ladies, but the men rule again. The plan will be the exact same for the single man retiring at age 62, but you ladies will have to keep on working until age 65. Think of all that free time your husbands will have to get projects done around the house and take care of their daily "honeydew" list each day while you go to work. You should be coming home to a ship shape home everyday after work.
I sincerely home some of this advise is helpful to the ageing investor age 50 or over as you begin to think about your future retirement. Happy to address any questions you may have, as always.
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
As we age and our lives change, so should your investment strategy. You should be looking more for stability and retirement investments and less towards grow or riskier mutual funds and individual stock holdings and start making a transition into safer and more conservative choices in your portfolio. But when do you know to start changing these positions?
Starting to change positions in your portfolio varies depending on your future plans and when you will select to retire. Are you going to retire at 62 or 65 or even 70? We need to talk about that a little first.
Men in the overwhelming majority have shorter life spans than women. That should be a know fact I need not have to explain. For the average man, if you are making a low to mid range salary ALWAYS retire at age 62 and start collecting your Medicare and Social Security Benefits. The reason why is the odds are in your favor that if waiting until age 65 or 70 to retire you will never live long enough to make up the difference in payment had you retired at age 62. No one says you cannot continue to work or volunteer to keep yourself busy, but you will be limited on how much money you can make without being penalized. Make sure to work part-time and stay under that limit. When you turn 65 you can continue to get full Medicare and Social Security Benefits and can return to work without penalty and work as many hours as you want to if that is your desire.
Women live longer in the overwhelming majority than men do. So my advise differs for this reason. If making a lower or average income you should remain employed until 65 before making future decisions about your retirement. Why? There are two main reasons. One is obvious, women live longer and the other is women in our warped society tend to make less than men, even when performing the same job. Sorry, but I can't change that fact.
If you are in a HIGH tax bracket making $250, 000.00 or more per year AND you have invested wisely during the course the course of your life and sit on a nice portfolio, then you have to think about things and consult your financial advisor as if it is to your advantage to retire if you do not have your heart set on retiring. Your options are more flexible and open than the average income earner.
So we are going to focus on men and women in the low to high average income bracket as they are the ones that find themselves needing more options and advise for their future.
SINGLE Men: Follow my advise above. Single men I will assume following that advise will retire at age 62. Thus you have to start thinking about things earlier. In your early to mid 50's you need to start converting your mutual fund holds out of grown into more balanced and conservative Mutual Funds and not be so focused on growth. Your time for growth has come to an end. A good conservative or balanced Mutual Fund will still grow but perhaps not as well as a growth fund in a bullish market. If you have Individual Stocks you need to begin to sell them off and move those funds into the more conservative Mutual Funds. Around the age of 60 single me need to look at moving things out of the conservative Mutual Funds and move your holding in to Income Mutual Funds. I personally use FKINX as I am in the age brackets we are talking about. I am below the age of 62, but retired. So I am making slow progress into moving my assets into this income funds. This fund is very hard to beat and the best I have found currently on the market bar none. Even my personal financial adviser was shocked to this find. I am very proactive in my portfolio choices. Once you officially retire at age 62 most if not all your assets should be in this and/or other solid income funds. I like FKINK (Franklin Fund) because I know it is solid and have been around since the 1930's and currently is yielding some nice dividends for me each MONTH. Once you retire you can take a monthly, bi-annual, quarterly, or annual payment in dividends. I never advise taking out more than the dividends you earn that will dip into and decrease you principle.
SINGLE Women: Petty much everything is the same as the Single Men, but you have to factor in a 3 year difference in retirement age. So take everything I said about the Single Men and add 3 years to the ages I quoted. That simple.
Married Couples: Sorry to say ladies, but the men rule again. The plan will be the exact same for the single man retiring at age 62, but you ladies will have to keep on working until age 65. Think of all that free time your husbands will have to get projects done around the house and take care of their daily "honeydew" list each day while you go to work. You should be coming home to a ship shape home everyday after work.
I sincerely home some of this advise is helpful to the ageing investor age 50 or over as you begin to think about your future retirement. Happy to address any questions you may have, as always.
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
Thursday, April 10, 2014
Deceiving Headlines and Reports
First I want to say that I apologize from my long absence in posting to my blog due to personal medical issues beyond my control. On the road to recovery I will try to be more proactive in posting again.
I opened up my homepage today to find this headline listed as a headline in my Business News section, "Jobless claims at seven-year low, signals firming economy". What the hell???
There were reports and experts talking the other night on national news (CBS) and a business news channel that I watch and was able to see that explained this in a little more detail of which I very much agree with. In comparison to the higher paying jobs that were lost the jobless rate has actually been decreased by poverty level jobs such as fast food services, retail stores, and summer seasonal jobs such as water parks and amusement parks. People cannot find work in many trained professions or similar work offering good salaries like they were getting before and taking minimal jobs such as this to help make ends meet in their households.
I hate deceptive articles and headlines like this because a lot of people look at such articles which is the opinion of some fantasizer that is not give the full picture, facts and being honest with their readers. But I am trying to be honest with you and bring you the facts of the matter based on my opinion and more informed experts and news reporting and articles I have read.
Right now the stock market my not be looking so shiny to you right now. Why? Because we have started that spring correction in the market that I warned you about in previous postings in my blog. There are many companies out there that are way over valued. I love picking on Twitter (TWTR). This company has out performed itself on the market since the first day as an IPO and thus why I avoided it. This company has never made a profit! It continues to operate in the red and for some odd reason people feel in love with it when it came up for public trading based solely on name recognition. Not a good way to make good decisions for your stock portfolio. Go take a look at it's performance. Some I guess are finally getting wise and the stock has tumbled and has been underperforming the S&P 500 now for a month. Twitter was in dire need of a correction and I feel the stock needs to go much lower during this correction period. For Christ Sake it is a money losing company with no base or foundation! http://finance.yahoo.com/q/bc?s=TWTR+Basic+Chart&t=6m
Twitter is only one of such example why this correction is a good thing and I like picking on them because their stock has been a joke with the joke being on those investing in it. :) Are we in a "Bear Market", absolutely not. Are we in a "Bull Market"? Well to some extent. But we are not going to see in 2014 the Bull Market of 2013. So what does an investor do right now? We are getting into a buyers market. It is getting time to watch for good buys in individual stock in Energy and Tech stocks. You will be happy come the end of 2014 going into 2015 if you nab some good quality Energy stocks during this buyers market if you watch for a good savvy deal. What do you do with the individual stocks you have now in your portfolio? Hold them and watch for a rock bottom prices and buy more to cover. What if you have Mutual Funds in your portfolio? Ride it out. Good balanced Mutual Funds are going to be pretty safe and by year end most likely out perform the majority of individual stocks this year.
I hope that this information has been helpful for you today and I am glad I am feeling well enough to start posting in my blog again. Some have questioned why there have been no posts so I kind of though that now that I am on the road to recovery I needed to get back to it for my readers.
Thanks
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
I opened up my homepage today to find this headline listed as a headline in my Business News section, "Jobless claims at seven-year low, signals firming economy". What the hell???
There were reports and experts talking the other night on national news (CBS) and a business news channel that I watch and was able to see that explained this in a little more detail of which I very much agree with. In comparison to the higher paying jobs that were lost the jobless rate has actually been decreased by poverty level jobs such as fast food services, retail stores, and summer seasonal jobs such as water parks and amusement parks. People cannot find work in many trained professions or similar work offering good salaries like they were getting before and taking minimal jobs such as this to help make ends meet in their households.
I hate deceptive articles and headlines like this because a lot of people look at such articles which is the opinion of some fantasizer that is not give the full picture, facts and being honest with their readers. But I am trying to be honest with you and bring you the facts of the matter based on my opinion and more informed experts and news reporting and articles I have read.
Right now the stock market my not be looking so shiny to you right now. Why? Because we have started that spring correction in the market that I warned you about in previous postings in my blog. There are many companies out there that are way over valued. I love picking on Twitter (TWTR). This company has out performed itself on the market since the first day as an IPO and thus why I avoided it. This company has never made a profit! It continues to operate in the red and for some odd reason people feel in love with it when it came up for public trading based solely on name recognition. Not a good way to make good decisions for your stock portfolio. Go take a look at it's performance. Some I guess are finally getting wise and the stock has tumbled and has been underperforming the S&P 500 now for a month. Twitter was in dire need of a correction and I feel the stock needs to go much lower during this correction period. For Christ Sake it is a money losing company with no base or foundation! http://finance.yahoo.com/q/bc?s=TWTR+Basic+Chart&t=6m
Twitter is only one of such example why this correction is a good thing and I like picking on them because their stock has been a joke with the joke being on those investing in it. :) Are we in a "Bear Market", absolutely not. Are we in a "Bull Market"? Well to some extent. But we are not going to see in 2014 the Bull Market of 2013. So what does an investor do right now? We are getting into a buyers market. It is getting time to watch for good buys in individual stock in Energy and Tech stocks. You will be happy come the end of 2014 going into 2015 if you nab some good quality Energy stocks during this buyers market if you watch for a good savvy deal. What do you do with the individual stocks you have now in your portfolio? Hold them and watch for a rock bottom prices and buy more to cover. What if you have Mutual Funds in your portfolio? Ride it out. Good balanced Mutual Funds are going to be pretty safe and by year end most likely out perform the majority of individual stocks this year.
I hope that this information has been helpful for you today and I am glad I am feeling well enough to start posting in my blog again. Some have questioned why there have been no posts so I kind of though that now that I am on the road to recovery I needed to get back to it for my readers.
Thanks
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
Tuesday, February 18, 2014
News In The Stock Market and What's Hot!
We have been going through what has been a mini correction in the market. It was not a full correction. But that's help you and me, the investors. The Dow is back above 16,000. Many of the so called experts think it will rise to 17,500 to 18,000 by years end of 2014. I think this is being a little over optimistic. I feel we are going to see some increases in the interest rates as the government continues to less and less help support the markets. I personally do not think this is a bad thing, but it may result in less profits for the investor as this happens. Remember when mortgage rates and car loans were from 6 to 10% interest? Not to say we will see that in 2014. But we will gain in the next few years as our economy grows and stabilizes. So you want that new house or car? Now is the time to do it. As you will only continue to see a rise in interest rates as time moves forward.
So what is HOT right now in the stock market that I am personally watching, Energy Stocks. In the next several years we should see a big rise in energy stocks, especially those heavy in natural gas production. This may be something to research and talk to your financial advisor as what would be good for your portfolio.
Medical Stocks are always going to be good choices in your portfolio for the future. I tend to stay away from Health Insurance carries such as Humana, Cigna, et.. They don't have the profitability in the market that other choices will gain for you. Lets look at Rite-Aid Pharmacy (RAD). If you have been on this gravy train since August 2013 you would see over a 90% return on your investment. And yes, this is in my personal portfolio of individual stocks. CVS Pharmacy (CVS) and Walgreens (WAG) are the big boys in pharmacies, but the profit margins for the investor have not been there like Rite-Aid over the past year. I also like CorVel (CRVL). They have a good history in the market. Although they are no longer in my current portfolio, I have made lots of money off them in the past as an investor. I even use to work for the company many years ago. What about Forest Laboratory (FRX). Since August of 2013 when this stock was pretty flat it is up over 112%. I personally do not have this in my portfolio, but is on my watch list. Kick yourself like me if you failed to get in prior to August 2013. For those of you that like Mutual Funds (I do too) Take a good look at (PRHSX), This is a good T.Rowe Price Mutual Fund that deal strictly in Healthcare Stocks. This is the only Mutual Fund for me in the healthcare sector. It is currently up over 14% since August 2013.
Right now another good place to be invest is in retail. Good retail tail stocks. Jos. A. Bank (JOSB) wanting to buy out Eddie Bauer. Jos. A. Bank stock took a jump and I think the time to sell is now as the deal has hit a snag.
For those that like to play Stock Spits (like me). They are out there. Some are good. Some not so good. I had invested strongly (for me) in V.F.Corporation (VFC). It had a nice split that met my criteria and it paid off like a hot slot machine at the casino. After the split it continued it's climb and I sold it off and took my money and ran. This is what I look for in Stock Splits. A stock that is going to split below it's 52 week low (more the better) and hopefully continue it's climb in the market. Right now in the market what looks to me that it has that potential? Westlake Chemical Corp. (WLK). Yes, I practice what I preach and I reinvested money and got back in with this stock. It is in the Basics Material sector and is a Chemical Stock. It is going to split on March 18, 2014 for holders of the stock on February 28, 2014. So yes you still have time to get in and buy prior to February 28, 2014. Also, WLK is going to increase dividends and pay a cash dividend prior to the split date.
I always hope you enjoy my blog entries regarding the stock market. I invite you to be come a follower of my block and check it for updates and read my postings.
Sincerely
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
So what is HOT right now in the stock market that I am personally watching, Energy Stocks. In the next several years we should see a big rise in energy stocks, especially those heavy in natural gas production. This may be something to research and talk to your financial advisor as what would be good for your portfolio.
Medical Stocks are always going to be good choices in your portfolio for the future. I tend to stay away from Health Insurance carries such as Humana, Cigna, et.. They don't have the profitability in the market that other choices will gain for you. Lets look at Rite-Aid Pharmacy (RAD). If you have been on this gravy train since August 2013 you would see over a 90% return on your investment. And yes, this is in my personal portfolio of individual stocks. CVS Pharmacy (CVS) and Walgreens (WAG) are the big boys in pharmacies, but the profit margins for the investor have not been there like Rite-Aid over the past year. I also like CorVel (CRVL). They have a good history in the market. Although they are no longer in my current portfolio, I have made lots of money off them in the past as an investor. I even use to work for the company many years ago. What about Forest Laboratory (FRX). Since August of 2013 when this stock was pretty flat it is up over 112%. I personally do not have this in my portfolio, but is on my watch list. Kick yourself like me if you failed to get in prior to August 2013. For those of you that like Mutual Funds (I do too) Take a good look at (PRHSX), This is a good T.Rowe Price Mutual Fund that deal strictly in Healthcare Stocks. This is the only Mutual Fund for me in the healthcare sector. It is currently up over 14% since August 2013.
Right now another good place to be invest is in retail. Good retail tail stocks. Jos. A. Bank (JOSB) wanting to buy out Eddie Bauer. Jos. A. Bank stock took a jump and I think the time to sell is now as the deal has hit a snag.
For those that like to play Stock Spits (like me). They are out there. Some are good. Some not so good. I had invested strongly (for me) in V.F.Corporation (VFC). It had a nice split that met my criteria and it paid off like a hot slot machine at the casino. After the split it continued it's climb and I sold it off and took my money and ran. This is what I look for in Stock Splits. A stock that is going to split below it's 52 week low (more the better) and hopefully continue it's climb in the market. Right now in the market what looks to me that it has that potential? Westlake Chemical Corp. (WLK). Yes, I practice what I preach and I reinvested money and got back in with this stock. It is in the Basics Material sector and is a Chemical Stock. It is going to split on March 18, 2014 for holders of the stock on February 28, 2014. So yes you still have time to get in and buy prior to February 28, 2014. Also, WLK is going to increase dividends and pay a cash dividend prior to the split date.
I always hope you enjoy my blog entries regarding the stock market. I invite you to be come a follower of my block and check it for updates and read my postings.
Sincerely
Gus S.
Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
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