How Do You Know When To Sell A Stock

You have owned one of those amazing technology stocks over the last decade and you are beginning to wonder…is it time for me get rid of this stock?  Or, should you hold on to it like your parents or grandparents held on to their blue chip stocks until the day they passed it on to you?   Maybe you just bought one of those blazing marijuana stocks and made a nifty profit and are thinking you should sell it because it may just be a fad.  Just like sitting down at the Blackjack table in Las Vegas, we all know how to pull up a seat at the bar, we know how to place some bets, but if we start winning most of us don’t have a strategy about when is the right time to cash in your chips. It’s interesting to see the different philosophies that reside on the internet today.  The Motley Fool, one of the largest investment websites ...

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How To Crush Your Debt In 2019

With the Fed raising interest rates again before the end of the year, variable rate interest loans such as home equity lines of credit, variable rate student debt, and most importantly credit cards will be on the rise for 2019.  The mean credit card debt of U.S. households is approximately $5,700 according to the most recent data from the Survey of Consumer Finances by the U.S. Federal Reserve.  If you consider that credit cards can get into the 20% range for finance charges, this means that interest alone on credit cards could be more than $1,000 per household.  If you don’t have your hands around your debt situation, here are my five smart money moves to crush your debt here in 2019. Understand How You Got Into Debt- There are lots of reasons that we can into debt. You should be asking yourself how this situation happened in the first place. Was it because you had some unusual one-time expense ...

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Are You A Sole Proprietor: The Three S’s For Retirement

In today’s ‘gig economy’ more and more individuals are picking up some sort of side hustle to improve their financial situation.  Along with that trend, people in their mid 50’s are stepping away from their corporate jobs in the search of freedom and flexibility to start their own consulting LLC’s.  This new plethora of part time and full-time entrepreneurs leaves a maze of dizzying choices on what kind of potential retirement plan is available when you own a brand new business. One easy way to remember what kinds of retirement plans are available to you is to remember the three S’s of retirement which are SIMPLE IRA plans, a SEP IRA plans, and a Solo 401(k) plans. The SIMPLE IRA Plan The SIMPLE IRA Plan is a simple, easy to set up retirement where an employee may defer up to $13,000 in 2019. Employees age 50 or over can make a catch-up contribution of up to $3,000. The salary reduction ...

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Where Should You Be Investing In 2019?

As 2018 comes to a close, most of you will be more than happy to wipe away the last three months of stock market woes.  With interest rates sure to climb up more in 2019, uncertainty with the China trade wars, and a looming national debt, it has many investors wondering where the best place is to put your money in 2019.  While nobody can predict the future, it’s important to review how you are investing your money relative to your goals, objectives, time frames, risk tolerances, tax brackets, etc. In 2018, we saw far too many people who were older and had too much money in the stock market.  It’s important to remember to ‘act your age’ and in general you should look at the rule of 100.  If you are 60 years old, roughly 60 percent of your portfolio should be in safer more secure type investments and 40 percent in equity or investments that carry more risk.  ...

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Five Ways To Prepare For A Recession

Almost half of U.S. chief financial officers believe a recession will strike the U.S. economy by the end of 2019, with the tight labor market and growing trade tensions driving economic jitters among corporate America. Additionally, more than 80% of U.S. CFOs think a recession will strike by the end of 2020, according to the Duke University/CFO Global Business Outlook survey released Wednesday. (source: wsj) While there has been a significant amount of good news about the economy, the heightened market volatility, rising interest rates, and companies now having trouble to find and keep qualified employees has many people nervous.  Not to mention the fact that it seems there isn’t a week that goes by where CNBC doesn’t have a scroll at the bottom saying, “Global Worries Send Markets Downward”. We can never predict exactly when a recession will hit us, but here are five tips to prepare for a downturn in the economy. Get your emergency reserve to 6 ...

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Why Your Saving Rate Is More Important Than Your Investment Return

Investors love to focus on their investment return. From 2009 to 2017, it was hard not to get excited about the double digit returns even the average investor could achieve. While it was nice to see those large returns, it really just made up for the 40% drop in the 2008 Market Crisis. And it is highly unlikely that we will repeat those returns over the next 10 years. So that brings us back to the expectation that over a long period of time we should hit the S&P 500 historical market average of 7% (1950 to 2009 adjusted for inflation and dividends). What about the savings rate. Well, Americans suck at saving. Personal savings in the United States averaged 8.82 percent from 1959 until 2018, reaching an all time high of 17.30 percent in May of 1975 and a record low of 2.20 percent in July of 2005. In 2018 we are saving only about 6%. (US Bureau of ...

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How to Choose the Best Credit Card in 2019

How you use your credit cards, and which ones you use, can have a long-term effect on your personal finances. Credit cards may not be at the top of the list for things to consider when it comes to wealth building, but their use can often reduce your available investment dollars by creating unnecessary expenditures through interest, fees, and more. Taking the time to learn how to choose the best credit card goes a long way toward managing your finances wisely. According to Statista, “The credit card debt in the United States amounted to approximately 0.83 trillion U.S. dollars in the second quarter of 2018.” $830 billion of debt may be hard to get your head around, so let’s put it in perspective. A report from CNBC reported that the average household with revolving credit card debt carries a balance of $6,081. While that may not seem like enough to wreck someone’s finances, consider that if only the minimum required ...

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Should You Get Divorced Before The End Of 2018

Divorce is never an easy thing to go through no matter what time in life this may happen to you.  The trauma that it may create for you, your children, and other family members may make day to day financial decisions go to the bottom of the pile.   Many people wait to try to get their financial house in order after they complete the divorce proceedings.  With the new Trump Tax Rules here in 2018, divorce may become even more painful in the future. The new alimony rules, included in the Tax Cuts and Jobs Act, apply to divorce or separation agreements executed after December 31st, 2018.  These changes will only intensify the divorce process because at least one of the spouses in the divorce will likely be taking a huge financial hit.  Effectively, January 1st of 2019 alimony payers will no longer be able to deduct alimony payments from their tax returns on new divorces.  Old alimony deals will ...

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