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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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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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The Biggest Investment Mistake You Make Every Year

We all know that investments can be for short term, medium term, or long term.   Investments are often thought of in terms of stocks, bonds, mutual funds, real estate, etc.    Some people invest their money in private ventures and some in public companies.   Business owners will almost always tell you the best investment is their business.   In my opinion, the biggest investment mistake each and every person makes on a yearly basis is not setting aside enough of their personal income to invest in themselves.   Investing in yourself can be personally, professionally, and financially rewarding.   Here are my top five ways to invest in YOU! Advance Your Education- There are so many outlets today to gain extra knowledge and education.  It doesn’t have to be done necessarily by going back to school full time.   You could do a three day executive course or just sign up for one night class.  You could take an online course on a site like ...

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You Lost $24 Billion In 16 Days Mr. Government?

According to the USA Today (10/18/2013), the 16 day Government shutdown cost the economy jobs, delayed mortgages, and lost retail sales.  The numbers aren’t fully in yet, but it is purported to be at least 12 billion dollars and possibly as much as 24 billion dollars for the stalemate that took place in Washington, D.C. over the past several weeks. As a 22 year veteran financial advisor, you don’t advise someone to take out a Target store card right after they have maxed out their Sears and Nordstrom store cards.   We all know that piling up lots and lots of credit card debt is simply an unsustainable way to manage a financial budget.  What we all don’t know today is when the balloon will burst. It’s not a smart money move to lose 12 billion, let alone 24 billion, but I’ve come up with my list of things that we could have done with 24 billion. We could have handed ...

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It’s Un-American

Since I write mostly on financial advice, investment, tax, and insurance products, from time to time I like to just have a chance to rant.   Really, just to share some observations about life or what I see going on in America today.   As of late, I have noticed a handful of things that just seem to be missing the spot in the spirit of American tradition. Recently, I went to a concert and saw Journey and Foreigner play which was really a treat with the exception of the new lead singer of Journey.  The music sounded just like the old Journey, but it wasn’t quite the same without Steve Perry.    The thing that really got me since I haven’t been to an outdoor concert in a while is when it came to the songs where typically people hold their lighters up in the air.  However, instead of lighters what I saw were a bunch of camera phones with a picture ...

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