The Weatlh Builder Carnival #131

Welcome to the one hundred thirty-first edition of The Wealth Builder Carnival. The purpose of this carnival is to collect articles from the blogosphere on building, preserving and keeping enough wealth for a comfortable retirement. For reference, I have tried to keep the carnival content tightly focused on wealth building and did not include submissions that were off topic. For reading convenience, the posts are listed with a brief summary or comment by the submitter and organized into seven categories: Earning, Insuring and Protecting, Investing, Living Frugally, Retiring, Saving and Taxes.

And now on to the Carnival.

Earning

Bryan Chau presents What You Can Learn From The Evolution of Amazon.com posted at Success Pen Pal, saying, "Investing in New Opportunities, Marketing, Business, Marketing Mix, Entrepreneurs, Amazon.com, Jeff Bezos, Success Pen Pal, Bryan Chau, etc."

Insuring and Protecting

Jason Hull presents Bronze May Be the Most Precious Metal Under Obamacare posted at Hull Financial Planning, saying, "Now that California has released its preliminary premiums for the health care plans under the Patient Protection and Affordable Care Act (PPACA), we evaluate which of the four tiers will be most economical for people who have to purchase health insurance under the state exchanges in Obamacare."

Investing

Dividends4Life presents 9 Dividend Stocks Providing A Growing Income posted at Dividend Growth Stocks, saying, "How much money will you need for retirement? This a very difficult question to answer. There are many factors and assumptions that go into estimating the income that will be needed in retirement. However, one certainty is that if you only invest in fixed income instruments, you will need more than if your investments provide you a growing income..."

Living Frugally

Bryan presents Where Should I Live? posted at Gajizmo, saying, "Deciding where to live is an important decision that will affect many aspects of your lifestyle and finances. Here is a list of detailed factors to consider when determining what city to live in and why."

Mr.CBB presents How To Overcome Laziness And Save Money In 5 Steps posted at Canadian Budget Binder, saying, "Not everyone has to build a garden to make a salad on their own nor do they have to hire a landscaping company to maintain the beauty of their home. Taking time to set goals and prioritize those goals will go a long way in saving money in the budget."

Theresa Torres presents Kids and Money: Raising Money-Conscious Kids posted at CreditDonkey.com Tips, saying, "Start your kids early in financial education with these money tips so they'll hopefully grow up to be money-savvy adults."

Retiring

John Schmoll presents Things I Would Never Do: Raid My 401k to Buy Property posted at Frugal Rules, saying, "There is an increasing number of investors taking out loans on their 401k accounts in order to buy investment property. While diversification of investments is key, the inherent risk may not be enough to offset the potential gain."

Super Saver presents Low Interest Rates Making Retirement Harder posted at My Wealth Builder, saying, "In 2003, $1 million in savings could earn $50,000 in FDIC insured CDs. In 2013, that same $1 million can earn $15,000 to $20,000 in a 1.5% five year CD or a 2% 10 year Treasury."


That concludes this edition. Submit your blog article to the next edition of The Wealth Builder Carnival using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: the wealth builder carnival, blog carnival.

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

This is not financial, earning, insuring, investing, living, retiring, saving, tax, or wealth building advice. Please consult a professional advisor.

Copyright © 2013 Achievement Catalyst, LLC

Trading the Fed

This week, traders will be looking to the Fed comments on tapering QE to set the direction of the market.  I expect a negative market reaction either prior to the FOMC Wednesday comments, after the FOMC comments or both.  I plan to use any market dip as a opportunity to buy more ETFs in our ETF investment strategy.

At this point, I am less confident that the long awaited correction is over.   So I want to be prepared should the stock market continue the decline that was started last week.

Updates:
Monday 6/17 - Dow closed up 109 after being up over 191 mid-day.  No purchases made.

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

This is not financial  or investing adviceadvice. Please consult a professional advisor.

Copyright © 2013 Achievement Catalyst, LLC

Higher Stock Market Volatility Is Back

Big daily swings in the stock market have become the norm over the past few weeks.  It all started when the Fed shared the possibility of cutting back on QE, which gave traders concern that the bull market was ending.   As a result, the investor confidence is down and the stock market advance has stalled with a 5% intraday correction in the Dow.

For the rest of the summer, I expect that daily 100+ point changes in the Dow will be common.  For me, the volatility is a buying opportunity, enabling me to make some small purchases in our ETF investment strategy when the market is down.  It is emotionally tough to buy into the market during the 100+ point declines.  By keeping the amounts small, I will hedge slightly against the possibility of a major near term stock market decline.

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

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

Copyright © 2013 Achievement Catalyst, LLC

Feels Like 2008

"It's déjà vu all over again." ~ Yogi Berra

The last few weeks in the stock market feel like it's 2008 again, begging the question of whether the ending will be like 2008. Here's what feels the same:

High volatility.  Three digit swings in the Dow have become the norm over the past three weeks.  On one day the Dow started down over 100 points and then finished up over 100 points for the day.

Ignoring potential issues.  This issues that cause dthe 2010, 2011 and 2012 corrections (EU sovereign debt default, debt ceiling brinkmanship, continuing QE, etc.) all still exist but investors don't appear to be concerned.  It seems the stock market is just one event away from a significant decline.

Low Fed concern.  The Fed doesn't see any major issue coming and is comfortable with the current level of intervention.

In 2008, I thought there might be a stock market decline, but not as devastating as the that occurred.  Similarly, I think the current correction was short and shallow and is already over.

Maybe, I should starting thinking about taking more money out of the stock market. :-)

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


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

Copyright © 2013 Achievement Catalyst, LLC

Buying (Some) New Clothes

In a 2008 post , I thought I could avoid buying new clothes for about ten years. Then in early 2013, I thought I could recycle my classic wardrobe from a decade ago since I had lost so much weight. However, in the last month, my weight has fallen to the same level it was in eighth grade, which makes all of my pants too big in the waist.

So I've had to buy a few new pants and shorts.   And I've started putting away some of my "heavy" pants and shorts to declutter my closet.  For now, I'm still keeping them, in case I gain weight and should need the again.

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

This is not financial, retirement or wardrobe advice. Please consult a professional advisor.

Copyright © 2013 Achievement Catalyst, LLC

At My Eighth Grade Weight

I've  voluntarily been on a strict diet for about six months to help reduce the plaque buildup in my arteries.  Based on Dr. Ornish's book, Program for Reversing Heart Disease, the diet also led to a 15% loss of weight even though I was eating as much I wanted.  For the diet, I am not allowed to eat animal products except for egg whites and non-fat milk products.   In addition, I follow the rules on no added oils, no nuts and seeds, no avocados and olives,  and no caffeine.  I have chosen no alcohol for now, even though the diet allows a single serving per day.  In March, my weight was a little above my eighth grade weight.

Last month, I added elements to the diet from Caldwell Esselstyn's book, Prevent and Reverse Heart Disease: The Revolutionary, Scientifically Proven, Nutrition-Based Cure, which additionally does not allow egg whites or non-fat dairy, but seems to allow seeds and olives.   However, I decided to continue not eating seeds and olives.

Since following the restictions in both diets, I've lost more weight and am now at my eighth grade weight.

Based on the ideal height weight charts, I'm still above the minimum value in the weight range by about 2-3%.  So my goal is to maintain or gain a little weight. 

Disclosure:  No compensation was received for this post.  If  Program for Reversing Heart Disease or Prevent and Reverse Heart Disease is purchased through the above Amazon.com link, I may receive compensation as an Amazon affiliate member.

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

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

Copyright © 2013 Achievement Catalyst, LLC

Two Issues with Trying to Time the Market

"They don't ring a bell at the top (or bottom)." ~ stock market adage

Market timing can theoretically lead to big profits, if one can be in during the major market advances and out during the major market declines.  The two major challenges are:

Buying.  Going from all cash to fully invested is hard decision to execute. If the market is declining, a concern is that the market will continue to decline.  If the market has rebounded and is advancing, a concern is getting back in at too high a price.  Both concerns can keep a market timer from being in stocks during the market advances.

Selling.  Going from being fully invested to all cash is another hard decision to execute.   If the market is rising, a concern is the market will continue to advance.  If the market has peaked and is declining, a concern is getting out at too low a price.   Both concerns can keep a market timer from selling before the market declines significantly.

For example, I converted my 529 college savings plan to cash in mid 2011, while my spouse kept hers invested.  By late 2011, my spouses account had declined 15%.   In 2012, I did not reinvest my funds and therefore missed out on the rally from mid 2012.  Now, my spouse's account is 19% greater than mine.  I'm still waiting for a market correction before reinvesting the cash, and I've missed out on a significant market advance.

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 © 2013 Achievement Catalyst, LLC

The Wealth Builder Carnival #130

Welcome to the one hundred thirtieth edition of The Wealth Builder Carnival. The purpose of this carnival is to collect articles from the blogosphere on building, preserving and keeping enough wealth for a comfortable retirement. For reference, I have tried to keep the carnival content tightly focused on wealth building and did not include submissions that were off topic. For reading convenience, the posts are listed with a brief summary or comment by the submitter and organized into seven categories: Earning, Insuring and Protecting, Investing, Living Frugally, Retiring, Saving and Taxes.

And now on to the Carnival.

Earning

Jon Rhodes presents How Rich People Think Differently From The Poor posted at Affiliate Help!, saying, "This article can help you earn more by showing you the differences n mindset between the rich and the poor."

Insuring and Protecting

R.J. Weiss presents Surprising Home Insurance Facts Every Homeowner Needs To Know posted at The Insurance Protection Blog, saying, "Breaking down a standard home insurance policy to identify what is and what's not covered."

Investing

Michael presents Quickly Identifying Undervalued Dividend Growth Stocks in the May 31, 2013 Updated Canadian Dividend All-Star List - Dividend Growth Investing & Retirement posted at Dividend Growth Investing & Retirement, saying, "With the updated Canadian Dividend All-Star list you can now quickly identify undervalued stocks by comparing the current dividend yield to the 3, 5 and 10 year highest yield averages. As an example of how to quickly identify undervalued dividend growth stocks I analyze the companies that recorded a dividend increase in May."

Dividends4Life presents 4 Stocks Paying Higher Cash Dividends posted at Dividend Growth Stocks, saying, "We have all heard it… Stodgy, for old people, yawn, boring! These have all been used to describe dividend growth stocks. As a dividend growth investor, I sometimes think our strategy is the most misunderstood. It seems everyone understands a traders mentality and a high-yield mentality. Periodically, it is good to remind ourselves that dividend growth stocks provides us with excellent long-term leverage and a growing income..."

John Schmoll presents How to Invest in Stocks When You Do Not Know Where to Start posted at Frugal Rules, saying, "Investing in stocks, or anything in the market, can be overwhelming for many. The key to overcoming that fear is knowing where to start and educating yourself so that you can set up an investment portfolio that’ll help you grow your wealth and reach your long-term retirement goals."

Jason Hull presents Six Areas Where I Disagree with Dave Ramsey’s Investing and Retirement Withdrawal Advice posted at Hull Financial Planning, saying, "Dave Ramsey claims, for educational purposes, that you can earn 12% average returns per year and withdraw 8% per year in retirement. This article explains how both the math and the psychology of these assertions are incorrect."

Living Frugally

Theresa Torres presents How Women Can Save Money on Small Business Travel Expenses posted at WomenAreGamechangers, saying, "Business travel expenses can be a cash-flow problem if you're not careful so here are a few tips on how you can save some cash on business travel."

Laura Anderson presents Talking Family Finances with David Bakke posted at eNannySource, saying, "Recently I had a chance to catch up with David Bakke, dad and personal finance blogger. David blogs about family finances and some of the biggest financial mistakes parents make. Here is a little of what he had to say."

Bryan presents What To Do If You Win The Lottery posted at Gajizmo, saying, "Learning what to do if you won the lottery can teach you a lot about how to handle a significant inheritance or the sudden aspects of striking it rich. We discuss the many considerations of managing wealth as well as the short vs long term factors affecting a payout now vs an annuity."

Retiring

Super Saver presents Gen-Xers and Late Baby Boomers Financially Challenged to Retire posted at My Wealth Builder, saying, "Gen-Xers (born 1966 to 1976) and Late Boomers (born 1956 to 1965) may find retirement challenging as a group. Early Boomers (born 1946 to 1955) will likely be the last generation to exceed the wealth of their previous generation."


That concludes this edition. Submit your blog article to the next edition of The Wealth Builder Carnival using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: the wealth builder carnival, blog carnival.

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

This is not financial, earning, insuring, investing, living, retiring, saving, tax, or wealth building advice. Please consult a professional advisor.

Copyright © 2013 Achievement Catalyst, LLC

I'm a Buyer Today

Whether the market goes up or down today, I'll be a buyer. I believe the chance of a significant correction is very low for now, although I still expect a 10% correction before the end of the year.

I will focus my buying on the ETF investment strategy mentioned in a previous post, select financial stocks and select biotech stocks. For now, I am only buying small amounts and am minimizing my trading costs buy using commission free ETFs and free trade promotions.  If I'm wrong, the new amount put at risk this week will be low.

Update:   None of the limit orders I placed before the market opened executed. And I was away all day today and wasn't able to make real time trades. So I didn't make any purchases today.  Tomorrow, I plan to be around to make some real time purchases if my pre-market limit orders do not execute.

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

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

Copyright © 2013 Achievement Catalyst, LLC

Trickling Additional Funds Into the Stock Market

With the intraday down turn of 5% in the S&P last week, another short and shallow correction may have just occurred.  It looks like investors and traders are now convinced the U.S has a Goldilocks economic recovery.

So this week, I'm going to put additional funds into the ETF investment strategy I've developed.  For reference, I still expect a 10% correction but that may not happen until later, after the market rallies again.

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

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

Copyright © 2013 Achievement Catalyst, LLC