Since June 2011, I have been mostly in cash, with the exception of my company stock and company stock options. As a result, we have mostly missed the exciting volatility of the past eight months. However, rally in December 2011 and January 2012 have caused me to reconsider our lack of stock investments, other than my company stock.
For example, my spouse decided to stay invested in her College 529 account, while I moved my entirely to cash. While her account fell significantly below mine from August to September 2011, it is about 3% above mine at this point. Also, several stocks that I sold in June 2011 are now above the price at which I sold.
Friday's jobs and unemployment report was very positive. In addition, the Fed has committed to a low interest rate policy until 2014. These events point to an upward trend for the stock market in 2012. However, the looming default of Greece remains a major negative. The EU politicians continue to give the appearance of saving Greece and the EU, which investors read as a positive. However, the charade cannot last past March 20, 2012 when 14.4 billion Euros come due. It will be difficult for the markets to remain positive after a Greek default on that date.
Just like everyone else, I want to believe the politicians know enough to head of a financial catastrophe in March 2012. Being a pessimist due to my experience in 2008, I think investors are being overly optimistic. I still don't think it's time to be heavily invested in stocks....yet.
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 © 2012 Achievement Catalyst, LLC
Sunday, February 05, 2012
Saturday, February 04, 2012
GPS or Map in My Mind?
A GPS is another electronic gadget that I haven't purchased. I used them a couple times. Most of the time, I am comfortable with reading and using a map. The time I found a GPS most useful was when I was in Germany and it was a little difficult to identify the autobahn exits and side roads.
My mother-in-law recently gave her GPS to my spouse to use. Although I haven't actually used the GPS, I am not to impressed based on the test I did in simulation mode. I simulated a trip from our house to my mother-in-law's house. The GPS simulation proceeded to drive into an adjoining neighborhood and tour several of the streets. On the next try, the GPS route went on a 2 lane back road through several small towns. On the third try, the GPS used the highway route, but didn't choose the best way to access the freeway that we have learned over the years.
Since this was the major brand GPS, I checked the Internet for reviews of the model. It seems that 90% of reviewers had an excellent experience with the GPS. 10% of the reviewers had similar or worse issues with the GPS model, and the issues were not correctable. For now I am in agreement with the 10% minority. I believe the local map that I have in my mind is much better.
On our next long trip, we plan to use the GPS, even though the route is well known to us. Hopefully. in real use, we won't get the same issues seen in simulation or experienced by the 10% reviewers.
For more on Reflections and Musings, check back every Saturday for a new segment.
This is not financial or navigation advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
My mother-in-law recently gave her GPS to my spouse to use. Although I haven't actually used the GPS, I am not to impressed based on the test I did in simulation mode. I simulated a trip from our house to my mother-in-law's house. The GPS simulation proceeded to drive into an adjoining neighborhood and tour several of the streets. On the next try, the GPS route went on a 2 lane back road through several small towns. On the third try, the GPS used the highway route, but didn't choose the best way to access the freeway that we have learned over the years.
Since this was the major brand GPS, I checked the Internet for reviews of the model. It seems that 90% of reviewers had an excellent experience with the GPS. 10% of the reviewers had similar or worse issues with the GPS model, and the issues were not correctable. For now I am in agreement with the 10% minority. I believe the local map that I have in my mind is much better.
On our next long trip, we plan to use the GPS, even though the route is well known to us. Hopefully. in real use, we won't get the same issues seen in simulation or experienced by the 10% reviewers.
For more on Reflections and Musings, check back every Saturday for a new segment.
This is not financial or navigation advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
Friday, February 03, 2012
Avoiding Time Wasting Technology
Are We Worse Off Than Our Parents? made me think about the innovations that changed my parents' and our lives. My conclusion is that most of the innovations for my parents saved time, money or both. Some examples are the microwave, dishwasher, refrigerator, vacuum, washing machine and dryer, which all became common appliances during my parents lifetime. While most of these appliances are costly, they easily reduce the work time by 70% or more. On the other hand, I would classify the TV as a major time waster innovation, with people spending an average of 2.7 hours a day watching programming.
During my lifetime, the personal computer and the Internet have been great time saver innovations. I can do mathematical work and research in significantly less time than before. With spreadsheets I can keep track of our financial situation with less than a hours work each month. With the Internet, I can get answers to questions in minutes, when it used to involve significant investment of time, including travel to the library. The digital camera is another time saver, allowing me to save only the good pictures and store them electronically.
To me, many electronics and social networking enablers are time wasters including flat screen TVs, video game players, cell phones, and Facebook. These items result in activities that take time away from the important elements of my life. I've seen how these items suck away time from other people and I don't what that to happen to me. Now that I realize I may only have fifteen good years (180 months, 5475 days, or 131,400 hours), I want to make the most of time. So for now, I still have no flat screen TV, video game player, cell phone nor a Facebook account to take my valuable time.
For more on Reaping the Rewards, check back every Friday for a new segment.
This is not financial, technology nor retirement advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
During my lifetime, the personal computer and the Internet have been great time saver innovations. I can do mathematical work and research in significantly less time than before. With spreadsheets I can keep track of our financial situation with less than a hours work each month. With the Internet, I can get answers to questions in minutes, when it used to involve significant investment of time, including travel to the library. The digital camera is another time saver, allowing me to save only the good pictures and store them electronically.
To me, many electronics and social networking enablers are time wasters including flat screen TVs, video game players, cell phones, and Facebook. These items result in activities that take time away from the important elements of my life. I've seen how these items suck away time from other people and I don't what that to happen to me. Now that I realize I may only have fifteen good years (180 months, 5475 days, or 131,400 hours), I want to make the most of time. So for now, I still have no flat screen TV, video game player, cell phone nor a Facebook account to take my valuable time.
For more on Reaping the Rewards, check back every Friday for a new segment.
This is not financial, technology nor retirement advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
Thursday, February 02, 2012
Speed Coin Collecting
My hunting for silver coins has led to a rediscovery of the coin collecting hobby from childhood. Back then I would look through my change on a daily basis and pick out coins for my collection. Nowadays, I use a credit card for virtually every purchase and rarely get new change. So I haven't been adding much to my coin collections.
However, I realized as we were sorting the coins (especially pennies and nickels), that we were seeing a lot of older coins. So I bought my daughter coin books for halves, quarters, dimes and pennies at the Half Price book store. (When I find the nickel book, I will also buy that one.)
Instead of waiting for loose change, I've been purchasing boxes of rolled coins. This has really sped up the process of collecting coins. With 90% one penny box (2500 pennies), we've nearly completed the 1959 to 2009 collection book. The oldest penny we found was a 1936. With 90% of one quarter box ( 2000 quarters), we've nearly completed the the state quarter book (96 out of 100). We've almost all of the Washington quarter book, missing primarily the silver quarters from 1959 to 1964.
After reading about the Top 10 Most Valuable U.S. Coins Found in Pocket Change , I found an error "wide AM" 2000 penny worth about $10-20 retail. I actually found it on with 10 pennies of starting to look for one, but haven't seen one since. I also found a list of other error coins, but haven't found any yet.
Anyway, I think I'm having more fun than our daughter and even more fun than my childhood. That's because purchasing rolls from the bank has compressed 2-3 years of looking through loose change into only a couple weeks. Each day, we see great progress towards completing the collection. I wish I had thought of the idea when I was a child.
For more on Crossing Generations, check back every Thursday for a new segment.
This is not financial or coin collecting advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
However, I realized as we were sorting the coins (especially pennies and nickels), that we were seeing a lot of older coins. So I bought my daughter coin books for halves, quarters, dimes and pennies at the Half Price book store. (When I find the nickel book, I will also buy that one.)
Instead of waiting for loose change, I've been purchasing boxes of rolled coins. This has really sped up the process of collecting coins. With 90% one penny box (2500 pennies), we've nearly completed the 1959 to 2009 collection book. The oldest penny we found was a 1936. With 90% of one quarter box ( 2000 quarters), we've nearly completed the the state quarter book (96 out of 100). We've almost all of the Washington quarter book, missing primarily the silver quarters from 1959 to 1964.
After reading about the Top 10 Most Valuable U.S. Coins Found in Pocket Change , I found an error "wide AM" 2000 penny worth about $10-20 retail. I actually found it on with 10 pennies of starting to look for one, but haven't seen one since. I also found a list of other error coins, but haven't found any yet.
Anyway, I think I'm having more fun than our daughter and even more fun than my childhood. That's because purchasing rolls from the bank has compressed 2-3 years of looking through loose change into only a couple weeks. Each day, we see great progress towards completing the collection. I wish I had thought of the idea when I was a child.
For more on Crossing Generations, check back every Thursday for a new segment.
This is not financial or coin collecting advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
Wednesday, February 01, 2012
95% Copper Pennies Give a 50% Return
In April 2011, I started a silver coin hunting project with my daughter. We ended the project in July 2011 after finding on 5 silver half dollars out of 5000 searched. However, we decided to start a coin collection by continuing to obtain coin rolls in bulk and searching through them.
Our first project was collecting on the state quarters. After going through 1500 quarters we've completed 90% of the book. (No silver quarters were found :-). Concurrently, we have been searching through 2500 pennies and have nearly completed the 1959 - 2010 book. We've only found four wheat back pennies so far. However, I've just learned that copper pennies have a metal content value greater than face value.
Pre-1982 pennies (and some 1982 pennies) are 95 % copper and 5% zinc, versus post 1982 pennies that are 97.5% zinc and 2.5% copper. The copper in a 95 %copper penny is worth about 1.5 cents, giving the collector a 50% gain. A great return in today's low interest environment :-)
Based on our experience, an average of 25% of pennies in a roll are copper which makes it easy to find a significant amount. Of course the challenge is a 50% gain is still only 1.5 cents and making it tough to get rich. 2500 (or $25) copper pennies would still only be worth about $37.50. However, for now it's inexpensive entertainment to build a coin collection. And if copper prices fall, the penny will still always be worth at least one cent.
For more on The Practice of Personal Finance, check back every Wednesday for a new segment.
This is not financial or coin collecting advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
Our first project was collecting on the state quarters. After going through 1500 quarters we've completed 90% of the book. (No silver quarters were found :-). Concurrently, we have been searching through 2500 pennies and have nearly completed the 1959 - 2010 book. We've only found four wheat back pennies so far. However, I've just learned that copper pennies have a metal content value greater than face value.
Pre-1982 pennies (and some 1982 pennies) are 95 % copper and 5% zinc, versus post 1982 pennies that are 97.5% zinc and 2.5% copper. The copper in a 95 %copper penny is worth about 1.5 cents, giving the collector a 50% gain. A great return in today's low interest environment :-)
Based on our experience, an average of 25% of pennies in a roll are copper which makes it easy to find a significant amount. Of course the challenge is a 50% gain is still only 1.5 cents and making it tough to get rich. 2500 (or $25) copper pennies would still only be worth about $37.50. However, for now it's inexpensive entertainment to build a coin collection. And if copper prices fall, the penny will still always be worth at least one cent.
For more on The Practice of Personal Finance, check back every Wednesday for a new segment.
This is not financial or coin collecting advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
Tuesday, January 31, 2012
Links to Carnivals from January 24 - 30, 2012
Here are the links to the Carnivals in which My Wealth Builder participated from January 24-30, 2012:
Road to Financial Independence #39
For more on Ideas You Can Use, check back every Tuesday for a new segment.
This is not financial or wealth building advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
Road to Financial Independence #39
For more on Ideas You Can Use, check back every Tuesday for a new segment.
This is not financial or wealth building advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
The Wealth Builder Carnival #64
Welcome to the sixty-fourth 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 onto the Carnival:
Jon Elder presents How to Raise Kids to be Wise with Money posted at Free Money Wisdom, saying, "Today’s children still need to be taught good financial habits so that they end up more like Millennials and less like Millennials’ Gen X parents and Boomer grandparents. That’s why I’m sharing a few things you can do to teach your kids about good personal finances:"
Tim @ Faith and Finance presents 16 Great Jobs For 16 Year Olds posted at Faith and Finance, saying, "We’ve all known what’s it’s like to be a 16 year old looking for a good job. Here are 16 job ideas that any 16 year old can do to make some extra money."
Linsey B. Knerl presents Working from Home… With Toddlers posted at 1099 - Mom, saying, "I can imagine that for most Moms, there is at least one “high-needs” kid in the household. Working from home with one in your care, however, takes a delicate balance of being attentive and not allowing yourself to be completely run over."
Jason@LiveRealNow presents Insurance posted at Live Real, Now, saying, "Thankfully, I sock a bit of money away every month to cover things that break. It’s my warranty fund. That, combined with a good(hopefully) find on eBay, means that losing my phone, while irritating, isn’t going to break my budget. It won’t actually touch my budget in any way."
B.B. presents Sharebuilder Returns Update posted at Beating Broke, saying, "Overall, there really isn’t much comparison of the returns between the Lending Club and Sharebuilder accounts. Taken on their face, Lending Club wins hands down."
Jim Tolley (aka Kidgas) presents What Would I Do With $50,000? posted at Cash Flow Mantra, saying, "Recently, Joe over at Retireby40.org discussed his options for a $50,000 emergency fund, and I must confess that I thought they were rather poor. Now Joe has certain requirements, and I am not trying to change his mind regarding them. But he did ask the question posed in the title and since my answer was going to be longer than could be held in a comment, I thought I would write a post about it."
Lazy Man and Money presents Grading Men’s Health’s Tips to Build Wealth in Trouble Times posted at Lazy Man and Money, saying, "I was very surprised by the lack of useful information provided by these financial experts. I'm reminded by the people who are giving the advice, Wall Street economist types. As Abraham Maslow said, "It is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail.""
passive family income presents What is the Best Source of Passive Income? posted at Passive Family Income, saying, "One income stream that does not require a lot of my time are dividend paying stocks. In my opinion, these investments offer the best source of passive income possible"
John presents Money Market Funds vs. Money Market Accounts posted at Wallet Blog, saying, "What’s the difference between Money Market Funds and Money Market Accounts? Determine which may be best for your individual financial needs."
Kevin presents 3 Frugal Ideas for a Romantic Valentine’s Day posted at Invest It Wisely, saying, "Remember, there’s no need to spend a fortune on Valentine’s Day. Sometimes, a bit of cheap fun is all you need."
Matt presents Home Buyers: Do you Feel the Power? posted at Living In Financial Excellence, saying, "Although sellers stand to lose a healthy chunk of money when they move out of their home, they also stand to gain a lot on the other end when they buy a different home. Home prices are really low, which means there are a lot of bargains out there."
Bucksome presents Delay Your Gratification and Grow Rich posted at Buck$ome Boomer's Journey to Retirement, saying, "The next time you’re tempted with a purchase (big or small), remember to think twice about it and consider what it might do to your future. Chances are, if you delay the purchase, your future will be much better off."
Lisa presents The Frugal Home Buyer’s Guide | posted at Thriftability, saying, "y taking a look at your financial situation, you can save money to reach this goal of a new home. Here is some advice on how to shoot for this goal, as well as knowing if it is the right time."
Jonathan from Debt Loans presents Seven Fun Hobbies that Won't Cost You a Cent posted at Wallet Watcher, saying, "Here’s a handful of hobbies that are sure to be entertaining, beneficial and basically free of charge."
Theresa Torres presents Guest Post: 6 Workout Tips for Moms on a Budget posted at Deal Finding Chik, saying, "This article shares some tips on how moms can get in shape without breaking the bank."
Dr. Dean presents A Million Bucks? In My 401K? Ya Gotta Be Kiddin’! posted at Dr. Dean's TheMillionaireNurse.com Blog, saying, "Retirement account millionaires don’t have to be market savvy investors. No, they are often not investing gurus at all. How do they grow millions in their retirement accounts? It’s not rocket science-read all about it!"
Investor Junkie presents Why Your Small Business Should Offer a 401K posted at Investor Junkie, saying, "The following are six reasons that your business should offer a 401K program to its employees."
Little House presents Stash Some Cash with Mind Bending Tricks posted at Little House in the Valley, saying, "Since I know saving money isn’t easy, I’ve concocted some mind bending tricks to make me save more of my money."
Robert Moore presents Important News On The 2012 Tax Deadline posted at 2011 Taxes, saying, "The IRS has kicked off the 2012 tax filing season by revealing that taxpayers can now file their taxes up until April 17."
Mark Roberts presents How To Choose The Right Filing Status posted at Tax Brackets, saying, "This blog post looks at how to choose the correct filing status for your situation."
Jessica Bird presents Taxing Your Car posted at CarTaxBands.org, saying, "If you need to pay tax on your car, this blog post will outline three important documents that you will need."
Al Peters presents Self Assessment Tax Return 2011 Deadline Approaching posted at TaxFix Feed Update, saying, "The tax return deadline is fast approaching. If you have earned income or had taxable gains in the UK then don't forget this important deadline."
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 © 2012 Achievement Catalyst, LLC
And now onto the Carnival:
Earning
Jon Elder presents How to Raise Kids to be Wise with Money posted at Free Money Wisdom, saying, "Today’s children still need to be taught good financial habits so that they end up more like Millennials and less like Millennials’ Gen X parents and Boomer grandparents. That’s why I’m sharing a few things you can do to teach your kids about good personal finances:"
Tim @ Faith and Finance presents 16 Great Jobs For 16 Year Olds posted at Faith and Finance, saying, "We’ve all known what’s it’s like to be a 16 year old looking for a good job. Here are 16 job ideas that any 16 year old can do to make some extra money."
Linsey B. Knerl presents Working from Home… With Toddlers posted at 1099 - Mom, saying, "I can imagine that for most Moms, there is at least one “high-needs” kid in the household. Working from home with one in your care, however, takes a delicate balance of being attentive and not allowing yourself to be completely run over."
Insuring and Protecting
Jason@LiveRealNow presents Insurance posted at Live Real, Now, saying, "Thankfully, I sock a bit of money away every month to cover things that break. It’s my warranty fund. That, combined with a good(hopefully) find on eBay, means that losing my phone, while irritating, isn’t going to break my budget. It won’t actually touch my budget in any way."
Investing
B.B. presents Sharebuilder Returns Update posted at Beating Broke, saying, "Overall, there really isn’t much comparison of the returns between the Lending Club and Sharebuilder accounts. Taken on their face, Lending Club wins hands down."
Jim Tolley (aka Kidgas) presents What Would I Do With $50,000? posted at Cash Flow Mantra, saying, "Recently, Joe over at Retireby40.org discussed his options for a $50,000 emergency fund, and I must confess that I thought they were rather poor. Now Joe has certain requirements, and I am not trying to change his mind regarding them. But he did ask the question posed in the title and since my answer was going to be longer than could be held in a comment, I thought I would write a post about it."
Lazy Man and Money presents Grading Men’s Health’s Tips to Build Wealth in Trouble Times posted at Lazy Man and Money, saying, "I was very surprised by the lack of useful information provided by these financial experts. I'm reminded by the people who are giving the advice, Wall Street economist types. As Abraham Maslow said, "It is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail.""
passive family income presents What is the Best Source of Passive Income? posted at Passive Family Income, saying, "One income stream that does not require a lot of my time are dividend paying stocks. In my opinion, these investments offer the best source of passive income possible"
John presents Money Market Funds vs. Money Market Accounts posted at Wallet Blog, saying, "What’s the difference between Money Market Funds and Money Market Accounts? Determine which may be best for your individual financial needs."
Living Frugally
Kevin presents 3 Frugal Ideas for a Romantic Valentine’s Day posted at Invest It Wisely, saying, "Remember, there’s no need to spend a fortune on Valentine’s Day. Sometimes, a bit of cheap fun is all you need."
Matt presents Home Buyers: Do you Feel the Power? posted at Living In Financial Excellence, saying, "Although sellers stand to lose a healthy chunk of money when they move out of their home, they also stand to gain a lot on the other end when they buy a different home. Home prices are really low, which means there are a lot of bargains out there."
Bucksome presents Delay Your Gratification and Grow Rich posted at Buck$ome Boomer's Journey to Retirement, saying, "The next time you’re tempted with a purchase (big or small), remember to think twice about it and consider what it might do to your future. Chances are, if you delay the purchase, your future will be much better off."
Lisa presents The Frugal Home Buyer’s Guide | posted at Thriftability, saying, "y taking a look at your financial situation, you can save money to reach this goal of a new home. Here is some advice on how to shoot for this goal, as well as knowing if it is the right time."
Jonathan from Debt Loans presents Seven Fun Hobbies that Won't Cost You a Cent posted at Wallet Watcher, saying, "Here’s a handful of hobbies that are sure to be entertaining, beneficial and basically free of charge."
Theresa Torres presents Guest Post: 6 Workout Tips for Moms on a Budget posted at Deal Finding Chik, saying, "This article shares some tips on how moms can get in shape without breaking the bank."
Retiring
Dr. Dean presents A Million Bucks? In My 401K? Ya Gotta Be Kiddin’! posted at Dr. Dean's TheMillionaireNurse.com Blog, saying, "Retirement account millionaires don’t have to be market savvy investors. No, they are often not investing gurus at all. How do they grow millions in their retirement accounts? It’s not rocket science-read all about it!"
Investor Junkie presents Why Your Small Business Should Offer a 401K posted at Investor Junkie, saying, "The following are six reasons that your business should offer a 401K program to its employees."
Saving
Little House presents Stash Some Cash with Mind Bending Tricks posted at Little House in the Valley, saying, "Since I know saving money isn’t easy, I’ve concocted some mind bending tricks to make me save more of my money."
Taxes
Robert Moore presents Important News On The 2012 Tax Deadline posted at 2011 Taxes, saying, "The IRS has kicked off the 2012 tax filing season by revealing that taxpayers can now file their taxes up until April 17."
Mark Roberts presents How To Choose The Right Filing Status posted at Tax Brackets, saying, "This blog post looks at how to choose the correct filing status for your situation."
Jessica Bird presents Taxing Your Car posted at CarTaxBands.org, saying, "If you need to pay tax on your car, this blog post will outline three important documents that you will need."
Al Peters presents Self Assessment Tax Return 2011 Deadline Approaching posted at TaxFix Feed Update, saying, "The tax return deadline is fast approaching. If you have earned income or had taxable gains in the UK then don't forget this important deadline."
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 © 2012 Achievement Catalyst, LLC
Monday, January 30, 2012
Wealth Builder Ratios - Q4 2011 Update
Here is our Q4 2011 Wealth Builder Ratios update. During the fourth quarter of 2011, the Dow, Nasdaq and S&P500 indices were up at 12.6%, 7.9% and 11.2% respectively. Our investment portfolio returns improved from -3.0% to 3.0% due to the overall market improvement and my company stock having a 6.4% return during Q4.
For more details on the relevance of these ratios, please see this How Much Is Needed To Be Wealthy - The NUMBER.
My financial goals for 2011 were:
1. Continue to maintain an Investment Income to Salary ratio > 0.8. (off track)
2. Maintain a Savings to Salary ratio of 20. (off track)
3. Maintain Debt to Salary Ratio at 0. (met final goal of 0)
(For reference, Salary refers to gross salary just prior to early retirement in October, 2007.)
Both #1 and #2 were directly correlated with how well our stock, bond, and CD investments returns. With the positive performance of my company stock and the high proportion of cash, our portfolio increased less than the indices in Q4.
It has been very challenging retiring at the beginning of a bear market. Our short term expenses (next 3-5 years) are invested in CDs, bonds and money markets. So we can wait for the stock market to continue an upward trend. I continue to be concerned about volatility of our investment portfolio, but believe there is more downside than upside potential going forward due to EU sovereign debt crisis and continued deleveraging.
I continue to have the same financial goals for 2012. At this point, I am pessimistic about the economy and the stock market.
For more on Strategies and Plans, check back every Monday for a new segment.
This is not financial advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
For more details on the relevance of these ratios, please see this How Much Is Needed To Be Wealthy - The NUMBER.
Ratio and Target | Q3 2011 | Q4 2011 | |
| Investment Income to Salary Target= 0.8 2007= 3.41 2008= -5.47 2009= -1.38 2010= 1.29 2011= 0.5 | 2011 has started out poorly due to a negative return for my company stock, but has recovered nicely in the fourth quarter, ending with a positive return for the year. I have sold all the company stock in our IRA, keeping only the low basis shares for a future NUA execution. As my company stock (hopefully) advances, we plan to continue execute the remaining stock options I own.. | ||
| Savings to Salary Target>20 2007=23 2008=16.7 2009=15.3 2010=16.6 2011=17.1 | 16.1 | 17.1 | I sold most of our stock investments in June 2011, and kept my company stock and stock options. We avoided most of the volatility in the fourth quarter. So the change mainly reflects the positive change in my company stock and the contribution of the salary from my temporary full time job. |
| Debt to Salary Target=0 2007=1.51 2008=1.46 2009=0 2010=0 2011=0 | 0 | We said bye-bye to our mortgage on May 20, 2009. Eliminating a mortgage payment has reduced our expenses by 24%. |
My financial goals for 2011 were:
1. Continue to maintain an Investment Income to Salary ratio > 0.8. (off track)
2. Maintain a Savings to Salary ratio of 20. (off track)
3. Maintain Debt to Salary Ratio at 0. (met final goal of 0)
(For reference, Salary refers to gross salary just prior to early retirement in October, 2007.)
Both #1 and #2 were directly correlated with how well our stock, bond, and CD investments returns. With the positive performance of my company stock and the high proportion of cash, our portfolio increased less than the indices in Q4.
It has been very challenging retiring at the beginning of a bear market. Our short term expenses (next 3-5 years) are invested in CDs, bonds and money markets. So we can wait for the stock market to continue an upward trend. I continue to be concerned about volatility of our investment portfolio, but believe there is more downside than upside potential going forward due to EU sovereign debt crisis and continued deleveraging.
I continue to have the same financial goals for 2012. At this point, I am pessimistic about the economy and the stock market.
For more on Strategies and Plans, check back every Monday for a new segment.
This is not financial advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
Sunday, January 29, 2012
Working on my Terms in 2012
When I retired early a little over four years ago, I was a very good corporate employee. I understood and supported the corporate priorities. I put in a lot time on my career, working 60+ hours a week and investing time in professional and personal development. I was a very good corporate employee, doing what was needed and working on the company's terms.
I took that attitude with me to the part time jobs that I did after I retired. However, after four years, I've decided to change. I will continue to do great work for the companies. However, I will be doing on my terms, instead of the companies' terms.
Here is are my terms for working in 2012:
In 2012, I plan to fit work in when it's convenient for my schedule and I definitely will avoid being over committed as I was in 2010.
For more on New Beginnings, check back every Sunday for a new segment.
Photo Credit: morgueFile.com, Author Name
This is not financial, retirement or career advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
I took that attitude with me to the part time jobs that I did after I retired. However, after four years, I've decided to change. I will continue to do great work for the companies. However, I will be doing on my terms, instead of the companies' terms.
Here is are my terms for working in 2012:
In 2012, I plan to fit work in when it's convenient for my schedule and I definitely will avoid being over committed as I was in 2010.
For more on New Beginnings, check back every Sunday for a new segment.
Photo Credit: morgueFile.com, Author Name
This is not financial, retirement or career advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC
Saturday, January 28, 2012
A Humorous Perspective On Any Profession
The following three jokes help me as I listen to the "promises" being made by a professional who I don't think can keep them:
Put the targeted profession in the blank space and the joke is complete.
For more on Reflections and Musings, check back every Saturday for a new segment.
This is not financial or humor advice. Please consult a professional advisor.
Put the targeted profession in the blank space and the joke is complete.
For more on Reflections and Musings, check back every Saturday for a new segment.
This is not financial or humor advice. Please consult a professional advisor.
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