Sunday, July 07, 2019

My New Path to Happiness

After reading Regrets of 90 Somethings, I feel like I've been given a gift of a secret to happiness.  I'm changing my attitude and interactions with our kids.  Up to now, I've been primarily focused on raising them to be successful adults, sometines being too hard on them.    Now I will spend more effort and time on enjoying them as they grow up, while still providing necessary guidance. 

I think I will be happier and so will they :-)

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

This is not financial, happiness, nor parenting advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Thursday, July 04, 2019

Regrets of 90 Somethings

Here is an interesting article about the "regrets" of nonagenerians.   Top regrets were:
  • They regretted not cultivating closer relationships with their children.
  • They regretted not putting their children on the right path in life.
  • They regretted not taking risks to be more loving, such as being more open about their feelings for new people or more affectionate with those already in their lives.
  • They regretted not being better listeners; they wish they had been more empathetic and considerate.
  • They regretted not spending enough time with the people they loved.
Surprisingly, the biggest regrets weren't about career, missed opportunities, or things not achieved.

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

This is not financial, aging or relationship advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Wednesday, June 19, 2019

College Students Overestimate Salary After Graduation

According to this article, college students overestimate their starting salary by about $10,000, estimaing about $58,000 versus the median salary of $47,000 for bachelor degree graduates with 0-5 years experience. 

However, there is some good news.  Median salaries for computer science major early in their career was at $68,000 versus their average expectation of $59,300.   So these majors received a pleasant surprise when they started work.

For more on The Practice of Personal Finance, check back Wednesdays for a new segment.

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

Copyright © 2019 Achievement Catalyst, LLC

Monday, June 17, 2019

How I Will Invest in Real Estate

I've own investment real estate three different ways:

  • Direct ownership - I am the only owner.
  • Partnership -  I am a partner in a general partnership
  • Public REIT - I am the owner of publicly traded stock.
Based on my experience, going forward, I will only invest in public REITs.   I am currently trying to sell the investment land that I directly own.    I'm learning that a real estate partnership has lots of complexities, with which I don't won't to deal with as I get older.

There's a 5% chance that I will sell the land this year.  It is under contract, but the Buyer has enough contingencies to exit the deal.   The general partnership is doing well, except for 60% of the partners have no interest in participating in the business operations.   

I've been lucky for all the real estate investments, since all are profitable.  However, I want to simply our investments as I get older, so I will be sticking with REITs and trying to exit from the rest.

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 © 2019 Achievement Catalyst, LLC

Monday, May 06, 2019

How Much Times Final Salary is Needed to Retire

16.4 times, assuming no pension, and having Social Security account for 5.3 of the amount.   So only 11.1 times is needed.  Still that is a pretty daunting number, especially if one wasn't planning for it. 

Personally, I've always targeted for 20 times, not including Social Security.  I think that gives us a comfortable buffer.

For more on Strategies and Plans Ideas, check back Mondays for a new segment.

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

Copyright © 2019 Achievement Catalyst, LLC

How Governent Can Reduce the Cost of College

Let all future student loans be forgivable in bankruptcy. 

Banks would be more judicious in lending money.   Less money would be lent.  Fewer people would go to college.   Supply would exceed demand.   Colleges would need to reduce tuition.   More students could attend at lower costs.

Simple economics.

For more on  Strategy and Plans, check back Mondays for a new segment.

This is not financial, economic, or higher eduction advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Saturday, May 04, 2019

Doing the Unthinkable

"I made a fortune getting out too soon." ~ J.P. Morgan

Despite the market hitting all time highs again this week, I'm looking to exit the market.   Well, not completely, but definitely with my peripheral holdings that are profitable, and a significant part of our core holdings.

I've already gone to 100% Cash/CDs in my daughter's 529 account.   Since then I've been scaling out of our investments in smaller chunks.   I sold parts of the peripheral holdings in my personal investment strategies.   I've been taking profits in stocks that were purchased in November/December 2018.   I've been selling part of some core holdings (specifically REITs) that are up significantly.

Yesterday, I gave instructions on selling a big piece, closing out one of the investment managers at a brokerage.  The manager has done acceptably well, but again, I prefer to lock in the gains that have occurred to date.   The close out will happen later next week, so I won't mind the market continuing to advance through next week.

Everything is on the table for selling, except my company stock, which I am holding to do an NUA.  By the end of May, I plan to exit another investment manager account.

Why all the sudden selling?

  • First, on yield curve inverted in late 2018, and another yield curve inverted in March 2019.  Typically, a recession has occurred 7-24 months after a yield curve inversion.
  • The rebound from the December 24, 2018 lowest has been parabolic.  Our gains in the first four months of 2019 would be a good return for most entire years.   It can't continue at this rate, and if it does, a market crash is very likely.
So I am selling early, know full well that I may miss out on some gains.   But that's a risk I'm willing to take to sleep better at night.


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

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

Copyright © 2019 Achievement Catalyst, LLC

Thursday, April 18, 2019

Went to 100% Cash/CDs in Daughter's 529 Account

Our daughter's 529 account has already returned over 17% year to date.  17% would be a great annual return and it's only been 3 1/2 months.  At this rate, 2019 will have over a 58% return.   I don't think that's going to happen :-)     Alas, if it's too good to be true, it's probably is.

Thus, I am going to protect the gains we have to date, at the risk of missing out of further gains.   I will cash out of all mutual funds at the end of the day.  The funds will be invested in a CD paying a little over 2% for six months.  I'll decide at the end of 2019 whether to reinvest in the stock mutual fund.

Another reason for cashing out is that our daughter is a little over 4 years away from college.   If the market has a significant downturn, such as 08/09, we would lose about half of her college fund, just prior to her attending college.   That's a risk I have to avoid.

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

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

Copyright © 2019 Achievement Catalyst, LLC

Thursday, April 11, 2019

Why My Kids Won't Work in Californinia

California is a Liberal Nightmare.

See this example by Katie Porter a representative in Congress.

https://twitter.com/RepKatiePorter/status/1116049180902948865

Sorry, I have no sympathy for her example, who made numerous poor choices.  Where are the child support payments from the father?  Why isn't CA enforcing those payments? Why hasn't she moved from CA to a state where that pay can support her?

Finally, her math ignore all the tax credits that the taxpayer gets, such as EITC and Child Tax credit.  I expect her federal income tax is near ZERO.

I;m glad I don't live in CA.

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

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

Copyright © 2019 Achievement Catalyst, LLC

Wednesday, April 03, 2019

Sell High

While the market was falling in late 2018, I was buying.   I even made some purchases on theday of the bottom, December 24, 2018.   Despite the recent rebound in the stock market, I'm not putting any more money into stocks.  In fact, this is probably the time to take some profits and rebalance.  Remember the Wall Street adage:   Buy low and sell high.

So I'm selling some of my holdings that I bought in late 2018.   Some stocks are up as much as 80% and some indices are up as much as 20% since I bought them, in only 3-5.   Not a bad return....

Of course, I can't do this consistently :-)   So I'm still staying invested in our core holdings, while selling mainly the peripheral holding that were purchased with the intent of trading.

For more on The Practice of Personal Finance , check back Wednesdays for a new segment.

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

Copyright © 2019 Achievement Catalyst, LLC