Garage Organization

Over the past 10 years, I've purchased several organization kits with the hope of improving the storage in our garage.   Unfortunately, I've only put up or put together about half the kits, which left the unassembled kits     After helping my mother-in-law clean out her garage and basement, I got motivated and put up two of the organization kits, which decreased our tool clutter and eliminated the storage of the organization kits.

Now I have two more organization kits and two cabinets left to install.  I've got a better idea of where to put these items and hope complete installation by end of summer. 

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

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

Copyright © 2013 Achievement Catalyst, LLC

Project Backlog Creating Clutter

 One of my bad habits is starting do-it-yourself repair projects but not completing them.  I'll get all the materials that are needed and put them aside for another time to the project.   However, unless the project has a pressing issue, I sometimes won't get back to the project for months or, in some cases, years.  In the meantime, the project materials are stored in the garage or basement.

I guess the excitement of starting a new project is greater than the satisfaction of finishing an existing project.  Unfortunately, my avoidance of completing projects is creating clutter in our house.   To reduce the clutter, I need to start finishing existing projects.  

First, I will take on no new discretionary projects, i.e. ones that don't need immediate attention.  That way, I won't be adding any more materials to storage.  Second, I will finish at least one project a week.  That should eliminate one item from storage each week.

With this approach, I hope to reduce my project backlog and eliminate some clutter since I have at least thirty project in backlog.

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

This is not financial or do-it-yourself advice. Please consult a professional advisor.

Copyright © 2013 Achievement Catalyst, LLC

Social Security Options

I'm learning there are many factors to consider on when to start taking Social Security payments.  Unfortunately, there is no right answer since it mostly depends on when the recipient dies, which won't be known in advance.  Here are some of the factors:

Earlier or later.   People can start as early as 62 with reduced benefits or wait until 70-1/2 for higher benefits.  Based on my analysis, 78 is the breakeven age for me.  If I die before 78, going earlier is better.  If I live past 78, starting later is better.   For a surviving spouse, later is always better.

File and suspend.  At full retirement age, a person can choose to file and suspend benefits so that a spouse can get the spousal benefits.

Other family member benefits.  In some cases, minor children are eligible to receive benefits also.

I always thought Social Security would be gone by the time I was eligible for benefits.  But now that I'm getting closer to the minimum age, I'll be doing a more detailed analysis of the options with my financial advisor.
For more on Reaping the Rewards, check back every Friday for a new segment.


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

Copyright © 2013 Achievement Catalyst, LLC

A Tax on the 30%

Obamacare Challenge: Getting Young Workers to Buy Insurance points out that about 30% of young (and healthy) workers currently choose to not have health insurance. The success of Obamacare will depend on this segment "voluntarily" signing up for health insurance.  Otherwise, the cost for exchanges to insure mainly those with greater health needs will be very high.

In 2014, the uninsured will be required to either enroll in a health care plan or pay a penalty. The young (and healthy) will have to pay whether they want health care insurance or not, which effectively makes it a tax on the 30% that currently choose to forgo health care coverage.

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


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

Copyright © 2013 Achievement Catalyst, LLC

Investing During Volatile Times

"... attempt to be fearful when others are greedy and to be greedy only when others are fearful." ~ Warren Buffett on investing.

While Warren Buffett's emotional investment strategy is good in theory, I find executing it consistently very difficult.   For example, I've been tricking funds into the market since May 22 when Ben Bernanke first discussed the possibility of tapering bond purchases.  However, this past Monday's volatility caused me to significantly taper my ETF purchases since I had already taken losses on many of my earlier purchases.  However,  the Dow has had two 100+ point days since then.  Earlier this year, I had been selling into the rally to take profits, but that resulted is a bit of seller's remorse as many of the sold stock advance another 10-25%.

Of course, I wish I could buy at the exact bottom and sell at the exact top. But that just isn't going to happen.  So I will continue to buy specific index ETFs on down days and sell profitable stock positions when a market advance begins again.

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

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

Copyright © 2013 Achievement Catalyst, LLC

The Wealth Builder Carnival #132

Welcome to the one hundred thirty-second 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 A Powerful Trick To Get People Selling Affiliate Products For You – For Free! posted at Affiliate Help!, saying, "Here is a powerful technique to entice people to sell affiliate products for you online, and you keep all the commission! Done correctly, you could see massive sales."

Elizabeth Atwood presents 10 Sites To Make Money Online posted at rockabyeparents.com, saying, "A look at 10 legit sites that will help you make a little extra money online."

Insuring and Protecting

Super Saver presents Careful Not to Create E-mail Contracts posted at My Wealth Builder, saying, "I was surprised to learn that an e-mail exchange can become a binding contract under certain conditions."

Investing

Dividends4Life presents 6 CEO's Showing Confidence With Increased Dividends posted at Dividend Growth Stocks, saying, "A person’s character is determined by how they behave when no one else is looking and during difficult times. In much the same way, we can learn a lot about a company’s management when they face adversity. One metric I look at closely during a downturn is cash generation relative to earnings. The ability of a company to grow its dividend throughout the economic cycle is highly dependent on the management’s ability to generate cash in a downturn..."

Jason Hull presents Why Monkey Brain Loves Financial “Secrets” posted at Hull Financial Planning, saying, "Whenever a "guru" promises to share a financial "secret" with us, our limbic systems perk up. Why do we think that common sense is a "secret" and how can we keep from falling for this ploy?"

kurt@mymoneycounselor.com presents Wall Street Breaks Record posted at Money Counselor, saying, "Record margin debt on Wall Street means when stocks fall, they're going to fall hard and fast."

Living Frugally

John Schmoll presents Would You Wipe Your Butt with a Used Napkin? - Frugal Rules posted at Frugal Rules, saying, "Many people like to be frugal and save money and I count myself as one of them. However, there is a fine line between being frugal and being downright crazy, such as some of the people showcased on Extreme Cheapskates that use used napkins for their doody as opposed to buying TP."

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

Buy a Little, Wait a Lot

I will continue to trickle funds into my ETF investment strategy, although I plan to reduce the amount.   Before the market open, I put in limit orders 5-7% below Friday's close.  I think now may be the time to step to the sidelines and wait for the correction to take its course.

In July 2011, I wrote in Expect a Buying Opportunity Soon:

"After a 20% decline, I plan invest 10% of our retirement account back into stocks. After that I will reinvest 15% for the next 10%. Then I will reinvest 20% for each succeeding 10% drop. So if the market drops 40%, we will be 45% back into the market. Past 40%, I probably don't have the courage to continue to reinvest."

With the exception of small index ETF purchases, I will wait for the 20% correction before putting more funds back into the stock market.

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


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

Copyright © 2013 Achievement Catalyst, LLC

The Ugliness is Beginning

It looks like the most ever anticipated correction is going to get worse this week.  First, this is the end of Q2 and fund managers will be rebalancing their portfolios.  This will cause further selling of down stocks.  Second, interest rates are rising due to the likelihood of the Fed tapering bond purchases.  This will cause a further exodus from bond funds. Third, the end of QE is coming under a new Fed chair.  This will cause high uncertainty for the stock market since the outcome is expected to be bad.  Fourth, I put funds into the stock market last week.  This will cause the market to fall further :-)

I expect this week to be very painful for long investors.  And I expect the decline will lead to a great buying opportunity.

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

Continuing Correction Will Probably be My (Bad) Luck

This week I continued to trickle fund into my ETF investment strategy .  In addition, I put funds into a managed account which I have been evaluating for the past few months.

With my luck, the market will continue to correct next week since I have invested more funds in the market. I haven't been particularly accurate at picking the direction of the market over the past few months.   So my guess that the correction is going to be short and shallow will probably be wrong.  :-)

I'm starting to worry a little that this correction may turn into another 08/09 correction.   Volatility and uncertainty are back.   In addition, there will be a new Fed Chair in 7 months.   Seems like the elements that will lead to a painful bear market.

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

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

Copyright © 2013 Achievement Catalyst, LLC

Exercising with our Daughter

When I was a child, most of my exercising was done in team sports or occasionally on my own.  I don't ever remember exercising with my parents.  The closest parent exercise experience was going to the driving range with my dad.  Now that my parents are gone, I wish I had done more activities with them.

This year, I've been trying to increase myexercise activity with our eight year old daughter.  One activity is practicing soccer in our yard.   Sometimes, we do some biking together.  Another activity is for me to jog with her when she is driving her electric car or using her scooter. 

This week we started a new activity: jogging together.   I was surprised when she declined using her electric car and offered to run with me.  We did about 30 minutes of running/walking for our first workout together.  We also got to chat about a lot of topics.

I'm looking forward to doing more runs with our daughter.

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


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

Copyright © 2013 Achievement Catalyst, LLC

Careful Not to Create E-mail Contracts

Although I was aware that a written contract was binding, I didn't realize that e-mail exchanges can also constitute a binding contract.  Here's a summary of what I've read in articles.  Courts have ruled that an e-mail can be contract if there is an "offer, acceptance and intent to be bound," meaning there is a "meeting of the minds." To avoid creating a contract, e-mails should contain language specifying the content is subject to further negotiation and does not constitute a binding contract. 

Based on what I've read, I will be careful not to let my e-mails become a binding contract.

See E-mail Exchanges Can Create Binding Obligations and When An Email Becomes a Binding Contract for more details.

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

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

Copyright © 2013 Achievement Catalyst, LLC

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.
Tuesday 6/18 - Dow close up 138.  No purchases made.
Wednesday 6/19 - Dow down 206 after FOMC press conference.  Bought more ETFs.
Thursday 6/20 - Dow down  354.  Bought more ETFs,
 Friday 6/21  - Dow up 41.  Bought some ETFs when Dow was down intraday.  Decided to invest some funds in a managed account.

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

Correction Over?

This week the S&P reached a 5.3% intraday correction and the Dow had a 4.4% intraday correction on Thursday.  At Friday's close, the S&P was down only 2.6% and the Dow was down only 1.9%.   The correction appears to have come and gone making for another shallow correction.  This time I was able to buy some commission free purchases for my ETF investment strategy.  I was also able to purchase small amounts of shares in four bank stocks.

Going forward, I expect the stock market to be volatile.  The market may go up or it may be flat, but I expect a 5% rise is more likely than a 5% drop for now.

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

Low Interest Rates Making Retirement Harder

Low interest rates may be good for debtors but are bad for retirees and future retirees.

A decade ago,  $1 million in savings could be put in 5% CDs and earn $50,000 per year.  $50,000 was a pretty good annual income in 2003, especially if combined with Social Security, a pension or a small part time job.  

In 2013, the situation is much different.  $1 million in savings can be put in a 1.5% five year CD or a 2% ten year Treasury and earn $15,000 to $20,000 a year.   That's pretty large retirement pay cut, and won't be made up by Social Security, a pension or a small part time job.

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

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

Copyright © 2013 Achievement Catalyst, LLC

An Unbreakable Record

"Records are made to be broken." ~ unknown

Last year, I was checking the sports records for my high school and found that I still hold a school track record that has now stood for over 40 years. It is for the 4 X 220 yard indoor relay race. I was very surprised to see the record was still standing, especially since runners are much faster now than 40 years ago.

Funny thing is that I don't remember that we set a record, even though I remember the race. I ran my best indoor 220 split ever and our team won the race in a dual meet. I was the slowest runner on the team so I ran the third leg. I managed hold my own during my leg, but was still in second place when I handed off the baton. It was our anchor man that won the race for us.

It took me a while, but I finally figured out why the record still stands.  Track races are now in meters and our race was in yards.   So unless race go back to English measures, our time will always be the school record for the 4 X 220 yard relay race.  It will be an unbreakable record.

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

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

Copyright © 2013 Achievement Catalyst, LLC

A Correction (Almost) Finally

Patience has paid off.  The Dow is down 4.6% intraday and 3.5% weekly.  I took advantage of the decline to trickle in some funds into my ETF investment strategy.

Up until now, I've been expecting a shallow dip, but I'm now thinking the correction may be deeper and  reach 10%.  I will try to remain disciplined and continue buying down to 10%, even though every percent decline will make a stock purchase more painful.

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 #129

Welcome to the one hundred twenty-ninth 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 presents Become A Freelance Writer posted at Gajizmo, saying, "Freelance writing is quickly becoming one of the best ways to make money online, without the headaches and costs of maintaining a blog or website. Check out our thorough guide on how to become a freelance writer."

Investing

Dividends4Life presents 6 Confident and Secure Companies Boosting Dividends posted at Dividend Growth Stocks, saying, "If income investing were as simple as picking the stock with the highest yield, everyone would be an expert. Most assume (rightfully so) that yield is heavily influenced by risk, but much more goes into determining yield. The industry the company operates in, legal considerations (REITs and MLPs), maturity and growth potential all have an effect on an individual stock's yield, along with the company's ability to grow its dividend..."

Living Frugally

Lisa Jackson presents 30 Blogs with the Best Tips for Scoring Garage Sale Finds posted at Live-Out Nanny, saying, "When this time comes around each year, homeowners across the country take the opportunity to make a big push towards organization and cleanliness. One of the best ways to get rid of all that clutter after the big cleaning is to host a garage sale."

John Schmoll presents Why I’ll Always be a Fan of the Dollar Store posted at Frugal Rules, saying, "Going to a Dollar Store can always be an adventure. You might find some good deals and not so good deals. If you know what you’re doing though, you can score a really good deal and save a good bit of money in the process."

Theresa Torres presents How to Save Money on Gas posted at CreditDonkey.com Tips, saying, "Making a few changes on your driving and gas-purchasing habits can save you a few dollars each week. Here are some tips you can practice at home, while driving, at the gas pump, and on a road trip."

kurt@mymoneycounselor.com presents Mortgage Rates Jumping posted at Money Counselor, saying, "The U.S. national average 30-year fixed mortgage rate has popped over half a percentage point in May. If you're looking to finance a home, what's this jump done to your prospective monthly payment?"

Saving

Super Saver presents Low Awareness of 529 College Savings Plan posted at My Wealth Builder, saying, "Over two thirds of Americans do not know what 529 college savings plans are, despite the fact that the average student loan debt is $27,000 for college graduates."


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

Didn't Follow My Plan

This morning I was planning to start buying early on any dip.  I was distracted and didn't follow through, even though some of my target stocks were down.  By end of day, most the stocks were up and I missed my buying opportunity.

Darn!

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 © 2013 Achievement Catalyst, LLC

Market Correction Coming - Maybe!

If the Asian markets are a good indicator, Monday will start off as a down day for U.S. markets. I expect that the markets will experience at least an intraday 5% correction during this week. Perhaps, the correction may go as high as 10%.

However, if there is enough bad news, investors may be relieved since the Fed will wait longer before beginning to tape QE, which would be good news.  In that case, a correction won't happen.

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

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

Copyright © 2013 Achievement Catalyst, LLC

Market Correction Likely Next Week

Based on the market action, I expect there will be a market decline next week. I expect it will be enough to provide the 5% correction that has been long awaited.  Here are the reasons:

Higher volatility.  Volatility is returning after staying low for all of 2013.

Fear of Fed tapering.  I realized a couple weeks ago that QE tapering is the greatest fear in the market.  Just the mention of slowing QE has caused the market to decline 2% a couple weeks ago.  With the economy slowly healing, QE tapering is becoming more likely sooner.

Good news is bad news.  Good economic news means QE tapering which means bad news for the stock market.  Next week will include two Fed speeches, two May job reports and the weekly unemployment new claims. 

I look forward to the buying opportunity the correction will create.

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

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

Copyright © 2013 Achievement Catalyst, LLC