Trading the Government Shutdown

Strange as it may seem, I expect the shutdown to cause market rally on Tuesday, as investors will expect the debt ceiling increase to be negotiated rather than become a fiscal cliff.  My plan is to sell into the rally on Tuesday to raise more cash for the possibility that the debt ceiling is raised.

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

The Wealth Builder Carnival #143

Welcome to the one hundred forty-third 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.

Insuring and Protecting

Gary presents Who Needs Life Insurance? Do I Need Life Insurance? posted at MyLifeInsuranceQuotes123.com, saying, "Ever ask yourself if you need life insurance? Every stage in life requires different considerations and priorities and we must adjust our financial outlook accordingly. Here is a step by step guide evaluating who needs life insurance, from when you are single to married with kids to empty-nesters, and what factors can play a role in determining how much coverage you need."

Investing

Bill Smith presents Bank Of Scotland Rating posted at FastSwings.com - Steve Patterson, saying, "In July of this year, Moody's Investor Service announced that they would review the Royal Bank of Scotland rating in order to determine whether or not the lending institution deserved a further downgrade in rank."

Matt Becker presents 5 Simple Questions to Ask Before Investing in Anything posted at Mom and Dad Money, saying, "Even when we already have an investment plan set up and running, we’re often presented with new investment opportunities that can seem pretty enticing. So how do we evaluate whether these new opportunities are right for us? We have to look beyond the hype and focus only on the aspects of the investment opportunity that are important to our specific situation. So today I’d like to talk about the five questions I think we all need to ask before deciding to put our money in any particular investment."

Living Frugally

Gary presents How Much Car Can I Afford? posted at Gajizmo, saying, "We want to prevent you from becoming the guy who drives around in a Benz, BMW or Escalade and then pulls up to a rent-controlled apartment. While that happens more often than you think all over the United States, it is critical that families not spend more than they can afford on a car. So, how do you determine how much car you can afford? Read our comprehensive guide to learn multiple strategies and considerations."

Jim Wilson presents 15 Blogs with Fun Kids’ Crafts for Under $10 posted at 10 Physical Contact Rules for Babysitters, saying, "Crafting is a multi-billion dollar business, but that doesn’t mean you have to break the bank to craft with your kids. Instead of shelling out big bucks for all of the fancy items craft stores carry, try to use things you already have around the house or find items that don’t cost a thing, like sticks, pinecones and recycled containers."

John Schmoll presents Christmas Shopping That Won’t Break the Bank posted at Frugal Rules, saying, "It may a bit early to think of Christmas as it’s a little over four months away, but by planning out your spending you have a much better chance of buying gifts everyone will love and still be frugal and thus not busting your budget."

Caleb Hill presents 10 Reasons to Consider Shopping the Consignment Shops posted at Nanny Classifieds, saying, "Whether you’re looking for a few new pieces or an entirely new wardrobe, clothing that looks great and fits beautifully is rarely cheap. Still, there is a source of gently-used clothing that you may not have previously considered, and that’s the local consignment shop"

Saving

Theresa Torres presents How Much Money Should I Save? posted at CreditDonkey.com Tips, saying, "Unsure about what your saving goals should be? Here are some tips and guidelines to help you get started."

Taxes

Bill Smith presents Check Tax Return Online posted at 2010 Taxes to 2013 Taxes, saying, "Since the 2008 Economic debacle, the U.S. has looked for ways to maximize income while minimizing expenses."


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

Climbing a Wall of Worry

"A bull market climbs a wall of worry." ~ Wall Street adage

In Still Planning for the Worst, I reiterated the four negative factors that I thought would bring the market down and added a fifth negative factor.   With the Fed delay of tapering, all four negative factors are now either neutral or positive.  So only the fifth factor, debt ceiling and budget debates, remains to potentially move the market downward.

Over the past two weeks, the market has responded with upward spikes to the defusing of Syria, Larry Summers withdrawal, and now the delay in Fed tapering to achieve new all time highs. Imagine how the market will shoot up when the President and House Republicans hold hands, sing Kumbaya, and resolve the debt ceiling and budget issues.

Stranger things have happened with Washington politics, but I'm not risking our savings and retirement accounts on the possibility.  Instead, I'm going to continue to expect the worst, and be pleasantly surprised when the factor becomes neutral to positive, as has happened the last four times.

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 #142

Welcome to the one hundred forty-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

Bryan Chau presents The Proclamation of Innovation – Redefine Your Industry posted at Success Pen Pal, saying, "earning, mindset, business, innovation, entrepreneurship, strategies, success, rules, metrics, rewards, etc."

Wozza presents Get Rich The Lazy Way posted at You and Your Money, saying, "Anthony Khoury is an avid entrepreneur and marketer. Anthony loves startups more than anything, automating the business, then letting them run without him. Only a few years ago, Anthony Khoury slogged it out working 80-hour weeks in his family's pizza restaurant. Today, he spends his time consulting to other businesses and travelling the world"

Insuring and Protecting

Gary presents Who Needs Life Insurance? Do I Need Life Insurance? posted at MyLifeInsuranceQuotes123.com, saying, "Who needs life insurance? Do you need it? Do single parents or empty-nesters or retirees? This article goes into detail discussing each stage of life, the financial liabilities and considerations you may have, and why you may need to buy life insurance coverage."

Investing

David presents Lending Money To Friends posted at Financial Nerd, saying, "I made the colossal mistake of lending money to a friend. Here is how it went down."

Matt Becker presents The Peer-to-Peer Lending Numbers They Don’t Want You to See posted at Mom and Dad Money, saying, "I see a lot of glowing reviews of peer-to-peer lending extolling the high short-term returns earned by the people singing its virtues. These reported returns have always seemed a little fishy to me, so I decided to dig a little deeper. Today, I want to share some of the results I found that the peer-to-peer lending marketers hope you never see."

Aussie Investor presents Share Price Performance History - The October Effect? posted at Cheap Shares, saying, "Is there any truth to the theory that stock prices fall in October? In this article we look at the history of share price performance in October as compared to other months of the year and see what conclusions can be drawn."

Living Frugally

John Schmoll presents Fashionable and Frugal – How to Save Money on Clothes posted at Frugal Rules, saying, "Shopping for clothes, especially for a growing family can be a costly endeavor. However, if you know what you’re doing you can be frugal and still get some great deals for the family and look good at the same time."

moneystepper presents Attitude to money – the three second test posted at Moneystepper, saying, "The right attitude to money is the number one tool in building long term financial wealth. Think you've got it? Take my 3 second test to check!"



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

Still Planning for the Worst

In Preparing for a Correction, I listed 4 negative factors that could take the stock market down.  Four weeks later, it appears all four factors are much less negative or even neutral to positive.  The market is trending up, Larry Summers has withdrawn from being considered for the Fed Chair, Syria has been defused, and Fed tapering will soon be fait accompli.

So why am I still pessimistically cautious?  Mainly because I'd rather be negative and have things turn out better than be positive (like in 2007) and have things turn out badly (like in 2008/2009).  I have been pleasantly surprised by and have benefited from the stock market rebound of the last two weeks.

However, the is still the debt ceiling and budget debate yet to come.  So I continue to expect the worst and hope for the best :-)

For more on Strategies and Plans Ideas, 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

The Wealth Builder Carnival #141

Welcome to the one hundred forty-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

Theresa Torres presents How to Start a Business from Home posted at CreditDonkey.com Tips, saying, "Planning to start a small business at home? Here's a step-by-step guide to help you get started as well as tips on start-up financing and a list of common start-up expenses."

Martin Poldma presents How to Earn Your First $100/Month in Passive Income posted at Success and Personal Development Blog, saying, "This is an article on how to get started and earn our first $100/month in passive income"

Insuring and Protecting

Gary presents Key Man Life Insurance posted at MyLifeInsuranceQuotes123.com, saying, "Key man life insurance should be a consideration for every business owner, whether you work from home and manage other key employees or own a small or medium-size business. Insuring a key player, executive or partner in your business can cover the costs of recruiting, hiring and training an essential part of your organization, as well as offer other critical benefits. Check out our guide on key man insurance and see if it right for your business needs."

Investing

Super Saver presents Expecting Tough Times Ahead posted at My Wealth Builder, saying, "2013 feels a lot like 2007 to me."

Living Frugally

Monica presents Free TV, Just Like It Used To Be posted at Monica on Money, saying, "I gave up cable 7 years ago and estimate that I have saved over $8400 by not having cable."

John Schmoll presents Cancel Your Cable, Save Thousands & Become More Productive posted at Frugal Rules, saying, "Spending money on cable television can often cost you over $100 per month and can add up quickly. If you’re looking to cut costs, save money and become more productive then cutting the cord can be a great option to look at."


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

Cutting Back

I'm consciously reducing the number of posts as I work on my exit plan from blogging. For the past seven years, I have been posting on a daily basis.  My new target is 1-3 posts per week, including The Wealth Builder Carnival, until the end of 2013.    I will then decide whether to continue blogging until the 10th Blogiversary of My Wealth Builder or the 10th anniversary of my retirement.

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

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

Copyright © 2013 Achievement Catalyst, LLC

Expecting Tough Times Ahead

"All good things must come to an end."  ~ Geoffrey Chaucer

After reading Barron's today, I am fully expecting a significant drop in the stock market. There are just too many uncertainties and negative factors looming.  The drop may happen as soon as the end of 2013 or it could be delayed for another  couple years.

2013 feels a lot like 2007 to me.  Despite a number of warning signs in 2007, the stock market kept advancing.  My company stock kept rising and the value of our savings and retirement accounts reached an all time high.  2013 has advanced to new highs, in spite of weakening economic numbers.  My company stock has reached a new high, and the value of our savings and retirement accounts have reached new highs.

However, unlike 2007, I'm going to listen to the numerous warning signs.  Instead of planning for the best and hoping against the worst, I'm doing the opposite: planning for the worst and hoping for the best.  That way I'll benefit whether I'm right or wrong :-)

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

Changing our Personal Finance Focus

As we have been revising our retirement spending plan, I realized that the focus of my personal finance evolved over time.  From my youth through starting to work, my focus was on saving, specifically developing good saving habits and getting a good job with enough income to save.    During my working years, my focus was on maintaining our savings plan, specifically living below our means and getting promoted to higher paying levels.  After almost 6 years of retirement, I now realize that our focus should be on spending, instead of saving and maintaining.  So I need to change my personal finance habits that I've been using up to now.

When I started My Wealth Builder in 2006, I was still focused on maintaining our savings plan, hence the use of Wealth Builder Ratios.  When I retired in 2007, I continued to use the Wealth Builder Ratios.  Based on the reviews with my financial advisor, I should change replace my Income to Salary ratio and Savings to Salary ratio, with a Retirement Income to Salary ratio.   Retirement Income will equal 4% withdrawal rate of liquid assets plus other income (dividends, interest, rental income) and be compared with my pre-retirement salary.

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

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

Copyright © 2013 Achievement Catalyst, LLC

The Wealth Builder Carnival #140

Welcome to the one hundred fortieth 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.

Insuring and Protecting

Gary presents A Guide To Life Insurance Quotes Online posted at MyLifeInsuranceQuotes123.com, saying, "Almost every financial advisor or planner will tell you that, if you have financial dependents, you need to have term life insurance as a form of income replacement. In this article, we define the 3 main types of life insurance, explain the factors that affect your premiums, and describe the life insurance buying process, from the application to the medical exam to underwriting and issuance. This is a comprehensive guide to help anyone considering life insurance."

Investing

Matt Becker presents The Real Risk of Investing in the Stock Market posted at Mom and Dad Money, saying, "Investing in the stock market carries with it a very large risk, one that is rarely talked about in the financial media. Today I want to address that risk head-on so we can all understand exactly what we're getting into when choosing to invest in the stock market."

Bryan Chau presents Don’t Leave It To Faith When Investing In Real Estate! posted at Success Pen Pal, saying, "real-estate, investing, business, success, marketing, strategies, advertising, tenants, etc."

Bill Smith presents Does Chromecast Make Google A Good Investment? - FastSwings.com posted at FastSwings, saying, "Even if you don't consider yourself particularly well-informed with regards to the stock market, the financial success and industry dominance of Google as a company is enough for most people to throw their money behind it."

Living Frugally

Monica presents Tailgating on a Budget! posted at Monica on Money, saying, "Football Season is upon us! Pre-season has started so it"

John Schmoll presents Frugal Towards Me or Frugal Towards You? posted at Frugal Rules, saying, "Gift giving can be a difficult situation when it comes down to the money spent. This is especially true when you like to live frugally and the other recipient does not. In the end, it’s the thought that counts."

Simpsonsparadox presents Saving Money with Your E-Reader - Yahoo! Voices - voices.yahoo.com posted at Saving Money with Your E-Reader, saying, "One way I've found to save money without feeling strapped. Thank you!"


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

Waiting for a 10% Correction

I continue to wait for at least a 10% correction.  Last week, I sold 5 out of 6 mutual fund that I inherited.  I continue to hold the energy mutual fund.    For now, I continue to hold the investments in the managed accounts and index ETFs.

When a 10% correction materializes, I plan to put more funds into broad market index ETFs and select dividend paying stocks.

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