Tuesday, August 28, 2018

Articles Predicting Further Gains for the Stock Market

Here are two interesting articles from CNBC and Marketwatch on why the S&P is likely to be up from now at the end of the year.

https://www.cnbc.com/2018/07/31/the-sp-is-doing-something-it-hasnt-done-since-eisenhower-presidency.html

https://www.marketwatch.com/story/the-fate-of-the-stock-market-for-2018-could-rest-on-the-next-5-trading-days-2018-07-24

The indicator has been right 100% of the time since 1935.  Of  course, past performance does not guarantee future performance.  But I'm betting this year doesn't break the streak.

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

This is not financial nor investing  advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

Monday, August 27, 2018

Sticking to the Investment Plan

Staying invested since the end of January 2018 has been tough.   The correction was longer than average, there was a lot of geopolitical concerns, and there were growing legal issues for the Trump administration.  During that time, the market was a roller coaster, with seemingly more dips that rises.   It was hard, but I bought cautiously during the dips, even when the market kept going lower.

Now that the correction is officially over (as of last Friday), all the anxiety and commitment has paid off.  We've increased our investments in equities by around 25%.  Most of the increase was adding to current positions, but I did initiate some new positions.     With the recovery, most of the purchases now have positive gains.  A few, like TWTR and IQ, are still below my average purchase price.  However, I do expect these to recover in the next few months.

My forecast for the S&P index is that is will be up 10% from Friday's close before 2019.  My plan, at this time, is to maintain about the same level of investment through the end of the year.

Disclosure:  We own share of TWTR and IQ at the time of posting.

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

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

Thursday, August 23, 2018

College Savings Plan Adjustment

Our College 529 Plan made two adjustments for 2018.

First, the amount that can be deducted from income has been increased from $2000 to $4000 per year for each beneficiary.   We can take a state tax for contributions up to $4000.    So we will be increasing our contribution from $2000 to $4000 for each beneficiary. 

Second, per federal and our state regulations, College 529 Plan funds can be used for expenses in K-12.   Since we paid over $3000 in tuition for full day kindergarten in public school, I am considering using the 529 plan funds to cover this cost.

Some argue that it is inefficient to use 529 funds for K-12 since there is a reduction of funds for college.  To address this issue, I plan to pay the funds to the student (beneficiary), who can then invest the funds.  The growth in these funds will be tax free since the beneficiary is a minor dependent and can earn up to $900 per year with no taxes.

Of course, funds in the child's name will reduce financial aid packages, but we expect to receive very little needs based aid at this time.

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

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

Copyright © 2018 Achievement Catalyst, LLC

Saturday, August 18, 2018

Mildly Optimistic

It's had to be optimistic about the stock market with all the negativity swirling about.   However, that's probably the time to tough it out and stay invested.   

I have mixed feelings.   I believe the market will be significantly higher by year end, no matter what the outcome of the midterms.  If the Democrats win, the market will go up; if the Republicans winn, the market will go up.  But I believe August will be a volatile month, perhaps even being a down month.

It is a bifurcated stock market, with a lot of rotation.  Some stocks are going up, while others are going down, resulting in a slight rise in the indices.

So I will take some profits in advancing stocks (which means they will probably advance further:-)   And I will buy some short term beaten down stocks, e.g. Chinese internet stocks, biotechs.   I expect that the stock market may be a bit of a roller coaster, and be prepared for slow rises and quick drops.

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 © 2018 Achievement Catalyst, LLC

Thursday, August 16, 2018

Free Medical School Tuition

NYU, a top ten medical school is offering free tuition to all its students beginning this year.   That will eliminate a significant financial burdens.  Students' only cost will be room and board, which is a normal cost of living.

For more details, see this CNN article.

This is great news for those interested in becoming a doctor.    If this were an choice when I was graduating, I would have given the option strong consideration.

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

This is not financial nor education advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

Wednesday, August 08, 2018

Betting With American Exceptionalism

"Don't bet against the U.S." ~ my late father-in-law

In 2009, my late father-in-law commented that he was staying in U.S. stocks because he believed the U.S. would do well recovering from the Great Recession.  He was right.   Today, I still think his point of view is still valid.   The U.S. will do well because of the exceptionalism of its individuals.   I will continue to stay invested in the U.S. economy and the companies, despite all the naysayers.

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

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

Copyright © 2018 Achievement Catalyst, LLC