I have read many books on personal finance. The majority were about the quantitive aspect: the data, graphs, statistics, market history, types of stocks and bonds, and the skills needed to construct low-cost diversified portfolios. This book finishes the job by discussing the lesser status qualitative aspect: your thinking and your emotions surrounding money. Both aspects make valid contributions for the eventual, sometimes elusive goal of financial independence, and to be happy at your job and giving back to the greater good.Learn More
The Stock and Bond Markets are up again in the third quarter of 2016. Read how my portfolio has returned 6.7% after nine months. It’s really not complicated because my portfolio is straightforward. It’s constructed to gain when the core asset classes increase and loses value when the market goes down.
Losing is an important part of investing process, if not the most important part. The majority of people don’t understand it because they sell when their investment declines. Never sell, unless it is part of your plan, not because of bear market conditions. Have a plan and stick with it during ups and downs.
It’s that time of the year, the Quarterly Reports. I really hope you find these reports helpful for a number of reasons:
1. Show you how a portfolio of diversified stocks, bonds, and cash looks like.
2. Show how this diversified portfolio performs in coordination with the stock and bond markets.
3. The individual holdings are not selected at random, but for the purpose of doing a specific and important job in the portfolio. It’s always about the portfolio as a whole performing package, not about the individual holdings.
4. Each holding reflects a specific part of the domestic and international stock and bond markets.
5. While some of the stock asset classes have high correlations, stock and bond allocations are not. Including bonds in my portfolio helps preserve my money against a major and lengthy stock market crash. This is known as the stock bond split. My portfolio is 30% stocks and 70% bonds. My 30% exposure to stocks provides enough risk that my portfolio should keep up with inflation (This is not a guarantee, it is part of my diversification and asset allocation plan).
6. This portfolio is an example of a conservative portfolio for a 69-year-old retiree.Learn More
Is been over eight months since Dan died and while the hours and days are getting easier, I miss Dan every day. The single life remains an unfamiliar challenge. I am still thinking and feeling as a part of a couple—similar to losing a limb, the phantom pain is real. I am functioning just fine and carrying on with life as if nothing happened. But my grief is alive and painful just below the surface, 24/7. I am slowly “rebalancing” back to a single life, a life that I have not experienced since my 20s.Learn More
Additional workshop results from retired participations at one of the country’s biggest senior centers, Mizell, located in American’s premier retirement destinations, Palm Springs CA. I was asked by my friend Dave to give my presentation that Dan and I had given in the last 3.5 years.Learn More
Every time we offer one of these rare investment workshops, the workshop participants always comment that they want “more of the same.” Only two per year can be provided because of costs. UTLA and LAUSD do not fund these workshops. To their benefit, UTLA does provide the room, and Eva for paperwork and logistical support, and we thank UTLA for that support. On the other hand, LAUSD has rejected support for these workshops for years. We need to inform the Board of Education that financial literacy education is a significant benefit for their employees. If more employees knew of the district’s Award Winning 457(b) plan, more educators would save money for retirement and in the long term would save the district money.Learn More