My Latest Good News on My “Modest Proposal.” By Steve Schullo Member-at-Large, LAUSD Retirement Investment Advisory Committee (RIAC) If you read my previous post just published the other day, you read my thinking, analyses, and my purpose for undertaking a major revamping. Let me be clear, the current plan is a great plan. While …
Steve’s LAUSD’s 457(b) “Modest Proposal” Update! Read More »
I am a proud underachiever and late bloomer. However, it was not like that in my youth and young adulthood. It took years of painful growth, earning three college degrees after age 30, learning from financial mistakes, and my Buddhist spiritual practice to get to this positive status. Here is my academic underachiever list: missed …
April 19th, 2021 Honorable Jackie Goldberg, Board of Education Los Angeles Unified School District 333 South Beaudry Ave 24th Floor Los Angeles, CA 90017 Dear Ms. Goldberg: Did you know April is financial literacy month? This letter is about another progressive suggestion, pass a financial literacy resolution. With so much at stake, we must prepare …
Financial Literacy Instruction? Open Letter to Los Angeles Board of Education Read More »
Sorry I am so late in getting my Year to Date Report. At the moment, I feel fine but as we all know and probably agree, we can’t wait for this year to be over. What terrible times we live in. Now I know what Americans were going through during the “War Years” of WWII but at least people could get together. This is terrible and with all of our social unrest here and around the world, RBG dying, the continuing spread of COVID with no end in sight, and something big on the first Tuesday next month! At least the election will be decided. Survey after survey about the historical effects of presidential elections was neutral. The only effect on a candidate winning and losing is the economy. If the economy is negative the incumbent is defeated, and if the economy is good, the opposite. But the stock market reflects hundreds of variables (GDP, interest rates, consumer confidence and spending, manufacturing data, employment rate, geopolitical tensions, trade wars, and on and on) and not just who gets elected. The most influential factor is our fellow investors’ BEHAVIOR!
Stock Markets, Finances, and Politics are Time Bombs for our Emotions!
My portfolio is up only because the stock and bond markets are up too. Recall that my portfolio follows the market. I have been incredibly lucky with my 67% bond allocation as interest rates dropped my bonds went up in value. Guess what? So has my portfolio. Take a look at my graphs and tables. Have a great day and see you at the end of this terrible year for my annual 2020 report.
Our next Shark Attack is concerned about timing the market and picking investments based solely on prices and immediate past returns. Find out what the repellent for this latest shark attack in one click.
I have been a do-it-yourself (D.I.Y.) investor for over 25 years. I “do it myself” by managing my money without professional help because I was taken advantage of by an insurance agent. I had to learn to invest because it was my only choice. I was in my early 40s, finances and Wall Street were matters I was never interested in. But what a turnaround—I became involved because I was sold an expensive and inappropriate retirement product. This agent took full advantage of my financial naivete so she could get a $4000 commission. I vowed that will not happen again. But little did I know that my psychology background was a big advantage to becoming financially literate so much so that I became a DIYer. Many years later, I authored my story in two published personal finance books to warn others, and assist in becoming a D.I.Y.
Sector funds, even low-cost index funds are risky and any adviser who recommends them is a shark attack. Sector funds, even low-cost index sector funds are risky, narrow part of the stock market, and must be avoided because they invest in only the companies that describe the fund.
Communication Services: 9.9%
Consumer Discretionary: 10.2%
Consumer Staples: 6.7%
Energy: 6.0%
Financials: 13.7%
Health Care: 14.9%
Industrials: 9.7%
Materials: 2.5%
Real Estate: 2.7%
Technology: 20.8%
Utilities: 2.8%
Don’t allow a financial shark talk you into a sector fund because it is hot right now. The technology sector is hot now and it’s tempting, but with a little financial literacy, you will not fall for this shark’s excitement.
If you are thinking about hiring a financial adviser, you might be wise to read my experience of unethical “advisers” who took full advantage of my naivete to impose unorthodox legal commissions and high costs.
My financial story is remarkably simple. I have always given people the benefit of the doubt, even though I was taken advantage of when I was younger, which cost me $6000. I call this the youthful “tuition” of getting wiser and knowledgeable about everything financial, and now helping others. Some may regret this negative and costly experience for the rest of their lives. I do not. I did something about it—my suggestions about what I do now are contained in this blog post.
Number 7 Shark Attack is a little easier to spot and to repel. Almost all of the investment books and articles I have read for the last few decades all say to think long term. However, there are a few professionals and some of our friends who cling to the notion that you might fall for one of the speculative options, investing in individual company stocks. Their argument can be convincing, but not for us.
As writers, we want to make a difference. This blog post is about a financial book review I wrote on Amazon 9 years ago and why I recently increased my former 3-star to a 5-star review.
Over the last decade, I wrote 15 personal financial book reviews on Amazon. I gave all the authors four or five-star reviews because they wrote a good financial book. But not the Millionaire Teacher! I was angry and disappointed with the first edition. Because Rule 9 violated the indexing strategy that he promoted and wrote about in the first 8 Rules. So, I gave the book 3 stars. What you will read is unpredictable in the book publishing world, and Amazon!