Setting Goals and Real Estate for example

Posted on August 10, 2008. Filed under: -- Building Wealth, -- Entrepreneurship And YOU, -- For The Investor In YOU, -- On MY Calendar, -- What MOLLY's Up To, Pictures | Tags: , , , , , , , , |


By Molly Greaves

Setting goals: 

I do best if I put myself on a deadline, so I’ve decided to set up some goals for my real estate efforts. To be sure you set goals that can work for you, make sure they are:

-Clear and defined

– Reachable

-Time defined (set deadlines)

-Measurable to determine success

-Have identifiable action steps

– Tell others about your goals to help keep you in alignment with what you’re trying to achieve.

So, for example, here is what I said…

I want to add an extra 10k/month to my annual income.  I’m going to do this by creating a long-term income stream that will pay me residuals. So, I’m going to buy investment properties and aquire rental properties which will yield that level of income.

I’m also working on a mortgage pool, which will offer somewhere around 13%-15% interest, and be backed by a first lien position on real estate. If you know of any investors that might be interested, please let me know; they’ll love you for it, and I’ll handsomely reward you for your efforts. 

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Did you know that having the attitude that of “I don’t need a financial advisor until I make gazillion of dollars” will end up probably costing you a lot of money

Posted on July 15, 2008. Filed under: -- Building Wealth, -- Money Help (in simple terms), -- Uncategorized | Tags: , , , , , |


Yep. Get on it! Not sure where to start? I like Vanguard personally. Good advice, low-cost expenses, and good returns.

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WHY I LOVE ROTH IRAs!

Posted on July 10, 2008. Filed under: -- Building Wealth, -- For The Investor In YOU, -- Money Help (in simple terms), -- Saving Money And YOU, -- YOUR Retirement | Tags: , , , , |


by Molly Greaves

Unlike a 401(k) you get no tax break on the dollars you put into the Roth, but you get to withdraw your money tax-free when you retire.  I think it’s a great hedge against higher taxes in the future. I dont know about you, but I only see them continuing to rise as the years go by. 

Also, a Roth IRA is just about the best financial gift you could ever give to your kids. 

Here’s why: Your assets in your Roth dont have to be tapped at any time during your lifetime, should you be so lucky, and when your kids inherit them, they can withdraw the money tax-free.

Compare that to a regular IRA. If you own this investment vehicle, you’ll have to start taking out distributions from the account starting April 1 of the year AFTER you turn 70 1/2, even if you dont need the money. And then, once your kids inherit the money, they will have to pay income taxes on the money when they take it out. So, they’ll end up with a LOT less. 

If you’re already seeking an employer’s full match, I would recommend putting the rest in the Roth until that is maxed out.  More to be added to this topic…much more.

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Types of Stocks

Posted on July 7, 2008. Filed under: -- Building Wealth, -- Money Help (in simple terms), -- Uncategorized | Tags: , , , |


by Molly Greaves

Investors use a variety of methods to classify a group of stocks including.

Growth vs. Value

Company Size (market cap like: large-cap, mid-cap, small-cap)

Geographic location (domestic vs. international)

Industry Sector or Group (Health Care, Financial, Energy, Technology are all examples)

All are important to a diversified portfolio. 

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A Roth Will Create a Better Legacy For Your Family Than a Traditional IRA Will

Posted on July 7, 2008. Filed under: -- Building Wealth, -- For The Investor In YOU, -- Money Help (in simple terms) | Tags: , , , , , |


 

By Molly Greaves

I’d heard a Roth IRA is just about the best financial gift you could ever give to your kids so I did some research… 

Here’s why: Your assets in your Roth dont have to be tapped at any time during your lifetime, should you be so lucky, and when your kids inherit them, they can withdraw the money tax-free.

Compare that to a regular IRA. If you own this investment vehicle, you’ll have to start taking out distributions from the account starting April 1 of the year AFTER you turn 70 1/2, even if you dont need the money. And then, once your kids inherit the money, they will have to pay income taxes on the money when they take it out. So, they’ll end up with a LOT less. 

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Always Ask for a Prospectus Before Investing in a Fund.

Posted on July 7, 2008. Filed under: -- Building Wealth, -- For The Investor In YOU, -- Money Help (in simple terms) | Tags: , , |


This is a detailed description of the fund you’re wanting to buy into, including all of its investments. It’s written according to gov’t regulations as an FYI.

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What is the Dow Jones? Who’s listed on the Dow Jones?

Posted on July 7, 2008. Filed under: -- Building Wealth, -- Investing, -- Money Help (in simple terms), -- Today's DJIA 30, . More Resources For YOU! | Tags: , , , , , , |


Lots of people hear about the Dow Jones over and over again, but many, and I repeat, MANY, people have no clue what it means.  So, to address that, the Dow Jones Industrial Average is the weight-average from 30 blue-chip stocks, which typically are the leaders in their industry. The 30 members can change, but below is a fancy-schmancy chart that lists the 30 stocks as of 6/20/2008. I got this chart from Bloomberg.com  (I’m happy to see Alcoa on there. I used to work for them; really like it.)

 

DOW JONES INDUS. AVG MEMBERS

Time
3M CO 73.02 -1.10 -1.48 7,367,730 06/20
ALCOA INC 37.34 -1.78 -4.55 17,507,949 06/20
AMER INTL GROUP 32.10 -0.97 -2.93 30,876,762 06/20
AMERICAN EXPRESS 41.18 -1.45 -3.40 14,219,995 06/20
AT&T INC 34.43 -0.72 -2.05 43,386,834 06/20
BANK OF AMERICA 27.10 -1.04 -3.70 89,929,669 06/20
BOEING CO 75.83 -1.12 -1.46 8,868,649 06/20
CATERPILLAR INC 79.08 -0.40 -0.50 9,065,511 06/20
CHEVRON CORP 96.62 -0.24 -0.25 15,030,056 06/20
CITIGROUP INC 19.30 -0.87 -4.31 151,603,700 06/20
COCA-COLA CO 53.66 0.30 0.56 16,636,519 06/20
DISNEY (WALT) CO 31.94 -0.95 -2.89 21,345,075 06/20
DU PONT (EI) 46.23 -1.17 -2.47 11,173,619 06/20
EXXON MOBIL CORP 84.91 -0.88 -1.03 36,185,814 06/20
GENERAL ELECTRIC 27.38 -0.53 -1.90 89,703,387 06/20
GENERAL MOTORS 13.79 -1.00 -6.76 38,249,677 06/20
HEWLETT-PACKARD 45.64 -0.95 -2.04 20,129,605 06/20
HOME DEPOT INC 26.25 -0.93 -3.42 17,187,996 06/20
IBM 122.74 -2.28 -1.82 9,624,839 06/20
INTEL CORP 22.37 -0.48 -2.10 71,026,009 06/20
JOHNSON&JOHNSON 64.06 -0.56 -0.87 16,434,932 06/20
JPMORGAN CHASE 37.86 -0.79 -2.04 55,377,221 06/20
MCDONALDS CORP 57.40 -1.19 -2.03 10,427,584 06/20
MERCK & CO 35.13 -0.47 -1.32 20,639,833 06/20
MICROSOFT CORP 28.23 -0.70 -2.42 97,488,232 06/20
PFIZER INC 17.33 -0.44 -2.48 63,389,601 06/20
PROCTER & GAMBLE 63.16 -1.74 -2.68 21,462,039 06/20
UNITED TECH CORP 68.80 -0.02 -0.03 8,822,479 06/20
VERIZON COMMUNIC 35.38 -1.12 -3.07 22,118,831 06/20
WAL-MART STORES 56.26 -1.43 -2.48 27,053,289 06/20
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Don’t Forget: Saving is for a Short-Term Goal and Investing is For Your Long-Term Goals

Posted on July 7, 2008. Filed under: -- Building Wealth | Tags: , , , , |


*Short-term refers to 5 years or less. So, dont invest short-term money in stocks.

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Suze Orman’s DO NOT List

Posted on July 7, 2008. Filed under: -- Building Wealth, -- Suze Orman, -- Top 10..., -- Uncategorized | Tags: , , , , , |


 

By Molly Greaves

I find Suze Orman’s TV show to be sort of overwhelming, although, most of us that are talking about money are. We’re just super excited to help you succeed, and want to teach you all of the tricks and the trade for your success that we can, regardless of your situation. The good news is that we live in the information world so it was easy for me to buy her book and get her information in that format instead. I’ve had this book since it hit the bookstores, but recently dug it up, like I will with many books that I’ve already read. I wanted to share with you her DO NOT list in case you havent seen it yet. I got it from page 358 of her book, The Money Book for the Young, Fabulous and Broke.

Here you go:

DO NOT:

1. Screw up your FICO score. It’s your winning ticket to every financial move you will ever make when you go to borrow money in the future.

2. Focus on Your Paycheck She says to instead, focus on your mark.

3. Think you can back out of repaying your student loans. 

4. Start saving if you have a high-rate credit card.

5. Invest money that you’ll need in less than 5 years in stocks.

6. Pass up your employers 401k or 403b match plan at work.

7. Take a loan from your 401k plan to pay off your credit card debt. 

8. Invest in a mutual fund with the letter A or B at the end of it’s name.

9. Purchase a variable annuity.

10. Lease a car. She says finance it instead.

11. Take out an interest-only or no-down mortgage. 

12. Use an ARM

13. Pay off your credit card debt with a home equity loan (HEL) or Home Equity Line of Credit (HELOC)

14. Ask a friend or family member for a loan.

15. Think of bankruptcy as the life raft that will save you.

16. Buy whole, life or any other type of cash-value life insurance.

17. Rely on a will. She says that a revocable trust, along with a durable power of attorney with incapacity clauses will give you and your family the best protection.

Check out Suze’s book to learn more. I read all sorts of books by financial folks. Hers are pretty simplified, which makes it nice and easy for people just starting out.

Best of luck-Molly 

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Your Investment Portfolio: Changing With Your Career

Posted on July 7, 2008. Filed under: -- Building Wealth, -- For The Investor In YOU | Tags: , , , , , , |


By Molly Greaves

 

 

June 2008 Money Magazine says that in your:

EARLY TO MID-CAREER, your portfolio should look close to this:

40%   Blue-Chip U.S. Stocks    

30%   Blue-Chip Foreign Stocks

10%   High Quality Bonds

5%     Inflation-protected bonds

5%    Cash

5%    Value

5%   Small-Cap                                      Average Portfolio Performance

14.3%  5-year annual return

38.7% Best 12 months 

0.22% Average Annual Expenses

-21.6% Worst 12 months   

LATE CAREER, your portfolio should look somewhat like this:  

30%   Blue-Chip U.S. Stocks

25%   Blue-Chip Foreign Stocks

20%   High Quality Bonds

10%     Inflation-protected bonds

10%    Cash

2.5%    Value

2.5%   Small-Cap                        Average Portfolio Performance

12.1%  5-year annual return

29.8% Best 12 months 

0.23% Avg. Annual Expenses

-14.4% Worst 12 months

IN RETIREMENT, your portfolio should look like this:

20%   Blue-Chip U.S. Stocks

15%   Blue-Chip Foreign Stocks

30%   High Quality Bonds

10%   Inflation-protected bonds

20%   Cash

2.5%  Value

2.5%  Small-Cap                    

 Average Portfolio Performance

9.3%  5-year annual return

20.6% Best 12 months 

0.25% Avg. Annual Expenses

-6.7% Worst 12 months

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