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Monday, April 6, 2020

SIX Financial Steps You Should Consider NOW

Hello Social Security & Retirement Students! 
My apologies if you get this twice; I’m using several often overlapping lists in my database. [A heads up:  All but the Calendly link are YouTube videos on each topic.  If they don’t work you may have to Ctrl-click or copy and paste into another browser window]

Would you like to know why I've gotten
zero freaked-out calls or emails from my clients because of the coronavirus, political upheaval or [insert your own freak-out factor]?  It's because we've already tested even worse scenarios (like the 2001-2003 recession) in their written retirement financial plans and they know they will be OK.  However, that doesn't mean there aren't new opportunities and cautions:
1. If we have not developed your written retirement financial plan then get yourself on my schedule immediately.  I've opened my calendar up as much as possible for the next three weeks.  Call me at my mobile at 503-698-1110 or simply schedule yourself here:
Key Takeaway:  No matter what is happening in the world and in your life, there are risks to avoid and opportunities to acquire.  These risks and opportunities should be tested and executed carefully, as part of an overall plan, not by running out and buying four thousand rolls of toilet paper.
2. To make up for losses in the market-based portion of your portfolio, don't settle for inflation losses in your cash.  You should be getting at least 2.0% on your two-year money.  I've seen savings accounts paying as little as 0.07%.  Yes, seven hundreths of a percent. Increasing earnings and other benefits on your safe money will help offset these short-term fluctuations in the market and make dramatic long-term differences in your future cash flow.
3. Does it make sense to refinance debt?  Probably.  Interest rates have tumbled with the market & I doubt they will increase this year.  Refinancing may be a great way to reduce your budget and preserve your savings
4. Is funding for your lifetime budget locked in?  If not, wouldn't that be worth finishing up?  Then you can ignore market hysteria.  Cash flow solves all other financial problems.
5. Do you need to put off that expected retirement date this or next year?  I won't sugar coat it; maybe you do.  But how do you figure out when you can retire?
6. Finally, taxes will probably shrink your money more this year than will the market.  What tax planning have you done?  Did you know the tax issue will become even more concerning in 2026 when the Tax Cuts and Jobs Act expires?  I don’t see any of my peers doing tax planning.  Maybe this is the perfect time to do Roth conversions or in-kind conversions of poor performing stocks.  When the market recovers, all the gains can be tax-free.  This video is pending my review of the three “stimulus” packages.  Lots of little- and not so little -goodies for everyone.

Warm wishes during these trying times,
and get yourself on my calendar!:


Your Constructive Comments are Welcome!

Sunday, March 1, 2020

The Markets are Crashing due to Coronavirus

I don't believe this post heading at all.  Although I'm firmly in the camp that says we should do all we can to isolate and stop the spread of this  deadly virus, correlation is not causation.  Eugene Fama's efficient market theory went out the window with the Reagan presidency, that is, the belief that full information about all market options are relected in its pricing, among other things.  I would wager these days that very little rational information is reflected in asset pricing.  Rather than knocking the wind out of the markets, the coronavirus is an excuse to get hysterical about an over-valued market.
Markets have periodic corrections of investor hyperenthusiasm.
Your Constructive Comments are Welcome!

Thursday, January 9, 2020


Well, I think this is a solid myth.  And I'm not going to go on and on and on like most financial blogs you see today; volume does not equal value.
Here is the rub, as I see it:
  1. According to BitFarms (BITF), their breakeven cost of mining one bitcoin is US$2,259.  
  2. Today, one Bitcoin is worth US$7,785.
  3. At one point in 2018 it was worth nearly $20,000.
  4. Revenue per terahash (a measure of computing speed) has fallen from $4.00 two years ago to about $0.13.  That speed requires expensive hardware and electricity.
In summary, I don't know how long the public will continue overpaying for something so volatile.  If prices are driven back up it will be primarily due to investor delusion not due to any fundamental value.

Your Constructive Comments are Welcome!