Bonds have been yielding almost nothing for years and stocks have been rip roaring for the past decade, which has made high yielding dividend stocks very attractive. People have been looking for high-yield and high-growth investments for years, and dividend stocks have delivered. Would you rather earn 2% per year investing in U.S. treasury bonds, or 4% in dividend stocks, while also getting double digit … Continue reading Retirement Income Portfolio: Dividend Stock ETFs
The goal in retirement is to have an investment strategy that creates a steady stream of income while minimizing downside risk. Yet, the strategy needs to be aggressive enough in which your account can grow and keep up with inflation. There are many investment management philosophies but the the investment strategy I prefer is a bucket approach. The bucket investment strategy will help you grow … Continue reading The Bucket Retirement Investment Strategy
A client called me today because he heard that bonds were going to get crushed and noticed that he had 40% fixed income in his portfolio. “Get rid of all of these bonds in my portfolio”, was his next request. I get this request often, as you can’t read or listen to financial news without hearing how interest rates will continue to move higher, which … Continue reading 9 Bond ETFs That Will Do Well When Interest Rates Rise
The Dow Jones fell 1000 points today, the second time this week, and we are now in the midst of a good ole market correction. This shouldn’t surprise you, we see these all of the time. I wrote an article three weeks ago that you should be prepared for a 14% drop in the stock market. Now, I’m not a stock market psychic, and I … Continue reading This Happens All of the Time
I typically pull this chart out after a 10% market decline, when people are panicking, to show how common we see this and to calm people down. It also seems like a good reminder right now. If you are interested in hundreds of charts explaining what is going on with the market, I strongly suggest the JP Morgan: Guide to the Markets. It’s awesome, but … Continue reading My Favorite Investment Chart
The first lesson in investing from my father, was that you should only buy stocks that have price-to-earnings (P/E) ratios under 10. Seemed like pretty good advice. Buying stocks that have lower P/E ratios means that you are buying stocks that are less expensive. I learned a lot of great financial lessons growing up in a small, rural Michigan town. One of the biggest lesson … Continue reading Yes, Stocks are Expensive. So?
I first heard of bitcoin in February 2013. After a day of skiing in northern Michigan, my friend told me about how he just bought 250 bitcoins for a total investment of $500. The smartest guy I know, the valedictorian of my high school, was explaining crypto currencies to me. He mine as well have told me that he just befriended an alien. I responded … Continue reading The Benefit of Missing Out