• Think Wealth, Not Wages!

     

    Good morning.

    From the time we are in grade school, we are taught to study hard, and perhaps go to college, so that we can get a good job.

    Now, there is nothing wrong with having a job. The majority of Americans will have to work for someone else their entire lives.

    However, just because you work for someone else does not mean you cannot build real wealth for you and your family.

    Unfortunately, many of us adopt an employee-only mindset that can be very detrimental to your financial future. We tend to only think from the perspective of salary or wages.

    Start thinking “ownership of assets”! For that is the only way to create wealth.

    I don’t care if you earn $250,000 a year or more – if you don’t think “wealth”, and not just wages, you will never create wealth.

    Last week, my investment account made more money in one week than what I earn in two weeks. I made that money in my sleep!

    Now I am nowhere close to being wealthy. But I have purchased my ticket, and I’m on the train!

    I wish someone had given me this information when I was 20, or even 30. I had to figure this out on my own – and it took me over half a lifetime to do it.

    I am a very optimistic person by nature.  I tend to focus on the what could go right rather than what could go wrong.

    However, even if I weren’t, I would still believe that there will be a tsunami of wealth created over the next 25 years by investing in the stock market. – more wealth than any other period in history.

     

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

  • My January And February Account Update

    Hi, all!

    I’ve decided to provide my readers with a monthly update as to how my investment accounts did over a 30-day period. I’m doing this so you can track my success and my setbacks.

    Notice I said “setbacks”, and not “failures”. This is because in the long run, I believe I will win.

    It may help you to have real accounts, owned by an ordinary Joe, to follow.

    Without further ado, here are my total returns for the months of January and February 2019:

    January 2019

    TD Ameritrade IRA: up 3.23%

    TD Ameritrade Custodial: up 0.85%

    TD Ameritrade Regular #1: up 0.72%

    TD Ameritrade Regular #2: up 6.42%

    Robinhood: up 6.43%

    February 2019

    TD Ameritrade IRA:  down .05%

    TD Ameritrade Custodial: down 1.7%

    TD Ameritrade Regular #1: down 1.0%

    TD Ameritrade Regular #2: down 0.31%

    Robinhood: up 1.34%

    As you can see January was much better than February.

    The overall market bottomed in December and continued well in the month of January. In February, it cooled off from a blistering rally that lasted for a little over a month.

    We’ll see what the month of March will bring!

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

  • Guest Post: I Saved A Year’s Worth Of Living Expenses While Earning $45,000 Per Year

    Hi, all. Today I’m turning the floor over to Eva Santiago.

    Eva has achieved something that most regular Americans cannot say they have. She has managed to save a full year’s worth of living expenses – rent, utilities, food, and other necessities – for herself and her daughter, while working a 9-5 job earning a modest salary of $45,000 annually.

    What makes this an even bigger accomplishment is that she lives here in New York City, a place with one of the highest costs of living in the country.

    I’ll let her tell her story:

    Eva’s Story

    A number of years ago, I was working at a job and living paycheck to paycheck. I lost this job, and had to live off of unemployment benefits for awhile. It was a period of tremendous financial stress, and was very frightening.

    I made a promise to myself during this time. “Eva,” I said sternly, “you are never going to allow a situation like this to happen, ever again.”

    Eventually, I got another job. It didn’t pay a lot. It still doesn’t. Slowly but surely, though, I took steps to make good on the promise I had made to myself.

    After a year of focused effort and a lot of sacrifice, I had saved a total of $14,000. This covers rent for myself and my daughter, food, car upkeep and gas, utilities, phone, and miscellaneous daily living expenses for twelve full months.

    Although I have this emergency fund built up now, I am still saving – because now it has become a habit and a way of life for me.

    I have $7000 more saved, and am going to be sitting down with Eric next week to get started investing it into the stock market.

    How did I do it?

    Here are some steps that I took to accumulate my emergency fund. Remember – there’s a lot of sacrifice here. But the security I feel now is so, so worth it.

    • I stopped going out. Each time I went out with my friends, I’d spend close to $200. This is New York City – there’s no such thing as a cheap drink! Which leads me to:
    • I also eventually stopped drinking at home. This did wonders for my health. It also saved me $40 a week, which translates into $160 per month.
    • I stopped getting take out food and going to restaurants. This saved me a whopping $500 per month – and again, caused my health to improve!
    • I got rid of cable. Seriously – no one needs it! With an Internet connection, you can view almost any television show or event via streaming. Cancelling cable, and going Internet-only, caused my media bill to go from $200 down to $50.
    • Regarding my cell phone plan, I am grandfathered into a Verizon plan and only pay $40 per month for myself and my daughter. Obviously this doesn’t apply to everyone. Get the least expensive service that works the best. Eric uses Boost Mobile here in New York, and pays $60 per month. He says it works great.

    It wasn’t easy to save a year’s worth of living expenses. But I’m so glad I did. If I were to lose my job tomorrow, I would have a cushion to draw from. The sense of safety and security I feel is worth all the effort and sacrifice it took to save the money.

    And like I said, it’s become a habit that will stick with me for life.

    I look forward to returning to this blog again and sharing my experience once I start investing!

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

     

  • Five Stocks For Millennials!

    Right now, the oldest millennial is 37 years old, and the youngest is 22.

    At this point in life, you have many, many years ahead of you!

    I know that a lot of millennials have reservations about investing in the stock market.

    I understand that a number of you watched your parents, or other family members, suffer greatly financially during the Great Recession.

    You watched large banks like Washington Mutual and Wachovia go under. You may have heard about the demise of Lehman Brothers and Bear Stearns. Those of you on the older end may have witnessed these events firsthand, as you entered adulthood and held your first jobs.

    I must admit I’m a Gen Xer, and never in a million years did I ever think I’d see those banks go under.

    That being said, though…

    The stock market is still the best place to build long term wealth. The facts bear it out.

    If you start young, and aggressively invest over your lifetime, you can create tremendous wealth.

    Here are five stocks you should look at if you’re a millennial. All are poised for tremendous growth. They’re all companies that you’re either familiar with already or that do business you’ll be able to relate to.

    1. Square (NYSE: SQ): Square is a payment platform for small and medium sized businesses. It is also one of the leaders in digital payments.

    2. PayPal (NASDAQ: PYPL): PayPal is the leader in online e-commerce payments. It’s also one of the leaders in digital payments.

    3. Teladoc (NYSE: TDOC): Teladoc is one of the leaders in the emerging field of telehealth. Telehealth allows you to see a doctor without having to physically go there. You’ve probably taken advantage of this service, and/or know someone who has. It’s very convenient for less serious conditions, and it’s becoming very popular.

    4. Editas (NASDAQ: EDIT): Editas is one of the pioneers in CRISPR CAS8. CRISPR is a promising technology that aims to not only treat, but cure disease by using gene editing.

    5. The Trade Desk (NASDAQ: TTD): If you’r a millennial, you probably subscribe to Netflix, Hulu, and/or Roku. The days of generalized ads on these platforms are coming to an end. In the future, ads will be targeted to individuals, based on information gathered by artificial intelligence.  The Trade Desk is the aggregator of the ads that will be targeted.

    To sum up: If your a millennial you need to invest aggressively.

    Any one of these companies would make a good investment!

    Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author is long TTD.

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

     

  • Think Long Term! Think Long Term!

    Ron Baron is one of my favorite investors to follow.

    Why?

    Because he gives everyday, average Joes practical advice on how to think about investing…

    …long term!

    Check out Ron’s recent appearance on CNBC’s “Squawk Box” here.

     

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

     

     

  • Add To Your Winners – Part 2!

    One of the things that makes me cringe about the financial media is their recommendation of what to do with winners. By winners, I am referring to stocks you own that may be up 25%, 50%, or even 100%, like my Wealthy Joe demo investment.

    Jim Cramer, the host of CNBC’s “Mad Money”, suggests you take out your initial investment and let the rest ride because you are now playing with the house’s money.

    Other pundits suggest you cut a percentage of your position as the stock moves higher until you have sold all of it.

    Still others believe you should implement something called a “trailing stop” that will automatically sell your entire position once the stock falls below a specified price, in order to lock in a profit.

    I, on the other hand, disagree with each of these suggestions.

    I believe that you should do the complete opposite of selling, and add to your winners.

    Some of the greatest investments in history were realized by holding your initial investment and adding to it over a period of years – even decades.

    Here are the reasons why you might live to regret using the above three strategies I mentioned:

    1. Taking out your initial investment:

    Taking out your initial investment may sound safe, once you’ve made 100% of your money. Right? You invest $6000, and now your investment is worth $12,000. So you simply take out your initial investment, and the rest is all profit.

    The only problem is that loss is not only measured in real dollars lost. It’s also measured in opportunity cost.

    Let me give you an example.

    In 2016, I purchased 79 shares of Nvidia (NASDAQ: NVDA) at $69. My total cost was around $6000.

    When the stock went to $138, I doubled my money.

    Now if I had sold enough at that time to recoup my initial investment of $6000, I would have been left with 49 shares.

    If the stock has gone up more, to $300, guess what?

    I would have left $11,000 on the table, that’s what!

    2. Selling a percentage:

    This is an even worse idea.

    Imagine owning Amazon back in the day, and selling it once you doubled your money.

    If you’d made that same $6000 investment, you’d have left seven figures on the table.

    3. Trailing stops:

    I have never used a stop loss order in an investment, and I doubt I ever will.

    A stop loss order works like this:

    Let’s say you bought a stock at $25 ,and then it goes to $50. To lock in your profit, you can place an order to sell your position at a specific price. For the purposes of this discussion, let’s say you entered a stop loss price of $45.

    So if the stock trades at $45, you will automatically sell your entire position.

    Here’s the problem…

    What if the stock goes to $43, then proceeds to go to $100 or even higher? Again, you’ve left a significant amount of dollars on the table.

    That’s the problem with using a stop loss.

    Bottom line: Stocks are going to be volatile by nature. The best recepe for successful investing is to keep on adding to your winners.

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

  • The markets go up more than they go down!

    Well, today was a surprisingly strong day for the market!

    The Dow was up .79%. If it wasn’t for Boeing, it would have been up a lot more.

    The S&P 500 was up 1.47% and the Nasdaq was up 2%.

    Today was one of those days that just came out of nowhere. No rhyme, no reason. I hadn’t a clue, as I prepared for my day this morning, that the markets would perform as strongly as they did! Not a clue.

    And this is why you have to always be in the market and not try to time it.

    The market started off today with a mixture of tragic and positive news.

    First, a Boeing (NYSE: BA) 737 Max 8 plane transporting passengers on an Ethiopian Airlines flight crashed, killing all 157 people on board.

    The other headline this morning was a corporate takeover, in which Mellanox Technologies (NASDAQ: MLNX) agreed to be acquired by Nvidia (NASDAQ: NVDA) for $7 billion in cash.

    On top of that, Apple (NASDAQ: AAPL) was upgraded by Banc of America to a buy and a $210 price target. And the markets were off to the races.

    One of the things I love about investing is how unpredictable it is! You have no idea what will happen from one day to the next.

    However – the one thing we do know for sure is that markets tend to go up much more than they go down.

    That’s why it’s important to be in it!

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

  • 5 Myths About Investing In the Stock Market

    On Friday, I sold a hard copy of my book, The Stock Market is For Everyone. My interactions with the buyer inspired me to write this post.

    I asked him if he knew anything about investing in the stock market. His answer was “No. But I always wanted to learn.”

    He also believed that investing in the stock market was for the rich only. And that’s the part of his answer that inspired me to write this post.

    Without further ado, here are:

    5 Myths That Prevent People From Investing In the Stock Market

    1. The stock market is for the rich!

    No, my friend. The stock market is for everyone!

    I will admit that in the 70s, 80s, and part of the 90s, the stock market was really only for people that had the means. There were no discount brokers at that time, and a traditional broker wouldn’t even look your way if you didn’t have a few hundred thousand to invest.

    Those days are long gone, however. Today you can buy one share of a $2.00 stock if you want!

    2. The stock market is like a casino!

    The stock market is like a casino if you buy stocks that trade in pennies with the hope that one of them goes up in value. Aside from that, though, for the most part that analogy couldn’t be any further from the truth!

    When you buy shares in a reputable business that is growing and will continue to grow, that is not gambling!

    That’s the very essence of investing: buying an asset that will appreciate in value over time.

    It’s no different than buying a piece of real estate – which most of us are familiar with – and is in most cases far more profitable.

    3. You can’t make money in the stock market!

    Now you might not believe this, but we individual investors in fact have more power at our disposal than institutions do.

    Here’s why. When an institution buys a stock, they are under pressure from their investors to show returns every quarter. So they trade much more frequently. The fees for these trades then lower returns for many of their shareholders.

    As an individual investor, I am not beholden to anyone but myself. I can hold on to a stock for 30 years if I want to. And buying and holding for years is how real wealth is generated.

    4. The stock market is rigged.

    Let me give you a list of some of the best currently or formerly publicly traded companies in the world as proof that this statement is utter nonsense:

    1. Walmart

    2. Home Depot

    3. Comcast

    4. United Health Carr

    5. Microsoft

    6. Amazon

    7. Monster Beverage

    8. Intel

    9. Nike

    10. Starbucks

    Investing $5000 in any of these great businesses at their initial public offering (IPO) would have made you a multimillionaire!

    Does that sound like a rigged system to you??

    5. I don’t know anything about investing! 

    You don’t have to be an expert to invest in the stock market. Just do a little research and use common sense!

    For instance, if you’ve ever shopped at Costco on a Saturday, you can tell by the parking lot that it would probably make a good investment.

    Sometimes it’s that simple.

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

  • Warren Buffett’s strategy helped one man turn $1,000 into $2 million

    Chicago-based investor Russ Gremel, now 98 years old, did something truly worthwhile with his profits.
    — Read on www.cnbc.com/2017/06/05/warren-buffetts-strategy-helped-one-man-turn-1000-into-2-million.html

  • VIDEO: Wealthy Joe Weekender, 3/10/2019

     

    My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

    Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

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