Repost: What Are The 3 Smartest Money Moves For 2019

Here’s a piece of priceless advice from Forbes for your 2019 financial plans:

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I love simple financial advice because we make money management much too difficult. That’s why we need to boil down what we need to know — and cancel out the noise.

This year you can plan ahead, but you’ll need to earmark some things to do. Here are some great tips from my friend Julie Jason, the author of Retire Securely: Insights on Money Management from an Award-Winning Financial Columnist.

Manage With Logic, Not Emotion. There’s no question that the headlines are going to be nerve wracking. That’s the nature of the beast. Ignore them and figure out how much you’ll need to live comfortably in retirement and pay your bills.

“It’s a fact of human nature that emotions can wreak havoc on our decision-making abilities,” Jason notes. “A growing field of study called behavioral finance seeks to identify the pitfalls of the human psyche to help people — in this case, investors — minimize the effects that emotions can have on their investment portfolios.”

Do the numbers. Project your retirement income based on savings and Social Security. Figure out how much you need to save and invest to meet your goals. Execute!

 

Continue reading it HERE.

Repost: The Most-Bought Tech Stocks Of Investment Gurus

Technology stocks are extremely attractive for many investors, nowadays. Recently, Some of the world’s largest tech giants are listed on Forbes as the most-bought stocks in the tech sector:

Fund managers in the third quarter continued buying tech stocks, a sector that outperformed all others over the past five years.

The S&P 500 Technology SPDR returned 89.84% over the past half decade, more than double the rise in the S&P 500 index. Companies in the sector glided on innovations in the Internet of Things (IoT), cloud computing, artificial intelligence and consumer electronics.

Facebook was the third most-bought stock of investment gurus during the third quarter. The tech sector was the best performing over the past five years. Photographer: David Paul Morris/Bloomberg© 2018 Bloomberg Finance LP

 

Their ability to generate a profit spurred investor interest. The sector’s net profit margins expanded to 22.1% in the third quarter, their highest since FactSet began tracking data in 2008. It also saw all of its constituents report earnings above estimates.

Nevertheless, some wind left the sector’s sails in this year. It has achieved only a 2.53% gain year to date, making it the fourth-best performer in the S&P 500, though it beat the index’s decline of 1.38%.

Meanwhile, its valuations have fallen, potentially making it more attractive to some investors. GuruFocus calculates its price-earnings ratio at 27.1, significantly below its peak of 39.4 from June and its lowest since March. It has the fourth-highest price-earnings ratio of the 11 sectors in the index.

Analysts have attributed the sector’s drop to lower demand, trade uncertainty with China and overvaluation. Earnings growth is expected to reach 9.8% for 2019, according to FactSet, which in September revised its estimate up from 6.9% in June. Bloomberg data forecasts earnings growth for the sector at 9.7% for 2019 and 10% for 2020.

In the third quarter, the most investors GuruFocus tracks bought shares of the following tech companies: Microsoft, Apple, Facebook, Electronic Arts and Alphabet. This data was found using GuruFocus S&P 500 Screener.

 

Continue reading HERE.

Repost: Why Retirement Is Broken And Needs To Be Reinvented

Retirement plan – one of the most important long term investments everyone should build. For more retirement and financial advice, read on Forbes:

Ideas for fixing retirement – Getty

Retirement is the #1 financial worry with 65% of Americans worried about it and a majority thinking about it 4 times per week. The core problem is uncertainty – people have no idea how much they need, because we have created a system around building assets instead of income.

We spend our lives saving up a big pile of money in an effort to secure our future against a bewildering set of future risks including market returns, inflation, healthcare and longevity. This is spurred on by the vast majority of players in the financial services industry who want us to save as much as possible and/or “invest” in often complex, opaque and expensive products since their income is based on a percent of your assets (AUM) or on transaction fees where the price is not clearly marked.

An average 401(k) investor who pays 1% investment fees on a portfolio earning 4% will lose about 33% of their returns to those fees over a 20 year period. Put another way if you have $1M, then $400K in returns are lost to fees over 20 years (fees that go to your fund provider, broker or financial advisor).

I’ve talked with hundreds of our users who are planning for retirement, most of whom have $500,000 to a few million saved and they are all worried about whether they have enough and how they will generate retirement income and manage healthcare.

Continue reading HERE.