Month End: September Snapshot

This month, I was able to reduce the credit card debt, and I continue to make the scheduled payments to the term loans on time without issue. If you’ve consolidated your debt into a loan that is set to pay off, continue to make your payments on time. It’s important in general to make your payments on time, because missing payments will affect your credit score. If your payment due date isn’t in line with your cash flow for the month, it’s important to contact your credit card company or lender as soon as possible to see if they can change the payment due date. Changing the payment due date may require signing new loan documents or verbally agreeing to the change, but it’s important to contact your creditors as soon as possible if you are faced with a life event that can affect payments to them. I don’t recommend ignoring or avoiding the situation. The worst-case scenario is you can have liens and or judgements placed against you. If you find that your fixed expenses are more than 50% of your take home pay you are at risk to losing your assets. To clarify fixed expenses are rent/mortgage payments, utilities, insurance, subscriptions, phone payments, and any other monthly reoccurring transactions. These payments should not be greater than 50%, because it gives you no room to save money and reduce your debt. For example, if you make a $1,000 a month and your fixed expenses is $600 per month then you are at risk, simply because if you have any type of emergency you may have to borrow to cover the emergency. If your fixed expenses are greater than 50% you are more likely to stay in debt. Personally, I continue to do my plan of reducing debt and increasing income. I may use a balance transfer option to take advantage of the promotional balance transfer rate to continue to accelerate my debt reduction. Next month, I’ll discuss three strategies you can use to reduce debt.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

The rich ruleth over the poor, and the borrower is servant to the lender.

I believe in your journey to….

A Debt Free Me


September 28, 2016

Mikael Cho founder of Crew: “I’m the CEO of two startups. One was a happy accident that became one of the fastest growing photography websites. The other has yearly revenues in the millions and has grown an average of 300 percent year-over-year. To work on these fast-growing companies while enjoying other parts of my life, I’ve had no choice but to figure out how to be as productive as possible.” The three simple habits you can do to be productive is remove the noise, focus, and maintain good health. For removing the noise, turn off your phone and computer notifications. Multi-tasking is actual a hindrance because in essence you have to shut down and restart every time you switch between tasks. Write everything down, because not only will you maintain important details for later; you will also keep your mind clear. If you repeatedly do tasks then use an app called Trello to document everything. For focus, set aside blocks of time to do similar tasks, do focused work for a particular amount of time with no distractions, and make sure you remove any chance for distractions by enforcing those times of focused work. Make sure that start your morning with easy tasks to help you build momentum, and make sure you accomplish as much as you can in the morning. For maintain good health, it’s important to make sure you move to maintain your blood circulation, and refresh your brain. Make sure you make time to spend time with someone who makes you feel happy because the person will make you feel good. Also make sure you eat healthy and use music to boost energy. So to increase productivity, Remove the unnecessary. Automate decisions. Maintain good health.

Every good investor knows that in order to make money on any investment, you must first understand all aspects of it, so let’s look at why most trading volume is concentrated at the beginning and end of the day. Trading occurs normally at the beginning of the day is due to a rush of programmed trades entering the market. A common rule among day traders is to always end their day without any stock positions, so they must sell their positions at the end of the day. Additionally, retail investors, trying to avoid day trading rules may purchase stock at the end of the day so they are free to sell it the next day if they wish. The four processes you can do to profit is: volume research, use limit orders, trade today for tomorrow, and gap trading. When you’re examining a stock look at the amount of volatility in the first and last hours of trading. You may be able to buy or sell at a price which is higher or lower than its fundamental value. A limit order will allow to set a maximum buy or sell price instead of buying or selling at the price the market will pay. A way to trade today for tomorrow is buying at the end of the day and selling the next day. With Gap Trading, you purchased stock YZX for $30 today but you expect the stock to rise to $35 after they announce quarterly earnings after the close of the market today. This means that when the market opens tomorrow, YZX will open at $35 if you’re correct. This creates a $5 gap in the chart which represents a $5 per share profit for you. (If you would like to know more about gap trading, read Playing The Gap.)

If you have a prayer request, or if you’re in need of a financial checkup you can reach me in the contact me section.

For this week, I’ve included How the Economic Machine Works by Ray Dalio from Bridgewater YouTube channel.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

September 21, 2016

Robert Citrone, the Tiger cub who now runs one of the best-known macro hedge funds, is warning investors that the market moment they’ve been anticipating is at hand. “We believe we are in the midst of the market correction we have been expecting,” Citrone, founder of Discovery Capital Management, told investors in an e-mail obtained by Bloomberg. “It will likely persist over the next 3-4 months and be the largest correction since the 2008 crisis,” he said. The firm managed about $12.4 billion at the start of 2016. Money managers believe we are on the cliff due to central banks reexamining monetary policy. The CBOE Volatility Index has increased about 19% this month. Citrone, whose fund specializes in making wagers on macroeconomic events, tempered his view by describing the correction as a “healthy adjustment from overvalued market levels, which are primarily a result of exceptionally easy monetary policies.” One of the many hedge fund managers dubbed Tiger cubs after working at Julian Robertson’s Tiger Management, Citrone founded Discovery in 1999. If there are seasoned investors that are predicting a market correction, then it’s important to have a financial education to protect your finances. Personally my strategy is having a diversification in asset classes such as paper assets, real estate assets, and business assets. It’s important to have assets that generate income. If you’re interested in having your own income generating asset, you can reach me in the contact me section.

If you’re looking to build wealth, if you’re looking to save up a nest egg for retirement, or if you’re merely looking for a way to alleviate financial stress in your life, passive income is one of the best ways to do it. The phrase naturally sounds like a buzzword, or something you’d hear on a late-night infomercial, but passive income really exists and operates exactly how it sounds–earning you revenue without demanding much effort or attention. Of course, this isn’t a get-rich-quick scheme, and you won’t be able to earn millions in passive income, but even a small stream of extra revenue can make a major difference in your life. The important point to remember about passive income is that it doesn’t take up a lot of your time once it’s in place. Your more conventional forms of earning money involves earning money at the exchange of time. Keep in mind most passive income generating assets will require an initial investment of time and or money, before you can reap the rewards. The article provides seven examples: dividend-paying stocks, rented real estate, e-books, advertising, apps and existing businesses. In previous blogs I’ve talked about dividend paying stocks and how to analyze companies, and so I recommend reading my previous blogs to form your own strategy. Rented real estate will require a higher level of financial education, and it requires a larger investment versus purchasing dividend stocks. Another option is writing e-books, but it’s important to know your target market and drive customers to purchase your e-book. The author provides a few examples of income producing assets, but it’s more important to understand what classifies a passive income producing asset vs. an active income producing asset. If your asset becomes your job and requires more and more of your time, then it’s not a passive income producing asset. It’s the same as confusing an asset with a liability. Be sure it’s doing what you want it to do, and if isn’t reassess your position and do something different. Once your passive income is greater than your expenses then you can retire wealthy.

If you have a prayer request, or if you’re in need of a financial checkup you can reach me in the contact me section.

For this week, I’ve included Top 10 Ways to Earn Passive Income from Video School Online YouTube channel.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

September 14, 2016

If you read the contract for your annuity or permanent life insurance policy, you will encounter insurance industry terms that sound similar but mean very different things. This is the case with terms such as face value, cash value, cash surrender value, surrender cost and account value. The differences between these concepts are sometimes small, but they can make a large difference if you need to pull money from your policy. The cash value or surrender value is equal to the sum of money built up within a cash value-generating annuity or permanent life insurance policy. Your insurance or annuity provider allocates some of the money you pay through premiums toward investments — such as a bond portfolio — and then credits your policy based on the performance of those investments. It should be noted that it is technically illegal for a life insurance policy to be promoted as an investment vehicle, however policyholders will use their whole, universal, or variable universal life insurance policies to grow their tax-advantaged retirement assets. As a reminder, term life policies do not build cash value. The surrender value is the actual sum of money a policyholder will receive if he tries to access the cash value. This is also referred to as the surrender cash value or, in the case of annuities, annuity surrender value. The cash value and surrender value are not the same as the policy’s face value, which is the death benefit. However, outstanding loans against the policy’s cash value can reduce the total death benefit. I’ve included an example of cash vs surrender value from the article:

Suppose you purchase a whole life insurance policy with a death benefit of $200,000. After 10 years of making consistent, on-time payments, there is $10,000 of cash value in the policy. You consult your insurance contract and see that the surrender charge after 10 years is equal to 35%. This means if you tried to cancel your policy after 10 years and withdraw your cash value, the insurance provider will assess a $3,500 charge to your cash value, leaving you with a surrender value of $6,500

It’s important to consult with a life insurance agent, and discuss what type of policy would work best for you. Ultimately you want to have a vehicle in place to provide for your family in case anything happens to you, and you have a large number of liabilities and no true assets that will provide income. Also it’s important to have a last will and testament and if necessary a trust to make sure your assets will be protected. If you want more information, you can reach me in the contact me section

Last Wednesday marked the first day of “Hida Beef Week” in New York City­­­­—a festival and publicity tour for ultra-premium Hidagyu—presented by Gifu Prefectural Government, Japan. For the next week and a half, “or while supplies last,” a selection of renowned Japanese restaurants in New York will feature Hidagyu in dishes and tastings. It was just last October that the meat provided by JA Hida Meat (Hida Meat Agricultural Association) was approved for American markets, thus making Hidagyu now regularly available. This Hida beef is on par if not better than the well-known Wagyu (Kobe) beef. This beef is a black-haired cattle breed from Gifu Prefecture, Japan. These particular cows drink from fresh springs against a mountain backdrop. Hidyagu is raised for at least 14 months or more. This promotes soft texture, delicate flavor and a unique marbling pattern that extends across the steaks, flank, shoulder and round. It’s this thin and thorough marbling that gives the beef a distinctly tender texture, and the fine webbing of fat that seals the meat’s juices like a spider’s nest. At the time of this article, there are multiple restaurants that are offering this type of beef in New York. The traditional way to eat this type of beef is as a steak or filet, but it can also be used in Japanese barbeque. In closing, Durvett seemed enthusiastic about the arrival of Hidagyu. “It just melts in your mouth like butter,” she remarked, “I want to eat some just thinking about it.” This particular article shows the benefits of having a higher quality of life. Is this possible for you? I believe so. It begins with knowing your numbers, controlling your numbers and making your money work hard for you. I suggest a financial checkup to properly assess your financial health.

If you have a prayer request, or if you’re in need of a financial checkup you can reach me in the contact me section.

For this week, I’ve included an animated book review of the Richest Man in Babylon by George Clason from the TheJourney Youtube channel.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG