December 16, 2017

Items in italics are direct quotes from the articles below

Most religious men find the answers to their prayers in scripture. Ted Benna found them in the U.S. tax code. Fed up with clients only interested in getting the maximum tax break for themselves while doing as little as possible for their employees, he began to feel he could either remain a workplace benefits consultant or a Christian, but not both. In fact, just weeks before his life’s eureka moment came in September 1980, he thought about leaving the Johnson Companies, his suburban Philadelphia firm, to take a job at a local Christian college. Instead of quitting, Benna, 74, helped turn a little-noticed new subsection of the tax code into the least likely of household names: the 401(k). With a 401k you can put aside pre-tax earnings with a company match up to a certain percentage into a retirement account. This retirement account is managed by a financial services company that will invest your money into the stock, and bond market and overtime build your retirement. This process would replace the typical pension plans that companiess had used for years, and put the financial responsibility on the employee to take care of their retirement. In fact, the original purpose of section 401(k) was to limit the use of executive cash-deferred plans. The Johnson Cos. administered 50 401(k)s in 1982, mostly to its own employees. Today Americans have some 50 million plans holding roughly $3 trillion in assets. Benna’s firm earned its money on the record keeping for the plans (with the help of a $65,000 Wang computer), but outsourced the actual investing component to the Vanguard Group, back when the future mutual-fund giant was still in its nascent days. “Ted was the moral standard within the company and thought it was a conflict for us to also handle the investments,” Wright said. “He believed in doing the right thing.” But like many critics, in recent years he began to think 401(k)s might not be the right thing. He’d created “a monster” that should be “blown up,” Benna lamented in 2011. The 401k plans themselves have grown so complicated. They’re filled with hidden fees, and have so many opportunities for bad decisions that the financial industry benefits more than the savers. “For all its issues, the 401(k)’s biggest value is that it turns spenders into savers,” he said. “Not that I spend much time basking the glory of the 401(k). What matters most to me now is spending time with my grandchildren and my horses.” I think that this forced process of making spenders into savers by the government can be risky, and there needs to be a re-examination of what components are missing from the public education system. Financial education is topic that should be, but isn’t often talked about in homes. In my profession, I see a lot of people that don’t understand the importance of managing credit and risk. I believe a person should look to build multiple streams of income, and not be 100% dependent on their job and the government to take care of them. It’s about taking personal responsibility and learning, and not just handing your money over to someone.  Personally I do have a 401k, but I also look for opportunities to build my income producing asset column, and fight to lower my own consumer debt. I do these things with two things in mind: legacy and eternity. What’s your why?

Why do so many of us hate meetings? There’s no shortage of reasons, from wasting time in entirely unnecessary get togethers, to overlong scheduling, and meandering conversations. But somewhere towards the top of nearly everyone’s meeting pet peeve list is oafish meeting behavior. I’m sure you’ve experienced the type of thing I’m talking about – the spotlight hogging, endless interrupting, and under informed bloviating that can make getting together with colleagues about as much fun as watching paint dry. So how do you ensure everyone gets a turn to speak, but that the loudest of the group don’t monopolize the meeting and drown out other good ideas? Ray Dalio, founder of $160 billion hedge fund Bridgewater Associates and self-made billionaire, has a simple rule that can ensure everyone gets their time in the spotlight. On the TED Ideas blog recently Dalio shared nine rules for meetings from his new book Principles: Life and Work . The entire post is definitely worth a read if your organization struggles to keep meetings under control, but one idea stands out as both exceptionally useful and dead simple. Dalio calls it “the two-minute rule”:

The two-minute rule specifies that you have to give someone that uninterrupted period to explain their thinking before jumping in with your own. This ensures everyone has time to fully crystallize and communicate their thoughts without worrying they will be misunderstood or drowned out by a louder voice

This concept isn’t new, and it was instilled in us at an early age. But these two minutes of freedom will allow a person to express his thoughts without interruption. You may need to enforce this time constraint, but make sure you know your team knows this constraint is in force going in. if you’re in leadership/management role, give it a try and see if it changes your work environment. The purpose is to ultimately bring the team together, and find the areas that can be improved together.

This week, I’ve included The 13 Truths – Matthew McConaughey [MOTIVATIONAL SPEECH] from the Mulligan Brothers YouTube channel.

“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.”

Proverbs 28:26 MSG


September 23, 2017

Items in italics are direct quotes from the articles below

Investors today have more information at their fingertips than ever before. Real-time stock apps, trader blogs, 24-7 streaming business news, fintweets, Reddit communities — there are countless ways to get your due diligence on. It’s high time we add YouTube to that list — the Alphabet-owned GOOG, -0.42% GOOGL, -0.45%  video streaming platform has a deep bench of traders, experts and would-be Warren Buffetts (or perhaps would-be Jim Cramers) proffering advice. For every season of investing, there is a YouTube channel. Youngsters looking to understand the basics can find intro courses. Those who’ve caught the trading bug and want to turn pro will find countless gurus to guide the way (though many will be looking to turn free viewership into a paid subscription). For the chartists, there is plenty of chart porn, and for veterans, channels that delve into the nitty-gritty, from how to trade off specific news events to the optimal number of screens you need, to when to hold a trade over a weekend. As with most things on the internet, it can be difficult to wade through the millions of offerings to identify which ones are truly worth your time. This article is filled with numerous channels and I suggest reading the pros and cons of each channel. Here are the channels recommended by the author: L2inc, Khan Academy, Bulls on Wall Street, Fous4Trading, PrestonPysh, Sasha Evdakov, Timothy Sykes, Warrior Trading, Market Gauge, Forex News by DailyFx, Martin Shkreli, SMB Capital, Meir Barak, shadowtrader01, Tasty trade with Tom Sosnoff and team, Anne Marie Baiynd, Financial Education Channel, Peter Schiff, and Brian Shannon. What I like about this article is that the author recommends the most frequently watched episode, provides a summary of the channel, shows how many subscribers the channel has, the frequency of posts, and the type of investor the channel is for. No matter what asset class you’re passionate about, take the time to learn more about it. Never stop learning. Living in the Information Age, you have access to too much information. It takes wisdom and experience to discern the information that will be useful to you. I also recommend finding a mentor and like-minded individuals who are committed to the same vision as you. Two is far better than one.

If you ask many entrepreneurs, striking out on your own is all-consuming. It’s living on ramen. It’s having six roommates in two bedrooms. It’s getting down to your last $10 before catching a break. But that’s not exactly necessary, says Patrick McGinnis. On an episode of Farnoosh Torabi’s podcast “So Money,” McGinnis, a venture capitalist and investor, says this vision of entrepreneurship excludes a lot of people — and it’s not necessary. The idea that “unless you are living on the side of the road on the box, eating ramen for every meal and suffering, you’re not an entrepreneur,” he told Torabi, is a “very dated way of thinking about entrepreneurship.” McGinnis explains that you don’t have to quit your day job to be an entrepreneur. He invests 10% of his time and resources into a new venture while still holding his full-time job. McGinnis himself still holds a day job. “I have invested in over 20 different ventures over the last six years,” he told Torabi. “I have a day job, I’m not looking to leave that day job, but I’ve used entrepreneurial activities investing, advising in startups in order to create a diversified portfolio of ownership positions and exciting companies that teach me new things to get me upside.” Before you invest yourself fully into your business full time, ask yourself these questions. Can you afford the benefits that your employer would normally provide? What will you do to take care of your retirement? I highly encourage anyone to invest in passive income generating assets, however I would never encourage anyone to quit their job to start a business that they hadn’t at least been operating on their spare or part time. Personally, my wife operates a spare time business while she works full-time. I remember telling my mother-in-law about her business and she assumed that we were going full time in this venture to which I immediately clarified and said absolutely not. If over time the income generated is greater than the profession then possibly. But currently my wife loves her job, so why take away something she loves and is being paid for, when there isn’t a guarantee that she can thrive. Life is about thriving and not just surviving. In the end know your numbers, and be a 10% investor.

I’ve added two new pages involving self-improvement and technical analysis. Feel free to visit them.

If you are interested in creating a budget, then contact me for a financial checkup in the contact me section. Also, learn more about the self-lending principle in the mustard seed section.

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

“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.”

Proverbs 28:26 MSG




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