Financial Planning & Investment Management

Whether the economy is improving or suffering, you will notice that the real estate investments will always be profitable. Will the market for widgets dry up in a year or two? Most of us rely on the rationalization of the market to inform us of values, and that is perhaps the worst mistake we can make. Thus, while it is important to make good investment choices, it is far, far more important to save and invest as much as we can, and to invest regularly, without delaying our investments. You might ask, did I make a mistake for identifying Frencken as a value stock and for buying it at too high a price? The value of many collectible coins exceeds their melt value because their precious metal content is so small. However, he cautions that property owners usually redeem, so investors must be content with just high yields. 35 a share, then that must be a pretty good evaluation of its market value, right?

Most of the time, the book value is used as part of an evaluative measure, rather than being truly related to a company’s market value. Never rely on market price or market price charts as a guide to the underlying value of an investment. If you are a value investor, then another principle which you should consider following is to identify the intrinsic value of the stock by producing various estimates based on the formulas that you use in calculating it. For any time frame under 3 to 5 years, you should just use savings or money market accounts. We’ll use this fact later. Yet another benefit is the fact that the idea of binary choices is quite easy when compared with other financial investments available for trading. Of course not. So these stinkers stay in my eTRADE account, as painful reminders of bad choices I have made in the past. So every December, before the end of the tax year, it pays to look through your portfolio and see if you have one of these stinkers in your after-tax investments.

But that does not mean you should only invest in stocks with after-tax money. Now again, if this were in my after-tax account (which I maintain with AmeriTrade) I could take the loss on December 31, and have a nice deduction for my taxes. The only effect the loss will have is by decreasing the balance on my IRA, it means I have less money to take out of the plan, and thus will pay less taxes as a result. The net result is the same. Markets can be irrational, and even seasoned investors, professionals, and Wall Street Gurus can be very, very wrong on the evaluation of stocks and other investments. But not everyone wants investments which involve high risk in it. When you go long a stock, your risk is what you paid for your shares. I did not do enough research or think about why I was buying the stock, other than it seemed to be doing well at the time and, hey, it’s General Motors we’re talking about, what could go wrong? Or how about my Fleetwood stock, now worth a staggering twenty-eight cents – not per share, the whole darn investment! You can get advice based on your specific needs, including an Envision® Investment Plan.

But the self-directed 401(k) plan does have one anomaly. Chances are, your 401(k) or IRA is invested with stocks, just in the form of mutual funds. Investing in stocks, for the average Joe, is like buying a pig in a poke. There are countless columnists who regularly put out articles on everything from investing to spending to retirement and Social Security. Anyone foolish enough to put all their money in GM stock would be broke right now, like those poor saps who put their entire 401(k) in ENRON stock. I try not to put all my eggs in one basket. Try DIY Sure, many gardeners can attest that collecting store-bought miniature accessories is one of their favorite parts of the fairy garden pastime. You won’t get your money back here, but at least Tina the Suburbanite Princess got her Masters in Transgendered 13th Century Sculpture Fairy Studies. In a recent NPR piece, president Trump is rightly criticized for rolling back Financial rules promulgated by the Obama Administration.