The process of setting aside money to be used sometime in the future. People save for retirement, to make acquisitions, or to keep money for use when an unexpected event occurs. Savings often refers to the total amount a person has set aside for the future. Savings can include cash, bonds, mutual funds, and other securities.
My old friend who is always chasing the big trades, Mr. Speculator, is at it again. In a recent discussion with him, he said that “investors should always borrow on the capital they have, so their returns are better…instead of just making a measly two percent, they can make 10%.” In other words: he suggests leveraging your portfolio for higher gains. I have to give credit to Mr. Speculator, because he has the concept right, to say the least; leverage can increase an investor’s profits substantially, and ma ... Read More
Even after taking a slight breather last week, the Dow Jones Industrial Average and the S&P 500 are still unabashedly bullish. However, that doesn’t mean the average American is basking in the glow of the greenback. While a small majority of American consumers have more savings than credit card debt, almost 25% say they have more credit card debt than money in the bank. And 16% say they have no credit card debt or savings. This means that 40% of Americans are in a financially precarious position. (Source: “February 2013 Financial Security Ind ... Read More
The Procter & Gamble Company (NYSE/PG) is likely a company that a lot of people have in their stock market portfolios, whether they’re saving for retirement or are actually in retirement now. It remains a great business with solid potential going forward. On the day that Procter & Gamble released its first-quarter earnings results, the stock dropped about $5.00 a share, or six percent. The company revised its 2012 second-quarter earnings lower to below previous Wall Street estimates; top-line growth was anemic. On the stock market, Procter & Gamble just came off a ... Read More
Reflecting the strength in the U.S. housing market, Weyerhaeuser Company (NYSE/WY) reported very good financial results in its first quarter. The company’s 2013 first-quarter revenues leapt to $1.95 billion, way up from $1.49 billion in the same quarter last year, on solid demand from all its business lines. Net earnings grew significantly to $144 million, way up from earnings of $41.0 million in the same quarter last year. On the stock market, Weyerhaeuser is expensively priced, but it certainly is great to see this mature company reporting solid business growth. Stocks related to the Read More
Saving for a comfortable retirement is what motivates many people to start their wealth management planning regimen. Whether you’ve been planning for retirement since you were 25 or 50, saving is only half the battle; after retirement, the real work begins. With your primary source of income gone, you have to figure out how to make your retirement fund last. That’s not as easy as it sounds. In 2008, at the beginning of the financial crisis, Metropolitan Life conducted a survey asking people who were about to retire on their 401(k) plans what they thought a safe with ... Read More
The performance of many blue chips—consumer staples stocks, in particular—is really stunning. And looking at the shares and how much they’ve moved on the stock market, even since the beginning of the year, you really have to wonder how sustainable this stock market rally is. I am a big believer in blue chips and investing in stocks that pay growing dividends over time. But right now, we have so many companies trading right at their all-time record highs. I wouldn’t say that the stock market is expensively priced, but realistically, other than momentum players, would individual investors be buying these stocks at their all-time record highs? I find that unlikely. The stock market breakout really i ... Read More
Saving money for retirement is a long-term process. It is true that the longer you have, the more you can save. Unfortunately for some, this might not be the case. For example, a person starting to save for retirement at the age of 25 can certainly save more over time by saving smaller amounts than a person starting to save higher amounts at the age of 55 and planning to retire by the age of 65. Consider this; if a 25-year-old saves $150.00 a month, by the retirement age of 65, they will have total savings of $72,000—assuming no investing of any sort. On the other hand, the person who begins at 55 and puts away $300.00 a month—twice as much—towards retirement savings will only have $36,000 at the ag ... Read More