Tag Archives: savings

Warning: The Annual Summer US Stock Markets Selloff Is Coming!

US Stock Markets Update:

Summer sell off is coming
Question #1
What has changed about the US and world economy two months ago?

Answer: Almost Nothing

Question #2
Did anything change in China?
Answer: No

Question #3:
Is the price for a barrel of oil still a lot lower than a year ago?
Answer: Yes

Question #4
Is Greece still in a financial mess?
Answer: Yes

Question #5

Is the US Federal Reserve Board (FED still going to raise interest rates?

Answer: A resounding YES!
So; you may ask, why did the US stock markets bounce back up so quickly?
For example, the Dow is back up to 17,808 from a low of 15,370 (A nice 15% gain in just two months.) after the very wild ride in the first two months of 2106?

Warning, Don’t Get Too Happy!!

I have some excellent news for you; we are going back down!!! I think with the usual annual summer sell-off; I am over 99.99% sure this summer will be a very bumpy one. ….Yes, when the US a stock market is going down/correcting it is not bad news for intelligent investors.

It is very hard to find any fundamental reasons that the US stock markets will continue to go higher from here. However, the market mostly operates in the short-term on emotion, such as fear and greed, so that I may be surprised.

Remember, you have been warned, hang on, we are in for a rough ride in the upcoming months.

Schedule K-1s! (IRS Form 1065):
Don’t you just love them, I do? I get a lot of questions on Schedule K-1s!

My very beautiful, and most of the time kind, and sweet bride, Dinara always tells me” if you love me, you should not mind repeating things over a thousand times.”
So, as I have said every year now for over ten years; if you get K-1s each year, and they are in an IRA, they are not taxable.

You can always log on to TurboTax and try to enter them in, and as soon as you get to Part II under I2, TurboTax will ask you if this box is checked and if you say yes, it will stop you!
Please feel free to try it.
Once it stops you, you just have to keep these K-1s with your 2015 taxes.

And, if the IRS ever send you a letter saying you owe us taxes on this, you just fax them your IRA statements, 100% of the times that is all it takes, and they will go away as they have done for every single other person I have helped over the years who the IRS have contacted via mail.

Amazing Facts on The Major Credit Card Companies and Amazon.com: As You Shop This Holiday Season 2015

As you spend money this month on holiday shopping, here are some amazing facts on the most popular credit and debit cards that I am 99.99% sure are in your, pockets, purses, wallets and handbags: Bonus Amazon.com

Holiday Shopping 2015
1. Nine years ago, a person charged $5,000* on his/her MasterCard and today she/he still trying to pay off the balance if they only pay the minimum required monthly payment

2. Nine years ago, another person invested $5,000 in MasterCard Stock (bought shares). Today that $5,000 is worth $106,203

3. Now, which person will you be 10, 20 or even 40 years from now?

Please click on the link below if you want to see how well you would have done with shares of Visa and American Express and, even, astonishingly Amazon.com

(MA) Starting trading as public in 2006: Today’s Value of $5,000 invested is now worth $106,203
June 08 of 2006 $5,000 divided by $ 4.61 = 1 084.59 x 97.92 current (current price 12/07/2015) = $106,203

Visa (V): Starting trading as public in 2008: Today’s Value of $5,000 invested is now worth $29,749.00
Visa : May 19 of 2008 $5,000 divided by $ 13.37 = 383.97 shares 79.55 x current (12/07/2015) = $29,749

American Express (AXP): Has been publicly trading for over 43 years. Starting trading as public in 2006: Today’s Value of $5,000 invested is now worth $106,203.

June 01 1972: $5,000 divided by $ 1.42 = 3,521.12 shares x 70.61.55 (current price 12/07/2015) = $248,627)

And now for an, even more, Amazing facts on a company that you must use credit or debit cards to pay; Amazon.com!

I am very sure you someone you know is doing some shopping on Amazon.com. Now, let see how well you would have done if you invested the same $5,000 when AMZ first became a publicly traded company on May 16, 1997, as of 12/07/2015.

$1,935,924.85!! Yes, your $5,000 would be now worth almost $2 Million USD.

Oh, Amazon is the one stock that does not pay any dividends that I wrote in my book, “: How NOT to Lose Money, Over 110 Years of Investing History Cannot Be Wrong”, a book you must buy.

And, if you had just bought just one share when my book was published last year November 24, 2014, it would have cost you $335.64 but that one share would be worth as of today $677.33, over 100% in return–compare that to your savings and checking account that is only paying less than one percent.

* Very Important fact when you charged and owed money on your credit cards; that money is not owed to MasterCard or Visa, it is owed to the bank or firm where you make the monthly payment.

If you want to learn a lot more, please check out my blogs posting and my books

powerful personal finance books which are sold everywhere, where e-books or paperbacks books are available.

Or you can just simply click this link

www.sherwinpbrown.com

The Next Stock Market Crash Is Less Than Fifteen Minutes Away

Now that unintelligent investors are panicking about the Greece Debt Crisis, which have been staring them in the face for more than a year now, I think it is a good time to repost this blog.

Jesus save greece from the Next Stock Market Crash

 Buy when everyone else is selling and hold until everyone else is buying. That’s not just a catchy slogan. It’s the very essence of successful investing. –J. Paul Getty

How do most people lose money in the market? They panic!

Next Stock Market Crash

Read My Article from 2012The Next Stock Market Crash Is Less Than Fifteen Minutes Away

*A few days after I first wrote this piece, the market actual had a one-day “flash crash” where some stocks went from $60 to only a few pennies; however, all these trades were reversed as they were deemed not good trades.

~The is excerpt  from the Book : “Simpler, Safer Investing: How NOT to Lose Money, Over 110 Years of Investing History Cannot Be WrongSherwin Presley Brown 

You Can Never Save Money by Spending Money!

Money Lesson Number #129: You Can never save money by spending money!

Don’t let the Geico ad with that cute little talking and dancing  gecko lizard fool you–the only truth about that commercial is that every fifteen minutes, you and millions of people are just adding more money to Warren Buffet’s already $70-plus billion; he owns the Geico Insurance Company.

The-Geico-Gecko1

Always remember this: if you are spending any money, you are not saving, no matter how good the deal is, even if it is on sale for 99.99% sale off.

You did not save money if you bought it, you spent money (more often than not wasting money on junk that you will not need in a month), your money is going from your pocket to someone else’s pocket and, usually it is a billionaire or a multi-billion dollar company.

The only time you save money is when your hard-earned money stays in your pocket, whether it just sits at your home, in your checking account or in a portfolio that you own.

Learn the little tricks that corporations use to get your money.  Every time you see any kind of ad, such as TV commercials, printed ads, a sponsor page on your Smartphone via Facebook or Google, they have one goal in mind; to take your money from you forever!

The old saying is true: “A fool and his money are soon parted,” or even worse, “A fool and his money are soon partying.” But there is even a much better saying: “A Penny Saved is a Penny Earned.”

My favorite stratagem is to pay yourself first. Each time money comes into your hand, save/invest twenty percent (20%) and spend the other eighty percent (80%).

I know at times you must buy goods and services, but what you should know is that each time you spend money, it is going to make a large multinational corporation or someone wealthier and you poorer

(Please see one of my earlier  blog: Get Rich off the Very Companies You Pay Each Month for Goods and Services [Gas, Electricity, and Water Companies]). 

Most people have been duped into spending money. All ads no matter how simple or sophisticated are designed to wire your brain to make you give up your money to someone else. It is not easy, but you have to rewire your brain to know when you are getting duped.

A good way to start is with your children by letting them know that most TV and other commercial advertising are not 100% true. Our seven-year-old now always asks us each time he sees a TV ad, “Is it true?” and rarely are any of them true!

But, you can also always ask yourself by saying, “Can I go one day without it?” and the next day, ask the same question and most of the time, you will keep you hard earn money. The products or services are often things that you can live comfortably without.

Here is a quote from one of the first book ever written about money that will never change, The Richest  Man in Babylon“; Ten percent of what you earn is yours to keep.” 

buffet20My hope is that one day, people will realize that they have been tricked emotionally always to turn over their money to billionaire or people who already have more money than they do. 

“Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like”. –Will Rogers

Thank you for reading, please share my blogs and books with someone you love.

Love Always

www.sherwinpbrown.com

Two Financial Headlines That Will Shock You

Here are two money news headlines that will have you shaking your head

Breaking News

1) Per CNN Money.com: Only 48% of Americans have invested in the Stock Markets, this includes 401(k) money. That means 52% are missing out on the over 200% return in the past six years. There will be a lot of broke retired people in the future.

2) Per NPR.org:  So much money is going into Swiss Banks that the Swiss government is paying a negative rate of return, in other words, people are paying the Swiss Government to hold their own money … that is stupid.

Here is the great news; sooner than later, they have to come back in the stock market, and this will push the markets higher. I will make a prediction that within less than 18 months, the DOW (the 30 industrial stocks) will move from 18,000 to over 20,000!

In addition, these people are who work for a company that matches their employees’ contributions are actually saying to their employer, “That extra money that you are paying me so I do not have to work for forever and will have better much better financial life when I retire? Keep you money I do not want it, I want to be a worker bee for the rest of my life.”

Per CNBC .com:  Seventy-three percent of employers who have a 401(k) Plans for their employees match their employees contributions. Companies such as Wal-Mart Google, Medtronic, Starbucks will match 100% of your first 4-6% contribution.

So simple math: if you are earning $50,000 and you contribute 10% each year ($5,000), then your employer will contribute a matching amount the first 6% that is $3,000. So now you have a total of $8,000 starting to work for you each year.

But, say you work there 20 years and do not contribute a dime, then you gave up over $60,000! And if that $3,000 only compounded at 7% per year with dividends plus growth, you are missing out on $122,986, not to mention the tens of thousands of dollar of taxes savings that will be working for you if you are an intelligent investor.

And keep you money in a traditional 401(k) Plan and not a Roth.

4fatcat 001

Please do note: Each company has different vesting periods on the money they match, for example the first year is 20% vested, second year is 60% vested then, after three years you are 100% vested. However, there are no vesting periods on the money you contributed for yourself–you are 100% immediately vested, and you can rollover/take this money with you any time you leave the company. In addition, the IRS and sometimes your employer set the limits each year on how much you can contribute each year.

 As of 2015, the limited by the IRS is $18,000 if you are under age 50, but if you are 50 or older (up to age 71-and-a-half), you can do an additional $6,000 for a total of $24,000 per year.

You can read more about investing in one of my very easy to read investment books that are sold everywhere in paperbacks and eBooks such as on Amazon .com, Google play. iTunes Kobo book and Barnes and Noble,  just to name a few

 www.sherwinpbrown.com

Last Minute Tax Tip To Get A Bigger Refund!

Here is a quick and very easy way to get a bigger refund (or owe fewer taxes) while saving for your retirement at the same time!

1) Contribute $5,500 ($6,500 if you are 50 or older) to a traditional IRA … do not do a ROTH

2) Invest the money in FIVE different dividend paying companies for at least the next TWENTY years

Make sure these companies are companies that you and millions of other people must use their products and services every day. Here are some great examples of stocks & companies I’m talking about:

  • Your utilities company (Gas and Electric) you pay every month
  • a freight train companies such as CSX
  • Visa or Master if you use those cards daily or weekly
  • Food companies such as Sysco Corp.
  • The very company you pay for mobile phone service every month such as AT&T or Verizon
  • And last but not least, the gas company where you fill up your car bi-weekly, such as Chevron, Exxon Mobile, Marathon Oil, etc. (please read this very short blog)

Stop Paying your Electric Bill

3) Make sure that your quarterly (or monthly) dividends are enrolled in a Dividend Reinvestment Plan, also known as a DRIP.

4) Do not invest your money in Mutual Funds–over the long run, you will just get an average return and will not do as well as the top 5% of intelligent investors.

5) Here is how you will benefit; you pay fewer taxes now, and you should have a lot more money in 20 years from now because the taxes you did not pay are working for you!

6 You can thank me by downloading a copy of my book far as low as $4.99 at www.sherwinpbrown.com

7) *** Please READ DISCLAIMER ON MY WEBSITE AT www.sherwinpbrown.com