Make millions as an investor

Feb. 24, 2020

Introduction

I like to write a short research topic called how to make millions as an investor. Now it is 12:45 AM, I had two hour nap from 7:30 PM - 9:30 PM, and I need to go back to sleep in 10 minutes.

Make millions as an investor

I did case study on my mistake on investment on VIGRX from 2001 to 2002. I made a series of mistakes on other stocks like MSFT, Oracle and Intel as well, and other funds.

I like to read as many topics I can, learn how to make millions as an investor, if market goes up or down for a few cycles, next five or six years, before I turn 60 yrs old.

I like to live a frugal life. I drove 2001 Honda accord, less than 5000 KM a year. I do not spend money on clothes any more. I do not take vacation.

Recently I came cross the return of top 10 stocks from 2009 to 2019, those stocks are called 10-bagger stock to 60-bagger stock. I was so surprised that I do not hold any thing on stock market from 2010 to 2019. I did purchase a lot of technology stock just after 2001 Sept. 11 event. Here is the folder on github.com.

Actionable Items

I like to work on a case study, how Amtrust interest with over 5%, so I gave up my portfolio and moved my IRA to Amtrust bank IRA CD.

Also I did not study how to invest from 2001 to 2019, over 18 years.

First investment mistake - VIGRX can be over $10,000 dollars

Feb. 24, 2020

Introduction

I did case study on my short investment from 2001 to 2002 on VIGRX, and the loss is over $10,000 dollars from my viewpoint in 2020. I like to be a millionaire, so it is so easy for me to figure out those investment mistakes from my 2001 portfolio, all those holdings I sold them in less than a few year, a few of them are over $5,000 dollars loss.

Case study

Here is my blogs related to VIGRX mutual fund.

Be your own sugar daddy

Feb. 19, 2020

Introduction

US open champion Stephens Sloan posted on Instagram on Feb. 19, 2020 wearing t-shirt "Be your own sugar daddy". I like to work on a short research how I can be my own sugar daddy in 2020.

My own sugar daddy

How should I think about this statement?

I still remembered that I made mistakes back in 2009, I wasted time and was a victim of wishful thinking. I should have invested time to learn personal finance, and economy, recession and how to build wealth.

If I work hard back in 2009, then I will stay put and leave my par 401 K and IRA portfolio staying with Scottrade.com. I should have grown those $26,000 dollars with S & P 500 index.

Continue

Feb. 23, 2020 11:48 PM
I like to continue to work on this topic. I made so many mistakes in my investment starting from 2001. The first one related to VIGRX costed me over $10,000 dollars. I shared my mistake on wechat group recently.

Here is my post.

How to tell if I am below (should be above now) average as an investor?

Feb. 12, 2020

Introduction

It is time for me to learn how to evaluate myself as an investor. I did buy high and sell 15 years low in 2009, and I did the same thing in VIGRX in 2001. How should I start to learn to evaluate myself or other above average or not.

Above average

I just could not believe that I was 1% in 2009 to act reactively, and I like to figure out how to evaluate myself where I am at the very beginning.

Every area I should work on at least 100 hours first in order not to stay 1% lowest level.

So you want to be a 401(k) millionaire? Here's how to do it, according to Fidelity

August 30, 2018


Here is the link.

Values are rising
Retirement funds (year-over-year)

• Average 401(k): $104,000 (up 6%)
• Average IRA: $106,900 (up 9%)

What's in your 401(K)? Vanguard, average retirement account
Ages 65+

• Average: $209,984
• Median: $64,811

1:57
157,000 people are super saver, based on Fidelity, with over a  million dollar

Tip #1
Be aggressive

• Invest heavily in equities
• Be heavier equities when younger, roll out over time
• Gauge age and risk tolerance

Tip #2  (3:22/ 6:04)
Know your end goal

• Always take a longer-term view
• Have an eye on growth
• Don't react to market swings

Tip #3

Examine allocations

• At minimum once a year
• Quarterly when near retirement
• Re-examine when life changes take place

Jeanne Thompson - Fidelity

Target fund - when you are 50, still 10 year to retire, 85% equities, 15% bond

Marathon, a sprint,

60% market,

Allocation once a year. Asset class

Less than 1% - move to cash, but most of them stay on the course

Those over 10 years,
$73,000 -> $200,000 approach $300,000

Do not react too quickly.

Actionable Items

I like to evaluate myself based on my USA 401 K and IRA, my return from 2009 to 2020 is less than 2% annual return. All of those mistakes can be traced back in 2001, I sold VIGRX in 2001 with 30% loss; I did not learn that I have to read at least one investment book related to growth fund, and understand the concepts like index fund return. Later in 2009, since my Canada immigration application was denied in December 2008, I sold all equities in my 401 K and also IRA. I made mistake to move to IRA CD with Amtrust bank.

I got depressed in 2009 since I learned that I may be worth nothing from 1996 to 2009, the home  I purchased does not worth too much, I had 10 year old paid SUV but gas price was $5.00/ gallon, and I had less than $28,000 dollar US retirement fund, and the bank gave me $65,000 home equity line starting from 2006.

I have to examine how to stay healthy, wealthy; Never purchase any brand new car, only gas-efficient car instead.

A key financial habit that can make you rich

Here is the article.

Many investors could be scared of market volatility right now. But those that allow the fear to keep them from investing or to force them out of the market are making a mistake. If you wait and miss the rebound, you’re like to miss out on a lot of gains. And in any kind of market, said Burt Malkiel, the famous economist, the move that gives you the best odds of getting rich is the most basic: Start investing.


- be scared of market volatility - why? I was scared in 2001 to sell VIGRX fund, and sell 401 K and IRA fund in 2009
- keep them from investing or force them out of the market - making a mistake
- wait and miss the rebound, miss out on a lot of gains
- Burt Malkiel - who is the economist?

Investors are prone to be either fearful or overconfident. History shows they buy and sell at almost exactly the wrong times: That’s why, over the past 30 years, equity fund investors have made less than 4 percent annually in the market, compared with an 11 percent return for the S&P 500, according to Boston-based research firm DALBAR.

If you adopt investing as a habit — small sums regularly over time — you’re more likely to be able to stick to it. “Maybe this is the corollary to the main point,” said Malkiel. “You’ve got to have the guts to continue this when things are bad. Anyone who lived through 2008 knows that isn’t so easy.”

In fact, according to the same DALBAR study, in October 2008, equity investors lost 24.21 percent compared to an S&P loss of 16.80 percent for a net underperformance of 7.41 percentage points.

“You do it regularly because if you stop when the market is down, you lose all the advantages of doing it,” Malkiel said.

10 reasons I failed to start my personal finance research

January 25, 2020

Introduction

It is my personal finance research. I like to figure out what are 10 reasons I failed to work on my US 401 K and IRA from 2010 to 2019, I did not start my personal finance research until Nov. 2019.

10 reasons

I like to write down 10 reasons and also push myself to learn more about personal finance, and build a community around myself to build wealth and grow rich.

1. First, from 1999 to 2009, I did not spend over 100 hours to study personal finance, investment; I never review my credit card statements, learned how to use Excel sheet to calculate my expense. My foundation of business analysis was too weak;

2. I made mistakes in investment. I sold VIGRX in 2001 to have 30% loss; I did not learn anything until 2009 I sold everything in stock market in 15 years low; What I did was to ignore the need to learn how capitalism works;

3. My christian belief, and my church activities, I did not push myself to learn basic skills how to do book keeping, and invest time to read investment books at all. My attitude to build wealth and become rich is wrong, I still was in hope to get back to high paid software engineer job;

4. I was under stress from 2010 to 2019. I got addicted to have road trip to USA to do cloth shopping;

5. I spend a few years to play tennis and tried to lose weight. I did that from 2012 to 2018.

6. I worked on Leetcode from 2015 to 2019, and worked on my coding blog;

7. Whatever I do, I should always keep study how to build wealth and grow rich every year;

8. I spent over three years to learn how to file Canada immigration application for my nephew from 2016 to 2019. I should always put my own goal first;

9. I always think about being nice and also practice my Christian belief; My mindset is to live a life from a paycheck to a paycheck.

10. I do not learn and spend time to watch youtube.com video, instead of watching Netflix for entertainment.

Overall, I dot not push myself to advance myself in terms of reading skills, and other challenging activities like contests, and other activities like blogging.

How many mistakes I made as an investor from 1999 to 2019?

January 12, 2020

Introduction

It is so important for me to continue to learn how to invest. I like to find out that how many mistakes I have made from 1999 to 2019. I can quickly name a few right now, but I like to get a complete list.

Mistakes I have made

I like to name the most biggest one.

1. Time the market
2. Inflation risk
3. Buy high and sell low
4. Recency bias
5. Long term investing or gambler
6. Human nature - fear and greedy
7. Ignorance - not a learner
8. Decision making - impulsive decision making
9. Emotion not stable
10. Business mindset - work on impossible goals, Ph.D. degree, US greencard, friendship, the most important goal is to build wealth and grow rich.
11. Associate with wrong crowd

More detail

Time the market:

1. 2001 SOLD VIGRX fund - when the fund lost over $1000 dollar value from $3000 initial dollars investment.
2. 2009 Sold everything and put in Amtrust bank IRA CD

Inflation risk

There is 4% inflation risk. If I put 401 K and IRA into capital preservation fund, then I will lose 4% at least because of inflation risk.

Buy high and sell low

During times of financial stress, people lose 13 percent of their IQ points and make rash decisions, resulting in poorer decision-making, according to a study by Science magazine. It might be the reason why many people buy high while stocks are popular and prices are taking off, and sell low while they're panicking during a market downturn, instead of waiting until a stock price recovers a bit. 

Recency bias

Key Largo portfolio update

Nov. 16, 2019

Introduction

I like to manage myself. If I do not spend 100 hours to study invest, and I learn something basics, or I do not share with any one, I should not think that I can make a lot of money. It is natural that I will suffer behavior problems, such as common finance behavior problem, like loss aversion, anchor bias, buy high and sell low etc. So it is important for me to invest time to write blogs about my portfolio, and then look into the issues. I was the young lady who sold VIGRX fund in loss in 2001 and then sold everything in 2009 with loss of over $6,000 US dollars when market was lowest in last 15 years. Now I am much mature since I started to learn first and invested more than 500 hours to study about investment in 2019 after I turned 52 years old in 2018.

Progress report 

I am happy to see the profit since S & P 500 index went up in last week. I made purchase at 2900 S & P 500 index, now it is 3100.

Here are performance charts I got from my Jstock app on my Samsung S6 mobile phone.

How to spot my own weakness and then work on improvements?

Nov. 9, 2019

Introduction

It is my personal finance research. I like to continue to search my weakness, and then work on improvement.

My weakness

I found out that I should work hard to learn how to invest on equity fund in 2019. I have USA IRA fund over $20,000 dollars near 20 years, and 401 K over $6,000 over 10 years. I have to learn that it is my job to learn how to double those money every 7 years.

It is my long term goal to learn all those index funds, individual stocks. I can not let go 20 year, and I only make $5,000 interest with lowest interest 1.2%.

I am 53 years old. It is easy to get stubborn, and it is so hard for me to learn personal finance, and learn the importance to be frugal first. So I can learn that I have to push myself to learn to invest on equity market.

Risk is hard to manage. I have to push myself to learn the basics. Invest 100 hours, continue to learn until I can understand and communicate financial literacy.

References:

1. Par tech 401 K, here are blogs.
2. IRA, IRA CD, VIGRX index fund 2001, here are blogs.
3. Buy high sell low, here are blogs.

Dollar Cost Averaging

Here is my favorite finance planner's blog. What I like to do is to go over the blog again, I specially like to dive into the dollar cost averaging table, and then look into things I should learn from.

This is best teaching compared to all other on youtube.com. I specially like to learn from data. Based on the table in the blog, I will write another blog and continue to do my case study of IRA CD account analysis.

Highlights of good teaching in the blog:

1. Market timing, how to avoid market timing
2. Falling market is the great time to invest, why? How to invest?

Falling market, gains, regular saving, how to gain from a falling market. There are a lot of good ideas out there. One of them is to save monthly and put them in the stock market. 

Dollar cost averaging

Dollar Cost Averaging is a strategy in which an investor places a fixed dollar amount (or indeed any other currency) into a given investment such as a unit trust, on a regular basis.

The investment generally takes place each and every month regardless of what is occurring in the financial markets. As a result, when the price of a given investment rises, the investor will be able to purchase fewer units. When the price declines, the investor will be able to purchase more units.

Millions of investors around the world employ a dollar cost averaging strategy because it offers the following benefits:

• It’s an attractive option for investors who want to contribute to their investment portfolios on a regular basis.
• It eliminates the issue of ‘market timing.’ As a result, an investor’s returns will be determined more by the overall trend in a given fund as opposed to the investor’s specific entry price. In addition, it helps investors reduce their cost basis on securities that decline in value.

My sharing

Why market timing is not a good idea? I like to say something. Buy high and sell low. Cut the loss when the market is low. Loss aversion is bias of investor, I did sell VIGRX fund in 2002 and then I totally forgot it. 

Example:

Two cases

It is great investment opportunity for a stock price with 30% loss in value; how to take advantage of the loss of value? One of ideas is to continue to purchase no matter the price goes down or goes up. 

You decide to invest $1000 per month into two funds. During the first 12 months, Fund A shows steady growth at 2% per month. Fund B falls by over 30% in the first few months, recovering back to the initial level by month 12. In which fund will you have accumulated your greatest investment value?

The answer might be surprising. Take a look at the figures:

Let us review the facts:

           Fund A             Fund B

gain    $1401               $3389
units   107.82              153.89

For example, if I purchase Vanguard total market index fund, as long as I continue to purchase the fund, I will be able to make more profit if the market goes down and goes up again. Recession, market correction is good for me as a long term investor.

In summary, over 12 months, Fund B has delivered better than twice the returns of Fund A in percentage terms!

A few more ideas to share in the following:

1. The Dollar Cost Averaging strategy for reducing market risk relies on (i) you having a suitable time horizon for your investments, and (ii) your chosen fund recovering from the decline and returning to the upward trend. In the example above, if you needed access to your funds when Fund B is low, you will make a loss on surrender.
2. Dollar Cost Averaging reduces market timing risks for volatile investments and is a reason why regular savings plans are so popular for building long term financial security. The example above could be twelve years rather than twelve months, but the concept and outcome holds true.
3. Dollar Cost Averaging can be appropriate when considering higher-risk investments such as emerging market funds, if the investor anticipates a positive overall trend in the medium to long term.

Actionable Items

I plan to read more posts from the author. Here is the list of posts for me to read.

巴菲特：最好的投资的方法是买指数

Here is the link.

追踪标准普尔500指数的指数基金

2008年5月3日在伯克希尔股东大会上Tim Ferriss问：“巴菲特先生，假设你只有30来岁，没有什么经济来源，只能靠一份全日制的工作来谋生，根本没有很多时间研究分析投资，但是你已经有笔储蓄足够维持一年半的生活开支，那么你攒的第一个100万将会如何投资？请告诉我们具体投资的资产种类和配置比例。”巴菲特哈哈一笑回答：“我会把所有的钱都投资到一个低成本的追踪标准普尔500指数的指数基金，然后继续努力工作。”

最好的投资股票方法

巴菲特在1996年致股东的信中说：“大部分投资者，包括机构投资者和个人投资者，早晚会发现，最好的投资股票方法是购买管理费很低的指数基金。”巴菲特在2003年致股东的信中说：“对于大多数想要投资股票的人来说，最理想的选择是收费很低的指数基金。”指数涨幅代表股市投资平均业绩水平，可是为什么过去几十年经济持续增长，股市持续大涨，而大多数投资者却连平均业绩水平都达不到呢？

三个原因

巴菲特说：“我认为这主要有三个原因：第一，交易成本太高，投资者买入卖出过于频繁，或者在投资管理上费用支出过大；第二，进行投资组合管理决策是根据小道消息和市场潮流，而不是根据深思熟虑并且量化分析的公司评估；第三，盲目跟随市场追涨杀跌，在错误的时间进入或退出股市，比如在已经上涨相当长时间后进入股市，或是在盘整或下跌相当长时间后退出股市。”对于指数基金投资，巴菲特有三个具体操作建议。

I made all those three mistakes from my experience from 2001 to 2010. 

第一，交易成本太高

第二，进行投资组合管理决策是根据小道消息和市场潮流，而不是根据深思熟虑并且量化分析的公司评估；

第三，盲目跟随市场追涨杀跌，在错误的时间进入或退出股市

I sold all stock and funds in 2009 when I failed to file Canada immigration case. I chose to focus on my immigration case. I thought that everything I did was not working. 

Case study: Buy high and sell low

追涨杀跌

My VIGRX fund in 2002. 

Case study: 进行投资组合管理决策

I sold all the funds in my IRA in 2008 after I experienced loss. And I decided to move all funds into IRA CD or money market fund. 

Here is the blog to say goodbye to stock market. 

Case study: 30 years learning experience
I also like to share the blog I studied Morningstar vice president's article. 

第一，选择成本更低的指数基金

与那些由基金经理进行主动选股构建投资组合的共同基金不同，指数基金被动追踪股票指数，基本上投资于大部分甚至所有股票，目标是实现相当于市场平均水平的收益率，不用研究选股，因此管理成本明显低于那些主动型共同基金。指数基金的管理费越低，成本优势越大，净收益率越高。

巴菲特说：“我个人认为，如果基金投资者的投资每年要被管理费等吃掉2%，那么你的投资收益率要赶上或者超过指数型基金将会十分困难。中小投资者安静地坐下来，通过持有指数基金轻松进行投资，时间过得越久，自然积累的财富会越来越多。”

　　第二，定期投资指数基金

2007年5月7日，巴菲特接受CNBC电视采访时建议投资者定期投资指数基金：“我认为，个人投资者的最佳选择就是买入一只低成本的指数基金，并在一段时间里保持持续定期买入。因为这样你将会买入一个非常好的投资品种，事实上你买入一只指数基金就相当于同时买入了美国所有的行业。”“如果你坚持长期持续定期买入指数基金，你可能不会买在最低点，但你同样也不会买在最高点。”巴菲特在1993年致股东的信中说：“如果投资人对任何行业和企业都一无所知，但对美国整体经济前景很有信心，愿意长期投资，这种情况下这类投资人应该进行广泛的分散投资。这类投资人应该分散持有大量不同行业的公司股份，并且分期分批购买。例如，通过定期投资指数基金，一个什么都不懂的业余投资者往往能够战胜大部分投资专家。一个非常奇怪的现象是，当"愚笨"的金钱了解到自己的缺陷之后，就再也不愚笨了。”

第三，长期投资指数基金

很多人喜欢波段操作，而巴菲特建议长期投资。大量研究表明，个人投资者在把握股市波动时机方面的历史记录很差，因为他们过于热衷于跟踪股价最新涨跌，结果反而更容易在错误的时机进出，经常是高买低卖。

如果你一定要选择买卖指数基金的时机，巴菲特2004年致股东的信中给出建议：“投资人必须谨记，过于兴奋与过高成本是他们的敌人。而如果投资者一定要把握进出股市的时机，我的忠告是，当别人贪婪时恐惧，当别人恐惧时贪婪。”这需要准确的判断和坚强的意志，大多数业余投资者甚至投资专家都难以做到，因此更简单更轻松的办法是长期投资。

2008年巴菲特个人用100万美元打赌：长期投资一只标准普尔500指数基金未来10年内的收益将会“跑赢”Protege公司精心选择的5只对冲基金。2015年2月，Protege公司总裁公开宣布提前认输。

巴菲特的信心来自于历史：20世纪美国经济持续增长128倍，道琼斯工业指数从66点上升到11497点，上涨173倍。即使是过去44年中，标准普尔500指数在75%的年份都是上涨的。 

投资指数基金的缺点

但投资指数基金也不是就可以高枕无忧。与高收益相伴的永远是高风险。虽然指数投资相对于个股投资更安全，但任然会暴露在市场风险之下。例如2001年和2008年的两次股市历史性下跌，导致很多人的退休基金被腰斩，不得不延迟退休计划。

另外一个影响投资收益率的重要因素是税务。在美国，每年需要报投资所得并交资本利得税。这税率收入越高的家庭交的越多，最高可达到39.6%。随着每年复利滚存，每年交税和不交税两种情况的长期收益天差地别。那么有没有投资可以兼具指数投资的优势，规避市场风险，还不需要交税呢？答案可以在阅读原文中找。

What I learned in 30 years of investing

Here is the link. John Rekenthaler, the author is vice president, Morningstart, Inc.


Fact 1:

In March 1988, I placed $1,000 in my first mutual fund. Since that time, I have left the fund untouched, to accumulate. And accumulate it has. Today, that $1,000 is worth $14,834.

15/01/19

My own story 

I did almost the opposite. In 2001, I bought $3,000 us dollar VIGRX, and then in 2002 I sold as a loss, and then in October I bought an expensive SONY laptop $1800. I killed the everything, the SONY laptop still is in my friend's house in Florida. 


Argument 1:

If stocks return 10% annually and inflation is 3%, it's difficult to go wrong with equities. High costs, mistimed trades, poor manager selection … the mistakes wash away. To be sure, such decisions matter. Best to get them right and maximise one's profits. Nonetheless, the critical decision was to hold stocks. Better to be dumb with equity than smart with bonds.

Exercise 1:

How to Reach $1 Million

Assuming that my health holds up, and that I have no immediate need to spend the money, my first investment could have an effective life span of another 20 years, roughly speaking.

If so, and if the fund were to perform as it has in the past, then that 700% after-inflation increase would become 2,500%. 

Now we're talking. Reaching that hypothetical goal of $1 million, as defined by 1988 dollars, would have required a $40,000 initial outlay. 

Beyond my means at the time, but not an inconceivable sum for somebody in his late 20s.

Of course, this exercise only involves one purchase, with no further activity.

In real life, the stock market mathematics are far easier, because people typically invest on an ongoing basis.

If they do so with equities, stay the course for several decades, and stocks perform anything like they have during my working career, today's young workers will fare well.

In 1988, I bought stocks because I landed a position at an investment research company. Had that accident not occurred, I would not have purchased equities that year, and probably not for many years to come. The blind squirrel stumbled upon the nut.

Will the next generation be similarly fortunate? I have assumed that that future real returns on equities will resemble those of the past. That was what I believed in 1988, and it turned out to be correct. Will 2019's novice investors find that same nut?

The answers to those questions are beyond anybody's pay grade.

We do not, and cannot, know if the soundest investment advice that the next generation can ever receive is what I would instruct my younger self: buy stocks early, and buy them often. However, the subject bears discussion. As I have realized while thinking through my 30-year Morningstar anniversary, the level of stock market returns dominates all else. It is, as the saying goes, the elephant in the room.

What if I know the stock market

"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett

It is a good research topic for me to work on.

I am a programmer but I like to do a short research. My interest is superficial, play tennis, shopping, I bought thousands dollar clothing again starting from 2010, it is junk since they are my wants and not needs. I watch netflix shows to take breaks instead of learning things on youtube.com on personal finance until Nov. 2018.

2018

One day I felt so lost since I thought about other thing not tennis, I was playing tennis against the wall. I like to have a home, own a home some place in Canada, but I failed to time the market. I talked to a Chinese friend who also has a real estate license. He explained to me that I did not know the market. Now it was too late. It was in 2018

I felt that I like to start something new. Why I just work on a case study first.

Because I do not know what problem I have. I think that I have income problem not expense problem. I do believe that I should hold on to grow rich until I can get more income first.

2009

I did not know the stock market, when in recession 2009, I took the loss, sell everything to focus on my immigration case.

My attitude has problems. I should learn more about stock market starting from 2001. I was a home maker in 2001.

I made a mistake to sell VIGRX mutual fund in 2002, and then totally forgot it, do not talk about it. I moved on with other interest.

I did not succeed the first time to file Canada immigration. I had 30 days to respond the immigration office to provide finance letter to show $10,000 Canadian dollar fund. The consultant did not receive the mail and I did not know where I was in the application status at all. All I am doing is to wait for the result. I got denial of application since lacking of financial statement. I took advantage of 60 days to appeal my case, started to file appeal for leave in Canada federal court by myself.

I felt so disappointed and this was the first time I learned that I could not turn back the clock.

I was impatient, and I sold everything in stock market and took the loss in 2009, and I decided to move on immigration case.

Kevin O'Leary Explains Compound Interest With A Piggy Bank

Here is the link.

I like to use my own example, I sold VIGRX mutual fund in 2002 after I lost high pay full time startup software company, $3000 dollars in 2001 and took the loss to sell $1900. Later on in 2002, I bought a super expensive SONY laptop $1800.00.

I like to use the words from Kevin O Leary, I bought something I do not need, and I kill it. In 2019, those VIGRX worths over $10,000 US dollars.

If I used those $1800 dollars to hold VIGRX fund, I sold VIGRX in 2002 as loss in February 2002 as a home maker, $1900, now the value of VIGRX worths over $10,000 dollars.

Case study: March Florida vacation

Feb. 16, 2019

Introduction

It is my personal finance research. I was too busy to work on personal finance research, I do not even have time to work on algorithm and data structure practice starting from Nov. 2018. Also I was too busy to work on the projects at work. I like to figure out if I can plan a vacation to Florida in March.

Case study

I like to plan to take a vacation to Florida. I like to watch Miami open tennis, and enjoy a few days break.

I need to plan a few things. I need to find cheap airline tickets, I need to plan to clean the rental home, special kitchen area. I need to work on a few other things as well.

I need to empty some space, take my clothing back to Florida. This time I know that I spent over $6,000 dollars on clothing and other things. It is not wise to throw them in garbage can. I like to take them back to Vancouver first. Specially my SONY laptop I paid over $1800 US dollar in 2002 Sept, and I brought the laptop with me the first day intern at Motorola plantation.

If I used those $1800 dollars to hold VIGRX fund, I sold VIGRX in 2002 as loss in February 2002 as a home make, $1900, now the value of VIGRX worths over $10,000 dollars.

Be a wise woman

I like to be a wise woman. One idea is to save money. It may not be a good idea to travel long distance to Florida.

Case study: 2009 credit report

February 2, 2019

Introduction

It is my personal finance research. I spent time to review my IRA CD performance from 1999 to 2019, and then I came cross my 2009 credit report paper copy. I searched the hard disk but I could not find the electronic copy. I like to case study the credit report.

Case study

I am very happy to retrieve my home equity line balance from 2007 Dec. to 2009 October. I like to look into the decision making behind those transactions behind the home equity line.

I did withdraw $30,000 US dollars from home equity line after I left full time software job from one year full time job as a software programmer in Oct. 2007.

Best buy/ HSBC
opened on 04/2002, high balance $1964.00 for SONY laptop I purchased.

Home depot/ citibank

Date opened
07/2003
high balance
$3590

I put tiles on the floor and paid home depot to hire the contractor in 2003.

Actionable Items

I like to push myself learn personal finance. One idea is to look into those financial data, and learn from the experience. What mistakes I have made in those years.

One of ideas to lower the risk and cost reduction is to purchase used car, and cheap laptop, and carefully monitor the expenses. I should pay attention to mini leaks and major leaks in terms of annual report, decade report.

I also have to learn how to be an intelligent person, avoid emotional decision making; I should always consider alternative cheap ways to solve problems. I should not pay any expensive service from any one in the world. I just use common sense and take some risk to evaluate the situation by myself.

Big mistake in 2002

I found out in Feb. 2019 I sold VIGRX fund in Feb. 2002 with loss $1900, originally I bought $3000.00 dollars in 2001; later in Oct. 2002, I purchased most expensive laptop in my life, SONY.

If I hold the fund VIGRX, then it is worth $10,000 US dollars.

I remembered that I told my friend in 2002, I helped the economy, I paid my mom to visit Florida second time after I lost the job in 2001; I purchased the laptop in 2002; I gave away cash $2000 US dollars for expense of my mom's trip in China.

I will look into this issue later. Once I learn more about personal finance, I should have ideas how to think and make personal finance decisions.

The stock market is to transfer money from impatient people to patient people

Jan. 28, 2019

Introduction

It is the statement I learned from Tony Robbins. "The stock market is to transfer money from impatient people to patient people". I like to write a blog based on this statement.

Impatient person

I was an impatient person from 1998 to 2001. I also was an impatient person in 2002 since I sold VIGRX mutual fund as a loss; I was an impatient person in 2008 and 2009.

I like to share what I wrote in 2009 about my thought process.

How to Get RICH | Unshakeable by Tony Robbins | 10 BEST Ideas | Book Summary

Here is the link.

Wealth tax - 20%

Compounding

10,000 year, put into 5% interest 30 years; if interest goes to investment continuously, then
it will be $33,219.
10,000 year, put into 5% interest 30 years; all interests are taken out, then the value will be $15,000.

Julia's worksheet:
(1 + 0.05)^30 = 4.32194
0.05 * 30 = 1.5


Fear and chicken little

6:22/ 15:56
Stay the course - that is mantra to manage other people's money.

7:00/ 15:56
You cannot time the market. Stay in the market.

Big idea six
"If you do not plan to own the stock over 10 years. Do not plan to own 10 minutes."


Diversify four times

1. Asset class
2. Within asset class
3. Country
4. Stage of life

12:00
Last idea
Resource and technology

Relate to my experience

2001 purchase $3,000 dollar fund VIGRX, sold in 2002 with value $1,900

It is buy low and sell high. I sold $1,900 dollars with over $1000 dollar loss. I purchased in 2001 $3000 US dollar VIGRX fund.

2008 worst stock market crash -

I lost over $5,000 dollars and then I pulled out everything.
I lost over $3000 dollars on Par Siva 401K, and then I chose to purchase money market fund instead.

8 big lottery winners whose money and luck ran out

Here is the link.

The winner needs to figure out day-to-day cash needs, insurance needs and emergency needs before anything else.

Case I:

William “Bud” Post III

“He did everything you would expect of a guy who became a millionaire overnight,” Lacher told the Pittsburgh Post-Gazette. “While you might buy one laptop, Bud would see the same laptop and buy 30.”

Case II:

“A few of my relatives were angry because I had so much.”

Case III:
Andrew “Jack” Whittaker, won $315 million dollars

Whittaker started drinking heavily. He was robbed often and said he was battling more than 400 legal complaints at one point.


Case IV:
Florida residents Alex and Rhoda Toth were downtrodden in 1990. 

“It caused us to lose a lot of friends, some family members,” Rhoda Toth told the St. Petersburg Times in 1997.

A crash course in taxes is a must for lottery winners.

Case V:
Winning a $31 million Texas Lottery jackpot in 1997 initially looked to be a cure-all for Billie Bob Harrell Jr.’s financial woes.

But the endless pressure of strangers asking for money took a toll. Harrell was forced to change his home phone number more than once. He and his wife separated.

One of the first things to do is put together a list of people you trust and make one of them a buffer — someone who will deal with those who come out of the woodwork, because you now have a target on your wallet.

Case VI:

In 1993, Janite Lee, a South Korean immigrant, was running a wig shop in St. Louis when she won $18 million in the Illinois Lottery

She also donated generously to Washington University, and its School of Law named a reading room after her.

But the annual, after-tax payments of $620,000 couldn’t match her spending.

When she filed for Chapter 7 bankruptcy protection in 2001, the extent of Lee’s debts became clear. She had only about $700 but owed $2.5 million, according to The Augusta Chronicle. And, she had lost nearly $350,000 gambling at casinos during one year.

Gambling financially is never a good idea. But with CD rates on the rise, they’re a low risk way to earn an almost 3 percent return on your investment.

Case VII:

Suzanne Mullins won $4.2 million in the Virginia Lottery in 1993. After she split the money with her family and taxes ate away some of the prize, her 20 annual payments of less than $50,000 weren’t remotely enough to lead a millionaire’s lifestyle.

Case VIII:

Denise Rossi had been married for a quarter century when she won $1.3 million in the California Lottery in 1996.

In 1999, a judge declared that Denise Rossi had violated state asset-disclosure laws. The result? Her ex-husband received all of her winnings.

Actionable Items

I like to look into the following topics. 

Case II: buy same laptop 30 of them. 

I used to purchase shirts/ pants 6 dollar each pieces, i bought 8 pieces some time from 2010 to 2014, the total cost is $48.00 dollars plus tax.  I used to go USA shopping jeans, I bought more than six pieces of jeans since I do not want to go shopping any more. 

The idea is to set limit on my purchase. Do not buy any clothes anymore. Do not buy grocery each time more than $50 dollar in Costco. Do not purchase any grocery in crystall mall more than $50.00 dollars. 

I also need to spend time to document each purchase with items in detail. Also I need to push myself to find time to generate monthly expense report. 

Case VI:Gambling financially is never a good idea. But with CD rates on the rise, they’re a low risk way to earn an almost 3 percent return on your investment.

I sold VIGRX fund with one thousand dollar loss in 2002. And then I sold all stock and mutual fund after 2008, since the value of loss is more than $5,000 dollars. 

So I have to learn to make my investment in stock market as a business. I need to document the purchase. Even if it is 50% of loss, it is still better for me to spend on vacation or shopping. Those items I can sell them with 10% of value easily.