Our Favorite Funds for Retirement Portfolios

Feb. 18, 2019

Introduction

It is my statue holiday called family day. I spend time to stay in my home office and then learn something related to personal finance. Here is the video.

Retirement fund

I did three startup companies in United States. In every job, I rushed to pay as much as possible into my 401 K account. I need to get organized and then look into how to get educated related to 401 K fund and IRA accounts.

It is long road for me to catch up. I start to learn from so many people and open to a new world of people who shares good content.

I start to work on my personal finance from Nov. 2018.

I sold all possible big gains mutual funds, stocks in recession 2002 and 2009. I tried to focus on Canada immigration case in 2009 only.

Grow rich is so painful experience

Feb. 18, 2019

Introduction

It is my personal finance research. In order to solve problem of housing problem in Canada, I have to push myself to work on personal finance research starting from Nov. 2018. After more than four year research on data structure and algorithm, I believe that I learn how good a research can be. I like to push myself to learn various topics, and also I need to push myself to case study so many things in my past and existing experience. Grow old is not to grow rich. Grow rich is not automated, I have so many struggles and painful experience, I have to push myself to learn how to save money, and find time to work on my own personal finance business highest priority first time in my whole life.

Why it is so painful?

I have to face the reality. It is easy to be nice but that means I have to pay the other person's bill. I have to learn how to defend my own interest.

I stopped netflix monthly subscription in January 2019. Even though I did not have time to watch a lot of show, I did subscribe over 4 years. My English reading is not so good, I start to watch youtube.com videos first, and then I start to read articles related to personal finance.

I park the saving on 1.8% interest on Scotia bank saving account, but I have to think about carefully. If I like to invest some money on stock long term, I am better to take tax advantage and put it into RRSP first.

I park those 401 K account and IRA account on money market fund and low interest rate less than 2.0% from 2016 to next six years. I plan to spend next six month to learn another 1000 hours personal finance first, and then I should come out some good ideas how to take action.s

I worked full time last eight years nine month. I have not come cross one single good idea to invest based on my savings. I just could not believe that how good those deals are. I was so ashamed to learn those research related to Chilliwack condos and the price from 2010 to 2015.

All my attentions are drew away from Canada to my mom and my siblings and those relatives in China from 2010 to 2018, friends in USA. I should focus on low income jobs, and how to work on my limited income and savings, and develop strong determination to build wealth instead.

Follow up 

January 11, 2020 3:05 PM
It is important lesson for me to learn related to my USA 401 K and IRA accounts. From 1999 to 2019, I have 20 years to learn how to invest, but I did not take any initiate and developed any curiosity in terms of investing, risk, portfolio management. My behavior economics is below the average, worst case in the world.

It was the reality I had to face, as a 53 years old, I have to be patient to myself. Start slow, and read every day, and write down what I have read and continue to develop interest to learn.

Why it's important to be a tax-efficient investor - Vanguard

Here is the link.

Dispute of home ownership

Feb. 18, 2019

Introduction

It is my personal finance research. I have to push myself to learn and how to improving my living condition in Canada. I started to dispute with my sisters and my brother about home onwership of a condo in the city of Yichun, jiangxi province.

How to dispute?

In order for me to dispute the ownership, I have to push myself to gather those financial data, and also I need to discipline myself to be responsible to my own home, even if I am a single person. I have to push myself to learn how to stay away and keep distance with so many siblings in China as well.

It is also the time for me to learn how China government to take care of elder retiree and their family as well. I learn a few facts and totally I was surprised those benefit. I was totally angry the behaviors from my elder sisters and brother.

It is my personal finance research. I like to push myself to figure out how many things in the issue?

I decide to dispute and try to push myself to learn and improve my living condition in Canada.

Financial facts

I put together and review those finance data.

Here is my blog I paid all expenses, including all interior design first year purchase. The time range is from 1998 to 2001.

Here is western union transfer I paid to support my mom from 2010 to 2018. I was in Canada and without a purchased home owned by myself. I set highest priority to pay my mom, support her. She owned a home and with retirement income.

Create a Lean, Mean Tax-Efficient Machine

Here is the link.

Harold Evensky

Here is the wiki page.

Evensky: Strategies for Securing Your Retirement

Here is the link.

Long term care and related issues

Feb. 18, 2019

Introduction

It is my personal faith from Bible teaching. I like to honor my mom, I paid my sister to support my mom every year $1000 dollars from 2010 to 2017, and then I spent thousands dollars on vacation from 2012 to 2017. My finance is the disaster, I start to investigate the issue starting from Nov. 2018.

Things I learn

I spent time to take vacation and learned a few things related to long term care. How we supported my mom and got her senior years living with people help.

Case study: Where I spend money from 2010 to 2019?

Feb. 18, 2019

Introduction

It is hard for me to adapt to be a Canadian. I did my personal finance research, and I like to case study and try to figure out how I can push myself to learn how to survive in Canada. I have worked full time in Canada 8 years 9 months, I like to push myself to learn more about personal finance and conduct my case studies.

Case study

I did my vacation study, I spent five vacations to China from 2012 to 2018. I told my brother and sister on December 2018, since my mom passed away in Nov. 2017, I will no longer take vacation to China. I like to be independent and find ways to have my own housing in Canada.

Case study of my airline ticket expense, here is the link.
Case study of 2012 vacation in China, here is blog first 24 months in Canada.
Case study of 2014 vacation in China, California, Florida, Philadelphia. 
    Here is the blog of vacation to California. 
    Here is the blog of vacation to Philadephia. 
Case study from 2010 to 2019 clothing expense, here is the link. 
Case study of wanted not needed on citi credit card. Here is the link. 
My sponsor application project management. Here is the link. 
How much I paid coach May 2018? Here is the link. 
My car maintenance. Here is the blog.
My saving rate from 2010 to 2018. Here is the blog.

Actionable Items

I need to learn how to avoid scam, and also I need to limit myself to reduce risk, avoid renting the car, drive less, and also need to learn where the opportunity for me to invest with a moderate income as a software programmer.

Morningstar youtube channel

Feb. 18, 2019

Introduction

It is my personal finance research. I started from Nov. 2018, and after hundreds of hours research, I finally start to find my favorite learning channel - Morningstar, and I specifically like personal finance director Christine Benz and her good teaching style in her article and her presentation in in the interview.

Computer science graduate admission investigation

Feb. 18, 2019

Introduction

I am the sponsor and try to help my nephew to immigrant to Canada. We are moving forward, we just finished DNA test, and then the principal applicant got procedure fairness letter and sent the document requested by the office. He also took computer science graduate admission test this 2019. I spent over one hour to look into the computer science ranking in China, and he applied Hunan university, ranking 40 on computer science major.

Work with Canada immigration Hong Kong office

Feb. 18, 2019

Introduction

I am the sponsor, and I work with principle applicant on his application. He got a procedure fairness letter on Feb. 1, 2019. He has 30 days to send in the document requested. Last December he send in through the mail but he did not include letter from Hong Kong office, and he did not include his application number.

Super patience

I also have to push myself learn how to communicate with hong kong office related to principal applicant. I sent an email to query the case but the office sent back to me an email saying that I am not authorized to communicate with principal applicant's issue. I wrote the email to thank Hong Kong office for procedure fairness letter.

Create a Portfolio You Don't Have to Babysit

Here is the link.

It is one hour video. I like to learn from the presentation. It is best learning and I feel like I have to push myself to learn more. One thing I can do is to write down those four steps.

What to Do as Stocks Slide

Here is the link.

I like to write down what I like to learn from the article:

Stock takes another tumble -> 
market volatility
asset allocation is a great starting point
what is high-quality fixed income exposure
asset allocation - buy low and sell high
some sort of a dollar-cost averaging strategy through a 401(k) plan
the price to fair value for all of the companies in the coverage universe
high-quality fixed-income exposure
a little bit of interest-rate-related volatility
safer securities like cash, like high-quality short- and perhaps intermediate-term bonds

Jeremy Glaser: For Morningstar, I'm Jeremy Glaser. As stocks take another tumble, 

stocks take another tumble, I'm here with Christine Benz, she's our director of personal finance, to see what the return to market volatility could mean for investors in various life stages. 

Christine, thanks for joining me.

Christine Benz: Jeremy, great to be here.

Glaser: So, we see again here on Thursday, stocks heading down lower. Obviously, last week, some very large declines, even if we did get a little bit of a bounce. One group that could be particularly concerned about this are people who are about to retire, or just retired. Why is this scary for people who maybe just stopped working?

Benz: Well, because they're looking at their portfolios, they're not earning any more, typically, and so that's what they have to live on throughout their retirement, which may be 25 or 30 years, if they're just starting out. It can be really scary to watch their portfolios drop. This is the group, Jeremy, where I would say that usual advice of 'stay the course' doesn't always apply. If people have been getting close to retirement or they're retired and they have not been making their portfolios a little bit more conservative as time goes by, some adjustments may actually be in order. I think it's well worth taking a look at a few elements of the portfolio construction as well as the retirement plan at this life stage.

Glaser: Will that mostly be checking asset allocation? What would you recommend?

Benz: Yes, I think asset allocation is a great starting point, and I love our X-ray tool to help get your arms around your total portfolio's asset allocation. One statistic I've been saying over and over again is the fact that, if you had a 60% equity, 40% bond portfolio back in 2009 when this rally started, you'd be sitting at 80% equity, 20% bond today. Even if you hadn't been shoveling money into equities, your equities are taking up more and more of your portfolio. Check that asset allocation. Check your liquid reserves. You know I'm a big evangelist of the Bucket strategy, the idea of having some cash set aside alongside your long-term portfolio. Your cash is there to meet your living expenses for the next couple of years. That way, you can see the market go up, down, and sideways, and you know that it won't jeopardize your standard of living.

Then the last thing I would check at this life stage is your withdrawal rate. I think we all have a tendency to feel a little bit complacent, maybe a little bit good about our portfolios when we see our balances get larger and larger, we might be more inclined to spend more than we actually should be spending. Revisit your withdrawal rate. If you don't have a budget in retirement, I think it's well worth doing one at every life stage, as well as when you're in draw-down mode. Take a look at whether you might be able to tighten your belt a little bit, because I think that can be, maybe not fun, but tremendously empowering when the market's volatile.

Glaser: What about midcareer investors--40s, 50s, around there?

Benz: Yeah, at this life stage, especially for people who are 50-plus, I do think it's a good time to start also taking a look at your asset allocation, perhaps tipping back on your equity exposure a little bit, remembering that even if you know yourself to be a tremendously risk-tolerant investor and you still might have even 20 years until retirement, it really does help reduce the volatility in a portfolio to have a little bit of high-quality fixed income exposure, whether that's 10%, 20%. Take a look at that if you haven't any idea what your asset allocation should look like at this life stage, either consult with a financial advisor or use a target date fund to see what investment professionals are recommending for people at various life stages.

I also think it's important to remember that even though the most tantalizing bond types might have much higher returns than high-quality fixed-income exposure, if you're looking for something to be ballast for your equity allocation, you wanna look to the really bland, boring, low-returning asset classes. Here, I would focus on intermediate-term bond, for example, where returns certainly haven't been great recently, in part because we've had a little bit of interest-rate-related volatility, but those are the bonds that will tend to hold their ground the best when we see some sort of an equity market shock.

Glaser: Finally, how about younger investors who might have 30-plus years before retirement happens?

Benz: This is the group that really does need to stay the course, where equity market volatility can in fact be their friend, and if they can add to their equity allocations in periods of market weakness, that's a great strategy. If you're using some sort of a dollar-cost averaging strategy through a 401(k) plan, you're automatically doing that. This is the group that, at least, when you look at it on paper, has less reason to be rattled by market volatility. 

One thing I would say, though, is even though stocks have had a couple of down days here, they are not cheap at this point. Where our analysts, when we look at the price to fair value for all of the companies in the coverage universe, trading roughly in line with fair value today. It doesn't seem to be a great, once in a lifetime buying opportunity by any stretch.

This is another cohort where I would say, take stock of your near-term goals. People in their 20s and 30s often have stuff that they'd like to accomplish that's shorter term, within the next two to five years, whether it's paying for a wedding or making a home down payment, or whatever it might be. Remember that that isn't money that you want to risk in stocks. If your time horizon is shorter, you need to have it in safer securities like cash, like high-quality short- and perhaps intermediate-term bonds. Don't get too aggressive with that short-term spending portion of your portfolio.

Glaser: Christine, thank you.

Benz: Thank you, Jeremy.

Glaser: For Morningstar, I'm Jeremy Glaser. Thanks for watching.

2 Comments

Please login or register to post a comment.

Register Login

win1177

 Oct 24 2018, 7:00 AM

   

Flag

Even though the market has dropped significantly several times recently, the overall US stock market is still FULLY VALUED, with a very low dividend yields, high P/E, etc. It would not surprise me to see some more drops of 500+ points in the near future. Volatility is back! Foreign markets are MUCH more reasonably priced.

philippi

 Oct 23 2018, 11:03 AM

   

Flag

At these levels, if Dow Jones drops 5,000 points in a day (a la 1987), that would be reason to take notice.

This 4×6 index card has all the financial advice you’ll ever need

Here is the article.

Christine Benz's 6-Step Portfolio Checkup

Here is the link.

3:39/ 48:45

6 steps in the portofolio-checkup process

step 1: Gauge viability of current plan
step 2: Evaluate portfolio positioning
step 3: Check liquid reserves
step 4: Review individual holdings
step 5: Troubleshoot current risk factors
step 6: See if you can reduce investment-related taxes for 2014.

Morningstar’s Personal Finance Guru, Christine Benz With an Annual Financial Wellness Checkup

Here is the link.

Christine Benz

Here is the article to read written by Morningstar personal finance director Christine Benz.

Kevin O'Leary Gets Real About Why You Must Be Ruthless in Business | Inc.

Here is the link.

Kathy Fettke's Top 5 Real Estate Investing Strategies for 2018

Here is the link.

Kevin O'Leary Keynote at Notre Dame

Kevin O'Leary Keynote at Notre Dame

Here is the link. 

What makes a great entrepreneur?
1. Prepared to make life/balance sacrifices.
2. Have a little knowledge about everything, but a lot about what they are selling.
3. Put shareholders first.
4. Love what they sell.
5. Use technology to make work more efficient.
6. Understand the business is a global competition.

The Cold Hard Truth on Men, Women, and Money: 50 Common Money Mistakes and How to Fix Them

Here is the link.

Kevin O'Leary Keynote at Fall ETP Forum NYC 2015

Here is the link.

'Shark Tank' star Kevin O'Leary shares his top financial resolutions for 2018

Here is the link.

#MentorMeKevin

Feb. 17, 2019

Introduction

It is my personal finance research. I like to look into those videos on youtube.com using hashtag: #MentorMeKevin. I like to push myself to learn some basics.

Case study: All cash gift I gave away

Feb. 17, 2019

Introduction

It is my personal finance research. I like to look into my cash gift I gave away so many years, I like to dig into those gifts I can remember one by one. I like to case study and push myself to learn the lessons.

Kevin O'Leary's 5 Tips For 20 Year Olds

Here is the link.

Simple Rules For Investing With Shark Tank's Kevin O'Leary | Forbes

Here is the link.

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.

Kevin O'Leary: Shark's INVESTING Rules - #MentorMeKevin

Here is the link.

Talking to Vicki Robin About the New Edition of ‘Your Money or Your Life’

Here is the article.

THE 9 RULES OF MONEY 💰 How To Make More Money & Keep More Money!

Here is the link.

It took me more than 30 minutes to write down all notes. It is hard work. I like to look into some of rules, and then I need to learn how to invest again on stock market, real estate, and other areas.

1. Gross is not the same as Net

- Many investors like to show off their returns
- ask them "net or gross"
- what you make verses what you keep
- most people regret to mention profit in taxes

ex: stocks
more than one year
long term tax rate
Held for 1 year or more -> long-term capital gain rate

- consider your post tax return on investment
- always think about the investment term

2. Understand value verses cost
- price on value or two different things
- price is not determined by value
- price is determined by market supply and demand

3. Pay attention to expenses
- most investors do not understand the true costs of their investments
- expense ratio is not the only cost
  1. the fee associated with an investment
  2. transaction costs
  3. Taxation
  4. Cash drag
- understand the expenses associated with an investment, go above one beyond the expense ratio.
- avoid actively managed funds, buy Vanguard Index fund.

4. Follow the strategies of money
- many old strategies of accumulating wealth still work today
- Follow the map of a successful person with a map

5. Always keep some cash
- Every financially stable individual has a rainy day fund.
- money parks for an investment opportunity
- money parks for an unforeseen expenses
    Bad scenario
Needing money and having none!
ex: Too heavily invested in the market

6. Buy what is on sale
- whether it is a stock or laundry detergent
  laundry detergent -> spending less money
  stocks -> increasing potential profit margin

- if you understand the value of a company and the current price for ownership is less than the value you can make a profit when the price normalizes.
  Facts: Most people are afraid to buy stock on sale.

7. Don't be afraid to lose it
- there is no such thing as a free lesson
- every time you lose money, you learn something
- If you are afraid to lose money, you are missing out an valuable lessons
- people do irrational things to avoid loss
- solving money in the bank is a guarantee way to lose money saving
- Your fear of losing money is losing your money

8. Never waste it
- Do not waste your money on unnecessary luxuries
- Direct your money towards the goal of financial freedom

Example: 1. First class travel 2. Prepared food 3. Impulsive buys

Statistics

start time: 11:56 am
end time: 12:53 pm

Book: Temp Louis Hyman

2018年出版的图书《临时工》（Temp）的作者路易斯·海曼（Louis Hyman）表示，科技行业很快接受了合同工，因为科技的迅速发展需要不断调整劳动力的组成结构。所有这些变化都有助于培养硅谷关注灵活性和速度的意识，首先是在硬体方面，然后是在软体和业务运营方面。海曼引用1993年苹果内部杂志的话说，从直属员工到合同员工和外包公司的转变既是「可预见的演变」，也是「未来前景」。

Here is Goolge talk's link. 

褪色的硅谷梦：在苹果“暗室”工作的“低等员工”

Here is the article to read.

Apex Systems

哈默伍德这样的办公场所打破了硅谷作为工业乌托邦的神话：有才能的人在这里拚命工作，可以换来丰厚的薪水和股票期权。人们对旧金山湾区的普遍看法是，当地唯一严重的科技劳动力问题，就是这个行业的天价薪酬造成这里的生活成本居高不下。但是，也有许多贫穷的居民在科技行业工作。几十年来，合同工和其他临时工在科技园区里从事餐饮服务、开公交车、打扫厕所的工作。他们还生产电路板，编写和测试软体，所有这些辛苦只换来了计时工资，几乎没有工作保障。

2018年，彭博新闻社报导称，Alphabet旗下谷歌的直属员工不到其员工总数的一半。

其他Apex员工接受这份工作，只是为了在他们的履历中提及苹果公司。即便是这种优势也虚无缥缈。Apex经理最初规定员工可以在领英（LinkedIn）个人简历中使用的具体措辞，称他们通过Apex Systems受雇于苹果公司。不过两名前僱员说，2018年夏天，Apex说他们必须删掉「苹果」这个词，只能说他们「通过Apex Systems受雇于一家大型科技公司。」

在苹果的工作结束后，许多人会在其他科技公司找一份类似的合同工作，到头来，他们的家裡会溷住着一些Facebook、谷歌或优步（Uber）的合同工。有好几个人对记者说，地理信息系统合同工似乎成了这些大科技公司的共享资源。离开苹果的人会加入另一家公司的地理信息系统团队，他们会在新东家裡发现很多Apex的老前辈。

离开苹果的人往往都说生活有所改善。Facebook的管理层在园区里挂起了标语，上面写着「合同工也是人」，而临时工也会参与公司园区的工艺美术活动。尼克·威尔逊（Nick Wilson）说谷歌的工资高于竞争对手，而且所有人都可以使用公司的健身房，威尔逊曾通过Apex为苹果工作，随后为Facebook工作过一段时间，现在是谷歌的一名地图测绘合同工。


据Apex的两名在职员工介绍，2018年底，由于福利政策的变化，加上Apex突然解僱了20馀人，哈默伍德的气氛变得非常低落。有人形容办公场所十分压抑，员工们噤若寒蝉、焦虑不安。「我不敢与别人过多攀谈，因为他们可能会认为我工作不够努力，」他说。「Apex以敏感和保密的方式处理所有离职事项，」奥莫亨德罗表示。「该公司不会分享员工离职的详细信息，不论有无正当理由。」

The Little Money Bible (The Ten Laws Of Abundance) Stuart Wilde Pt. 1

Here is the audio book link.