All retail investors need a TD Ameritrade account….period.

And that is simply because you can watch CNBC on your smartphone if your phones supports the thinkorswim app... 

or in a mobile web-browser that supports flash such as Puffin (free version) that will give you unlimited flash usage 8am-4pm every day. Therefore, you can keep up with the market movements and market news anywhere you have access to an internet connection.

Plus, TD Ameritrade curates the best news for your stocks to keep you informed beyond the ticker price. Also, there are not any type of inactivity fees so you do not have to trade to enjoy the best features TD Ameritrade has to offer. 

TD Ameritrade does not need to be your primary trading tool (highest online brokerage fees for stock trading)…but it needs to be in your portfolio of trading tools. 

Toot My Own Horn Part 2!!! (Weather the Storm)

INTC (Intel)!!! 3 weeks after purchase it looked like it would not keep pace with the S&P 500 and I said that I was long on the stock. I weathered the ups and downs as I trusted in my valuations and in a little over a month times from purchase the capital gains of INTC exceeded the S&P 500 over the same time period and exceeded the historical returns of the S&P 500.

Rome was not built in a day and the same goes with wealth. If the valuations continuous add-up you just have to weather the storm and sometimes buy more shares if possible during weakness. Not every investment will pan-out quickly, but you must maintain confidence and not close a position based on being impatient as opposed to a change in the valuation.

Toot My Own Horn!

Bought some shares 10/17 and 10/21 (and some shares a several days later) as I caught the market pull back during a time of global unrest, during a time of fund managers selling massive shares to find other stocks to meet year end goals, and during a time of Ebola scares.

Over a period of about three weeks (screenshots from yesterday) I am enjoying very nice capital gains with the exception of Intel in which I am long as to outpacing the S&P 500 at some point in the future. Overall, I came up a winner in my book.

Over 20% gains in Delta and Alibaba. And for the mathematically challenged...if I had $100,000 invested in Delta or Alibaba I would come away with capital gains of a little over $20,000 in three weeks for that position...which is more than historical yearly inflation rates and more than yearly historical S&P 500 rates of return.  10/17/14 - 11/10/14 I have done better than the S&P 500 and the total market return.

Using simple fundamental comparison of the the stock's industry & the stock's competitors I found high-quality undervalued stocks in companies I understand/interest in/products I use. Also, paying attention to the news (twitter, CNBC, a little Bloomberg) and making sure the respective CEO's have a history of making competent decisions was an integral part of my decision making process. 

I believe starting with undervalued stocks is a good point for success and taking advantage of any news (within reason) to catch the stock at a low price is key even if it means adding to a position during market weakness....Buy weakness and sell strength is the motto! I do not feel option plays are worth the time as a lot of luck is involved in predicting the rise/decline of stock prices at a future date. 

Exit points are up to you as if you want to wait for P/E to better align with the industry and competitors...or you are comfortable beating inflation by a decent margin and want to bail out. If the stocks pays a dividend that is higher than fairly-safe bond choices you could hang onto the stock almost forever similar to a Warren Buffet and ride stock price gains/losses for a long period of time. Also, an exit point could simply be determined by tax ramifications. 

You gotta put enough skin in the game, homie!!! (Buy enough shares to cover your fees)

“There's no barrier from buying just one share. Online brokers don't apply surcharges or other financial penalties if you don't buy a round lot of 100 shares. But there are costs to consider, especially for those investing relatively small amounts of money. For instance, most online brokers charge about $10 to place a trade. That's the commission whether one share or 100 shares are bought. The problem is a $10 commission is a big bite if an investor is just buying one share of Disney, for instance, for $80 a share.”

 --- Matt Krantz ---  http://www.usatoday.com/story/money/columnist/krantz/2014/03/15/downside-one-share-stock/5910523/

I am confident that I can make at least $1 on any share based on my valuations. If your fees are 9.99 buy/sell you need a single share of a stock to gain $20 in order to break even. If you buy 20 shares lump-sum of any stock you just need a gain of $1 per share to break even on a $9.99 buy/sell fee...the more shares you buy per transaction the lower your break-even point and the better chance you have to enjoy returns from capital gains.

Commission free S&P 500 funds/ETFs and commission free total market funds/ETFs are good if you just want to buy one share at a time because you do not incur transaction fees as long as you hold your share(s) for a period of 30 days, but it could be longer depending on the broker. You can also buy some sector funds/ETFs commission free, but they are best for traders as it is quite risky to own a single sector for an extended period of time.

And if you mistakenly bought 1 share of a stock you can always buy a bulk of shares to add to your position in order to lower the break-even point if your valuations still add up to a profit. 

Buy/Sell using Limit Orders! (Market Orders are a crap shoot)

Do not buy/sell stock using market orders. Set the price you are willing to buy/sell every stock as placing a market order is not a guarantee of price as the stock market can move very fast. No need to crap shoot a price when you can easily dictate terms….using limit orders over market orders can easily be the difference between being a thousandaire and a millionaire.

“A market order, which is telling your broker to buy or sell a stock without naming a price, can cost you, too. Because you’re basically telling your broker to fill your order at any price. As Cramer pointed out, you wouldn’t do this at a supermarket – I’ll buy this lettuce at any price? — so don’t do it with stocks. In fact, markets orders are how people ended up selling Procter & Gamble for $38, when it was worth much more, during the “flash crash” on May 6, 2010, when the Dow plunged nearly 1,000 points in a matter of minutes.”  --- Jim Cramer --- ( http://www.cnbc.com/id/42673538# ) 

THE END

iPhone vs Android (understanding the market).

Who cares!!!! If you can formulate an opinion on the products and understand the nature of the businesses you will be a better investor as you understand the communities, you understand the products, and you use the products leading you to have a better understanding on the effects of news developments in relation to the businesses.  Yes, you could invest in upstart bio-technology businesses, but if you do not understand the nature of the activities a business conducts you could lose a lot of money on speculation and misinterpreting information….which essentially makes you a gambler.

Allow me to quote the great Peter Lynch and the great Warrant Buffet via Ryan Guina:

“I can't think of anyone better to look to for investment advice than Peter Lynch or Warren Buffett. Lynch and Buffett are legendary investors who have amassed billion dollar portfolios through sound investment strategies, one of which I want to share with you today.

Peter Lynch, the legendary portfolio manager from Fidelity, is famous for offering the advice, "invest in what you know." Famed investor Warren Buffett often refers to investing within his "circle of competence" when discussing how he and his partners invest. "Circle of competence" may not mean much to you, but what Mr. Buffett is really stating is, "invest in what you know."

Buffett and his partners famously sat out of the Dot-com Bubble in the late nineties because technology wasn't a field he was comfortable with. While others speculated on technology start-ups, Buffett was scooping up value stocks which had fallen out of favor. A few short years later the bubble crashed and investors went back to the value stocks Buffet had been buying all along. Buffett not only avoided substantial losses, but he made money because he stayed true to investing in what he knows. The idea of investing in what you know is not a new concept, but it is worth repeating because it is solid advice and can help you avoid serious investing mistakes.”  (http://www.usnews.com/topics/author/ryan_guina)

And for those that care about my opinion on iPhone vs Android read on:

My Take on Google

Google is an ad company that uses you browsing data, email data, and/or personal data to send you targeted advertisements to generate revenue. Google is not as reliant on consumer products for success as opposed to Apple. Hence, Google can have an open source operating system (you don’t have to use Google services on an android) where you can have alternative apps stores (Amazon, Samsung and 1mobile to name a few) and not deal with Google services at all. As Tim cook from Apple said, “you’re the product” for Google”  (http://gadgets.ndtv.com/internet/news/tim-cook-to-google-users-youre-not-the-customer-youre-the-product-594242 ) because a business that gives things away things for free will find a way to generate revenue for their business by some means. Google has an official app store that people choose to use, which makes it extremely easy for Google to constantly crank-out updates for Android even though they made it an open source project. Google got people to buy into the idea of an app store like Apple, yet Google gave people a way out from under its thumb. People wanted a Google ecosystem, which gave Google an easy way to profit off of ads because people want to use the official Google App store to buy/download apps which requires a G-mail account. However, Google even allows you to delete a Google Account (even set an inactivity timer to delete the account and email important info to another person if so desired) unlike Apple’s stuck for life ICloud/Apple ID which is a plus for Google in terms of privacy in my opinion. Google accidentally controlled the Android market place and will challenge any app makers to use alternative app stores to generate similar revenue. Also, Google is now in the position to challenge device makers to use another operating system and therefore Google can set the standards for the hardware used with Android.

Personally, I feel Google is in communications takeover mode so they can distribute ads in new ways.  I feel they will become a MVNO to provide cellular service and possibly an internet service provider over LTE. I think Google can go where Clear wireless's Wimax has failed consumer wise. Wimax signals have a hard time penetrating buildings making it hard to receive the signal outside of a modem/hub at home…cell phones struggled to pick up Wimax connectivity across the board. Google already has its hand in internet and television services through by way of Google Fiber, so a strong presence in being a communications service provider is not a far stretch.  And based on Google historical love for targeted ads….Google may even use their hoards of personal data for targeted TV ads in the future that go beyond the current demographics of a show and the time that a show airs.

My Smartphone Usage

From 2010-2012 I used Android as my first smart phone because I was a fan of Gmail, Youtube, and Google search. I felt open source was the way to go because I remember Apple losing to Microsoft in the 1990’s. Elementary school had Apple computers and the Real World was using Windows…and when I got my first computer in 1997 (not counting the hand-me down one from 1996 with the big floppy drive, DOS, monopoly, and a red power switch labeled 1 & 0) it was a Windows 95 computer. I was using a word processor at home for elementary school papers (4^th and 5^TH grade it was write in cursive or Type it out) prior to a computer. However, at that time I did not realize Microsoft was simply a licensing genius and that they could provide high functioning software on relative cheap systems compared to Apple. Microsoft was closed software, but open hardware in terms of compatibility and up-gradable parts.

And on an unrelated note since I have not been into computers games since half-life/counterstrike/team fortress classic, unreal tournament, quakes etc in the early 2000 as FPS have improved on game consoles to a level I did not need a mouse & keyboard. I only used my PC entertainment wise for instant messaging, music, web browsing, and social media most of last decade. Flash forward 2014 I only need a PC to stay current with Microsoft Office on a windows environment as it is still the defacto business standard. Most job agencies and some companies still test MS Office on Windows for competency. Maybe Microsoft in the very near future can keep the software standard across windows, mac, Chromebook/web versions so people can stay on top of the features. Microsoft being consistent across platforms is important so kids that may have only used Google Docs and MS Office Online grade school through college do not look stupid when applying for a job depending on the field as Job agencies and companies do not test Google Doc skills.

Anyways… by 2012 I was frustrated with android phones be it speed, apps crashing every day, battery life, and the displays based on the Froyo and Gingerbread phones I had on boost mobile and sprint. I switched to an iPhone in 2012 and did not look back until the end of 2013 when I used an Android temporarily with FreedomPop as I knew iPhone was coming very soon.  I used the Samsung Epic Touch 4g and used the Samsung victory LTE....and they changed my opinion on Android being a viable mobile operating system as of Jelly Bean.

However, during my experiences using Android and IOS (Jelly Bean and ios 7/ios8) for the last several months in the iPhone 4S and Samsung Victory LTE respectively; I feel the iPhone is still the superior phone today…but Android should be the future. I feel the iPhone is better today simply because of the quality and selection of apps. I understand the importance of customization and widgets for those that like them (Personally, I cannot stand more than a weather or music widget) but apps makes the phone at the end of the day and iPhone is superior in everyday app design & everyday stability. I prefer the design of IOS apps and some apps are only available on IOS…Android still has a ways to go. See the comparison below:

iPhone has number of members in twitter list

Android does not have number of members in twitter list

My Facebook (Paper) page looks cooler on iPhone

My Facebook page looks mediocre on Android

Hyperlapse on iPhone

Hyperlapse ain't on Android 

Infinity Blade Trilogy on iPhone

Android has that amazing game Epic Citadel instead of Infinity Blade

Chrome has back button at the forefront on iPhone

Chrome for Android has the forward button hidden in the menu

Google Drive on iPhone has a status bar so you can monitor progress

Google Drive on Android uploads without indication of progress

 I like Android because I am not locked into Google Services and can easily see the things that are synced online with google sync manager plus I can delete a Google account and start over for any reason under the sun. iCloud/Apple ID is permanent though I can switch the Apple ID to another email address, change various info in iTunes, delete all my cloud emails, and then destroy the email account of the apple ID (requires some work). Also, I like Android because I can render my phone effectively useless with ease by un-syncing all of my person info if someone needs to use my phone, I like that I can have multiples of the same shortcut if apps fit business & personal groupings, and I like the Fact that Android Lollipop will support multiple users so I can easily separate my environments be it personal or business.

Lastly, I like Android because smartphones are like computers and I assume smartphones with interchangeable parts for upgrades could become popular just as they were with a desktop PC.  And with interchangeable parts we can create powerful phones and save money by only upgrading certain aspects of the smartphone. However, that concept would require certain standards for cases and that companies find it profitable to produce parts for the upgrades. However, the likely hood that smartphones with interchangeable parts taking off is slim as most laptop parts are not interchangeable beyond upgrading ram or a disk drive...and laptops are a portable that has been around much longer than the smartphone. PC Upgrades were driven by gamers the most…and Android is lacking in the quality of apps department as it stands. Hey, but it would be cool to pick up parts at a 24hr Wal-Mart if a camera broke or a screen broke. Plus having spare antennas is feasible as cellphones are the lifeline for many that do not want to bear the cost of a home phone and it could be a matter of life or death… though it is recommended to have an extra smartphone/cellphone in the house as all phones are able to call 911 without paying for cellular service.  I do think the key to smartphones with interchangeable parts ( http://www.xda-developers.com/android/project-ara-android-l-hot-swap/) is emerging markets as I was shocked to find out smartphones ( by watching Bloomberg and CNBC) were some of the first home/personal computers for many people because of the cost. Due to such matter of facts in emerging markets, interchangeable smartphone parts would be a good way for people to reduce expenditures compared to upgrading an entire smartphone.  

Conclusion

Android should be the future as I expect big-time developers to have their own apps stores/websites since they would have the capacity to not rely on Google play services and therefore increase profit margins. I believe companies will be able to provide their own operating system without Google constraints because they will no longer need their play store as people will be able to get games directly from developers. People will just rely on reviews and comments on app review sites for information….plus developers can advertise their apps through social media, advertise through internet ads, and advertise through through traditional outlets of newspaper, radio, & television. I will hang on to my iPhone or at least have an iPod touch until the potential of Android is realized beyond having a larger market share than iPhone... Unless of course HTML5 ( http://www.infoworld.com/article/2610329/mobile-development/forrester--html5-apps-still-not-as-good-as-native-apps.html )  apps dominate smartphones to render smartphone platforms and computer platforms useless as in simply the devices being reduced to televisions with a Brand Label.

***BRAIN EXPLODES***

Look Before You Leap (starting point for investing)!

Do not leap into investing without a basic knowledge/foundation of the fundamentals. You need to get into the proper business and/or financial mind frame as well as understand a few basics before you proceed to invest.

I recommend starting with Bloomberg TV on a Saturday Morning to get a feel for business and/or finance as it is full of easy to digest programming and motivation to be successful in general. Also, Bloomberg TV has the stock ticker from the Friday close, which is composed of important areas in which you should be aware of the price. If you do not know how to read the stock ticker on Bloomberg TV and/or recognize those few basic symbols use this as a time to educate yourself. Use the internet to learn the simple skill needed to read those quotes and use the internet to look up the symbols. Why not tell you the meanings of the ticker in this blog post!!??!?…research and doing homework is part of the game. If you are not willing to do this level of homework then stop reading my blog and take your money to the financial advisor down the street for a fee and be oblivious to the stock market. And even if you still decide to seek out a financial advisor you should have your own opinions, your own understanding of the stock market, and should be able to take over your money if the financial advisor retired tomorrow.

Plus you need to understand the basic information on a generic stock app for your phone or on a website as it is the best way to get live quotes without logging into a trading platform as a retail investor. Please be aware that numbers outside of the price quote can be different across websites and different across apps because of rounding and calculations. Yahoo/apple stock app for examples calculates P/E using trailing twelve month along with an intraday figure while the Bloomberg app only uses trailing twelve month. P/E is an important ratio and in layman terms it indicates the amount of years to double your investment all things remaining the same. 

Then you should watch Mad Money on CNBC to get a better understanding of stocks and personal finance weekdays at 6pm (5days per week). Once you watch Mad Money you will have a better understanding of the conversations that take place during the day and how it pertains to your possible investments. Any terms you do not understand please look up the info on a credible website (my preference is www.investopedia.com).

Finally, follow financial news organization such as Forbes, CNBC,Wall Street Journal, Bloomberg etc. on social media… therefore you can have access to news, access to articles, and access to breaking news when you are not watching TV.  

Power to The Investors!!!

                               

                           

Power to The Investors!!!

Penny Stocks (historically, not as result of a flash crash) and Binary Options are Gambling. Best of luck on ya come up! Let me how well that technical analysis over 1hr works out for ya! I do not educate on gambling.

A Trader is a Trader, but all Investors are Traders. Investors use technical analysis for entry points and we ride the volatility because of the fundamental analysis. An investor will take on Trader qualities when we hedge the volatility with Derivatives, hedge the volatility with Commodities, and hedge the volatility with Forex to increase our return. But never ever shall an Investor ignore the fundamentals for simply a quick come up!

Real World Definition: Joe Flacco may play the lottery, but he is invested in football for the long haul. He is not retiring to wheel system the mega million. He is simply hedging his future against his contract not being fulfilled….

Power to The Investors!!!

There are legitimate opportunities to make extra cash with limited skills…and on your own time to boot.

Why get an after work job in retail or struggle to write freelance articles for pennies per word? There are plenty of legitimate mystery shopping opportunities and legitimate search engine evaluator opportunities that pay a decent amount of change at your convenience. I know a lot of people struggle to find such opportunities or have been a victim of a scam…and I am here to provide you with companies that are on the up-and-up from first-hand experience.  

Mystery Shopping

Go to: http://mspa.jobslinger.com/exec/sfs/jobboard and enter in all the pertinent information to conduct a search. Click on the jobs you find interesting and sign-up with the company. All of the missions listed with MSPA are legitimate. Compensation for assignments vary and landing an assignment is on a first come first serve basis. I would suggest signing up for multiple companies to have to most chances to complete assignments. Also, I suggest creating a separate email or folder from your day-to-day emails to stay organized. MSPA certifications don’t mean much as experience determines if you can land larger assignments…and there are a ton of entry-level assignments. Be sure to check out the main website for MSPA http://www.mysteryshop.org/ to educated your-self on some aspects, but you will ultimately be dealing with the individual mystery shop companies. It takes two months to get paid, but you do get paid! Follow the instruction on each assignment, type in proper English, and meet the deadlines….so you have nothing to worry about.

Assignments entail creating slightly detail narratives of the events and answering relevant questions.  And below are some examples of acceptable narratives that I have received pay and therefore you can get an idea of the requirements.

For a Parking assignment:

“I arrived at _____________ at 11:59am. I attempted to press the gate dispenser for a ticket, but it did not function. Then the booth attendant greeted me and provided me with a ticket. The attendant was a 40ish year old female that had shoulder length black hair, heavy-set, and brown skin.

I drove to the booth at the same place in which I entered the garage at 12:50pm to pay. The same woman I saw upon entering was at the booth. I handed her my ticket, but she could barely read the time because it was faint. The attendant asked me the time I entered for parking and I told her the ticket said 11:59am. The attendant told me the price would be $3; I gave her $10 a received correct change of $7. Then the attendant gave me a receipt and thanked me for parking.”

For a Drive-thru assignment:

"I got to Roy Rogers at 1:49pm. There was neither a message board sign nor a Roy Rogers sign in the parking lot.  The outside was in superb condition....trash dumpster closed, shrubbery was neat, and grass was neat. However, the trash bin near the drive-thru was overflowing.

I entered the line at 1:51pm. There was a car in front of me so I had to wait 38seconds to get to the speaker. The menu was functioning properly and I did not notice any spelling issues. The female that answered the speakers said, “Hi, may I take your order?” I asked for the 3piece chicken strip. The female on the speaker asked if I would like to make it a combo and I agreed and asked for a sprite to drink and fries for the side. The female asked about dessert and I declined. The female on the speaker told me my total was $6.46

Once I got to the window after waiting 3minutes and 15seconds ______ told me my total was $6.46 and I handed her $20. _______ also asked if I would like any dipping sauces and I asked for BBQ. ______ gave me correct change of $13.54. I waited an additional 2mins and 15sec for my food after getting my drink. _______ then handed me the bag with the Roy Rogers logo facing me and thanked me for my patronage.

The food was nice and hot. The chicken was nicely seasoned the fries were hot. The Sprite was mixed properly. I would recommend that Roy Rogers to anyone. “

Some mystery shops agencies pay you through PayPal while others use checks…And here is an                   example of a check:

           

Search Engine Evaluator

Kyle at the penny hoarder sums this position up very well:

http://www.thepennyhoarder.com/how-to-get-paid-12hour-cleaning-up-googles-mess/

 Due to the nature of the job I cannot give further details, but you can definitely make a few extra thousand per year that you can use to get your personal finances in order or use towards investments. And with that extra money head over to the shop so you can gain financial independence for a lifetime!

Picking a Trading Platform is NOT a Random Draw From a Hat.

Once you develop an investment strategy the next step is to choose a trading platform that gives you the best price and best research based on your needs. If you plan to be an active trader the cheapest trade commission/fees may be your best options. However, if you are a passive trader that plans to invest in ETFs for the foreseeable future a trading platform without commission on ETF’s and a trading platform without inactivity fees may be best suited for your needs.

“As much as one online broker might seem much the same as another at the most basic level, even a brief side-by-side comparison illustrates the broad diversity in costs, benefits and requirements.

Some of these services ask for as much as $5,000 minimum to open an account, on rare occasion even more. Others impose no minimum at all, allowing you to dip your toes into the investment market with however much you are comfortable risking.

Usually these brokers will look to recoup the difference in investment size by charging more per trade. Meanwhile, some online brokers are willing to offer you hundreds of free trades as you become accustomed to the interface and the nature of trading.

Some services specialize in entirely different fields - though the focus is usually on equities and direct investment in companies, options, futures and other types of derivatives are a growing field of investment even for comparatively casual traders.

Where you go, and even what you want to look for, will depend entirely upon the strategy you develop for your investments before you even start to really compare online brokers.

You should certainly look at what kinds of options you have available, so that you can use different cost structures and requirements to inform your investment strategy. But choosing a broker before you know how you plan to use their services might leave you with a strategy you aren't actually comfortable with, or a broker that's ill-suited to your strategy.

While it may take some research, investing your time now in comparing brokers will save you grief when you're actually investing money.”

Read more:http://www.nasdaq.com/investing/online-brokers/#ixzz368g7vKYO

I recommend http://www.brokerage-review.com/ as a starting point for online brokerage comparison. Also, it is good to research fees for closing an account and transferring an account just in case you need to switch brokers as your investment strategy changes or you need a different trading platform to better fit your needs.

Rule number two…be aware of the interest rate.

The interest rate can be used to determine entry point and exit point of an investment vehicle dependent upon ones strategy and any applicable derivatives used for hedging purposes.


As interest rates increase so does the rate of return on risk free treasury notes. If the government one day is willing to go from a 2% yield to a 4% yield for a 10yr treasury note it will cause stocks prices to fall until the return on stocks rise well above treasury notes while bond prices fall (limits spending). And the math is fairly simple in the short term as it is: current stock price/rate of return wanted ( a reasonable number above bonds) = new share price. But it is not a sure science as it depends on the level of debt financing entities have incurred as they will lose more money with higher rates on loans. Low debt financing entities can benefit price wise and even dividend paying companies can see benefits when rates rise... as rising rates signifies economic growth for companies not trapped in debt.



Commodities prices have historical changed indirectly proportional to the interest rate while Forex prices change directly proportional to the interest rate. And since historical inflation in the US is about 3.5% when interest rates rise bank products such as CD's become more attractive as they can see rates higher than the average rate of inflation.

R.I.P Financial Planners #NewRules

       

2014 marks the death of the traditional financial planner...




Software developers with the CFP certification, software developers with the backing of a CFP, and software developers in general have created phone applications that manage money in real-time along with analytics. One can link bills, link credit cards, link investments, link retirement funds, links college funds, link banks accounts, etc. to mobile applications in order to monitor a budget and in order to monitor spending habits in real time.





Traditionally, financial planners have not monitored the daily spending activity of clients, but rather suggested strategies to free up cash in areas of clients lives and recommended investment products. Financial Planners work with other professionals such as brokers and insurance agents in order to execute a client’s financial plan. A Financial Planner is simply a middle-man that provides financial ideas in an archaic fashion as the internet allows one to shops investment products without a planner’s bias towards a product they sell, or a planner’s bias toward a product that a friend of theirs sells.




Common sense of spending less than your income and possibly selling assets when above means is the universal truth of financial planning. Self-discipline to not count on future increases of income and self-discipline in spending are the rules to avoid being in the red. One only needs an attorney to assist with things such as estate planning, will in testament, and transfer of assets in a divorce… a tax professional that is aware of the ever-changing laws in order to give you scenarios of tax implications as changes to financial status occur…. and a broker to facilitate the transactions of securities and insurances. The financial Planner is a waste of money.







And in case you think I am making this up as I go along…here are excerpts and links from reputable companies on the duties of a financial planner:


“True financial planners are held to a fiduciary standard, and generally hold the CFP® credential. Often, insurance advisors or wealth managers will position themselves as a financial planner to stir up business they will eventually lead to commissions or assets under management. A financial planner usually describes an advisor who, for an hourly or project based fee, helps their clients develop a written financial plan that they will execute elsewhere. Generally financial planners are not investment experts, and may not give the most comprehensive or competent insight on how to invest. Also, they tend to have limited resources to help you execute a plan.”
Read more: http://www.businessinsider.com/financial-planner-broker-or-wealth-manager-2012-11#ixzz325alNArM


“Basically, financial planners will gather your personal and financial information and use it to make recommendations for your situation. In most cases, you won’t need a financial planner for managing your day-to-day finances.”


Read more: http://www.quickenloans.com/blog/financial-planner#ixzz327I9kXmj








And with that said…..the only types of financial planners that are relevant today and will be relevant in the future are the types with tips to lower cost in various aspects of your life. The new age financial planner can tell you where to find the best grocery store coupons, provide simple DIY household fixes, or teach you how to make homemade soap (no, I did not mean soup...why not soap, lol)….Sound a lot like Grandma, huh?



Bankrupt?….Hustler harder or find a lawyer to help you file the bankruptcy paper work. You probably cannot afford a planner that will charge for advice and the planner will ultimately recommend you to an attorney to complete the legal aspects, which will incur additional fees for you. The financial planner as we known has been eliminated and serves no purpose in our society moving forward. Financial Planners are simply hustlers of people that do not use the internet or hustlers of people that are in panic mode. Sorry…. #NewRules

Yes, I did in fact eliminate financial planners in one blog post….and with that savings of money click on the shop link ( http://www.iceberggem.com/shop.html ) so you can eliminate the Wealth Managers/Financial advisor from digging through your pockets while maintaining returns or possibly improving your returns. You are eliminating a reoccurring fee/commission...and you can also monitor your finances with more care than an advisor that serves lots of clients or an advisor that only gives special attention to those with larger accounts. Oh, and fun fact… even those with the illustrious CFA title that manage your mutual funds cannot consistently beat the market especially once you factor in fees. Some CFAs make tweaks to stock indexes and still charge you significant fees….hahaha, but that’s another story.

If your employer does not offer you a Brokerage Window on your 401k…your employer is calling you stupid!

A lot of employers give you a list of mutual funds to choose from, which have limited performance. The employer is attempting to protect employees, but in actuality they are hurting employee’s future returns. With a brokerage window an employee can choose from mutual funds, stocks, ETFS and other instruments that are not restricted to the list provided by the employer…Hence, an employee can increase the diversification of the 401k while incurring fewer fees especially if ETFs are used over mutual funds.


However, here is the catch: some employers tag on annual fees for brokerage windows…and then you have transaction fees you would have to incur ever so often (please don’t day trade!). Also, a brokerage window is usually only offered to high income employees as they can recover from a mistake much easier.


I only recommend brokerage windows for savvy investors as it has great benefits especially if your employers fund list is missing sectors and ETFs. Now if you are novice investor your best bet is to ask your employer to add additional funds or ETFs that cover more sectors. Also, You do not have to use 100% of your 401k for the brokerage window as employers still can provide good deals on some funds and of course deals on the employers own stock. How can you become a savvy investor and be able to make informed decisions about your 401k and money in general?....check out the book ( http://www.iceberggem.com/p/book.html ) here at IceBergGem so you can learn how to valuate investment vehicles beyond going with what ya know.


And at the end of the day....even if you can only tuck away 1% of your salary never pass up a 401k as the return is higher than a traditional savings account even with fees. Plus you have free money coming from the employer as a contribution match. No need to abandon a 401k for an IRA…just ask for control of the funds or more options once you reach a level of comfort with investment instruments.

Banks are a Money Pit!

Banks protect your money from fire and theft…but the buying power of your money is being drained daily. The FDIC does not protect against value loss of money.





If the interest rate on your account is below the rate of inflation you are losing money…. not as much as hiding it under the mattress, but losing nonetheless. Banks are simply for emergency funds in most cases unless you are able to secure a decent interest rate above the rate of inflation.


The current US inflation rate since March 2013 is 1.1%. If you wanted to buy items for your living room totaling $2000 In March 2013 and put it off one year it would cost you $2022 to buy the same items in March 2014. If you had $2000 tucked away in a bank account March 2013 earning .25%APY you gained $5 by March 2014, but decreased your buying power as your money did not keep-up with inflation. You actually lost $17 because you did not invest your money wisely. If you are not spending money you need to be earning money because your quality of life will eventually suffer; do not be lazy with your money!




Rule #1 for investing…always be aware of the inflation rate.