Investing Made Simple

Investing_made_simple

http://www.amazon.com/Investing-Made-Simple-Index-Explained/dp/0981454240

INVESTING MADE SIMPLE – by Mike Piper

RATING: 8.8 out of 10

OVERVIEW: Investing success can come from simplicity.    Eliminate fear, save time, and retire succussfully.

 

 

I wish my family, friends, and blog readers would take the time to read this short book.  It will help you create a simple proven plan to protect yourself, family, and loved ones.  Investing can be a scary word but even the least informed to Wall Street traders can benefit from the enclosed investing principles.

If you knew Megan (wife) she would let you know that when I get excited about something that I live, drink, and eat it.  Investing is my next exciting topic in my life.  In no means am I an intelligent, rich, and successfully individual.  What I am is motivated to prepare for a happy retirement in my twilight years.  As a ‘rabid’ reader I’ve focused my last 6 books on investing.  Investing Made Simple is a book of simple methods and philosophy about investing.

Mike Piper, the author, is a young buck.  Don’t let that fool you.  He is smart, mature, and most of all teachable.  He doesn’t speculate and speak to things he doesn’t understand in his book.  If he doesn’t know a thing, he won’t preach to you about it.  The thing I like is that his messages are short and sweet.  If you’re interested check him out, if not it makes no difference to me. www.obliviousinvestor.com

TAKEAWAYS:

-Invest in low cost Index Funds

-Stocks outperform bonds 99% of the time

-Mutual Funds are expensive compared to Index Funds

-Buy and hold is a sound philosophy (not for individual stocks)

-Don’t listen to the financial news every day. (Monthly to quarterly is preferential) 

-Few professional traders outperform the S&P 500 (which is an available investment to everyone)

BOOK NOTES

All investment companies have their own personal interests.
-Their services are helpful but you must educate yourselves and make
the best decision for you

Fund Manager: selects the stocks, bonds, and other investment in a mutual fund.

Mutual Fund: ‘actively’ managed by a fund manager
Index Fund: ‘passively’ managed and are designed to mimic a market or trend

IRAs (Individual Retirement Accounts) and 401ks (Employee sponsored retirement accounts) are not investments but investment accounts where we can acquire investments

Roll your 401k from previous employers to your IRA.
-It provides more investment options
-avoids administration problems

Investment priority
1. Full 401k match
2. Max out Roth  or traditional IRA
3. Max out 401k
4. Invest via taxable amounts

Stocks outperform bonds in the long run 99.9% of the time over 25 years.

You have a slim chance of winning at individual stocks.
-You’re competing against pros

*Less than 34% of actively managed stocks outperform the index their
competing against.

The cost of stock fund management is around 1.5% where index fund
management is .2%.

In your 401k account seek for portfolios with low expense ratios.

As you get older your asset allocation should gradually move towards bonds

Rebalance: when your funds are off by more than x percent or once a year.

Wilshire 4500: contains all publicly traded companies minus the S&P 500.

Once you’ve selected the index to follow you need to self the fund in
which you’ll invest.
1. Low expense ratios
2. Meet the minimum investment amount
3. Customer Service and online interface

Exchange Traded Funds (ETF): Are like mutual funds except they’re
traded like stocks.

Don’t Peek:  If you don’t have self control look at your portfolio
more than 3-4x per year. Let the long-term investment work its magic.

Buy low, sell high. Don’t sell when the stock is high, sell it when you retire.

The Fact if a fund has been successful for consecutive years doesn’t
guarantee future success.

Don’t read popular magazines to choose the ‘hottest’ new stocks.

**Very Few pros outperform the market

Conclusion: diversify, buy low cost index funds and invest long term.

 

 

 

 

Decision Points

Decision_points

http://www.georgewbush.com

DECISION POINTS

RATING: 8.1 out of 10

OVERVIEW: President Bush offers his insights to the crucial decisions of his very controversial administration.

Before I write out a few selected highlights and notes on the book I wanted to give you a glimpse into my viewpoints of the President’s politics and character.  I believe George Bush is a man of character whose heart is naturally in the right place. Although that doesn’t qualify you as president it is my desire that you understand that I believe you can separate a man from the politics.  You can disagree with anyone’s view of government/politics and still maintain a relationship of cooperation and mutual respect.  There were areas where I disagreed with the President but I maintain my respect for him and I thank him for his sacrifice of service for 8 years and for keeping American soil safe after 9/11.

  • “Whether you believe in God or not, it is based on faith”
  • To extract stem cells you kill the embryo. Is it just to take a life to save a life?
  • Feet down was said about the mice that were tested for a bio weapon thought to have infected all those in the white house. All feared possible death. 
  • Bush approved water boarding that derived intelligence to capture the logistical and operational leaders of the 9/11 attack. US intelligence said that information stopped anthrax attacks and a 9/11 type attack on the west coast
  • 3 people were water boarded while 30+ received enhanced interrogation techniques. 
  • In 2018 more social security pay out than what comes in. The system goes bankrupt in 2042. 
  • The president instigated a program that drastically eradicated malaria .
  • “God is good, all the time” 
  • After his presidency he helped his dog clean up his business. He stated he was picking up “what I tried to dodge during my entire presidency”

George Bush started his presidency in the time of the 9/11 disaster.  He wasn’t a strong Commander and Chief at that time and left too much responsibility on the hands of others.  His decisions could of been much better.  He had the right intentions but he didn’t focus them in the right direction.  Although the outcome wasn’t ideal in the end we are a more safe country than we were 9 years ago.

It is my humble opinion that despite his mistakes his fine points of his presidency will be seen more justly in future histories.  I don’t believe he was a Reagan, Kennedy, FDR or , Abe Lincoln, I do believe he was a good President.  Time will tell and if at the time it is shown I’m wrong I will be the first to stand corrected.  This book if read by a hater of George Bush their opinion will not change.  This book if read by a  fan of George Bush their opinion will not change.

I believe Americans should read the book to get insight into the details of a crucial time in the history of America.

 

 

 

Interesting Facts

Enjoy!

http://www.bg-info.com/humor_-_facts.html

-Most common languages: Mandarin (907 Mil); English (456); Hindi (383); Spanish (362)
-Most common name in the world is Mohammed.
-Coca-cola was originally green.
-Every day more money is printed for Monopoly than US Treas.
-It takes 1.3 seconds for light to travel from the Moon.
-The Nile and the Amazon two longest rivers but no one knows which is longer.
-Smartest dogs: 1) boarder collie; 2)poodle; 3)golden retriever; dumbest–afgan
-Hawaiian alphabet has 12 letters.
-Men can read smaller print than women; women can hear better.
-World’s smallest country: Vatican City .17 sq. mi.
-Same as above in 1991: 73:1
-Chances that am American lives within 50 miles of where he or she grew up: 1 in 2
-Amount American Airlines saved in 1987 by eliminating one olive from each salad served first class: $40,000
-The average person is about a quarter of an inch taller at night.
-Most American car horns honk in the key of F.
-Thomas Edison was afraid of the dark.
-City with the most Rolls Royce’s per capita: Hong Kong
-State with the highest percentage of people who walk to work: Alaska
-Most common street name in US: Park
-Number one convention city in the world: Paris
-Average number of words added to the English language each year: 450
-Percentage of board members of Fortune 1000 companies that are white males: 92

Napoleon Hill – Poem

Law-of-successset-lg

Here is a Poem from the book The Laws of Success.  I enjoyed it and felt that you would all benefit from it.

 

If you think you’re beaten, you are;

 If you think you dare not, you don’t.

 If you’d like to win, but think you can’t,

 It’s almost a cinch you won’t.

 If you think you’ll lose, you’ve lost;

 For out in the world we find

 Success being with a fellow’s will;

 It’s all in the state of mind.

 

If you think you’re outclassed, you are;

 You’ve got to think high to rise.

You’ve got to be sure of yourself

Before you can ever win a prize.

Life’s battles don’t always go

 To the stronger or faster man;

 But soon or late, the one who wins

 Is the man who thinks he can.

 

 

The Last Lecture

Last_lecture

http://www.thelastlecture.com/

THE LAST LECTURE

RATING: 9.2 out of 10

OVERVIEW: An inspiring final message how to live your life to the fullest.   Randy Pausch was/is a brave professor facing certain death, who kept his optimism and let go of bitter feelings.

 

Randy Paush is a hero of mine.  I’m certain there are thousands more who feel the same way.  This book evokes the emotions of the human spirit to enjoy the short time we have on earth.  No one knows when their life on earth will come to an end, so we must live each day so that our last day we will have no regrets.  We should quickly forgive and free ourselves from the bondage of bitterness and free the offenders from our unrighteous denial of reconciliation.

Randy mentions in the beginning of the book that an “injured lion still wants to roar.”  He was diagnosed with an incurable cancer at a young age but his desire to roar pushed him to give a ‘last lecture’ to which he had no obligation.  This book will teach you that life can always get worse, so be thankful for your blessings.   Do not focus on what you lack, but what you have.

Over 5 years ago my cousin Jennifer passed away tragically and unexpectedly.  I will never forget the plea of her weeping mother (my Aunt Doris) at her viewing.  “Rex, love your children every day, love them every day.”  This book evoked the many emotions of that day.  It left me with the desire to become today what I sought to become tomorrow.  Randy taught that life is unpredictable, so prepare yourselves to become and do what you envision for the future, TODAY!

 

MY NOTES:

·  An injured lion still wants to roar

·  “Love your children everyday” Aunt Doris 

·  When there is an elephant in the room, introduce him.

·  When you screw up and no one says anything it shows they don’t care anymore.

·  The most intelligent people are those who know more of what they don’t know.  

·  It’s easy to look smart when you parrot smart people. 

·  **People are more important than things. 

·  *Brick walls are made for those who don’t want it enough. 

·  You can always make things worse.

·  *Time management is more important than money management. 

·  Good goals have good instructions and easy steps.

·  Eagle Scout is the only thing that looks good on your resume at 50.

·  Don’t complain! Just work harder. 

·  Treat the disease, not the symptoms. 

·  **Don’t worry about what others think!

·  If you wait long enough people will impress you.  

·  “It’s not about how hard you hit.  It’s about how hard you can get hit.  And keep moving forward.  Keep moving forward.”

·  “Experience is what you get when you don’t get what you want.”

·  Write thank you notes.

·  No job is below you.

·  Let kids become what they want to become. 

Christian Financial Advice on Debt

A short gem of knowledge

Many have said that in the last few years our country has not been hurt this bad financially since the Great Depression of the 30’s.  I do believe greed is part of the financial dilemma, but I also believe that most of us have contributed to it.  Most of those who are not greedy have been taught incorrectly by them who wish to make a profit at our expense.  Financial intelligence doesn’t come naturally to anyone, much like riding a bike doesn’t come naturally.  Those who have learned financial wisdom may believe that others are unwise, when in reality they’re untaught.

Below is a pamphlet created by an inspiring Christian, Marvin J. Ashton.  You may be atheist, agnostic, or a believer in the divine and still receive the wisdom needed so that you can pull yourself from the cycle of debt.  So that the bonds of debt will be loosened and that you can have a unrestrained ‘pursuit of happiness’.

One_for_the_money.pdf
Download this file

 “A budget is telling your money where to go, instead of wondering where it went.” John Maxwell

Which Good Books Have You Read?

GREETINGS

Hope you’ve been enjoying my book blog as much as I have had writing it.  I’m currently making a list of 5 books I would like to read next.  Which books have you read recently that you would recommend that I read.?

If there is anything that bugs me more, it’s reading a bad book.  I’m looking forward to some good suggestions.  Thanks.

RANDOM: Here is a video of something amazing: ENJOY!