So you hearing bad news after bad news about the US economy and wondering where to put your money? You heard of IndyMac, the largest bank in California suddenly collapsing and went out of business. You think that your bank is going to do the same. Mortgage crisis is still looming and the housing market isn't that hot. Foreclosures are a common scene in America as more and more people are force to give up their homes because of bad mortgage lending. Oil prices are at an all time high, costing all goods and services to also go up.
Today, the DJIA fell below 11,000 points for the first time in over 2 years. What is an average person such as you and myself to do?
I'm no financial planner or investment advisor, but I would not let fear take control over my decisions. When prices of stock or shares of mutual funds are falling, what is the initial reaction for most people? They think "Oh my god! I'm losing money. I need to sell everything before it goes any lower and put it in the bank or under the mattress." By pulling out of the stock market, you are accepting loss. By not pulling out of the stock market, you are not accepting any losses. You will only realize your gains or losses when you actually sell your shares. Right now, the price per share or stock is low. What are your choices?
Well, this is what I would do. Though, I'm not hinting that you should do what I would do. I'm just saying this is what I would do in time of this crisis and my logical reasoning behind it
1) As a young investor and where retirement is 30 plus years away, I would continue to invest and to buy as many shares I can afford. I know that the stock market will worth more in 30 years than what it is today (base on the past history of the stock market in the past 50 years).
2) If I was a mature adult, say someone in the upper 30's to early 50's, I would still coninue to invest, but making sure my investments are diversified. I still have some time left to save money for retirement, so I wouldn't worry about the stock market conditions.
3) If I was retired, I wouldn't be investing at all. I would be withdrawing money from my investments. But I wouldn't withdraw too much during this time until the market is performing well. So I would watch my spending habits closely. After all, I don't want to outlive my money.
As any investment expert would say (again, I'm no investment expert. I just do what is logical), the best way to lower your risk to market exposure is to follow the 3 D's.
1) Diversify your investments. Don't put all your money into one company or one sector of the economy.
2) Be discipline. Don't let fear take over judgement and logical reasoning.
3) Dollar cost average. Invest on a monthly basis. This is a way to pay yourself first before paying others. By dollar cost averaging, you lower the cost per share you own over the long run.
Guess where I learn all this? From my own personal investment experience and through training at Primerica Financial Services.
Tuesday, July 15, 2008
Sunday, June 29, 2008
An old message from Art Williams
I got this message in my GoSolo from my RVP the other day and I thought this message was pretty interesting. It may sound retarded to some of you, but the main message is that winners do the things they say the are going to do until the task is done. Some of you say you are going to do something, but you never get to it. It could be as simple as saving for retirement, but you put it off day after day, year after year, and then you finally realize that you are going to retire broke. Are you a winner or a procrastinator? So here's the link to download the message: http://www.supload.com/sound_confirm.php?get=1150207308.wav
So just get to work and finish whatever tasks you say you are going to do.
So just get to work and finish whatever tasks you say you are going to do.
Monday, June 23, 2008
Monday, June 9, 2008
Saturday, May 10, 2008
Citi or Citigroup is restructuring
I'm not quite sure what is going on with Citi, but I think everything that is happening in that company is coming from several factors. For one, the mortgage mess dropped Citi's stocks from $40-something to $20-something a share. This forced Citi to cut its dividends. Because of the mistake that Citi invested into bad debts (over $40 billion of it), former CEO Charles Prince resigned. The new CEO has no clear vision or he is being really quite about what he has plans for the company. And now, Citi is now doing one big restructuring plan that is worth $400 billion. Despite all this, Citi is still worth over $2 trillion.
About a month ago, Citi sold Citistreet to ING for $900 million. Citistreet is a company that does benefit plans for businesses (both big and small). I see that as good news for it will create large opportunities for Citistreet to grow its organization. Will this affect Primerica? I don't believe so since Primerica still has marketing agreements with Citistreet to offer business retirement plans.
Citi also plans to sell some other companies including Primerica. I believe Primerica is planning to buy itself from Citi. I don't have all the details yet but when it does happen, great things are going to happen to Primerica. For one, Primerica can start selling their company stocks once again. They use to sell their stocks long ago and the value of the stocks doubled every year during the 1990s. Then the company got bought out by Citigroup. Second, Primerica can focus on its own goals. Third, it will create huge opportunity for Primerica to expand its market. Forth, no more oversight of Citigroup looking over Primerica's shoulders and no more sharing of profits with Citigroup too.
About a month ago, Citi sold Citistreet to ING for $900 million. Citistreet is a company that does benefit plans for businesses (both big and small). I see that as good news for it will create large opportunities for Citistreet to grow its organization. Will this affect Primerica? I don't believe so since Primerica still has marketing agreements with Citistreet to offer business retirement plans.
Citi also plans to sell some other companies including Primerica. I believe Primerica is planning to buy itself from Citi. I don't have all the details yet but when it does happen, great things are going to happen to Primerica. For one, Primerica can start selling their company stocks once again. They use to sell their stocks long ago and the value of the stocks doubled every year during the 1990s. Then the company got bought out by Citigroup. Second, Primerica can focus on its own goals. Third, it will create huge opportunity for Primerica to expand its market. Forth, no more oversight of Citigroup looking over Primerica's shoulders and no more sharing of profits with Citigroup too.
Friday, April 18, 2008
Almost had a car accident..
Hmm, red light mean stop, correct? As I was approaching an intersection (my light was green), this stupid truck driver decided to go on the red light. I had to come to a complete stop to let the truck go. Stupid driver! The car behind me almost rear ended me...
Monday, March 31, 2008
Just a thought...
Agents from other companies don't like how Primerica is just randomly recruiting people. The way I see it, any one can be good as any of these so-called financial experts out there. With proper training and education, a Primerica representative can be good as any financial agents out there and ten times better than any life insurance agent. That is the agent does go to training and complete the licensing process. Thats my opinion anyway. When I first started, I knew very little about finances. The only thing I know was bank accounts and some general idea about credit cards. Now I know everything about life insurance, mortgages, mutual funds, annuities, and investment accounts (such as IRAs, 529 plans, Coverdell, custodial accounts, etc.). Things that an average American really don't know too much about.
Anyway, why is that other companies don't recruit the way Primerica recruits? My theory is that other companies don't like sharing profits among their agents. In other companies, there is one agent doing all the work and he/she gets paid a nice commission and the company makes money too. But the problem is that the agent has to constantly work and find clients to make money. Eventually, this agent will either max out his/her time or burn out.
Anyway, why is that other companies don't recruit the way Primerica recruits? My theory is that other companies don't like sharing profits among their agents. In other companies, there is one agent doing all the work and he/she gets paid a nice commission and the company makes money too. But the problem is that the agent has to constantly work and find clients to make money. Eventually, this agent will either max out his/her time or burn out.
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