The Coffee House Investor
By Bill Schultheis
The Coffee House InvestorNov 30, 2020
Market High - Time To Sell?
Announcements of COVID-19 vaccine research have driven domestic stock markets to all-time highs.
Is it time to sell your stocks or buy more?
For Coffeehouse Investors, the answer is driven by one's financial plan - the asset allocation decision between stocks and bonds based on a need to take on short term stock market risk in pursuit of higher long term returns and reaching financial goals.
Learn more at https://www.coffeehouseinvestor.com
Order my new book at . . . https://www.amazon.com/Coffeehouse-Investors-Ground-Rules-Happiness/dp/1119717086/ref=sr_1_3?crid=5BXAALVNEPOV&dchild=1&keywords=the+coffeehouse+investor&qid=1602545643&sprefix=the+coffeehouse%2Caps%2C210&sr=8-3
Download your free chapter at https://mailchi.mp/c20326b72014/free-book-chapter
More information can be found at https://www.soundmarkwealth.com
Build Wealth the Easy Way
Coffeehouse Investors keep track of their spending; maybe not down to the penny, but enough so they can make smart money decisions in pursuit of their financial goals.
Creating an awareness of you how spend money allows you to:
1. Direct your spending toward areas of your life that are more meaningful.
2. Look for opportunities to increase saving and get on track with your financial goals.
Pre-Order my new book at . . . https://www.amazon.com/Coffeehouse-Investors-Ground-Rules-Happiness/dp/1119717086/ref=sr_1_3?crid=5BXAALVNEPOV&dchild=1&keywords=the+coffeehouse+investor&qid=1602545643&sprefix=the+coffeehouse%2Caps%2C210&sr=8-3
Download your free chapter at https://mailchi.mp/c20326b72014/free-book-chapter
More information can be found at www.soundmarkwealth.com
Elections Don't Matter to Stock Markets!
Elections Don't Matter to Stock Markets! The Coffeehouse Investor
History shows that over the long haul, the stock market ignores elections. Instead, it it reflects the increase in productivity of the global community. Don't let the short term volatility of common stocks disrupt your long term financial plan.
Pre-Order my new book at . . . https://www.amazon.com/Coffeehouse-Investors-Ground-Rules-Happiness/dp/1119717086/ref=sr_1_3?crid=5BXAALVNEPOV&dchild=1&keywords=the+coffeehouse+investor&qid=1602545643&sprefix=the+coffeehouse%2Caps%2C210&sr=8-3
Download your free chapter at https://mailchi.mp/c20326b72014/free-book-chapter
More information can be found at www.soundmarkwealth.com
Great Companies - Sell Signal?
Microsoft, Apple, Netflix, Tesla.
These are just some of the hi-tech companies that have produced significant stock gains in 2020.
How much of this growth has been due to the underlying earnings of the company, and how much has been due to the exuberance of investors?
In other words, how much of a company’s future growth is already built into the stock’s price?
The question many investors struggle with is, “How much of these mega-companies should I own in my portfolio?”
For Coffeehouse Investors, it makes sense to own these companies as you already do within a diversified portfolio of index funds and passively managed funds.
For investors who are contemplating larger positions within a portfolio, long term data suggests you proceed with caution.
Pre-Order my new book at . . . https://www.amazon.com/Coffeehouse-Investors-Ground-Rules-Happiness/dp/1119717086/ref=sr_1_3?crid=5BXAALVNEPOV&dchild=1&keywords=the+coffeehouse+investor&qid=1602545643&sprefix=the+coffeehouse%2Caps%2C210&sr=8-3
Download your free chapter at https://mailchi.mp/c20326b72014/free-book-chapter More information can be found at www.soundmarkwealth.com
The Election & The Stock Market
The national election unfolds over the next few weeks amid the COVID-19 pandemic.
It is not surprising that the enormity of these events mirror investors’ anxieties as to the influence they might have on our lives and portfolios. From a financial planning perspective, we are certain of at least two market dynamics.
In the short run, capital markets can be highly irrational. In the long run, markets are highly efficient.
Don't let the short term volatility of markets inhibit your focus on capturing the stock market's long-term return.
Pre-Order my book at . . . https://www.amazon.com/Coffeehouse-Investors-Ground-Rules-Happiness/dp/1119717086/ref=sr_1_3?crid=5BXAALVNEPOV&dchild=1&keywords=the+coffeehouse+investor&qid=1602545643&sprefix=the+coffeehouse%2Caps%2C210&sr=8-3
More information can be found at
www.coffeehouseinvestor.com
www.soundmarkwealth.com
Should You Invest In Hot Stocks - Or Not?
The stock market is doing crazy things, driven largely by a small number of technology-driven stocks and the emotions of investors.
Securing long-term wealth through the pursuit of hot stocks is a mighty challenge. Keep these thoughts in mind . . .
1. Markets are efficient. According to SPIVA scorecard, less than 20% of professional stock pickers have outperformed respective benchmarks. You might win for a week, a month, or a year. Over the longer haul (yes, we are investing for the long haul, not speculating for the week), it is difficult to beat benchmarks.
2. If you do want to speculate, keep it at 5% of your portfolio or less, which leads me to my next point . . .
3. If you are going to limit your speculating to 5% of your portfolio, win or lose, it probably won't have a material impact on your financial well-being, so why waste your time? Spend your money AND your emotional energy on something more meaningful.
My new book is out November 17th. The Coffeehouse Investor's Ground Rules.
Save, Invest, Plan for a life of wealth and happiness.
Pre-Order on Amazon.com. https://www.amazon.com/gp/product/1119717086?pf_rd_r=Y7F26W5RABGJVAVQTP3T&pf_rd_p=edaba0ee-c2fe-4124-9f5d-b31d6b1bfbee
More information can be found at https://coffeehouseinvestor.com/ https://soundmarkwealth.com
You can follow the Coffeehouse on Facebook: https://www.facebook.com/coffeehouseinvestor
Smart Tax Strategies as Election Nears
Taxes are likely to be the biggest drain on your portfolio over a lifetime of Investing.
Have you created a portfolio that integrates all dimensions of tax management within your financial plan?
Regardless of which administration occupies the White House in 2021, there are likely to be significant tax changes on the horizon.
Todd Flynn, owner and advisor at Soundmark Wealth Management has written an insightful piece on tax issues to consider as election season heats up and the year winds down.
His article can be found at https://mailchi.mp/1d95f29021e7/pdyihetu2i
Information on Coffeehouse Investor Ground Rules are found at https://www.coffeehouseinvestor.com
Lump Sum or Dollar Cost Average?
Time to get on with your life.
Amid the coronavirus pandemic and pending national elections, take time to take care of yourself.
1. Take time to play. Play is essential to your emotional well-being. In their book, "Play: How It Shapes the Brain, Opens the Imagination, and Invigorates the Soul" authors Brown and Vaughan remind us that "The opposite of play is not work - it is depression."
2. Tame time to express gratitude. 'Nough said. . .
3. Take time to track your spending. The first step to creating harmony in your life is to know how money flows through your life. Finally, if you have a chunk of money to invest in the stock market, is it better to invest a lump-sum, or dollar-cost-average?
Click the following link for a free report on this oft-debated question.
Changing Portfolios, Changing Lives
You have the power to change lives.
Amid the economic chaos that has unfolded from the COVID-19 pandemic, investors are yearning for clarity and wisdom on building smart portfolios to last a lifetime.
Save. Invest. Plan.
Take a moment and share our Coffeehouse Investor Ground Rules with someone in your life.
You can change their life.
More information can be found at https://www.coffeehouseinvestor.com
Who Wants to be a Millionaire?
Who Wants to be a Millionaire?
That is the name of a popular TV show, where contestants can guess answers to questions, with the grand prize being a big chunk of money.
Now, let’s get serious. If you are intent on being a Millionaire, start saving more in a workplace retirement plan, and start a business.
I ran a quick calculation – Over a 40 year period of working, and a starting salary of $60,000 that increases 2% yearly, an employee who socks away 15% of earnings at 5% growth, will have far more than $1.3 million dollars at age 65.
Thinking of starting a business?
In my video this week, I offer three tips to consider – suggestions that have had a profound impact on my business building career.
There has never been a better time to start a business.
Turn off the TV and get to work – daydreaming about the business you want to start up.
Buying Stocks, It’s All About The Hustle- The Coffeehouse Investor
Recent events have caused a surge in online trading accounts.
Lots of free time, commission-free trades, and a volatile stock market have many young investors thinking that road to riches goes through their online trading accounts.
According to Envestnet and CNBC "Trading stocks was among the most common uses for the government stimulus checks in nearly every income bracket" Looking to build long term wealth?
Pursue a strategy based on common sense, not the whims of the stock market.
1) Start saving 10% or more in a workplace retirement account.
2) Create a game plan to "up" your career and increase your income.
3) Start a business.
More information can be found at https://www.coffeehouseinvestor.com
Books That Will Inspire You
Twenty five years ago books by Burton Malkiel and John Bogle inspired me to
1. Change the way I look at building wealth
2. Create The Coffeehouse Investor based on three timeless principles
3. Inspire you to inspire others to embrace these same principles Building a life of wealth and happiness during your retirement years can seem like a daunting challenge.
It doesn't have to be.
I continue to be inspired by the work of others press on in helping others achieve this lofty goal.
I have listed my top three books that I have read this past year and hopefully they can inspire you to press on as well.
https://mailchi.mp/6b4917b16fc7/n6imalxvp8
Investing in the Stock Market - Capture the Market's Return!
With the financial media's ceaseless obsession with daily stock market volatility, it is easy to loose perspective of our long term objectives of investing in this asset class.
Any attempts to try to navigate around this volatility is likely to have a significant negative impact on your portfolio's longer term returns.
Dalbar, a research firm located in Boston, MA, has carried out extensive research of this investing phenomenon.
Beginner's Guide To investing In the Stock Market
Whether you are signing up to participate in your company's 401(k) plan, or establishing your first IRA, there are some basic fundamentals for you to keep in mind.
Save, Save, Save.
That's the hard part.
The easy part is investing those dollars. A simple "Target-Date" mutual fund is all you need. These investments generally consist of one investment made up of low cost index funds, that automatically re-balance over time to a more conservative allocation as you approach retirement.
More information can be found at https://www.coffeehouseinvestor.com
For a list of Target Date Funds for the Beginning Investor, https://mailchi.mp/a918e384b2eb/targetdate
Dow Jones Industrial Average 70,000?
A recent NBC News/Wall Street Journal poll found that 80% of voters feel things are out of control in the US.
This "out of control" feeling can sap the energy out of our bones and out of our lives. Let's take control of our personal lives, and share our good energy with each other so together we can move forward and make good things unfold in the global community.
It starts by being in control of your financial destiny.
You can find more information at https://www.coffeehouseinvestor.com
Shortest Graduation Speech Ever
As a recent college graduate you embark on a new journey, with unlimited opportunities to engage in a global community crying out for change.
This job market you enter is in shambles.
How you embrace this moment might determine how you live your life.
Bill Schultheis offers his reflections to take with you as you enter this new world.
For those who are intent on saving and investing right now, he offers 4 websites to increase your fund of knowledge - on investing and life.
https://mailchi.mp/soundmarkwealth/rhtf1balfl
For more information, visit The Coffeehouse Investor http://www.coffeehouseinvestor.com
Small Change - Big Results
The financial media has turned up the volume to match the heightened volatility in the stock market.
This volatility is likely the new normal for months, if not years ahead.
Use this opportunity to create a new normal in your life, and take charge of your financial destiny.
Keep track of how your spend your money - how money flows through your life, maybe not down to the penny, but at the end of the year, this awareness benefits you in at least three ways. . .
1. It allows you to identify certain expenses that can become added savings.
2. It allows you to redirect certain expenses toward other expenses that bring more meaning to your life.
3. Keeping track of money flow in your life allows you the emotional freedom to direct that mental energy towards your creative self - and a better world.
Sign up for the Coffeehouse Investor newsletter at https://www.coffeehouseinvestor.com
More information can be found at https://www.soundmarkwealth.com
Gambler or Investor in the Stock Market
Are you a gambler or investor?
The stock market has generated returns over time that suggest it is a good place to invest retirement funds for the long haul. In the short run, buying and selling stocks is more akin to gambling.
There is nothing wrong with that - owning a few individual companies as long as it doesn't negatively impact your lifestyle in retirement.
Below is the link to the three papers referenced in the above video, especially including Todd Flynn's "Rebalancing in Good Times and Bad."
https://mailchi.mp/soundmarkwealth/tblgpb2oxe
Creativity Conquers Covid-19
The global community invites us to foster our creative energy to defeat COVID-19.
Let's challenge each other and ourselves to spend more time accentuating our creativity and less time tuning in to the political theater that is unfolding across the country as we move forward in the months ahead.
For the past 20 years I have connected with Coffeehouse Investors who are vibrant in the way they celebrate their creativity to make this a better world. I have compiled three themes they continue to focus on during these challenging times to see them through.
Click on the link below for a free worksheet that you can integrate in your life as we support each other in the weeks and months ahead.
https://mailchi.mp/soundmarkwealth/49l01jlzfm
https://www.coffeehouseinvestor.com
https://www.soundmarkwealth.com
Bear Market Alert?
On March 27 the U.S. Governement passed the CARES Act to offer relief for Americans impacted by this fallout.
The following link offers a free summary of this Act as it pertains to your financial well-being.
https://mailchi.mp/soundmarkwealth/caresact
Remember, bear markets in common stocks are inevitable. In the short run, stock markets are irrational, driven largely by the emotions of investors, because it is investors who set the price of stocks, not the underlying companies.
Fortunately, over the longer term, markets are highly efficient, reflecting the productivity and profitability of companies and employees. As our global community sets out to find a new normal in both the health and economic arena, instead of trying to navigate the stock markets next 25% move, use this time to create a new normal in your portfolio, and more importantly, your life.
Coffeehouse Investors focus on three timeless principles.
1. Save for a rainy day (Create a financial plan)
2. Don't put all your eggs in one basket (diversify based on your need and ability to absorb short term volatility to capture longer term returns in common stocks)
3. There is no such thing as a free lunch. (Maximize returns using low cost index funds and passively managed funds) These principles have guided Coffeehouse Investors through the bear market of 2000-2002, the financial crisis of 2008, and the 2020 COVID-19 pandemic.
There will be more bear markets down the road.
Don't let bear markets control you.
Take charge of your financial destiny - three timeless principles are a good place to start.
More information can be found at
Time for a Gracenote?
Are you struggling to make sense of this volatile stock market?
Coffeehouse Investors have a better idea; Focus on your financial plan, ignore Wall Street and get on with your life.
In light of the coronavirus pandemic that continues to impact the United States and global community, we are challenged to get on with our lives like never before. Through this challenge, we recognize that life is fragile.
Bill Schultheis shares a personal story of his friend Andrea, who introduces "Gracenotes," the wisdom of sharing your eulogy of a loved one now, while they are living, not at their wake.
During these days that hopefully are offering you some moments of quiet solitude, consider writing and sharing your own Gracenote with someone in your life.
You can view Andrea's TEDx talk at https://youtu.be/6N0U6iri2As
More information can be found at htttps://www.coffeehouseinverstor.com
How To Invest In The Stock Market - Common Sense for Common Stocks
With the stock market experiencing a steep decline of late, many investors are questioning how best to invest in this asset class for the long term.
There are three ways to invest in the stock market.
1. Select individual stocks yourself.
2. Hire a professional stock picker to pick stocks for you.
3. Invest in a low cost index fund or passively managed fund that mirrors the returns of its respective index.
Because capital markets are fairly efficient, professional stock-pickers have historically had a difficult time outperforming a comparable benchmark.
According to SPIVA, over the past ten years ending June 30, 2019, 87% of domestic large cap, actively managed funds under-performed the S&P 500 index.
https://us.spindices.com/spiva/#/
For Coffeehouse Investors, common sense wisdom suggests you are better off approximating the stock market average through low cost index funds and passively managed funds.
For more information, visit https://www.coffeehouseinvestor.com
Rising Above the Bear Market
The coronavirus pandemic continues to cause extreme volatility in the stock market. There have been several bear markets and corrections over the past thirty years.
1987 STOCK MARKET CRASH
2000 DOT.COM BUST
2001 TERRORIST CRISIS
2008 FINANCIAL CRISIS
2013 EUROPEAN DEBT CRISIS
2018 INFLATION SCARE
In every instance the collective creativity and ingenuity of workers around the globe have spurred the capital markets to new heights. In this video Coffeehouse Investor Bill Schultheis explains the wisdom of adhering to your financial plan as a guiding tool to navigate these uncertain times.
More information can be found at https://www.coffeehouseinvestor.com
Beyond Coronavirus - Guiding Principles in Uncertain Times
As the uncertainty of the coronavirus unfolds in countries around the world, investors are challenged to move beyond growing anxiety and volatile stock market, and focus on three Coffeehouse Investor principles. . .
1. Don't put all your eggs in one basket. Diversify between stocks and bonds so that it reflects your need and ability to take risk in your portfolio.
2. There is no such thing as a free lunch. Capture the return of broad asset classes through low cost index and passively managed funds.
3. Save for a rainy day. Create a financial plan that offers clarity on your savings amount while working and spending amount in retirement.
To learn more how these three principles can guide you in uncertain times, visit https://www.coffeehouseinvestor.com
Sign up for our newsletter: https://www.coffeehouseinvestor.com/coffeehouse-e-newsletter/
Smart Money Moves Amid the Volatile Stock Market
Amid unprecedented volatility in the stock market, Coffeehouse Investors focus on their asset allocation between stocks and bonds, to address the risk that impacts them the most.
For younger investors, the long term risk isn't a downturn in the stock market, it is the impact of inflation on the purchasing power of your portfolio in retirement.
If you have 20 to 40 years of savings in front of you, a declining stock market allows future investments to be invested at lower levels, boosting expected future returns.
If you are getting close to retirement, or are retired, consider keeping a healthy amount of money that you are likely to draw on for living expenses over the next 6-8 years outside of the volatile stock market.
Coffeehouse Investors embrace three simple principles
1. Don't put all your eggs in one basket.
2. There's no such thing as a free lunch.
3. Save for a rainy day.
More information can be found at https://www.coffeehouseinvestor.com
Coronavirus, Common Stocks, and Common Sense
The coronavirus is impacting the health of human beings around the world, curtailing the growth of economies, and causing extreme volatility in the stock market.
No one knows how quickly the virus will be contained, but if history is any guide, the bright minds of people who are working on this crisis will win out in the end and it will be eliminated.
For more information, visit https://www.coffeehouseinvestor.com
There's No Such Thing as a Free Lunch - The Power Of Index Funds
There are three ways to invest in the stock market.
1. Pick Individual Stocks
2. Let a professional Stock Picker pick them for you
3. Invest in an index fund that invests in all the publicly traded companies.
Statistically, it is difficult to outperform the stock market over time. (See https://us.spindices.com/spiva/#/) That's not the issue. The issue is that many investors are not able to stay committed to their investments, and dramatically underperform benchmark indices over time. (See www.dalbar.com)
More information can be found at www.coffeehouseinvestor.com
Don't Put All Your Eggs In One Basket
Coffeehouse Investors keep things simple when deciding on an asset allocation between stocks and bonds that is best for them.
In this episode, I offer two suggestions to keep in mind when creating a portfolio that addresses the financial risks of investing that will impact you the most.
More information can be found at www.coffeehouseinvestor.com
Save for a Rainy Day While Living Your Abundant Life
Coffeehouse Investors live an abundant life by creating awareness and harmony in the way they save for retirement.
In this episode, I share three simple ideas to accentuate your efforts to embrace the first Coffeehouse Investor principles . . . Save for a rainy day.
Learn how you can build a simple index-fund portfolio and reach your financial goals.
Visit the Coffeehouse Investor website at www.coffeehouseinvestor.com
The Coffeehouse Investor's Three Guiding Principles
As we dive into the podcast space, it is time to review the benefits of three simple principles found within The Coffeehouse Investor. They are in your control, and more important than ever before in guiding you towards financial security during your retirement years.
1. Don’t put all your eggs in one basket – diversify your portfolio.
2. There’s no such thing as a free lunch – capture market returns through low-cost index funds
3. Save for a rainy day – create your personal financial plan.
If you want to take control of your financial destiny, following these three principles will guide you on your way.
More information can be found at www.coffeehouseinvestor.com