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HEY! DID YOU KNOW…


  • The median age in the U.S. is 36.8
  • The median income in the U.S. is $51,939
  • The average 401k match is $1 for $1 up to 6%

A 36.8 year old investing 10% of their $51,939 income with a $3,116.34 match:
With just average stock market returns of 10% would have $1,114,479.31 by retirement.

Join 10,300+ other readers who have learned how anyone, even beginners, can easily make this desire a reality. Download the free ebook: 7 Steps to Understanding the Stock Market.




The Average American is Drowning in Debt – Here’s Your Life Preserver

This is a guest post from Joseph Hogue.

As a financial advisor, I’ve seen the frustration Andrew talks about when he hears people just don’t have money to invest.

It doesn’t help that wages have barely budged over the last decade. The cost of healthcare and education are rising faster than paychecks and many families struggle to pay the bills, let alone have money left over to invest.

Andrew shared some great ideas on finding a little extra to start investing, from starting a side business to developing new skills and creating a budget.

There’s another problem though that is keeping people from the financial lives they deserve, an emergency that most families feel powerless to overcome.

americans in debt

The average American is drowning in debt. Like drowning, we struggle and flail about but just can’t seem to keep our head above that tsunami of bills washing over every month.

Saving your financial life means not just learning how to tread water in all that debt but how to get back to dry land. Only after getting out of the sea of debt will you have enough to invest and reach your financial goals.

How Bad is the Debt Crisis in America?

According to the Federal Reserve, total household debt in the U.S. surged to $12.84 trillion in 2017, jumping by more than half a trillion in just one year. In fact, the average American household owes more than $52,500 not including a mortgage.

It costs the average household a dollar of every $5 earned just to make these monthly debt payments.  [click to continue…]

IFB56: New 2018 GAAP for Marketable Securities Will Inflate Earnings


marketable securities

 

Welcome to episode 56 of the Investing for Beginners podcast. In this week’s episode we’re going to talk about something that Warren Buffett dropped in his latest shareholders letter and he was also mentioned on a video on CNBC that was released recently and this is relating to new GAAP figures that are going to potentially inflate earnings figures and we’re going to dive into that.

Andrew is going to start us off and talk a little bit about some of the background and then we’re just kind of go back and forth, so Andrew one should go ahead and start us off there big guy.

  • New GAAP accounting rule will affect financial institutions, like banks, insurance companies.
  • This new rule could inflate earnings for said companies.
  • Isn’t the first times accounting rules have changed
  • If you invest in these types of companies you need to be aware as the rule takes effect.

Andrew: yeah sounds good and like my M.O. for this podcast has been kind of to hate on CNBC. I just have to say like they put up a new video series and it’s probably the best thing on YouTube other than my own stuff obviously.

Okay great there they did like three hours with Warren Buffett on Squawk Box and edit it down and I think it’s about an hour to an hour half of the content on their YouTube channel right now and this was back in I think early February’s when they interview him mid-February is when it was released so he’s that’s straight from the Oracle himself talking about some of the stuff we saw with Bitcoin a lot of the market volatility we saw at the beginning the year and most importantly.

[click to continue…]

IFB55: The Worst Money Advice that Beginners Always Hear

 

money advice

Welcome to episode 55 of the Investing for Beginners podcast.  Tonight Andrew and I are going to discuss some of the worst money advice you can get.

  • Invest 10% of your income
  • Investing in a quick fad to make money quickly
  • Try to get to cute and taking on more complexity just for the sake of it.
  • Buy a ETF index fund and be done with it.
  • Don’t get caught up in all the hype of the market.
  • Budget till it hurts

Andrew: yeah so I kind of I kind of made a list here. It’s kind of long try that keep it I’ll try to be concise but you we always know how that goes right so.

You see all the time and the more that time goes on the more and more people go to the internet looking for advice on how to handle their money a lot of times you’ll have people talk about hey I got $20,000 I got $40,000 maybe I have an inheritance what should I do what should I do what should I do? [click to continue…]

How a Stock’s Total Assets Can Be Evaluated for Higher Potential Returns

Total assets are a very important component of a company’s balance sheet. Without assets, a stock can’t create earnings, which are fundamental for growing the stock price over the long term.

While the concept of earnings and P/E ratio seems like a relatively easy concept to grasp for most investors, the idea of investigating where those profits come from tends to get lost. The balance sheet and breakdown of total assets is a little bit more involved than a breakdown of a company’s revenue, expenses, and profit—and involves more financial jargon-type terms.

This blog post will fix that today and hopefully give investors, who wish to do fundamental analysis themselves, a broader understanding of exactly what is comprising of a company’s total assets and if these numbers indicate a strong financial position or not.

total assets

An asset, in basic terms, is a store of value. That $100 bill is an asset. Your house is an asset. Yes, your car is an (depreciating) asset.

Ok, well we all know that, right? What about the assets of the stock you’re about to buy?  [click to continue…]

IFB54: Company and Industry Maturation in the Stock Market

 

industry maturation

Welcome to Investing for Beginners podcast this is episode 54. Andrew and I are going to talk about the maturation of different industries. We’re going to discuss how when you’re looking at companies to invest one of the things you want to look at is
how the industry that it’s in is maturing and what stage of growth they might be in along that path.  Without any further ado, I’m going to turn over to Andrew and he’s going to get us started.

Andrew: thanks Dave, this is something that actually really haven’t read anything about when it comes to investing and everything it’s just one of those things I kind of noticed as I was looking through financial statements, kind of trying to observe like how different stocks kind of move throughout the years.

I’ve done a ton of research and a post on my blog about companies that have failed also companies that have really succeeded and looking at the financials and trying to piece together what happened in the very beginning and then how did it play out as the years went on and I’m sure this is probably like common sense stuff for I don’t know business majors econ majors whatever.

But we’re DIY investors and we’re just trying to soak in as much information as we can and  it’s good to keep our eyes open try to be observant in a similar fashion to one of the previous episodes where I talked about unconventional investing rule to have for your portfolio I figured this would be kind of another cool thing to discuss and talk about. [click to continue…]