2019 Taxes: 9 Things to Know Now | Charles Schwab

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The Tax Cuts and Jobs Act of 2017 (TCJA) ushered in big changes that significantly affected many taxpayers’ 2018 returns. By contrast, 2019 tax changes are subtle, mostly reflecting inflation adjustments to exemptions and tax brackets.

Still, the cutoffs for specific rates and exemptions may affect your final investment decisions for 2019. Here are nine things to keep in mind as you prepare to file your 2019 taxes.
— Read on www.schwab.com/resource-center/insights/content/taxes-9-things-to-know-now

To Retire in Harmony, Get Your Plan in Sync

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Must have a fundamental knowledge of all the investments and strategies available, as well as the ability to put together a comprehensive retirement plan that addresses each individual client’s needs, goals, strengths and weaknesses.

There are five important parts in a comprehensive retirement plan that should play well together.

— Read on www.kiplinger.com/article/retirement/T047-C032-S014-to-retire-in-harmony-get-your-plan-in-sync.html

What this man regrets about going from $2.26 to $1 million in five years

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BY MARKETWATCH — 12/12/2019 3:37 PM ET

Achieving financial independence took time and sacrifice — and came with some regrets
In five years, Grant Sabatier went from having just a few bucks in his bank account to more than $1 million — and he did it through side hustles, sacrifice and investing. But if he had to do it all over again, he said he probably wouldn’t have done it quite the same way.
He made many trade-offs, and a few mistakes, like “making money my God and chasing the next thing, no matter what,” he admitted.
The young millionaire, who blogs at MillennialMoney.com (https://millennialmoney.com/) and is the author of “Financial Freedom,” accomplished financial independence by making small goals for himself — first, shooting to save $1,000, then $2,000, then $4,000. As he reached his goals, he’d double them. “We usually focus on the million-dollar goal or retiring early, and while it is important to set goals, don’t let those goals distract you from taking the next step,” he said. Starting small and consistently doubling his figures made the goal accessible, mentally and physically. “If you are completely in debt and you don’t have anything saved, just save your first $1,000, and see how it makes you feel,” he said. “You’ll feel better than you thought you would.”
But there needs to be balance, something he did not account for on his path to $1 million. That means enjoying life, and that looks differently for everyone (http://www.marketwatch.com/story/its-time-to-stop-judging-people-for-drinking- lattes-and-getting-regular-haircuts-2019-05-14). Stripping yourself of experiences and items that are meaningful can backfire. Sabatier said he had to detox after five years of working 100-hour weeks and traveling, for example.
Hitting a financial goal should be less about quantitative reasons, like having $1 million in an investment portfolio, and more about qualitative reasons, like leaving a job you hate or paying for an annual family trip. “It’s about looking at your life. Do you feel like you’re growing? Do you feel like you’re in a place you like and you have friends you like? Do you like your life?” Sabatier said. “If the answer to that question is no, then the first place you need to look is your money.”

— Read on www.marketwatch.com/story/what-this-man-regrets-about-going-from-226-to-1-million-in-five-years-2019-12-12

IPO Stocks Luckin Coffee, Dynatrace, Progyny, Datadog, Ping Identity Near Buy Points | Investor’s Business Daily

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IPO stocks are hot right now, with several 2019 new issues acting bullishly, trading near buy points. Chinese Starbucks (SBUX) rival Luckin Coffee (LK) is one of five IPO stocks worth adding to your watch list this week. Dynatrace stock, Progyny stock, Datadog stock and Ping Identity stock round out the quintet.

Fertility services specialist Progyny (PGNY), cybersecurity play Ping Identity (PING) and app monitoring software maker Dynatrace (DT) are all profitable, while cloud software name Datadog (DDOG) is barking at the door of profitability. Luckin Coffee stock is a big money loser, but has tremendous sales growth.

— Read on www.investors.com/news/ipo-stocks-luckin-coffee-dynatrace-progyny-datadog-ping-near-buy-points/

2020 Market Outlook: U.S. Stocks and Economy | Charles Schwab

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Key Point

  • The U.S. economy likely will remain bifurcated in early 2020. Manufacturing and business investment may continue to struggle amid trade uncertainty, but services activity and consumer spending may continue to be healthy.
  • The Federal Reserve’s 2019 rate cuts should support stock prices, as well as rate-sensitive areas of the economy. However, rate cuts are only a partial cure for what ails manufacturing and corporate animal spirits.
  • A preliminary U.S.-China trade deal could stabilize the decline in corporate confidence. However, returning to a strong business investment environment likely requires a more comprehensive trade deal.

The dividing line remains firm

U.S. economic growth slowed in 2019, pulled down by weak business investment and manufacturing activity. Although strength in consumer spending and services persists heading into 2020, we expect stabilization—at best—in growth next year.

Myriad uncertainties are clouding the outlook, including earnings and the presidential election. Ongoing trade war ambiguity could further depress corporate confidence and investment.

A key risk in 2020 is that manufacturing weakness and business investment fatigue could hurt services activity and consumer spending, by depressing job growth. Although the U.S. unemployment rate (a lagging indicator) remains low, weekly initial jobless claims (a leading indicator) in manufacturing-oriented states have been rising.

As such, U.S. payroll growth may weaken if limited headway is made on a comprehensive trade deal. However, global economic stabilization could be positive for U.S. growth.

— Read on www.schwab.com/resource-center/insights/content/outlook-us-stocks-and-economy

What is a Credit Report and Why is it Important?

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What is a Credit Report and Why is it Important?
Understanding what a credit report is could be confusing. Learn what information a credit report contains and how to get your credit report for free.
— Read on www.americanexpress.com/en-us/credit-cards/credit-intel/what-is-credit-report/

7 Signs You’re Walking a Financial Tightrope – USAA Community – 201662

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Living paycheck to paycheck is stressful.
 
The concept brings to mind a tightrope walker wobbling on the high wire. Unfortunately, it’s a reality for many Americans. A USAA study last year revealed a third of our members are walking that tightrope. If this is you, we can help.
 
Whether you’re making $30,000 or $300,000, it’s easy to fall into the trap of living paycheck to paycheck. And the scary thing is you may not even realize it.
— Read on communities.usaa.com/t5/Family-Life/7-Signs-You-re-Walking-a-Financial-Tightrope/ba-p/201662

Becoming a Better Investor

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  1. The secret to great investing is patience. Take the time to study, to learn and to practice. There is no rush. Make a Wish List of liked companies and wait for them to go on sale.
  2. Best investors often do best during market panics, when investors dump shares in fear, or when there’s unusual volatility, such when stocks soar to unrealistic levels.
  3. Take advantage of the greed and fear of other investors. Investors can profit by avoiding panics, picking up stocks for cheap in sudden selloffs and keeping emotions in check, even during volatile markets.
  4. Human emotion inevitably causes the prices of assets — even worthwhile assets — to be transported to levels that are extreme and unsustainable: either vertiginous highs or overly pessimistic lows.
  5. Focus on a company’s actual earnings, revenues and cash flow, and do not succumb to rosy projections and predictions about the distant future. Ignore the sometimes-enticing stories spun by bankers, analysts and others, the kinds that have led to huge losses for even sophisticated investors in recent years on high-profile companies.
  6. Security prices should generally fluctuate not much more than earnings and revenues. The reasons they fluctuate more are largely psychological, emotional and non-fundamental. The truth is that financial facts and figures are only a starting point for market behavior; investor rationality is the exception, not the rule; and the market spends little of its time calmly weighing financial data and setting prices free of emotion.
  7. Pick your spots, and only invest in areas you have a competitive advantage, perhaps due to a unique industry expertise. For all their skill, the firm only profits on barely more than 50% of its trades, a sign of how challenging it is to try to beat the market.
  8. “It’s different this time” are four of the most dangerous words in the business world — especially when applied, as is often the case, to something that has reached what in prior times would have been called an extreme. People’s decisions have great influence on economic, business and market cycles. And people don’t make their decisions based on science, facts or fundamentals.
  9. There are more factors and variables influencing financial markets and individual investments than most realize or can deduce. Investors tend to focus on the most basic forces, such as earnings, interest rates or short-ratios, but there are dozens of factors, perhaps whole dimensions of them, that are missed.
  10. Cycle positioning is the process of deciding on the risk posture of your portfolio in response to your judgments regarding the principal cycles. It primarily consists of choosing between aggressiveness and defensiveness: increasing and decreasing exposure to market movements. The recipe for success consists of (a) thoughtful analysis of where the market stands in its cycle, (b) a resulting increase in aggressiveness or defensiveness, and (c) being proved right. These things can be summed up as “skill” or “alpha” at cycle positioning.
  11. Detecting and exploiting the extremes of market cycles is really the best anyone can hope for. Between the extremes of “rich” and “cheap” — when the cycle is in the middle ground of “fair” — the state of the relationship between price and value is, by definition, nowhere as clear-cut as at the extremes. If you frequently try to discern where we are in the cycle in the sense of “what’s going to happen tomorrow?” or “what’s in store for us next month?” you’re unlikely to find success. I describe such an effort as “trying to be cute.
  12. A backcast is an exercise where you imagine having reached a goal and then you work backward to figure out what happened to get you there. Backcasting is a more instinctive exercise. After all, we generally plan for success. 
  13. A premortem imagines the opposite — failing to reach your goal — and asks “how did that happen?” Imaging failure, on the other hand, doesn’t feel good. But failing to do a premortem can ruin even well-thought-out strategies for long-term success. If we anticipate later actions that can undermine our plans, we can improve the likelihood of staying on course.

Source: https://www.marketwatch.com/story/turn-yourself-into-a-better-investor-by-learning-from-hedge-fund-star-jim-simonss-successes-and-failures-2019-11-07?mod=home-page

Source: https://www.marketwatch.com/story/oaktrees-howard-marks-has-5-tips-to-make-you-a-superior-investor-2018-10-02

Source: https://www.marketwatch.com/story/this-champion-poker-player-says-a-premortem-can-make-you-a-better-investor-2018-03-07

Failure is Important

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“I’ve failed over and over and over again in my life and that is why I succeed.” Michael Jordan

The simple truth is – no great success was ever achieved without failure.

Thomas Watson Jr. said, “If you want to increase your success rate, double your failure rate.”

“Failure is so important. We speak about success all the time. It is the ability to resist failure or use failure that often leads to greater success. I’ve met people who don’t want to try for fear of failing.” J.K. Rowling

Choices: It’s the little choices in life that will bite you and could kill your potential and ability to succeed. Small, seemingly insignificant, choices…made all over a long period of time is the path to success.

  • Make positive choices today and have faith that in the long term (10 to 15 years) it will have significant positive impact and lead to success.
  • Know your destination and get back on track. Avoid drifting off course.
  • Short term pleasure creates long term pain. Short term pain creates long term pleasure. Ignore immediate gratification. Often making the poor choice, you’re rewarded immediate. If you make the positive choice, you often get nothing.
  • In life, you will suffer one of two things…either the pain of discipline or the pain of regret. The pain of discipline weighs ounces. The pain of regret weighs tons.
  • What do successful people and unsuccessful people have in common, they both hate to do what it takes to be successful.

“The first thing to do about an obstacle is simply to stand up to it and not complain about it or whine under it but forthrightly attack it. Stand up to your obstacles and do something about them. You will find that they haven’t half the strength you think they have. Just stand up to it, that’s all, and don’t give way under it, and it will finally break. You will break it. Something has to break and it won’t be you, it will be the obstacle.” Andrew Carnegie

One Hundred Percent (100%) Responsible: Must be willing to take 100% responsibilities for our lives and relationships. And, we should expect zero percent (0%) in return. We’re responsible for:

  • What We Do
  • What We Don’t do
  • How we Respond to What Happens to Us

When you change how you look at a situation, the situation changes. You are the lightning rod for change. You contribute to it and respond to it.

Behavior: Brain automate many processes. Must become aware of our behaviors. Dig your financial grave with your wallet. Write down every single penny that comes out of your pocket for thirty days. “Earn a lot of money and become worth a lot of money”.

  • “If you want to have more, you have to become more. Success is a becoming process.” Brian Tracy
  • Becoming Process: Become the person who is attractive and worthy.
  • Why would you want to…know the Why.
  • Start small and allow the accumulative compound effect of this new behavior to grow. Behavior repeated becomes habits.

Habits: Habits are repeated behaviors.

  • Good habits are hard to develop and easy to lose. Bad habits are easy to create and hard to change.
  • Changing a habit is like swimming against a strong current. Diet industry is the largest in history and we’re the most obese ever. Because, it takes will power.
  • We need to have “Why” Power. Have a big enough reason why.

Massive Transformation Formula –

  • What are your three big goals ( to make this the best year of your life yet)
  • There are one or two key behaviors required to achieve the big three goals. Only one to three things that really matter.
  • Keep Track of those key behaviors. Crucial to keep awareness to where you are. Avoid drift…the Great curse of human behavior.

Time: Give the Compound Effect time to show a difference. It is not how fast you start; it’s is how long you last. Consistency is the key. The tortoise will always defeat the hare.

Go Fail. Go fail big. Go fail often. Go fail fast. “The key to success is massive failure.” Thomas Watson. Jr.

  • Life is Like a Pendulum. People want more joy, love, happiness and pleasure, and want to avoid pain, rejection, sadness and failure. But, the only side we can control is pain, rejection, sadness and failure. The pendulum will swing back in equilibrium to joy, love, happiness and pleasure.
  • Must get outside my current boundaries and
  • Have a love affair with failures and aggressively pursue failures.
  • Only one thing holding you back…it’s fear. Must turn fear into fun. The biggest failures are always the biggest successes. You can accomplish any goal by out working and out lasting everyone else.
  • Unyielding sense of resolve. I will do it or I will die. This is my mountain and I am not stopping.

  • The American Dream and Retirement Nightmare

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    Being able to build sufficient savings and income for retirement comes down to the lifestyle choices Americans make – or don’t make – today.

    Americans attachment to pursuing the American Dream might be the primary reason why so many Americans have found planning and saving for retirement has become such a difficult challenge.

    The American Dream includes things such as buying a big houses in the suburbs, sending kids to a prestigious college, owning multiple leased luxury vehicles in the garage, taking multiple week long destination vacations, and pursuing many other accoutrements of the prevailing American lifestyle.

    This is the American Dream in a nutshell.

    Popular advice espoused by financial pundits and retirement experts often worsen the problem of not being able to save what’s necessary for an emergency fund or retirement. Their recommendations to make more money, find a side gig, eliminate crushing credit card debt, save more of what you already make or, heaven forbid, cut expenditures, have not been effective.

    Spending is the issue. Spending absolutely is the issue. However, small tweaks to spending don’t amount to much. Forging a mocha latte from Starbuck’s or packing one’s lunch do little to significantly alter the retirement calculation. Instead, you may need to completely rethink the spending habits, lifestyle and big-ticket material things that define what you’re doing in the big picture. Big sacrifices could have a much bigger impact on improving your retirement situation than giving up your daily latte.

    It all comes down to an old adage. You can’t do the same things you’ve been doing (or only make smallish tweaks to them) and expect different results. If you’re worried about falling dangerously short in retirement, a significant lifestyle change might be what you need to get there.

    Perceived short-term pain like foregoing the American Dream for long-term gain of a lifestyle of dignity in retirement.

    Learn the Rules of Retirement and Then Play Better

    “You have to learn the rules of the game. And then you have to play better than anyone else.”

    To put it all in simple terms, there are two things that you must do. The first thing you must do is to learn the rules of the retirement. It doesn’t sound exciting, but it’s vital. Secondly, you must commit to plan, save and invest better than anyone else. If you can do these two things, success will be yours!

    Source: How The American Dream Can Crush Your Retirement
    https://seekingalpha.com/article/4308423-american-dream-can-crush-retirement?ifp=0