Know Your Main Purpose.

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Know your main purpose is the most important habit of the wealthy and successful. Those people who pursue a dream or a main purpose in life are by far the wealthiest and happiest among us. Because they love what they do for a living, they are happy to devote more hours each day driving toward their purpose.

Odds are, if you are not satisfied or happy at your job, it is because you are doing something you do not particularly like. When you can do something you enjoy, you have found your main purpose.

A quick way to get a sense of your life’s purpose is by reviewing the kind of person you are and the abilities that come naturally to you. This way, you can gain insight into your life purpose, says psychotherapist Tina Tessina, Ph.D., author of The Ten Smartest Decisions a Woman Can Make after Forty. Do so by writing down a list of descriptions about yourself in each of the following categories:

  • Personal qualities (e.g., friendly, intellectual, a good communicator)
  • Your talents (e.g., painting, motivating people by public speaking, athletics, mentoring)
  • The circumstances that tend to repeat in your life (e.g., do you wind up teaching others, listening to people’s problems, working with children or technology?)
  • Your desires (e.g., traveling, cleaning up the environment, running for political office)

Then take the answer that is most important to you in each category and complete the following sentence:

I ________________ (your name) am designed to be a ________________ (insert personal quality) who can ________________ (insert talent) and I find myself ________________ (fill in recurring patterns or circumstances) often, because I am supposed to ________________ (desire).

Source: “Answer 6 Questions to Reveal Your Life Purpose”, By jjimenez, Success Magazine, December 25, 2014
https://www.success.com/answer-6-questions-to-reveal-your-life-purpose/

Juggling Competing Priorities | T. Rowe Price

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How to balance your own needs with those of your children and aging parents.

Key Points

  • Putting your own financial security first is the best way to ensure your ability to help others.
  • An open and honest conversation about finances is a critical first step in helping parents.
  • Set clear expectations about what support you can provide for your grown children.

Feeling pulled in different directions raising children while caring for aging parents? You’re not alone. According to a recent T. Rowe Price survey, as many as a third of parents with school-age children are facing the same challenge. Often referred to as the “sandwich generation,” they find themselves wedged between competing priorities across multiple generations. And this group is growing, so it’s possible you could find yourself in this situation in the future.  

The impacts are real

There may be direct financial impacts for those in this situation—for example, our survey found nearly a third of those caring for an aging parent or relative spend $3,000 a month or more to do so. “The reality is that your resources are limited,” says Judith Ward, CFP®, a senior financial planner with T. Rowe Price. “Remember to first focus on taking care of yourself, which will better position you to help your loved ones.”
— Read on www.troweprice.com/personal-investing/planning-and-research/t-rowe-price-insights/retirement-and-planning/personal-finance/juggling-competing-priorities.html

AT&T Unveiling of HBOMax

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John Stanley, AT&T President and WarnerMedia CEO, was interviewed recently on CNBC regarding the unveiling of HBOMax. From his perspective, HBOMax will be an incredible value for customers. The service will be introduced in May 2020 and will be extremely important to the future of WarnerMedia and AT&T. Essentially, “we are all in”, which means that all of WarnerMedia and AT&T have been instrumental in the introduction of the HBOMax product. The service will support an ad model. Produce general entertainment content, need a way to get content out to consumers.

But, why would people pay $14.99 when Disney, Apple and Netflix peers are much less in price. Mr. Stankey commented that they, Disney and the others, are not the same product. He believes that HBOMax reaches a broader demographic and has a much broader and unique content offering. And, bundled with other AT&T’s products and services such as distribution, pay tv and other products. Offering HBOMax video on AT&T’s distribution systems and wireless will definitely lower churn.

With the size of HBOMax’s content offering and the reality of the strength of the AT&T distribution network, the combination will be very strong. And, WarnerMedia can say it succeeded when you get people to come in and pay for the product.

By 2025, it is projected that HBOMax will be profitable and generate $1B EDITDA. The amount is insignificant when AT&T generates $30B in free cash flow (FCF). Most analysts were positive about the product. How do you get a younger demographic, which have grown up not paying for this stuff and and get those 16M incremental subscribers and the 60 million to 70 million incremental subscribers around the world. Put something of value in front of them, they will pay for it as their income and wealth grow.

Analysts and smart investors, such as Elliott Management, do not have great confidence in AT&T management team. Misstep with regards with Direct TV paying $67B for the product. The erosion in the pay TV bundle has been faster the projected. Always going to be a transition from satellite subscribers to software subscribers. Not further along in that transition.

Mr. Stankey has conveyed that WarnerMedia is in a much better place today then the day the merger with Time Warner closed. Furthermore, he conveyed that analysts and company stakeholders should have great confidence in the AT&T management team. He cited the Time Warner team integration into AT&T has been successful. Anytime you buy a company at a premium, you cannot run it the same as before and must make changes and hard decisions to get value out of it. We restructured the division and broke down the silos and got people to work together. This is probably the first occasion, he said, that the HBO brand has adorned a billboard on the Warner Brothers Lot.

Why the peak in satellite loses because they are offering a more desirable product that should slow the rate of decline. Erosion in the pay tv bundles. They have pulled a lot of cash out of Direct. They wanted to transition the satellite subscriber base to a software subscriber business. More on demand general entertainment content to stay on the platform and not have to go someplace else.

Erosion in the satellite business. Subscriber base from satellite subscribers to software subscribers. Feel it is the peak in Direct TV subscribers loses. Direct TV Now, which became AT&T Now, the over the top product. Overtime, live sports and entertainment will become part of the product. Such a state of change in the market. Margin probably more compressed on a per subscriber basis.

10 BDCs to Buy for Big-Time Income

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Business development companies (BDCs) were literally designed with dividends in mind. These 10 BDCs to buy yield up to 10.9%.

Business development companies provide firms with debt and equity capital, or a combination of the two, to help them grow. Many of the largest BDCs available to investors today provide equity and debt financing to middle-market companies, a considerable number of which operate industrial businesses with stable cash flows.

They first came to be in 1980 when Congress passed an amendment to the Investment Act of 1940 that created a new category of closed-end investment company: BDCs.

For tax purposes, BDCs must pay out 90% or more of their taxable income in the form of dividends so they can retain the tax benefits of regulated investment companies. BDCs may raise their dividends in boom times, however it’s not uncommon for some to cut their payouts depending on the business environment.

BDCs have become popular with retail investors over the past decade because of the significant income they generate. These companies often yield more than 8% on their distributions.

One thing to pay attention to when evaluating BDCs is costs. Externally managed BDC pay advisory fee and typically pay a low double digit percentage of returns or profits to the fund advisory manager. Internally managed BDC do not pay advisory fees. It does, however, incur the operating expenses of employing investment professionals to do investment analysis, research and other duties.

— Read on www.kiplinger.com/slideshow/investing/T018-S001-10-bdcs-to-buy-for-big-time-income/index.html

7 Secrets of Highly Successful Investors | Kiplinger’s Personal Finance

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Prosper in this volatile market (or any other) by focusing on fundamentals.

In investing, it’s as important to practice good habits as it is to avoid bad ones, and the stakes have rarely been higher. The longest bull market on record is in its 11th year, volatility is sky-high, the economy is uncertain and market sentiment is skittish.

But long-term investors should rise above the fray and focus on the fundamentals. You already know you shouldn’t buy stock on a tip from your Uncle Fred. But it’s even more important to set appropriate goals, save regularly and monitor your progress. Don’t beat yourself up for the occasional mistake. But if you follow the seven steps below, you’re likely to feel good about your portfolio over the course of a long investing career.

— Read on www.kiplinger.com/article/investing/T023-C000-S002-7-secrets-of-highly-successful-investors.html

The Basics of Creating Your Emergency Fund | MakingCents | Navy Federal Credit Union

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Saving for Your Emergency Fund

Having an emergency fund can help you feel at ease and prepared for the unexpected. Putting aside three to six months of living expenses takes time. Start by opening an emergency savings account and begin making regular deposits, no matter how small. Look for accounts that pay the most interest, so your money can grow even faster.

Set a deadline to reach each of your goals. It’s helpful to have a plan in place to hold yourself accountable for reaching your goals. Having a deadline can help you stay on track. Don’t worry if you get a little behind. What’s important is that you’re moving ahead.

Track your progress. Remember-every little bit counts. Even if you only save a small amount each week, you’ll be building a cushion you didn’t have before. When you track your progress, you’ll see that you’re not only earning interest on the money you contribute, but you’re also earning interest on the interest you earned before. Take the time to enjoy watching your little fund grow. 

Resist the urge to spend it. It might be tempting to use your money on the latest technology or a fun vacation, but resist spending your emergency fund unless you really have an emergency. That way, it will be there when you really need it.

— Read on makingcents.navyfederal.org/knowledge-center/financial-literacy/saving–getting-started/emergency-funds.html

Financial health: Know your vital signs

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It’s important to know where you stand before moving forward with planning decisions.

FIDELITY VIEWPOINTS  – 09/30/2019

Key takeaways

  • Understanding your current financial position can provide a solid foundation for your financial planning process.
  • Knowing how much you spend and save can provide some key insights into your financial health.
  • It is also important to review some of the basics of financial planning, like your insurance, college savings, will, and more.

When you start a financial planning process, you usually begin with the goal or the problem you are trying to solve. Then, you take a deep look at your financial wellbeing. It’s a bit like getting a physical for your finances.

You will review some financial vital signs—key indicators of your financial health—and then take a careful look at key planning areas to make sure some common mistakes don’t trip you up.

For full article, go to:  https://www.fidelity.com/viewpoints/personal-finance/financial-health?ccsource=email_weekly

 

What is Inflation?

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What is Inflation?  Inflation is the rate of increase in goods and services.  According to Wikipedia, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.

2019 is shaping up to be one of the best years ever for investing |CNBC

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This could be the first year ever where stocks, bonds, gold and crude oil all returned double digits, according to LPL Financial.

The S&P 500 has returned nearly 22% in 2019 while gold and crude are sporting returns of 16.1% and 17.8%, respectively. Treasuries are right on the cusp, with the the 10-year Treasury note up more than 9%

Through Wednesday’s close, just 75 stocks in the S&P 500 were down for the year while 361 were up at least 10%.

Assets have gotten a boost from lower Federal Reserve rates as well as generally strong consumer spending.

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Why Failure Is Good for Success | SUCCESS

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Failure is as powerful a tool as any in reaching great success.

“Failure and defeat are life’s greatest teachers [but] sadly, most people, and particularly conservative corporate cultures, don’t want to go there,” says Ralph Heath, managing partner of Synergy Leadership Group and author of Celebrating Failure: The Power of Taking Risks, Making Mistakes and Thinking Big.

In today’s post-recession economy, some employers are no longer shying away from failure—they’re embracing it. According to a recent article in BusinessWeek, many companies are deliberately seeking out those with track records reflecting both failure and success, believing that those who have been in the trenches, survived battle and come out on the other side have irreplaceable experience and perseverance.

“The quickest road to success is to possess an attitude toward failure of ‘no fear.’ ”

They’re veterans of failure. The prevailing school of thought in progressive companies—such as Intuit, Corning and Virgin Atlantic—is that great success depends on great risk, and failure is simply a common byproduct. Executives of such organizations don’t mourn their mistakes but instead parlay them into future gains.

“The quickest road to success is to possess an attitude toward failure of ‘no fear,’ ” says Heath. “To do their work well, to be successful and to keep their companies competitive, leaders and workers on the front lines need to stick their necks out a mile every day.

Embrace failure as a necessary step to unprecedented success.

— Read on www.success.com/why-failure-is-good-for-success/