kurtschemers » retirement

Making A Volatile Stock Market Your VBF

sanserve — Tue, 13 Sep 2011 18:00:08 +0000

Call it
foresight, or hindsight if you want to be argumentative, but a long-term view
of the investment process eliminates the guesswork and points pretty clearly
toward a trading mentality that keys on the natural volatility of hundreds of
Investment Grade Value Stocks (Google IGVSI).

… is the “volatility” that most
people fear and that Wall Street loves them to fear. It can be narrowly
confined to certain sectors, or much broader, encompassing practically
everything. The broader it becomes, the more likely it is to be categorized as
either a rally or a correction.

Similarly, there
is absolutely no growing income component in any portfolio managed using Modern
Portfolio Theory (MPT). How many non-MCIM investors do you think have retired
recently with more liquid, income-producing assets than they had 12 years ago,
way back in 1999?

For the rest of
the article: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/5660

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Financial Professional About Market Cycle Investment Management

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Steve Selengut

Author of
“The Brainwashing of the American Investor: The Book That Wall Street Does
Not Want You To Read”

http://marketcycleinvestmentmanagement.com

An Income Investing Anthology

sanserve — Tue, 25 Jan 2011 13:52:32 +0000

After forty years of investing, a few things become clear: you need to focus on quality securities, diversify properly, and develop a lifetime supply of income. Income portfolio management is a puzzle in its own right, and the major problem is focus — income is king. Losing market value and losing money are two totally different things.

Here’s a collection of ten articles that will help you solve the income puzzle:

http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/18374

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Steve Selengut

http://marketcyclemanagement.com

Professional Portfolio Management since 1979

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”

MCIM Portfolios Rally To Three-Year High Levels

sanserve — Wed, 15 Dec 2010 16:33:00 +0000

KIAWAH ISLAND, SC, December 13, 2010 Kiawah Golf Investment Seminars (an investment education enterprise located near the Kiawah Island Golf-Tennis-Beach resort) proudly reports estimated investment performance results for a sampling of Market Cycle Investment Management (MCIM) portfolios. Thus far in 2010, MCIM (70% Equity vs. 30% Income) portfolios are up roughly 16%.

This gain, on top of “dismal decade” growth estimated at 85%, further strengthens the methodology’s reputation as the safe and conservative approach to steady growth of both wealth and retirement income. Kiawah Golf Investment Seminars is the only entity in the world authorized to teach the Market Cycle Investment Management methodology.

From the end of 1999 through the end of 2009, all of the popular Wall Street market performance measurement tools were in the red. Because of their emphasis on dividend paying, Investment Grade Value Stocks, and a solid base of income producing Closed End Funds, Market Cycle Investment Management portfolios were up an estimated 85%.

Both the S & P 500 and the Dow Jones Industrial Average were negative from 1999 through 2009.

From the recent financial crisis beginning in 2007, through the interim “peak” on December 10 2010, most MCIM portfolios have regained positive territory. The Dow and S & P are negative 9.4% and 11.2%, respectively. And, more significantly, not one MCIM user should have experienced a meaningful loss in spendable income production during the period.

In calendar year 2008, Market Cycle Investment Management portfolios outclassed the market averages, Berkshire “B”, and the most recent award winning mutual funds. In 2009, MCIM portfolios extended their lead by posting 34% returns compared with less than 20% for the Dow and less than 25% for the S & P 500.

In 2010, powered by Investment Grade Value Stock Index equities and diversified Closed End Income funds, MCIM portfolios have once again grown their owners’ wealth while providing secure streams of income.

The Market Cycle Investment Management methodology was developed from 1970 to 1975 by professional investor Steve Selengut, now owner and chief investment instructor at Kiawah Golf Investment Seminars. Steve provides web-based mentoring programs, and other educational seminars on an appointment only basis.

Kiawah Golf Investment Seminars is an investment training service, operated by private investment management expert Steve Selengut. We bring small groups together to learn how to manage personal or self-directed retirement investment programs — filling the gap between making money and investing it.

Solid Retirement Investments In Liquid Form – Managed CEFs

sanserve — Wed, 16 Jun 2010 12:24:13 +0000

A Closed End Fund (CEF) is a publicly traded investment company that invests in a variety of securities such as stocks, bonds, preferred stocks, real estate, mortgages, oil and gas royalties, etc. The variety of sectors, classifications, and geographical representation is every bit as confusing as it is with traditional funds, but the advantages are easy to understand.

Many of the advantages of Closed End Funds are discussed below. It should be abundantly clear that this form of investment has eliminated nearly all of the drawbacks of conventional mutual funds. The two have very little in common.

Trading Liquidity – Flexibility – Cost: Closed End Fund shares may be bought or sold at any time during the trading day, just like common stocks, and share prices will fluctuate. They are excellent start up investment vehicles for smaller accounts where diversification would otherwise be difficult to achieve.

There are no penalties for leaving the CEF when the stock is sold. The only direct cost involved is the commission paid when buying or selling the shares.

For “the rest of the story”: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/6938

Steve Selengut

http://www.kiawahgolfinvestmentseminars.com/

http://www.sancoservices.com

Professional Portfolio Management since 1979

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”

Wall Street Exposed Long Before IT Hit The Fan

sanserve — Sun, 30 May 2010 14:44:06 +0000

Most popular investment books are published for the already rich and famous, by an industry that has become just too good at the business of selling books. Rarely will a publisher take a chance with the work of an unknown author.

Certainly, it’s a no brainer to sell a Jim Cramer, Peter Lynch, or Robert Kiyosaki effort while a “newbies” approach to solving the puzzles of Wall Street, requires some major financial risk.

Are they responsible for the problems in the financial markets? Of course not, but they do have a perverse, if indirect, impact. By constantly publishing the same Wall Street friendly message, they contribute to the brainwashing.

These reviews describe a book that Wall Street wants to keep in the closet, an educational and strategic breakthrough that would have allowed most investors to avoid the bubbles and derivatives that caused the three financial crises of our lifetimes — and if you don’t learn something (there will be a test) I’ll refund your purchase price.

For the rest of the article: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/5758

Steve Selengut

Author: The Brainwashing of the American Investor

$1 Million: Does It Still Mean You’re Rich?

Alex Rivers — Mon, 28 Dec 2009 17:26:20 +0000

by Douglas Rice
Thursday, December 24, 2009

Becoming a millionaire used to mean you were on top of the world. Nowadays, it means you are climbing up the ladder. While a million dollars is completely out of reach for many people, it’s just a step along the way for many others. Why? Because it doesn’t go as far as it used to.

The term millionaire has been synonymous with being rich ever since we became a country. The person most often credited to be the first American millionaire, Elias Hasket Derby, made his fortune as a privateer during the American revolution. Back then a millionaire did really mean rich.

Also, we all love round numbers. We love to see 1999 become 2000, and our odometer roll over to 100,000 miles. So it’s only natural we would fixate on $1,000,000. It’s a milestone with a lot of zeros. It’s even got an additional comma. Now that’s rich — having two commas in your net worth! But what does that get you? Not as much as you would think.

Housing

Housing is where most people hold their largest chunk of wealth and with real estate falling considerably in many areas, some might think that the lifestyle a million dollars would provide would be luxurious. But that depends on where you live.

There are plenty of nice places to live that don’t cost very much, but according to the California Association of Realtors, the median house price in Palo Alto, Los Altos, Manhattan Beach and Cupertino is over $1 million. The median price for the entire San Francisco Bay Area tops $500,000 and Orange County is right behind at just under that. And those are just averages, not even something special. While other areas of the country aren’t nearly this expensive, being a millionaire in some areas just means you paid off the mortgage.

Retirement

Another aspect of becoming a millionaire is not working. If you had a $1 million right now, could you retire and would your money last? This is a simple calculation. If you want to try to live off the interest and you invest the money in tax exempt municipal bonds that pay 4 percent, then you would have $40,000 a year to live on.

But that doesn’t account for inflation going forward. If $1 million today doesn’t feel like much, imagine what it will feel like in 30 years. At 3 percent inflation compounding for the next 30 years, $1 million dollars will have the purchasing power of $412,000 today and your $40,000 income will feel like $16,500. So retiring when you have $1 million may sound nice, but it’s likely that it won’t be what many people have in mind when they think of retiring a millionaire.

Instead of living on the interest, you could tap into the principal as well. Those are slightly more difficult calculations. For example, if you were 50 years old right now and wanted to plan for your money to last until you were 95, then you need money for 45 years in retirement. If you stick with the 4 percent return, then you could withdraw about $48,000 a year. Again this doesn’t account for inflation going forward. Each year if prices rise, your standard of living would fall. In this example, you have 45 years of prices going up at 3 percent. So that last year will feel like $12,600 does today.

Combining Retirement and Real Estate

If we factor in a house, this gets even worse. If we take the price for a house out of the $1 million, even in a reasonable area and not San Francisco, it’s going to be a big piece of your net worth and cut into your funds for retirement. For example, if you bought a nice $250,000 home, you would only have $750,000 left to live on. At 4 percent that would be $30,000 a year or $2,500 a month. That’s before inflation takes a bit every year.

These retirement calculations show that even if your house is paid off, that living off a million dollars isn’t what it’s cracked up to be. And if your house isn’t paid off, it’s probably not even close to what you want to do.

Bottom Line

So the bad news is that even if you fall into a million dollars, you probably aren’t set for life, especially if you are young. But the good news is, you’ll still be a millionaire, and that’s better than the alternative.