There’s a saying that during a gold rush, you want to be the one selling pickaxes. This year, everyone is hot on cryptocurrency and blockchain, though few understand what these platforms are really doing. So, here’s a breakdown on the opportunities and the pitfalls, and ways that anyone can profit. Understand that there are more than a few risks associated with investing in the next hot thing, and, therefore, you should be using fun money, not your retirement.
 
6 Ways to Play Cryptocurrency and Blockchain.
 

1. Cryptocurrency as Currency.
2. Trading Cryptocurrency.
3. Selling the Pickaxes.
4. Peripheral Industries.
5. Blockchain Technology.
6. Disruptive Innovations.

 
And here is more information on each point.
 
1. Cryptocurrency as Currency. 
In December of 2017, Bitcoin was trading at $20,000/coin. By June 15, 2018, it was down to just $6,514. Similar losses were seen in Bitcoin Cash, Ethereum and Litecoin. You can’t have a currency that is worth $20,000 one day and $6,500 the next. Avoid using cryptocurrency to buy or sell things. In 2018, over 85% of the transactions were speculative trading, not currency usage. Also, if you see a new cryptocurrency being launched, then you have to do a forensic analysis of the individuals behind the currency before you believe the sales pitch. Scams abound in this space. Shysters are on fire creating MLMs and “philanthropic” or utopian crypto worlds that are really just their own get-rich-quick on your dime nefarious underworlds.
 
2. Trading Cryptocurrency. 
On June 21, 2017, Ethereum experienced a flash crash, dropping from $318/coin to 10 cents in a matter of minutes. This was sparked when a seller attempted to dump multi millions of Ethereum at once, and then cascaded into chaos with a mass of stop loss sell orders. There are two lessons to be learned here. One is to have a “capture gains” strategy rather than a “stop loss” strategy. When markets are this volatile, capturing gains can mean winning and increasing your wealth frequently with a “trade around the core” strategy, whereas stop losses lock in losses every time there is volatility (which is ongoing in crypto these days).
 
The other lesson is that you can place ridiculously low limit orders that might actually work out for you. It was reported that there was a buy order for Ethereum at 10 cents that GDAX (the leading cryptocurrency exchange) honored. Wow. Ethereum was back to over $300/coin within days, and is currently still at $490/coin (as of June 15, 2018). It was also reported that no one could sell at the high of $20,000/Bitcoin – that the site crashed. The volatility is extreme!
 
Coinbase and GDAX (owned by Coinbase) have solid leadership and boards, if you are looking for a reputable company for your crypto wallet and for your trading. Coinbase has hired CFO Alesia Haas, formerly CFO of Oz Management (a global hedge fund). This prepares the way for an IPO (but doesn’t guarantee it). Coinbase is a company that investors should keep an eye on. 
  
 3. Selling the PickAxes. 
There are a lot of MLM schemes posing as pickaxes of the cryptocurrency and blockchain opportunities. I get emails almost daily asking me to double-check on this or that amazing, once-in-a-lifetime, act NOW! ruse. Not even one has turned out to be legitimate. Buyer beware!
 
So what are the pickaxes of blockchain and crypto? 

 
4. Peripheral Industries. 
Mining crypto takes a treasure trove of energy. So, you could make a case for data storage or energy companies as benefitting. Nvidia has exploded in share price, under the halo of crypto (and other tech products), and is part of the FAANNG super group (with Facebook, Amazon, Apple, Netflix and Google). Nvidia has 34% profit margins and year-over-year sales growth of 65.6%! However, the share price reflects this popularity, and is trading at an all-time high.
 
Coinbase is not yet publicly traded, but could be soon. Marathon Patent Group (NASDAQ: MARA), a potential Coinbase competitor, has $91.7 million in accumulated deficits, interim C-level management, only $5 million (or less) cash on hand and might not make it through the next quarter without restructuring. This means that even investing now, at an all-time low, might result in losing everything. Marathon will have to raise a substantial amount of capital to continue operating. They should report their 2nd quarter 2018 earnings around August 21, 2018.   
 
Articles list dozens of cryptocurrency plays. However, the majority of those companies listed in the articles are cash-negative micro caps that are trading off the boards, where pump and dump schemes abound.   
 
 5. Blockchain Technology. 
A lot of bulletin boards and stock newsletters are using the word block chain as bait to lure you into a subscription. The truth is that the biggest developers of blockchain are IBM and the banking industry, alongside a few entrepreneurial startups that are not yet publicly traded. This space is worth monitoring. However, again, here is another place where shysters, scams and newsletter opportunists abound more than opportunity... There is no clear winner here yet.
 
6. Disruptive Innovations. There are typically two cycles to disruptive innovations. The first wave is one where there are a slew of companies competing to have the best new technology and industrial game-changer, and even more wannabes and fakers who are capitalizing on the buzz words and taking people to the cleaners. After the bubble pops, usually due to too much speculative spending on R&D without enough sales and revenue, the industry experiences consolidation, where only the best survive. The next phase, one of mass adoption and more affordable pricing, produces a far more prolonged rally. We saw this in the Dot Com bubble and bust in 2000, which fell again in the Great Recession (due to market forces more than industrial disruption), and are currently experiencing the fever of FAANNG. So, even if you are able to find a company to capitalize on in crypto or blockchain, be careful that you are not caught up in the first, very reliable correction between the early innovation phase (bubble/crash) and the mass adoption (more extended) profitable cycle. Read Peter Schumpeter’s Capitalism, Socialism and Democracy for more information on disruptive innovations theory.
 
So far, Nvidia and Coinbase are the best bets in cryptocurrency. However, Nvidia’s price is very high, and Coinbase is not yet publicly traded. Steer clear of get-rich-quick schemes as these are often marketing ruses to allow insiders to pocket profits at your expense.
 
 
Other Cryptocurrency Blogs to Read
Chain Split Disruption

The Bitcoin Cash Hard Fork
 
The Ethereum Flash Crash
 
 If you are interested in learning how to invest in cryptocurrency, emerging markets (like cannabis), hot stocks and more, then join me at an upcoming Investor Educational Retreat. Call 310-430-2397 to learn more. Register by June 30, 2018, and you will receive the lowest price and a complimentary 50-minute private prosperity coaching session (value $300). 

Dear Natalie: Interest rates keep rising. I still have an adjustable rate mortgage. Should I lock in a fixed rate? Signed: Struggling to Make Ends Meet
 
 
Dear Homeowner:
 
Rising interest rates will affect homeowners, both sellers and buyers, as mortgage interest rates are predicted to move faster than the Fed Fund rate. If you are planning to stay in your home and you haven't locked in your fixed interest rate, then now could be a great time to do that. However, make sure that you are doing this as part of a serious look at the affordability of your home. If your home is seriously underwater, or if you are treading water to stay afloat on an unaffordable situation, then you need to address these issues before you decide to stay where you are (and lock in a fixed rate and commitment). According to ATTOM Data Solutions, there are still 5.2 million homes that are severely underwater. In many of the most popular cities in the U.S., homes have become unaffordable to the vast majority of the people who live there.
 
The economic projections indicate that the Feds could take the Fed Fund rate to 2.4% this year, which forecasts at least two more rate hikes spaced out over the 4 meetings that remain. Interest rates are expected to double by 2020, to 3.4%. (Fed Fund rates began 2018 at 1.5%).
 
Rising interest rates affect everything, including the cost of servicing the $21.1 trillion U.S. public debt. Here are a few of the main considerations for homeowners, buyers and sellers.
 
Homeowners
If you plan on living in your home for a while, then locking in a fixed rate now will protect you from rising mortgage rates. It’s a good idea to align the payoff date with your retirement date.
 
I’ve seen a few fixed rate loan modification offers that lock homeowners into a mortgage that is higher than the value of their home. This is generally a bad idea. So is staying in a home that you cannot afford, where you are draining your retirement accounts or taking on high interest credit card debt to make ends meet. Help for distressed homeowners is available. However, solutions that help you will not be found through the bank. (They’ll offer solutions that benefit the bank, oftentimes at the homeowner’s expense.)
 
Buyers
Real estate prices are back to an all-time high. Be very careful that you are not buying high, and susceptible to capital losses on your purchase. Broker/salesmen will be tempted to use rising interest rates as a carrot to get you to bite into a purchase now. Yes you are very likely to have to finance at higher rates going forward. However, buying high is never a good idea.
 
Sellers
As interest rates rise, fewer buyers will be able to afford your home. So, if you’re in need of selling sometime in the next 12-24 months, particularly if you live in an unaffordable area, then it might be a good idea to consider selling sooner rather than later.
 
Click to access links to the FOMC press release and the economic projections, released on June 13, 2018.

Here is Lawrence Yun's commentary on the action. Dr. Yun is the chief economist of the National Association of Realtors.
 
"We are still in the middle innings of rising interest rates; consumers should expect another three or four rounds of interest rate increases over the next 18 months. Mortgage rates will consequently continue to nudge higher. Fortunately, the economy is strong and wages are rising. If housing supply can be increased through more home building, then the negative impact of rising interest rates can be mitigated.”
 
When the Federal Reserve Open Market Committee raised interest rates on June 13, 2018, the stock market responded by dropping (as has been the trend). The Dow closed down 119.53 points.
 
The next Fed Fund rate assessment will take place at the FOMC meeting on July 31, 2018-August 1, 2018. I would expect another interest rate hike at that meeting, as the Feds try to stay ahead of inflation and continue to deleverage the Federal Reserve balance sheet.

Today, the U.S. Trustees issued reports on Social Security and Medicare. The situation is stark and bleak. According to letters sent to Vice President Mike Pence and Speaker of the House Paul Ryan, Disability Insurance asset reserves will fall below 20% of the costs by 2027 (i.e. 9 years), and be depleted by 2032 (14 years). The combined trusts of the Old-Age and Survivor’s Insurance (OASI) and Disability Insurance Fund are projected to be depleted in 2034 (16 years). The Federal Hospital Insurance Trust Fund is projecting deficits every year until the fund is depleted in 2026. This is three years earlier than was predicted in last year’s report.
 
Here’s a summary of the Social Security and Medicare Trust Fund Reports.
 
* OASI or DI Trust Fund assets are projected to drop below 20 percent of annual cost within 10 years.
 
* Medicare’s Hospital Trust will be depleted in 8 years (3 years earlier than predicted in the last report).
 
Why is This Happening?
While political parties blame each other for the mess, the truth is that the world changed dramatically since these programs were created.
 
Baby Boomers are Retiring. 2018-2027 is expected to see a high level of Baby Boomer retirement. By 2030, 1 out of 5 Americans will be retirement age (source: Census Bureau).
 
People are Living Longer in Retirement. Today the average life span in the U.S. is 78 ½ years, with Canadians living until almost 81. In 1960, life expectancies were 67 years. Then you were lucky to live two years beyond retirement. Today, someone retiring at 65 might live 13 or more golden years beyond their career!
Medical Care Costs Went to the Moon between 1960 and 2008. Between 1960 and 2008, medical costs soared far above GDP growth. Since 2008, medical cost increases have moderated, but are still above economic growth (source: Trustees Report).
 
Recommendations
The Trustees encourage lawmakers to act now to “increase revenues” (taxes), to reduce costs by modifying benefit levels or eligibility requirements, or to use a combination of methods.
 
Economists say that the problem is quite simple. As Princeton economist Uwe Reinhardt said in a study 15 years ago, “It’s the prices, stupid.” According to a recent report by Dr. Ashish Jha of the Harvard T.H. Chan School of Public Health, medical costs in the U.S. are astronomical compared to other countries.  
 

• Prescriptions cost Americans $1,443/person on average. The average for the other 11 prosperous nations, excluding Switzerland at $939/person, was half that – at $749/person.
• A U.S. heart bypass costs $75,345. You could have the procedure done in The Netherlands for $15,742.
• A CT scan is $97 in Canada. It costs $896 in the U.S.
• U.S. Physicians make double the salary of other prosperous nations, at $218,173/year on average. The discrepancy gets even higher with specialists.

 
Pricing is clearly the biggest reason that our health care costs are out of whack. Anyone who has visited a hospital or doctor recently can tell you that.
 
While the politicians debate the solutions, there are a few ways that individuals can fix part of the problem. This becomes more evident when we take a peek behind the numbers. For instance, why have medical costs soared? Is it solely due to technology, innovation and inflation? Or are there other factors at play?  

5 Fast Facts About Medical Costs in the U.S.
 
1. The U.S. is spending $3.2 trillion on health care each year. That equates to roughly 18% of our annual GDP, and is the highest in the world.
 
2. Obesity. More than 1/3 of American adults (36.5%) and 17% of children are obese. The U.S. ranks number 12 as the most obese nation in the world. The good news is that since 2014, there have been declines in obesity among preschool children.

3. Medical Costs Associated with Obesity. Obesity-related conditions include “Heart disease, stroke, type 2 diabetes and certain types of cancer, some of the leading causes of preventable death,” according to the CDC. Obesity costs added $147 billion to the medical bill in 2008. A decade later, the problem is even more pronounced, with more people affected and higher medical costs.
 
4. Since 2014, obesity rates in low-income preschool children have been declining.
 
5. The RX: Better Food and More Playing. The term is technically called healthy living, but it basically means that everyone, but especially children, need more access to nutrition-rich food and outdoor play. Click to see 5 bullet points on what the CDC recommends for better health at school, including opening up school gyms and playgrounds after hours for safe play.
 
While the legislators figure out how to shore up Social Security and Medicare by taxing us more, or reducing benefits and eligibility, we can, as individuals, help the issue by getting healthier. There are many fixes needed to save these programs, including ameliorating the opioid epidemic, making medical care more affordable and finding better solutions for end-of-life costs, which make up at least 11% of all medical costs. You can get some exercise (good for healthy living RX) walking over to your representative’s next town hall to make sure that all of these issues – not just higher taxes and reduced benefits – are in the debate.
 
 
If you are concerned about your retirement and want time-proven solutions, call 310-430-2397 or email info @ NataliePace.com. Receive a complimentary private, prosperity coaching session (value $300), when you register for a retreat by June 30, 2018. See below for information on the next two Financial Empowerment Seminars. 

Hi Natalie. Tough tape these days for trading. I am tired of seeing slow declines in many of my long-term positions! Do you think it best to capitulate and sell currently declining positions, which you believe have great growth potential going forward? Signed Impatient With Volatility
 
 
Dear Prudent Investor,
 
First of all, I’m going to assume that we’re talking about a small trading portfolio, not your retirement fund. The strategies for nest egg rebalancing are very different from the strategies used in your trading portfolio (where you take on higher risk for higher gain, with money you can afford to lose). If you are talking about your nest egg, then please let me know, and I’ll do another blog on nest eggs.
 
There was a saying on Wall Street in 1999 that a monkey could throw darts at a wall full of Dot Com stocks and make a killing. Of course, as Warren Buffett is fond of saying, when you get a recession, you see who has been swimming naked. These market aphorisms basically say that it’s easy to make money in bull markets, and you’re very likely to lose a lot of money in bear markets. I have to mention here that the last two recessions were more like depressions in losses. The Dow Jones Industrial Average dove 55% underwater in the Great Recession.

Dow Jones Industrial Average Performance Chart
October 2007 - April 2009

The NASDAQ composite index lost 78% Dot Com Recession, and took 15 years to crawl back to even. Stocks are trading near an all-time high, even with the recent pullback.

NASDAQ Composite Index Performance Chart
March of 2000 - October of 2002

The simplest answer to your question is that this is the 10th year of the current bull market. Statistically and historically, the data says we should be near the end. Even great stocks with huge potential can get drug down in a major correction. Even Apple, which had launched a game changing smart phone and was giving it away for free (courtesy of AT&T), lost 45% between the highs of October 2007 and the low of March 9, 2009.
 
Whenever you have an individual stock, there is always a series of questions you can ask that will help you to determine whether or not that stock is really a leader in a hot industry, and whether or not it has the potential to continue to increase in share price. The first thing you do is line up the competition, do a Stock Report Card ®, ask my Four Questions ®, and then apply the 3-Ingredient Recipe for Cooking up Profits ®. As you can see, the analysis of whether or not the company is a great leader in the sector is detailed and full of data. However assimilating all this data takes about 20 minutes, the same amount of time you might spend reading a bunch of articles and receiving a fraction of useable information.
 
After you determine that your company is indeed a leader (the 2nd ingredient in the recipe), then you need to look at the macro economics. What is the general market place going to do? In the 10th year of a bull market you can assume that we’re nearing the end – especially when every economic indicator that was present before the Great Recession is back with a vengeance, with even higher numbers. Real estate prices are higher. Public debt is an astronomical $21 trillion and counting. Consumer debt is an all time high of $13 trillion. College loan debt has gone through the roof to $1.4 trillion. Earlier this year, Alan Greenspan said that stocks and bonds are in a bubble. So it may be fair to assume that the macro environment is inflated and poised for a correction.
 
Before any correction there is usually an effervescence stage. We might still be in that. You just don’t know how long the effervescence lasts before the bubble pops.
 
If for some reason the company you are interested in is trading for a song, or is a game-changer, like the iPhone was, then you might have a window for profit-taking before the next downturn. The 2nd quarter GDP growth report is supposed to be strong, which could lift things at the end of July. However, there are other indicators that might take stocks in the opposite direction, like another increase of the Fed Fund interest rate, which could be as early as June 13th or August 1st.
 
As you can see, there’s a lot of work in trading individual stocks, which is why funds are a better idea for most folks in their retirement plans. If you aren’t sure that your nest egg is protected adequately from the next downturn, then be sure to reach out again. It’s never a matter of market timing, or jumping all in or all out. You want your retirement accounts to be “money while you sleep,” not money while you fret, babysit, worry, work work work. For additional information on my nest egg pie charts, you can read my three bestselling books or attend an upcoming Investor Educational Retreat. See the links below.
 
 
 

Dear Natalie: There was a second exploding Tesla this week. How do you think it will affect their market? Signed: Is It Time to Cash In My Tesla Stock?
 

Dear Tesla Shareholder:
 
Thanks for alerting me to the car fire. Whenever there are headlines, it’s fair to reassess your investment, and it’s also important to put the headlines into context. The main question here is, “Are Tesla vehicles safe?” So, let’s dive in and explore the data. 
 
There were 37,150 traffic fatalities in 2017. According to a report issued by the U.S. Fire Administration in January 2013, there were 194,000 vehicle fires between 2008 and 2010. Approximately 1 in 7 fires responded to by fire departments is a vehicle fire. That averages to about 65,000 vehicle fires per year, with 300 vehicle fire deaths and 1,250 injuries. When a Tesla is involved in a fatality, it makes national headlines. The other 37,000 times this happens, it’s a tragedy that stays mostly in the local paper. In my search for this data, I came upon a statistic showing that Ford Motor Company recalled 230,000 vehicles that were at risk of an engine fire in 2017. Somehow that didn’t make as many headlines.
 
Tesla’s Model S and Model X vehicles receive the highest safety rating possible, 5-stars, from the National Highway Traffic Safety Administration. In 2013, the Tesla Model S received the highest safety rating ever issued by the NHTSA.

Another question might be concerning Autopilot (something that planes have been using for decades). 94% of the crashes that occur are due to “human choices,” such as distracted driving (texting, etc.), drowsiness, speeding and driving drunk, according to the National Highway Traffic Safety Administration. That is why, according to an Oct. 6, 2017 press release, “NHTSA continues to promote vehicle technologies that hold the potential to reduce the number of crashes and save thousands of lives every year, and may eventually help reduce or eliminate human error and the mistakes that drivers make behind the wheel.” In 2017, traffic fatalities were down almost a percent, while miles driven were up 1.2%. Everyone is hoping that Autopilot will dramatically reduce traffic fatalities and accidents in the years to come.
 
All in all, it seems clear that the NHTSA is a fan of autonomous vehicles and Tesla. That may change if there is an endemic problem found that resulted in the Tesla fires (other than speed) or if there is a recall.

One other thing that is helpful is to look at the company sales growth, profit margins and debt, alongside the competition. This tells us how the customers feel about the company. So, how is Tesla performing compared to its peers, Toyota, Ford and General Motors?
 
If we consider sales growth, no company comes close. Tesla trounces the competition with 26.40% year over year sales growth, compared to 7% at Toyota and Ford and -3.1% at General Motors. Tesla lost $2 billion last year. GM lost almost $4 billion. Meanwhile, Ford and Toyota made $7.60 billion and $16.53 billion, respectively. Tesla’s debt is high, but Ford’s debt to equity ratio of 2.89 is even higher. The differences between Tesla and the century-old auto manufacturers is stark. Tesla is inventing a new paradigm and building factories to keep up with escalating demand. That’s expensive, but promising. However, it’s not as expensive as trying to keep pension and health care promises that were made to retirees. Borrowing from Peter to pay Paul is more far problematic for a business than borrowing to create more product to meet demand.
 
The outlook for Tesla Motors still looks bright, despite the tragic fatalities that have made headlines recently.

There are two separate concerns that traders and investors might have to endure this quarter, however.
 
Factory Shutdown for 10 Days
During the 2nd quarter of 2018, the Tesla factory will experience a 10-day shutdown to address bottlenecks, with the intention of doubling production to 5,000 Model 3 vehicles per week. (Production currently stands at 2,270/week.) Tesla aims to achieve this production goal within two months. That means that the 2nd quarter 2018 earnings will probably be a disappointment. 2Q earnings should be released in the first week of August 2018. 

Tesla Executive Exodus
There has been a lot of speculation about an executive exodus at Tesla, and the toll it will take on this groundbreaking company. Elon Musk calls it a thorough reorganization, which is designed to flatten the management structure, combine functions and trim the fat. His goal is to take the company into the black in Q3 and Q4 2018. Executive exodus is typically a red flag. When I looked at the details, it appears that most of the executives were using their Tesla pedigree as a springboard to the C-suite of another company. In the rapid pace world of Silicon Valley, this is a lot more common than elsewhere.
 
Employees at Tesla give Elon Musk an 84% approval rating (source: Glassdoor). That high of a rating is hard to achieve in any company, particularly one that is reorganizing. To be fair, Ford’s Jim Hackett receives an 84% approval rating and the company itself ranked higher than Tesla, at 4% over Tesla’s 3.4%. Mary Bara, the CEO of General Motors, receives an impressive 91% approval rating, with a 3.8% company review.
 
Employees complain about the lack of work/life balance at Tesla, burnout and Musk’s micro-management. Despite the complaints, however, most of the employees weighing in say that Tesla has an important, positive mission and are proud to be a part of it.

Elon Musk is the CEO of Tesla Motors and SpaceX. He’s been called the modern-day Einstein of our era. When everyone else was producing electric golf carts, he made an all-electric sports car that could outpace a Porsche (the Tesla roadster). He has had many firsts in the space industry that seasoned veterans are blown away by. Personally, I wouldn’t bet against him.
 
I do continue to be concerned about the overall high valuations of all stocks, even given the pullback of Tesla stock to $275 range, from its high of $389.61/share.
 

Are you interested in learning how to evaluate individual companies from someone who has been ranked the No. 1 stock picker in the U.S.? If so, just call 310-430-2397.

You can also learn these strategies firsthand at my investor educational retreat. The next two retreats are listed below. Just click on the banner to learn more.
 

There are a lot of market trends and aphorisms that just don’t seem to be working this year. The Spring Rally sagged in returns. February delivered the worst point drop in history to the Dow Jones Industrial Average. The saying, “As January goes, so goes the year” hasn’t played out so far.
 
So, should you flip the “Sell in May” saying on its head, and hold on for more gains?
 
By the Numbers
Since 1999, whenever the Spring Rally produces negative returns, May performs better. When the losses are lackluster (as they were in 2015), so are the returns. When the losses are more pronounced (as they were in 2005), the May Rally tends to be more robust.
 
In 2018, the Spring Rally saw market losses of about -1% (February was worse). So, if May follows the recent trend, the month should be in the black.
 
There is another trend worth noting, however. In recession years, May was only a brief reprieve before severe losses. The Great Recession saw losses of 55% in the Dow Jones Industrial Average between Oct. of 2007 and March of 2009.  The NASDAQ Composite Index dropped 78% between the high of March 2000 and the low of October 2002. We’re courting the 10th year of the current bull market, and many of the economic indicators are more troubling than they were in 2000 or 2008.
 
Volatility Triggers
 

1. GDP Growth
2. Interest Rates
3. Politics
4. Bubbles
5. Debt
6. August: Toxic News Dumping Ground

 

​First off: Thank you, Mom, for being a divine feminine presence in the lives of your families,
and for being the nurturing, creative foundation of the sanctuary home (along with all of the other Chief Everything Officer hats that you wear).

I wish you a blessed, sacred day, being honored in an abundance of love.
 
Now, for those of us who have waited until the last minute to pick up a gift for Mom, here are some clues to what she really wants… If you’re short on cash, TLC and compliments rank pretty high. The best gifts of all, however, are a holiday getaway (at least overnight), a spa gift certificate or diamonds. I was a little surprised to see stock and cash score so well. Chocolate is pretty far down the list. 

​So a trip to your favorite coupon site for a weekend getaway or a spa certificate is probably a gift that will surprise and delight Mom. Maybe it’s something that you can go in on with someone?
 
Here are a few other last minute gift options that might put a smile on Mom’s face, including a free gift from me (with purchase) that is valued at $300. 
 
Want something special that is guaranteed to arrive on time? Gift Mom the Life Math Trilogy. 

​
Want a special beachfront getaway that will make it possible for her to have a lot more beachfront getaways? Register between now (May 4, 2018) and Mother's Day (May 13, 2018), and we'll gift Mom a private, prosperity coaching session (value $300). Call 310-430-2397 to learn more now. Click on the retreat flyer directly below to learn more about this life transformational retreat and to see testimonials.

Gratitude Heart Mantra Stones. 
These beautiful stones are handcrafted by artist Evelyn Ballin. This is a gift that allows Mom to carry your love with her wherever she goes! 

*Free Coaching Session offer is valid May 4-May 6, 2018 Only, for new registrants to the June 9-11, 2018 Florida Beachfront Retreat, who register and pay in full between May 4-May 6, 2018 only. ​

Save Thousands Annually With This Simple Trick.
 
Most people are trying to earn more to make ends meet. If you get really desperate, you might fall for a Bitcoin or gold scam to try and get ahead of the 8-ball. However, there is a much easier way to save thousands annually. There is a lot of gold in your budget that most people are completely clueless on.
 
The average person is making everybody else rich at their own expense. However, it is not the café lattes or the avocado toast that is wrecking your budget. Most of us are not extravagant shopaholics. It is your big ticket items that are really costing you an arm and a leg. There are many ways to stop making the tax man, the debt collector, the landlord, the insurance salesman, the gas station and the utility company rich at your own expense. (I teach these tips at my Investor Educational Retreats.) Today you will learn how to stop making the health insurance company rich. When you do, you can live a richer life today, provide far better for tomorrow and even have more dough for bucket list vacations.
 
According to the New York Federal Reserve, the majority of collections actions every year (and bankruptcies) are due to medical and utility bills. Health is your best health insurance plan, so be sure to exercise and eat right. In addition to staying as healthy as you can physically, there is also a better way to get healthy fiscally. Most people are spending thousands annually on medical insurance – even healthy people who never go to the doctor. There is a simple, effective cost saving strategy that will save you thousands on your health insurance, while setting you up far better to deal with any medical emergency in the future.
 
Health Savings Accounts Reward You When You Stay Healthy.
That is the value proposition of Health Savings Accounts. (Get the details requirements and annual contributions at IRS.gov.) If you are healthy, you can purchase catastrophic health insurance, which reduces your monthly insurance premiums dramatically, and you can deposit those savings into a Health Savings Account. There the HSA money can be invested as you wish (after you have built up your deductible amount in cash, in case you need it). You receive a tax credit. The health insurance savings go to building up your own assets (reducing the interest rates on all of your borrowing, including your home mortgage). And the more you save in your HSA, the more you have when you retire for medical costs – which are often the biggest and most devastating bill when you hit your fixed income phase of life. Any capital gains you make on investments in your HSA may be tax exempt. This plan works great if you are healthy and rarely visit the doctor.
 
Health Savings Accounts incentivize you to stay healthy by rewarding you financially for doing so. When you don’t go to the doctor, that money goes into your wallet. If you do have to go to the doctor, you have money to cover the deductible and co-pays. What a win-win! Many people prefer alternative treatments, diet and exercise these days (many of which are not even covered by insurance). If Americans knew about this solution, they would definitely embrace it! HSAs have been around for quite awhile now and are well established.
 
Healthcare costs alone make up 18% of the United States budget, totaling $3.2 trillion in 2017. So, staying healthy can go a long way to improving the bottom line of our nation. More than 1/3 of adult Americans are obese, which costs a lot to those individuals personally, and to the U.S. collectively. Sadly, 17% of children are obese, as well.
 
Remember to shop around before you set up your health savings account. Some brokerages offer you stocks, bonds and funds to invest in, with low trading fees, while banks and insurance companies may offer a very limited choices of investments that might be far are more expensive, to boot! You do not have to purchase your HSA from the insurance company that sells you your high deductible medical care plan.
 
 
About Natalie Pace:
Natalie Wynne Pace is the co-creator of the Earth Gratitude project and the author of the Amazon bestsellers The Gratitude Game, The ABCs of Money and Put Your Money Where Your Heart Is (aka You Vs. Wall Street). She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical).

Natalie Pace is a top-ranked blogger for Thrive Global (Arianna Huffington's newest platform) and Medium, a repeat guest on national TV and radio shows such as CNBC, Good Morning America, Fox, ABC-TV, Forbes.com, NPR and more and a popular, engaging speaker at major conferences. As a strong believer in giving back, she has been instrumental in raising millions for public schools, financial literacy, the arts and underserved women and girls worldwide. Her sustainability tips have helped companies, organizations and individuals to save tens of thousands every year in their annual budget with smarter energy, budgeting and investing choices.

Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.  

Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.
 

In my conversation last month with Rob McEwen, he was full of optimism for gold going forward, predicting (again) that the price of gold will ultimately soar to $5,000/ounce. According to McEwen, “When we start seeing interest rates moving up, it’s going to become more difficult for governments, corporations and individuals to deal with the rising interest rate. That’s when you have a period where people will start to look for gold.” Click to access my full interview with McEwen Mining’s Chief Owner Rob McEwen on BlogTalkRadio.com/NataliePace.
 
There are likely to be a few potholes on that yellow brick road, however. In the April 16, 2018 first quarter production report, McEwen Mining indicated that gold and silver production is down 27% from the fourth quarter 2017. Part of this is explained by regularly scheduled maintenance at the San Jose Mine in Argentina. However, last year the drop in production between the 4th quarter and 1st quarter was only 6%. This portends bad news in the 1st quarter 2018 earnings results which should be released sometime in early May.

Going forward, the new Black Fox mine will contribute to production, and there will be a new McEwen mine opening in Nevada. However, production in Mexico will continue to decline. McEwen Mining's SVP of Exploration Sylvain Guerard believes that “Black Fox remains under explored and there is room for additional discoveries.” At Gold Bar in Nevada, the company continues to develop new exploration targets. Rob McEwen reminded everyone on the earnings call of Feb. 26, 2018 that 2017-2019 will be years of building, toward the ultimate goal of McEwen Mining qualifying for inclusion on the S&P500. This requires wisdom, vision and M&A on the part of executives and patience from investors.

As of April 16, 2018, McEwen had $52 million in cash, cash equivalents and precious metals, with no debt. The company needs about $67-$68 million in 2018 for the new Gold Bar Mine in Nevada, according to McEwen Mining CFO Andrew Elinesky. That means there will be a capital raise in 2018, which could be equity or debt, or a combination. That means that current investors, including Rob McEwen who owns 24% of McEwen Mining, are very likely to be diluted. There is also talk of the current dividend being suspended.
 
There are few executives with the track record of Rob McEwen. Rob is the current Chief Owner of McEwen Mining and the former chairman and CEO of Goldcorp, a company he took from $500 million to over $8.5 billion in value, with a 31% annual compound growth rate during his tenure (yes, that beats Buffett). In his 20+ years in the industry, Rob has become a respected thought leader. He was appointed to the Order of Canada and is on the board of trustees for the X Prize. He’s an executive well worth banking on.
 
My long-term prognosis for gold and McEwen Mining remains optimistic. However, the recent dive in production at McEwen, and the expected dismal 1st quarter 2018 earnings report, combined with a capital raise, could be more than investors can stomach. The last few years have been rough on gold bugs. That might continue in the short-term, particularly for McEwen Mining investors.
 
McEwen is trading near its 52-week low. However, in 2015, the price did dive below a dollar a share. There is no authorized share repurchase plan at this time to help keep the share price buoyant. I would expect volatility in the McEwen Mining share price as the news of the production report and the first quarter reports hit the mainstream media.

Natalie Wynne Pace is the co-creator of the Earth Gratitude project and the author of the Amazon bestsellers The Gratitude Game, The ABCs of Money and Put Your Money Where Your Heart Is (aka You Vs. Wall Street). She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical).

​Call 310-430-2397 to learn more about how to receive a second opinion on your current budgeting and investing plan, and to attend our next Investor Empowerment Retreat. 

​Important Disclaimers
Please note: NataliePace.com does not act or operate like a broker. We report on financial news, and are one of the most trusted independently owned and operated financial news corporations in North America. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.  

Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.
 

Dear Natalie: Are there any basic rules of investing? I just don’t know which boxes to check in my 401(k)? Signed Clueless
 
 
Dear Smart Enough to Ask (Instead of Remaining Clueless):
 
There are tried and true rules of investing, and a few things that used to work, which no longer work.

You should always keep a percent equal to your age safe because as you get older you can’t afford the risk of the stock market. Then diversify your “at risk“ portion into small, medium, large, value and growth. I like to add in hot funds, as well, for improved performance. So, for instance, if you think that gold is hot, then have a slice of gold. If you think technology, China, Chile, Australia or another country or industry is hot, then have a slice of that, too. You really only need 10 funds to be diversified, and ten is easy to work with as a mathematical number. If you have pages and pages of stocks and bonds in your financial plan, then you have more risk and expenses than you realize, and you likely are not as diversified as you should be – despite all of the pages of investments.  
 
Every year you get a year older, and your investments will have some gains or some losses. So every year it is a good idea to print out what you have in your 401(k), and mock up what you should have, based on keeping a percent equal to your age safe and diversifying into 10 funds. Then you simply make what you do have look like what what you should have.  
 
The cool thing about annually rebalancing your 401(k) and investments is that it is a plan that allows you to buy low and sell high on auto-pilot. When a slice is much bigger than it should be, then you sell a little (selling high) and get more into your safe side. When a slice is thinner than it should be, then you might buy a little more at a lower price (buying low), or you might replace it with another fund that might perform better.
 
Here are sample nest egg pie charts. 

 ​At my investor educational retreats, I teach you a few more very important tricks of the trade to fine-tune your investments. What’s hot and what’s safe changes every year. It’s important to learn what’s safe in a world where there is far too much debt floating around, since, for anyone over 50, the safe side of our investments is the largest piece of the pie. This year, it is more difficult than ever to get safe, because bonds are in a bubble, money market funds have redemption gates and liquidity fees and many bank products, such as high-yield CDs and index based annuities or term life policies, are not as safe as you think. You could be vulnerable to losing money when the stock market goes down. Safe investments are supposed to protect you from stock market losses.
 
Below is a good check list.
 
8 Basic Rules of Investing

1. Put 10% of your gross income into tax protected retirement accounts, including 401Ks, Individual Retirement Accounts and Health Savings Accounts.
2. Keep a percentage equal to your age safe (i.e. not in stocks).
3. Overweight/underweight safe based upon market conditions. (This works better than “risk tolerance.”)
4. Know what is safe in today’s world. (What’s safe changes every year.)
5. Diversify into 10 funds – small, medium, large, value, growth and 4 hot funds.
6. Avoid the Bailouts.
7. Know how to evaluate Hot Industries and Countries. (What’s hot changes every year.)
8. Rebalance 1-3 times a year (no more, no less).

 
If you don’t know how to do each of these 8 things, or if you’d like to dive deeper into what’s safe and what’s hot, then learning the ABC’s of Money that we all should’ve received in high school is your best investment. As Benjamin Franklin says, “If you think education is expensive, try ignorance.” The cost of ignorance in the Great Recession was that most Americans lost more than half of their retirement. Can you really afford to lose half again?
 
About Natalie Pace
Natalie Wynne Pace is the co-creator of the Earth Gratitude project and the author of the Amazon bestsellers The Gratitude Game, The ABCs of Money and Put Your Money Where Your Heart Is (aka You Vs. Wall Street). She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical).

Wondering if your plan is vulnerable to losing more than half again? Natalie Pace is also available for an unbiased second opinion on your current budgeting and investing strategy, through her private prosperity coaching. Call 310-430-2397 or email info @ NataliePace.com to learn more about her coaching and pricing, and if you are interested in learning more about our Investor Educational Retreats. 
 

Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.  

Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.
​