April has been on fire so far, with stocks hitting new highs in the Dow Jones Industrial Average, and technology stocks recovering some of their February weakness. Wall Street says, “Sell in May and go away.” Your broker probably tells you, “Buy and hold.” Which is right? Should you be doing a little bit of both? What does that look like? What do you need to do to make sure you pocket some of those gains before you go away on vacation this year (at long last)? See the tips below to batten down the hatches before your friends yell, “Bon Voyage!” Join me this Thursday at 5 pm PT for a free videoconference to discuss the tips in greater detail. (See below for login instructions.) 7 Tips to Secure Your Wealth Before Your Summer Vacation 1. Rebalance in May 2. Diversify 3. Know What You Own 4. Keep a Percentage Equal to Your Age Safe 5. Know What’s Safe 6. Consider Overweighting Safe 7. Feeling Equity-Rich? Overleveraged? Underwater? And here are the margaritas, palapas and thongs of the experience. 1. Rebalance in May Market timing doesn’t work. Buy & Hold is a last-century plan that hasn’t worked in the 21st Century. (If you’re using bull markets to regain losses, which is what has happened since 2000, you’re worth less today that you were in 1995.) Rebalancing is a time-proven, 21st Century, buy low, sell high strategy on auto-pilot. Learn more in my Rebalancing and Shoot the Moon Performance blogs, and at our April 24-26, 2021 Financial Empowerment Retreat. Email [email protected] or call 310-430-2397 for additional information. 2. Diversify Do you think you’re diversified because you have someone managing your money who tells you that you are? Do you have pages and pages of holdings which surely diversify you (you hope)? Most plans, yes even managed 18-page plans, are not diversified at all. Most people are heavily invested in large caps and bonds, and are very light on mid caps, small caps and hot countries and industries. If you have one fund that is supposed to do everything for you, you are not diversified at all. Getting a 2nd opinion to know exactly what you own is a better plan than blind faith. A&A discovered how empowering it is to actually know what you own. Natalie researched and reviewed each stock and fund. She then explained to us in plain English how we were positioned in the market and how high our risk exposure was. Stocks and investing are no longer rocket science. We are finally able to take control of our money. We give thanks just about every day that we met Natalie. I feel like I live on a different planet. Natalie added sanity and peace to my life. I am forever grateful. 3. Know What You Own It’s your money that gets lost if the plan is poorly designed, not the broker-salesman’s. You’re the boss of your money. However, it’s impossible to take command if you don’t know what you own, or what a healthy strategy looks like. The antidote to blind faith is learning the ABCs of Money that we all should have received in high school. Call 310-430-2397 for pricing and information on my unbiased 2nd opinion and our next Investor Educational Retreat. 4. Keep a Percentage Equal to Your Age Safe A standard rule of thumb in investing is to always keep a percentage equal to your age safe. 5. Know What’s Safe In today’s world, where bonds are illiquid and vulnerable to loss of principal, it’s also important to know what’s safe. Is your cash FDIC-insured? Do your bond funds have junk bonds and more risk than you might realize? Is the fund company itself risky? Is your cash at risk of redemption gates and liquidity fees? Click on the blue highlights to access blogs that are vitally important to your fiscal health. 6. Consider Overweighting Safe 2021 is projected to be a recovery year (if COVID-19 is conquered by the vaccine). The U.S. economy is projected to grow at 6.5%, while China might soar with 8.4% growth. So, why should you consider overweighting safe? Because recovery is already priced into the current asset prices. If anything challenging happens, and lots of things can in a Debt World that is highly leveraged, then both stocks and real estate prices could take a hit. 2020 saw stocks soar during the worst recession of our lifetimes. Normally, stocks sink in recessions and recover slowly, step by step with the rest of the economy. Real estate doesn’t do well during episodes of elevated unemployment – unless you have a moratorium on rental evictions and foreclosures. Extraordinary tools were used to prop up the economy, which have to be removed. When will that happen and will stocks and real estate fall? We’ve already seen astonishing drops in commercial real estate this year. Learn more in my Spring Rally and Times Square Building blog. 7. Feeling Equity-Rich? Overleveraged? Underwater? Whether you are feeling equity rich or are sick of renting and want to buy, it pays to understand that what soars can sink (and vice versa). Buying real estate high is one of the most devastating things you can do in life. It can weigh like a ton of bricks on you, your budget and your family for a decade. Even if you are sitting pretty now, read the Feeling Equity Rich blog – and definitely read it if you are thinking of buying real estate this year. If you are overleveraged in your budget or underwater on your home, then now is the time to get solutions that the bank and debt collectors are not going to share with you. If you’re spending more than 28% of your income on housing, you need a brave and bold budgeting plan that gives you room for other important expenses in your life. Otherwise, you’re likely putting some basic needs on credit cards. Learn more in my blog, “10 Budget Leaks That Can Cost You $10,000 or More Each Year.” Give yourself the peace of mind that comes with knowing your wealth and future are properly protected and diversified. It’s not a case of selling in May and going away. It is a case of adopting a time-proven 21st-Century strategy that you rebalance regularly (once a quarter), using the 7 tips I’ve outlined above. Join me for my teleconference Thursday, April 15, 2021 at 5 PM PT for our free Firesides at 5 monthly video conference. Invite your friends, too. If you would like to receive the logon instructions, email [email protected] with VIDEOCON in the subject line. (If you’re already on the list, you’ll receive the instructions automatically.) Join us for our April 24-26, 2021 Financial Empowerment Retreat. (Click to learn more.) In 3 days, you'll learn how to pick great companies (like Zoom Video, Tesla, Aphria, Veritone and Nio), incorporate them into a well-diversified wealth plan, receive a complete Money Makeover and transform your life forever! Bring your friends, family and teens for an unbelievably low group rate. Call 310-430-2397 or email [email protected] to learn more now. ![]() Natalie Pace Financial Empowerment Retreat. April 24-26, 2021. Call 310-430-2397 or email [email protected] to learn more. Receive the best price when you register with friends and family. Other Blogs of Interest Adding Shoot the Moon Performance to Your Nest Egg. Videoconferencing in a Post-Pandemic World (featuring Zoom & Teladoc). Sanctuary Sandwich Home. Multigenerational Housing. Interview with Lawrence Yun, the chief economist of the National Association of Realtors. 10 Budget Leaks That Cost $10,000 or More Each Year. The Stimulus Check. Party Like It's 1999. Kushner's Times Square Building Plunges 80% in Value. Will There be a Spring Rally? Cannabis and the Road to Decriminalization in the U.S. Hot ETFs Return Up to 50% Since October. Investor IQ Test 2021. Investor IQ Test Answers Shoot the Moon Stock Picks 2021 Crystal Ball. Would You Pay $50 for a Cafe Latte? Is Your Tesla Stock Overpriced? Can Medmen Avoid Bankruptcy? Bitcoin is Back, Baby! Real Estate Prices are Going Up. And Down. Movie Theaters are in Trouble Airbnb Should Have a Spectacular IPO Today. Cannabis is Decriminalized. Stocks Triple. Airbnb's IPO. Should Hosts Invest? Gifts Under $5 and Free. Thanksgiving in a Pandemic. The Sustainability Silver Lining. Secretary Mnuchin Halts Bailouts Money Stress Killed My Friend Real Estate and Housing 2021. Challenges & Opportunities Real Estate in a Pandemic. Interview with Mike Fratantoni, the Chief Economist of the Mortgage Bankers Association. Bonds are Illiquid & Negative-Yielding. Annual Rebalancing is a Buy Low, Sell High Plan on Auto-Pilot. 5 Red Flags of a Financial Implosion Will Regeneron Be Approved Before the Election? Tesla Will Have an Outstanding Earnings Report Should You Wait Until After the Election to Fix Your Wealth Plan? The October Surprise Is Your Bank a Junk Bond Do Stocks Fare Better Under Democrats or Republicans? Put Your Money Where Your Heart Is. Crystal Ball for the Remainder of 2020 (Including the Election). Microcap Gaming Company Doubles 2Q 2020 Revenue. Apple & Tesla Stock Splits. Schwab's Chief Fixed Income Strategist on What's Safe. China's Tesla (Nio). 2Q Sales Soar. Why Are You Still Renting? (Errr. There is More Than This to Consider!) MedMen's Turnaround Plan Attracts A-List Board Members. Wealth Myths That Keep You Poor. Prosperity Truths That Make You Rich. Protecting Your Wealth and Home in a Recession. Technology and Silver are Golden. The Economy Contracts 32.9% in the 2nd Quarter of 2020. Real Estate: Feeling Equity Rich? Make Sure That Feeling Isn't Fleeting. Airline Revenue Plunges 86%. 10 Questions for College Success Bank Earnings Season. Crimes. Cronyism. Speculation. Real Estate Solutions for a Post-Pandemic World. Copper and Chile Update. Gold Soars. Some Gold Funds Tank. Will the Facebook Ad Boycott De-FANG Stocks? Why Did My Cannabis Stock Go Down? Which Countries Are Hot in a Global Pandemic? Is Your Financial Advisor Good at Navigating Stormy Seas? $10 Avocados, Lies, Damn Lies, Statistics & Wall Street Secrets. It's Never a Crash. Work From Home and Intergenerational Housing. Biotech Races for a Coronavirus Cure. Are You Worried About Money? May is a Good Time for Rebalancing. Is FDIC-Insured Cash at Risk of a Bank Bail-in Plan? Why Did my Bonds Lose Money? Cannabis Update. Recession Proof Your Life. Free Videocon Monday, May 10, 2020. The Recession will be Announced on July 30, 2020. Apple Reports Terrible Earnings. We Are in a Recession. Unemployment, Rising Stocks. What's Going On? 8 Money Myths, Money Pits, Scams and Conspiracy Theories. 21st Century Solutions for Protecting Your Home, Nest Egg & Job. Wall Street Insiders are Selling Like There is No Tomorrow. Why Are My Bonds Losing Money? Tomorrow is Going to be Another Tough Day. Price Matters. Stock Prices are Still Too High. Should You Ride Things Out? 7 Recession Indicators Corona Virus Update. The Bank Bail-in Plan on Your Dime. NASDAQ is Up 6X. CoronaVirus: Which Companies and Countries Will be Most Impacted. Is Tesla Worth GM and Ford Combined. Artificial Intelligence is on Fire. Is it Time to Buy S'More? Take the Retirement Challenge. 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. ![]() About Natalie Pace Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. 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), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Comments are closed.
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AuthorNatalie Pace is the co-creator of the Earth Gratitude Project and the author of The Power of 8 Billion: It's Up to Us, The ABCs of Money, The ABCs of Money for College, The Gratitude Game and Put Your Money Where Your Heart Is. She is a repeat guest & speaker on national news shows and stages. She has been ranked the No. 1 stock picker, above over 830 A-list pundits, by an independent tracking agency, and has been saving homes and nest eggs since 1999. Archives
January 2025
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