Rule #1 Finance Blog

retirement planning

PREDICTING A COMPANY’S LONGEVITY

Phil Town

0 comments.

Posted in retirement planning

From the Comments under the YHOO post:

Question Phil. (And thanks for answering the email I sent to you.)  QUOTE:  "Still, as you pointed out, it would be very difficult to predict that YHOO is going to be around for sure in 20 years."

How did we know this early in GE or IBM's lief [sic] that they were going to be around 20 years? How do we know Whole Foods is going to be around. I think with any company there is a bit of speculation don't you think?

Do we have to wait for a comapny [sic] to be around 20 years to know that it is a good company to invest in?

Here's what I told him:

Excellent question:  How can we know that a business will be around in twenty years?

It's all about the first three Ms.  And in this case it's most particularly about the Moat

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Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.

USING THE TOOLS TO MANAGE YOUR MUTUAL FUNDS

Phil Town

5 comments.

Posted in retirement planning

Several readers (among them, Yolanda from California) have written in with the following question: Could you suggest a book or website to find mutual fund tools like you have taught us for stocks i.e. MACD, Stochastics, Moving Average, etc. Or do these tools work the same for mutual funds? I mentioned this briefly in the Read more.

LIKE MONEY IN THE BANK

Phil Town

7 comments.

Posted in retirement planning

People often write in to ask me specifically how to free up funds to invest. I’m sure a lot of you have Eric’s question, below, about life insurance. Read on:

Mr. Town,

1.  I currently have a whole life policy into which I pay $250 per month.  Would it be smarter for me to invest the $250/month in following the program you set before us during the "Get Motivated!" seminar?  I could pick up inexpensive term life to replace it for about $120 per year and invest an additional $3000 per year.  I do have $3000 invested in the policy at this point (1 year) to consider – what would you do?

2.  I started putting about $200-$500 per month into a normal money market account four months ago just to have it set aside for a rainy day.  You seemed to be in favor of putting all eggs into one basket – do I close my safety account and start sending that money to Scottrade?

3.  I have an IRA in worth about $15K.  Would I be smarter to take the penalty for early withdrawal in order to have it available to invest using the Success Investor’s Toolbox in the manner you described during the seminar?

Any advice is greatly appreciated.

Eric W.

Here’s what I think:

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Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.

SAFETY NET NATION

Phil Town

9 comments.

Posted in retirement planning

BusinessWeek recently pointed out that the major stumbling block in the President’s attempt to privatize a part of Social Security is that Americans across the political spectrum are afraid to take responsibility for investing their own money. They want the government to keep its guarantees in place … even if the rate of return on Social Security is only 2%.

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identicon
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.