In retirement, you will need $400 a month more than you expected!

Glenn Ruffenach

Writing in the Wall Street Journal on March 30, 2022, the author figures that you will need about $5,000 a year more  in retirement than you expected!

Surprises are a part of life and our budgets need some wiggle room.

An unexpected toothache needing attention, veterinary services to remove the porcupine quills from your dogs face, storm damage to a part of your house, your grown children asking for help – the list is long.

How close is $400 a month or $5,000 a year to being the correct figure? Call it the $400 rule. The accuracy of that number is not as important as budgeting for the unexpected is.

With the habits of the Monday morning program, luck hardly matters.

Good luck!

 

Why do I buy subscriptions for friends, family and vip clients?

Why do I buy subscriptions for friends, family and vip clients?

Timothy Brown

 

For Christmas, I persuaded my father to buy all his grandchildren a lifetime membership to the Monday Morning Millionaire.

As part of my ongoing gifting, I buy subscriptions for very important friends and other family members.

I have even bought some subscriptions for VIP clients who are in the midst of their careers and have a portfolio that has quite frankly got them stymied. Many of them express severe dissatisfaction with the investment advisor community who has been churning and burning their portfolios for years, while making handsome fees, only to return less than a 12-year-old or a monkey can make throwing darts or using the S&P 500 exchange-traded fund indexes.

I get great satisfaction from buying lifetime memberships for the Monday Morning Millionaire, knowing that if the recipient should actually listen to and follow the six principles and the fundamentals of the habits of highly successful investors, they would do much better for themselves. I gain no financial rewards from this whatsoever. And I never plan to or ever will, as the successor to Dr. Milan Somborac.

A few of my friends and family members have actually listened in the early stages and all are reporting peace of mind, growing returns as compared to their previous efforts, regardless of who advised them, and most importantly, they trust in me and they trust in the belief system of the habits of the Monday Morning Millionaire, which has been professed by many other successful people before us.

There is really nothing new here, ladies and gentlemen. It is proven, it is effective and it is time tested.

How to prosper. Welcome new members! Thank you previous members!

 

Over the last few weeks, we have had more new members joining us than at any other time. We want to welcome them and we want to thank all those who have granted gift memberships to others.

As an introduction to new members, we present a summary of the Monday Morning approach to investing in this post. Existing members will find it to be a good review. Call me at 705-441-4566 if you want to discuss any of this. (No charge)

First, over the last 200 years, the US stock market has generally had the best returns of any investment.

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What do you think are the main disadvantages of electric vehicles (EVs)? Survey results

First, a thank you to all who gifted a membership or a one-on-one zoom meeting to friends and relatives. We think that they make ideal gifts. Consider it.

Next, our sincere gratitude to all members who took the time to respond to our Friday,  May 6 survey about the disadvantages of EVs. Time is an irreplaceable resource. We appreciate your involvement.

You can see our survey results below.

What do you think are the main disadvantages of EVs?

High cost.

21.1%

Low battery mileage.

28.9%

Insufficient number of charging stations.

50%

You can you read some interesting comments below.

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Mon. May 9, 2022. How our fearless, intrepid investor made out last week and her plans for today

First, if you have not rebalanced your core portfolios recently, consider doing so anytime now. As you can see in the chart above, the S&P 500  is down 8.00% for the month ending on May 6. The TSX is down 5.5%. Bargain territory!

Interestingly, many papers which deal with rebalancing to a selected asset allocation suggest that it be done regularly once or twice a year. Does it not make more sense to rebalance anytime that the asset allocation changes due to market movement?

Next, here is how our fearless, intrepid investor did over the last three weeks in her “fun” portfolio writing covered calls on Novavax (NVAX) on Mondays, expiry dates on Fridays of the same week.  To lower the risk of being assigned, she wrote those $10 out of the money instead of the usual just out-of-the-money sale, as she did in the past.

On April 22 expiry date, she sold ten covered call contracts on NVAX and got $US227.50.

On April 29 expiry date, she sold ten covered call contracts on NVAX and got $US547.50.

On May 2 expiry date, she sold ten covered call contracts on NVAX (C 06MAY22 56.00) and got $1,170.00.

Total premiums received = $US1,945.00. In her “fun” portfolio! Most “fun” portfolios underperform and cannot equal the S&P 500.  Go here for more about “fun” portfolios,

And the final result? What will she do when the market opens at 9:30 AM, today?

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Mon. May 2, 2022. How our fearless, intrepid investor made out last week and her plans for today

First, if you have not rebalanced your portfolio recently, consider doing so anytime now. The S&P 500  is down 6.84% for the month ending on April 29. Bargain territory!

Next, here is how our fearless, intrepid investor did over the last two weeks, writing covered calls on Novavax (NVAX) on Mondays.  To lower the risk of being assigned, she wrote those $10 out of the money instead of the usual just out-of-the-money sale, as she did in the past.

On April 22 expiry date, she sold ten covered call contracts on NVAX and got $US227.50.

On April 29 expiry date, she sold ten covered call contracts on NVAX and got $US547.50.

And her plans when the market opens at 9:30 AM today?

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Cut retirement spending, creator of the 4% rule recommends now.

Since 1994, retirees have relied on the 4% rule as the safe percentage of their portfolios’ value to spend in retirement. That would have protected them from running out of money in every 30-year period since 1926, even during the worst economic conditions.

However, there is no precedent for today’s combination of high inflation and high market valuations.

Bill Bengen, the rule’s inventor, says at this time, we should reduce that percentage further. There are over 300,000 financial advisors in the United States and Canada. Mr. Bengen is among the few worth listening to.

He recently stated that we should reduce our withdrawal rate until we see whether the current inflation rate is a long-term or a short-term phenomenon.

On average, a 7% withdrawal rate would have worked ever since 1926, Mr. Bengen’s research shows. When the S&P 500 was selling at bargain rates and inflation was low, investors could have safely taken out as much as 13% to start.

What withdrawal rate is safe under today’s conditions?

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S&P 500 is a better bargain than it was last week. Will it get better yet?

Our members and subscribers who believe in our investment philosophy would have a 50/50 asset allocation between the US market as represented by the S&P 500 and cash or near-cash (give or take 10% or so in favor of one or the other). The S&P 500 can be represented by an exchange-traded fund (ETF) that tracks the S&P 500.  There are thousands of ETFs. About six qualify. SPY is a good example.

As of yesterday, the S&P 500 is down 6% for the week. The cash or near-cash percentage is up.

Consider buying you more S&P 500 to restore your asset allocation.

How effective is our investment philosophy?

For years now, throughout a market cycle (peak to trough to peak), it has outperformed over 90% of portfolios including professionally managed ones,

Will the S&P 500 drop further? Will it become a greater bargain?

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Funding Retirement in Today’s Complex World of Finance

Funding Retirement in Today’s Complex World of Finance

 Dr. Wayne Young, Investing Mentor

Creating wealth and security for retirement is often a very foreign and complex concept for the everyday investor. Derivatives, cryptocurrency and hedge fund propaganda have clouded the minds of many, diverting attention from some very simple and proven strategies for accumulating a large self-constructed fund for retirement.

Principles are pretty straightforward. Invest in accounts that carry tax advantages to have money grow unhindered for as long as possible—take advantage of compounding growth as opposed to loss of gains through paying the proverbial taxman every year.

Invest in a broad selection of companies by buying an exchange-traded fund (ETF) which tracks the S&P 500 with minimal fees. Do it on your own. No need for a broker to collect 1-3% only to send an underperforming portfolio package your way when you can access these same stocks for essentially free.

Most fund managers, over 90% of them, cannot beat this index over the long term. Why pay them for underperformance? Now that is most certainly clouded judgment. Ten percent over 25 years with consistent deposits into a self-funded ETF backed fund will produce incredible returns–with very little risk and the lowest available fees.

As Charlie Munger stated, “The big money is not in the buying or the selling, but in the waiting.”

Be consistent. Be patient. Allow for that much-deserved security you seek in your retirement wealth to grow before your eyes.

Dr. Wayne Young.

___________________________________________________

Dr. Wayne Young – Dentist, Entrepreneur, Philanthropist and Mentor

Bio

Dr. Wayne Young graduated from the University of Alberta, earning a Bachelor of Science (BSC) and a Doctor of Dental Surgery (DDS) degree, both with distinction. For over 30 years, he has been a leader in the dental community in Western Canada.

Throughout his accomplished career, Dr. Young has continued to pursue educational opportunities to further refine the development of his skills and knowledge and amplify the impact of this work. To that end, he has worked with humanitarian organizations performing restorative dental work on underprivileged children in Southeast Asia. Dr. Young is a faculty member for The Institute for Dental Excellence (T.I.D.E.), serving as an advisor and supervisor to new dentists during the practical components of their course work.  Closer to home, Dr. Young regularly mentors dental students in one of his thriving clinics.

In creating the Young Foundation, he sought to support, through diverse means, the transformation of this generation of youth into inspired, empowered, self-determined global citizens. In so doing, he has supported and mentored thousands of Canadian youths as they pursue post-secondary studies and transition into the work force.

Dr. Young has approached his entrepreneurial ventures with this same spirit of growth and development, always wanting to learn more, to expand his network of connections, to broaden his area of influence. Dr. Young now seeks to share his common-sensical, multi-faceted wisdom with professionals wanting to secure their financial wealth now and for years to come.

 

 

 

Mon. April 25, 2022. How our fearless, intrepid investor made out last week and her plans for today

In her core portfolios, our fearless, intrepid investor  had a 50/50 asset allocation between S&P 500 and TDB166. TDB166 is a US dollar-denominated money-market fund. She recently sold all her TDB166 shares. She then converted these US dollars to Canadian dollars. The objective here was for her to buy guaranteed investment certificates (GICs). These are the Canadian equivalent of US certificates of deposit (CDs).

Depending on their maturity date, GICs pay over 4% annual return today. That level of return has not been seen for a very long time. Unfortunately, GICs are not available to American investors and CDs pay about half of what GIC’s do today. We continue to suggest that our American investors keep their near money-in TDB166 in an appropriate asset allocation.

Now, let us see what she’s doing with Novavax (NVAX) covered calls.

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