Wanting to reallocate since I'm pretty sure we're going to into a recession or at least a US stock recession (if there is such a thing). My current allocations are as follows:
John Hancock (401k) (Current Employment) (Less than $1k currently but growing)
-Russell 2000 Index Fund (50%)
-SPDR MSCI All Country World Index ex USA Index (50%)
-Large Cap Foreign Blend
Fidelity (401k) (About $2.5k currently)
-Fidelity Spartan International Index (50%)
-Large Cap Foreign Blend
-Fidelity Spartan Total Market Index (50%)
-Large Cap following the Wilshire 5000
ETrade (IRA) (About $15k)
-E*TRADE Russell 2000 Index (50%)
-E*TRADE International Index (50%)
-Large Cap Foreign Blend
The question is how aggressive should I be? I'm thinking about reallocating into hyper aggressive small cap funds from Asia and South America. I don't see how the flow of money there is going to stop anytime soon (espcially China) but there is always risk. Having said this... it is retirement money that is 25-30 years away... but is it worth reallocating?
Wednesday, October 3, 2007
Monday, August 6, 2007
Rich... I don't get it... I'm jealous
I am not a fan of rich people... at least certain kinds of rich people. Much of it I know, and admit, has to do with shear jealousy and nothing else. Nevertheless my sentiment remains. It's an odd sentiment though because one day I hope to be rich... at least rich enough to afford myself economic freedom. But getting back to the first sentence... an example of the rich people that crawl under my skin.
I have an aquaintance who happens to be a fellow physician. He is still in training which means he is making pennies. When he is done, he deserves his 6 figure salary and whatever he chooses to do with it... AMEN to him. From experience I know he'll work his tail off but moreso, he'll have a skill that few possess and that is what will drive his income.
He makes somewhere between $40-50,000 per year. He has a 2 new cars (very nice... like BMW quality), kids, a home (around $400,000), very expensive electronic goods, nice clothes... there is something wrong with that. He's not selling drugs and doesn't have an Ebay business on the side... so where does it come from? Bank of Mom & Dad. I seethe.
Now like I said before... half of my seething is jealousy and that is a personal issue and demon I have to deal with on my own but... COME ON. Cut the cord. Be a man. Have some self respect. Now if your parents pay for your education.... a blessing to you. Get you a car. Wonderful gift. Anymore than that... shame on you.
My parents paid for my living expenses during college and medical school. My father is a physician and I'm sure could have helped me out more... but although I am jealous (a common theme here) I'm proud to say everything I own I paid for it on my own. That should make me feel empowered and great... and it is but... I'm jealous.
I hope one day to have made it on my own... working... investing... but right now... I just have this not so fresh feeling... grr.
I have an aquaintance who happens to be a fellow physician. He is still in training which means he is making pennies. When he is done, he deserves his 6 figure salary and whatever he chooses to do with it... AMEN to him. From experience I know he'll work his tail off but moreso, he'll have a skill that few possess and that is what will drive his income.
He makes somewhere between $40-50,000 per year. He has a 2 new cars (very nice... like BMW quality), kids, a home (around $400,000), very expensive electronic goods, nice clothes... there is something wrong with that. He's not selling drugs and doesn't have an Ebay business on the side... so where does it come from? Bank of Mom & Dad. I seethe.
Now like I said before... half of my seething is jealousy and that is a personal issue and demon I have to deal with on my own but... COME ON. Cut the cord. Be a man. Have some self respect. Now if your parents pay for your education.... a blessing to you. Get you a car. Wonderful gift. Anymore than that... shame on you.
My parents paid for my living expenses during college and medical school. My father is a physician and I'm sure could have helped me out more... but although I am jealous (a common theme here) I'm proud to say everything I own I paid for it on my own. That should make me feel empowered and great... and it is but... I'm jealous.
I hope one day to have made it on my own... working... investing... but right now... I just have this not so fresh feeling... grr.
Friday, July 20, 2007
Rollovers
I'm in the process rolling over my 403b money from my last job to an IRA. I hesitated a bit in doing this because, 1) the funds I had chosen were doing perfectly fine and 2) I wasn't sure if an IRA had the same safety to lawsuits as a 403b. But now, the funds are leveling off and I'm sure the IRA is safe and so... the rollover.
My plan for this sum of retirement assets is to invest 75% (or about $15,000) aggressively between some index funds, international funds and some bond funds (as like my new 401k ratio or diversification). 25% though I plan to be ultra aggressive and invest in stocks themselves. I'm hoping to strike gold twice (like with my brokerage account) and build on this sum quickly. My my stock picks will be as follows (as alwasy, my picks have cash, little debt and... make something darn good):
Aldila (ALDA)
This company makes graphite shafts. Golf clubs, fishing rods, etc., etc.. It's an odd market but that's why I like it. They seem to be the leader in this area but the question, which makes it a great buy is, "who are the competitors?" The fact that there is no answer I think make it a great pick.
Big Lots (BIG)
If you go into one you'd be surprised by what the have there. Some real name stuff for real cheap. Of course a lot of the stuff feels like dollar store type stuff but... as with all my companies they make money and have no debt. Whooopee.
KHD Humboldt Wedag International Ltd. (KHD)
Great company... I think. That's all I can say. They do industry (dirty work) type stuff all over the world. Not much of a justification but... they have a nice balance sheet.
Smith Micro Software Inc. (SMSI)
Good balance sheet. They make money. Have little debt. To me the catch is that they do the software part of seeing movies, videos, etc., etc... on phones. Now maybe the iPhone will change everything... but not every phone is an iPhone (and not everybody can afford an iPhone)and so... some company is going to provide similar stuff to the masses. I think this company is that company.
If you read this, let me know what you think of the picks.
My plan for this sum of retirement assets is to invest 75% (or about $15,000) aggressively between some index funds, international funds and some bond funds (as like my new 401k ratio or diversification). 25% though I plan to be ultra aggressive and invest in stocks themselves. I'm hoping to strike gold twice (like with my brokerage account) and build on this sum quickly. My my stock picks will be as follows (as alwasy, my picks have cash, little debt and... make something darn good):
Aldila (ALDA)
This company makes graphite shafts. Golf clubs, fishing rods, etc., etc.. It's an odd market but that's why I like it. They seem to be the leader in this area but the question, which makes it a great buy is, "who are the competitors?" The fact that there is no answer I think make it a great pick.
Big Lots (BIG)
If you go into one you'd be surprised by what the have there. Some real name stuff for real cheap. Of course a lot of the stuff feels like dollar store type stuff but... as with all my companies they make money and have no debt. Whooopee.
KHD Humboldt Wedag International Ltd. (KHD)
Great company... I think. That's all I can say. They do industry (dirty work) type stuff all over the world. Not much of a justification but... they have a nice balance sheet.
Smith Micro Software Inc. (SMSI)
Good balance sheet. They make money. Have little debt. To me the catch is that they do the software part of seeing movies, videos, etc., etc... on phones. Now maybe the iPhone will change everything... but not every phone is an iPhone (and not everybody can afford an iPhone)and so... some company is going to provide similar stuff to the masses. I think this company is that company.
If you read this, let me know what you think of the picks.
Tuesday, July 3, 2007
My Sick Insurance
I have a great insurance package provided by my company. It's great because 1) they pick up all the premiums as well as their employer cost and 2) they have chosen great insurers.
My family's vision plan is through VSP. They cover yearly exams, a good portion of the cost of frames (close to $100... which these days for designer frames is most of the cost), a good portion of the lenses (very expensive... although they don't cover the anti-scratch or anti-glare portion) as well as contacts just about in full (my wife is a contact lens wearer). I have no idea how much my employer pays for our family to have this coverage but it is certainly better than the $500+ dollars it would cost out of pocket to obtain all of this stuff.
Our dental plan is through Guardian. I had never heard of the plan until I became an employee. It's a PPO plan that really should be called an EPO plan because there are preferred providers that will net less out of pocket expenses when all is said and done. Once again... premiums are paid by the company and we havn't had a problem (we did with the dentist but that's another story) and so... whoopee.
Our health is via United Healthcare and its a PPO plan. No complaints. My biggest issue is PPO vs. HMO and although I chose PPO for the freedom, I occasionaly have second thoughts about my choice. We get little bills everytime we go see the doctor or have a lab test run, which although it doesn't amount to much, I'm always saying, "Why I am paying for this?" At my last employer, we had a Blue Cross HMO plan (couldn't afford the PPO premiums or the bills that may come our way after services were provided) and we used it without a hitch. But since I don't pay anything except these small differences between charges/reimbursement... I'll stick with the freedom.
It is so nice not to have to think about insurance, premiums, coverage, etc., etc.. Having a wife and child I don't know how people can function with that "worry" hanging over their heads. The "worry" I speak of is, "what if 'blank' happens" and, "how am I going to pay for it?" I have good sick insurance... and I am greatful.
My family's vision plan is through VSP. They cover yearly exams, a good portion of the cost of frames (close to $100... which these days for designer frames is most of the cost), a good portion of the lenses (very expensive... although they don't cover the anti-scratch or anti-glare portion) as well as contacts just about in full (my wife is a contact lens wearer). I have no idea how much my employer pays for our family to have this coverage but it is certainly better than the $500+ dollars it would cost out of pocket to obtain all of this stuff.
Our dental plan is through Guardian. I had never heard of the plan until I became an employee. It's a PPO plan that really should be called an EPO plan because there are preferred providers that will net less out of pocket expenses when all is said and done. Once again... premiums are paid by the company and we havn't had a problem (we did with the dentist but that's another story) and so... whoopee.
Our health is via United Healthcare and its a PPO plan. No complaints. My biggest issue is PPO vs. HMO and although I chose PPO for the freedom, I occasionaly have second thoughts about my choice. We get little bills everytime we go see the doctor or have a lab test run, which although it doesn't amount to much, I'm always saying, "Why I am paying for this?" At my last employer, we had a Blue Cross HMO plan (couldn't afford the PPO premiums or the bills that may come our way after services were provided) and we used it without a hitch. But since I don't pay anything except these small differences between charges/reimbursement... I'll stick with the freedom.
It is so nice not to have to think about insurance, premiums, coverage, etc., etc.. Having a wife and child I don't know how people can function with that "worry" hanging over their heads. The "worry" I speak of is, "what if 'blank' happens" and, "how am I going to pay for it?" I have good sick insurance... and I am greatful.
Monday, June 18, 2007
My Brokerage Account... Gambling?
I have a small brokerage account which is the jewel of my assets. I say this not because it will ever amount to anything (although I have the hope that it will) but it does allow me to have some fun and success which I think in investing, goes hand in hand. My success since I opened the account up about 5 years ago has been outstanding. My annual return has always been over 90%. That's really good. Really good!!!
What is my theory you may ask? Uhh... first I must say I learned much of my picking strategy from reading books by the Uber Investor Peter Lynch. To everybody who reads this post, I recommend all 3 of his books as they are easy to read and understand for anybody, investor or not. The books themselves, I don't think, offer too much strategy, but they do give the regular person insight into common threads shared by companies whose stock price will be appreciating in the future. So my strategy...
1. Luck
2. Luck
3. Luck
4. Cash without debt
5. Good product (s)
My portfolio:
Apple: I've held this for 5 years. Through the iPod revolution. They had oodles of cash and no debt 5 years ago. They still have cash and no debt 5 years later. People are still buying Ipods. The Iphone and TV look... well... they'll be better and they look cool. Macs run Windows now. Easy pick.
Coach: I've held this for 5 years. I saw the "C" everywhere I went. I saw fake bags with a "G" which means people really want the "C" but can't afford it (imitation is a good thing). They have minimal debt and lots of cash. Men buy Coach too. When I bought, Coach stores and outlets were opening everywhere. Easy pick.
Under Armor: I've had this for over a year now. All I remember is watching NFL/NBA games and seeing guys wearing this weird spandex stuff and noticing the logo. Then I saw people at the gym wearing it. Then I saw kids wearing it. Then I saw an article about the NFL choosing equipment and along with Nike/Reebok, Under Armor was in the running. Minimal debt with lots of cash. Easy pick. Good pick.
Nvidia: I've had this for 3 years. They make video cards for computers. I didn't buy because of this. They make money, have cash with no debt which as you can see is a cog for me. The key to this company is they make all the video cards in X-Box's. Kind of a hidden market huh? Easy pick.
China Mobile Limited: I've had this for less than a year. A mistake based on principal alone. Their cash/debt ratio is OK. But I have no clue about the mobile phone industry in China and so I bought this one without enough information. A Peter Lynch no-no. Their stock price has done nothing since I bought. But oh well... If I find something else, I'll sell and buy... for now I'll hold in hopes that I just got lucky.
Now although I have read a little about value investing (I own and have skimmed through the "Intelligent Investor") as well as all the other types of investing... I'm really clueless into those strategies. Maybe one day I'll read-read and figure that stuff out. That's for the experts. For me... I'm investing on what I understand and what I know and what I truly believe are good companies ready for a leap. I'll let you know what happens next. If you have any picks for me... let me know. I'm thinking about buying some stock in Big Lots next. Tell me what you think!
What is my theory you may ask? Uhh... first I must say I learned much of my picking strategy from reading books by the Uber Investor Peter Lynch. To everybody who reads this post, I recommend all 3 of his books as they are easy to read and understand for anybody, investor or not. The books themselves, I don't think, offer too much strategy, but they do give the regular person insight into common threads shared by companies whose stock price will be appreciating in the future. So my strategy...
1. Luck
2. Luck
3. Luck
4. Cash without debt
5. Good product (s)
My portfolio:
Apple: I've held this for 5 years. Through the iPod revolution. They had oodles of cash and no debt 5 years ago. They still have cash and no debt 5 years later. People are still buying Ipods. The Iphone and TV look... well... they'll be better and they look cool. Macs run Windows now. Easy pick.
Coach: I've held this for 5 years. I saw the "C" everywhere I went. I saw fake bags with a "G" which means people really want the "C" but can't afford it (imitation is a good thing). They have minimal debt and lots of cash. Men buy Coach too. When I bought, Coach stores and outlets were opening everywhere. Easy pick.
Under Armor: I've had this for over a year now. All I remember is watching NFL/NBA games and seeing guys wearing this weird spandex stuff and noticing the logo. Then I saw people at the gym wearing it. Then I saw kids wearing it. Then I saw an article about the NFL choosing equipment and along with Nike/Reebok, Under Armor was in the running. Minimal debt with lots of cash. Easy pick. Good pick.
Nvidia: I've had this for 3 years. They make video cards for computers. I didn't buy because of this. They make money, have cash with no debt which as you can see is a cog for me. The key to this company is they make all the video cards in X-Box's. Kind of a hidden market huh? Easy pick.
China Mobile Limited: I've had this for less than a year. A mistake based on principal alone. Their cash/debt ratio is OK. But I have no clue about the mobile phone industry in China and so I bought this one without enough information. A Peter Lynch no-no. Their stock price has done nothing since I bought. But oh well... If I find something else, I'll sell and buy... for now I'll hold in hopes that I just got lucky.
Now although I have read a little about value investing (I own and have skimmed through the "Intelligent Investor") as well as all the other types of investing... I'm really clueless into those strategies. Maybe one day I'll read-read and figure that stuff out. That's for the experts. For me... I'm investing on what I understand and what I know and what I truly believe are good companies ready for a leap. I'll let you know what happens next. If you have any picks for me... let me know. I'm thinking about buying some stock in Big Lots next. Tell me what you think!
Saturday, June 2, 2007
My Student Loans Stink
My student loans are outrageous. That is just a fact. I chose the field I went into and thus chose to assume such debt as a consequence to become a physician but when I sit back and look at them... geesh!!! I view it now as mortgage in my head... an investment to say the least but still... they stink.
My good fortune came in the form of low interest rates and the Clinton administration. And as you can see from my 1st post, the bulk of my loans are fixed at 3.75% which really cannot be beat. The rest of them unfortunately are starting to rise and feel like credit card debt which is very unsettling to me.
All my loans (and my wife's) were for tuition only. We lived frugally to say the least to not accrue more debt along the student trail. Can you believe that? I went to a very expensive medical school in Boston (I think ranked #3 for the cost) and am paying the price.
My loan payments right now (combined for my wife and I) total to about $1500 a month and this will go up slowly (extended plan with rising payments to adjust for the fact that I hopefully will make more over time) over the next 30 years until they are settled. At the time of graduation from both medical school and residency I strongly considered the military as well as debt repayment/service programs but looking closely at them... I just couldn't. I couldn't imagine having no control over my life for years following my residency (especially with a family) and those service jobs pay limited amounts with salaries that although decent, I feel, can be made up in private practice.
Thus my only options at this point seem to be to stay the course. I would love to eliminte much of the private adjustable rate loans ASAP but cash after bills is low at this point making it rough. Combine that with saving for our next home, rising costs of everything, family, etc., etc.... tough, tough, tough.
But the mortgage in my head is worth it!!! In retrospect the only thing I might have done differently was to work before going to medical school. I could have saved money and then taken a chunk out of the loan before it even became a loan. Oh well.
Enough complaining. Once again... any suggestions, thoughts, sympathies... let me know ;-) Oh, and if you know a way to reduce the adjustable rate, fix it, lower it, whatever... let me know fast!!!
My good fortune came in the form of low interest rates and the Clinton administration. And as you can see from my 1st post, the bulk of my loans are fixed at 3.75% which really cannot be beat. The rest of them unfortunately are starting to rise and feel like credit card debt which is very unsettling to me.
All my loans (and my wife's) were for tuition only. We lived frugally to say the least to not accrue more debt along the student trail. Can you believe that? I went to a very expensive medical school in Boston (I think ranked #3 for the cost) and am paying the price.
My loan payments right now (combined for my wife and I) total to about $1500 a month and this will go up slowly (extended plan with rising payments to adjust for the fact that I hopefully will make more over time) over the next 30 years until they are settled. At the time of graduation from both medical school and residency I strongly considered the military as well as debt repayment/service programs but looking closely at them... I just couldn't. I couldn't imagine having no control over my life for years following my residency (especially with a family) and those service jobs pay limited amounts with salaries that although decent, I feel, can be made up in private practice.
Thus my only options at this point seem to be to stay the course. I would love to eliminte much of the private adjustable rate loans ASAP but cash after bills is low at this point making it rough. Combine that with saving for our next home, rising costs of everything, family, etc., etc.... tough, tough, tough.
But the mortgage in my head is worth it!!! In retrospect the only thing I might have done differently was to work before going to medical school. I could have saved money and then taken a chunk out of the loan before it even became a loan. Oh well.
Enough complaining. Once again... any suggestions, thoughts, sympathies... let me know ;-) Oh, and if you know a way to reduce the adjustable rate, fix it, lower it, whatever... let me know fast!!!
Friday, June 1, 2007
My First Job, My Salary, My Income
After finishing residency I came out to where I am now and am quite happy with where I landed. We live in California Xurbia (rural area with a surburban feel) about an hour from 2 major metropolis'. Lots of families, close shopping, fresh air and lots of new homes. It's a commuter area in that most peoplehere (although not me) commute that 1 hour (more for traffic) and live here for the cheaper housing and to raise their family. This is not for everybody... but it is for me and so we are happy to be here.
As stated in my first post, my salary is $115,000 with $5,000 raises for 3 years. I received a $5,000 signing bonus that we used for our move. My benefits include full health, dental and vision for our whole family (all premiums paid); disability insurance (short and long); full malpractice including tail coverage; $4500 CME; 2 weeks paid vacation and 1 week CME vacation. My call is about 1 in 5 with 1 weekend in 6 weeks. Call includes advice calls for patients as well as hospital coverage for admissions. There are about 10 physicians total in the group and they are all quite nice and fair. Although I would have loved a higher starting salary (money is money) there is nothing to complain about.
I supplement my current salary by working after hours here at the group. The hours are 6-9 Monday to Friday and 10-2 Saturday and Sunday. I try to work twice a week for the extra pay which is $80/hour that is folded into my paycheck (not seperate).
My contract is 3 years (I am almost into year 2) after which time I am hoping to be asked to become a partner. Now I have not a clue as to how this partnership thing works really. I mean ,I understand I will get/buy shares of the company and then revenue after all bills have been settled will be income divided among the partners based upon shares. But how the taxes work, when the income gets distributed, ?'s for me.
If anybody were to look at this post, I'd be curious to hear what you thought overall. If you were getting better, less, more... it would be interesting to compare.
As stated in my first post, my salary is $115,000 with $5,000 raises for 3 years. I received a $5,000 signing bonus that we used for our move. My benefits include full health, dental and vision for our whole family (all premiums paid); disability insurance (short and long); full malpractice including tail coverage; $4500 CME; 2 weeks paid vacation and 1 week CME vacation. My call is about 1 in 5 with 1 weekend in 6 weeks. Call includes advice calls for patients as well as hospital coverage for admissions. There are about 10 physicians total in the group and they are all quite nice and fair. Although I would have loved a higher starting salary (money is money) there is nothing to complain about.
I supplement my current salary by working after hours here at the group. The hours are 6-9 Monday to Friday and 10-2 Saturday and Sunday. I try to work twice a week for the extra pay which is $80/hour that is folded into my paycheck (not seperate).
My contract is 3 years (I am almost into year 2) after which time I am hoping to be asked to become a partner. Now I have not a clue as to how this partnership thing works really. I mean ,I understand I will get/buy shares of the company and then revenue after all bills have been settled will be income divided among the partners based upon shares. But how the taxes work, when the income gets distributed, ?'s for me.
If anybody were to look at this post, I'd be curious to hear what you thought overall. If you were getting better, less, more... it would be interesting to compare.
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