Five Reasons Why You’ll Never Be Rich And One Reason Why You Already Are – Personal Capital May 2014

Salient to Investors:

5 habits that prevent you from becoming wealthy:

  1. Being a “C” student who thinks they deserve an “A” lifestyle
  2. Inability to delay gratification by taking on debt. Credit card interest at 15%+ leads to financial failure –  even Warren Buffet has not returned greater than a 15% annual compound return on his investments.
  3. Spending too much on a car.
  4. Unwillingness to go the extra mile at work. Never take your work for granted – come in early, leave late, frequently ask colleagues if they need help, and be proactive with new responsibilities.
  5. Saving as if Social Security or a pension will support you. In its current state, Social Security can only provide 70% of benefits in the next couple of decades, while pensions are disappearing fast. Max out your 401(k), or save at least 20% of your after tax income.
  6. Not building enough passive income; like from dividend yielding stocks, REITs, rental properties, tutoring, starting a sideline business, earning royalties, and building a CD ladder.

If you have a net annual salary of $30,000 a year then you are in the top 1.23% of richest people in the world.

Read the full article at

Click here  to receive free and immediate email alerts of the latest forecasts.

Financial advice that is popular — and wrong – Financial Post 08-01-13

Salient to Investors:

The maxim “Don’t take a mortgage into retirement with you”’ is no longer true given mortgage rates close to historic lows and lower than on any other loan now or in the future.  Better to invest surplus money dollars in a retirement investment account which should return more than the 3 or 4% mortgage interest, which is tax-deductible.

The maxim “The older you get, the less you should have invested in the stock market” is no longer true because 60 isn’t the old 60, and bank deposits yield little and bond yields are near historic lows and carry the risk of loss when interest rates rise. The average 60-year-old faces a retirement that will last 25 or 30 years and over time stocks still outperform other investments. Large company stocks returned just under 10% a year between 1970 and 2012, a period that covers several market meltdowns.

The maxim “A debit card is safer than a credit card” is only true if you don’t have the discipline to charge only what you can afford to pay off.  Credit cards offer cash rewards, insurance if stolen, and no overdraft fees.

Spend less by going to a less expensive college if it means following your bliss.

Read the full article at

Click here to receive free and immediate email alerts of the latest forecasts.

Upper West Side Joins Boca in Most Credit-Card Complaints – Bloomberg – 03-26-13

Salient to Investors:

The top 4 zip codes complaining to the Consumer Financial Protection Bureau are two in Manhattan’s Upper West Side, Boca Raton and Palm Beach Gardens. 59.6 percent of complaints originated in zip codes where the median household income is higher than the national median of $52,762. Steven Ramirez at Beyond the Arc said prosperous people can often get upset over small amounts of money like a $3 fee.

Matt Simester at Auriemma Consulting said that the findings may reflect that people with higher incomes are more likely to hold credit cards and that many consumers are not yet aware they can file complaints through the agency. Simester said complaints coming through a regulator get “a red flag” for quick resolution.

The credit card firms cited most often in the disputes are Capital One Financial, Citigroup, Bank of America, JPMorgan Chase and GE Capital Retail Bank.

Read the full article at

Click here to receive free and immediate email alerts of the latest forecasts.