The Prosperity Blog

Where to Invest in 2019 (Part 2)

“Cash is king, cash flow is queen.”
(Source unknown.)

Where to Put Money Now for Cash Flow and Liquidity

Last week in Part One, we reviewed the best and worst investments to GROW your assets—or avoid like the plague in 2019! In part two, we’ll cover where to put money in 2019 for cash flow and for savings.

To recap briefly, we also discussed the three basic needs of an investor:

  1. Store CASH where it can grow safely.
  2. GROW assets long-term.
  3. Create INCOME that can be reinvested or relied on for living expenses.

And we reviewed an important rule: “Save before you invest.”

What did we think about stocks, bonds, hedge funds, crypto-currencies and gold? What alternative assets were our top picks? You’ll find “Where to Put Money in 2019 (Part 1)” here.

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Where to Invest in 2019 (Part 1)

“Successful investing involves doing a few things right and avoiding serious mistakes.”
—John Bogle, 1929 to 2019

Last week’s article on “How to Save $20 (or more) Every Day!” spurred an excellent question from a reader… where do you PUT the money you save? Or perhaps you have a windfall and need to decide where to put cash now! Where should you save and invest now for a profitable 2019—without taking on unnecessary risk?

Predictably, media outlets financed by advertising from Wall Street firms such as Kiplinger’s are recommending—surprise! Keep your money in stocks and mutual funds, with perhaps a bond fund and cash equivalent thrown in for good measure.

We don’t have a crystal ball, but we think you can do better than subjecting yourself to the stock market roller coaster. Today, we’re sharing our summary of why we think certain asset classes may be a good—or bad—bet in 2019.

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How to Save $20 (or more) Every Day!

Little changes can make a BIG difference.

Americans report spending around $100 a day on average—over and above home and car payments and basic household expenses, according to Gallup poll data. But what if you could shave off 10 or 20% of those daily expenses? What if you could save $10 every day—or save $20 a day—without compromising your lifestyle?

Saving just $10 a day would mean $3,650 more each year to invest in your future. Saving $20 a day adds up to about $600 a month or $7,300 each year! Save $7300 for 20 years compounded at 5% and you’ll have $253,450—over a quarter of a million dollars! That’s quite a result for small, painless changes you can start making right now.

Some of these suggestions may take a bit of your time to research, reduce, or eliminate a recurring expense. Some may take a bit of creativity or a willingness to adjust a habit. Just remember: a lot of small consistent changes add up to a big difference.

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How to Win the Race: Lessons from a Rule-Breaker

Many people start the year with what looks like great progress. They make resolutions to swear off sugar, alcohol, and other vices. Salespeople vowing to double their commissions work longer hours with more enthusiasm. Gyms are full of exercisers eager to drop pounds.

However, studies cited in a recent Forbes article confirm: four out of five people will abandon their New Year’s resolutions before the year is over—one third before January is even done. By mid-February, the crowds at the gym are gone and the salesmen are back to happy hour drinks at 5pm.

In life and in your portfolio—it doesn’t matter how you start or how fast you go. What matters is consistency and perseverance. Can you keep going when challenges arise? Will your assets keep growing when the market sputters? Can you finish a marathon—then keep going?

The 61-year old ultra-marathon champion

Cliff Young. Attribution: Vasilijem113-12 [GFDL or CC BY 3.0, from Wikimedia Commons

When it comes to wealth and success, prosperous people are those who persevere. Perseverance/resiliency was named the second most important success factor by those interviewed for The Next Millionaire Next Door—second only to discipline. And the amazing true story of Cliff Young—the 61-year old potato farmer who won a 544 mile ultra-marathon—is one of the greatest stories of perseverance ever told.

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The Power of Giving—and How to Keep Your Tax Deduction!

“Every dollar makes a difference.”
— Michael Bloomberg

The gifts under the tree have all been opened and the holiday shopping season is now complete. But that shouldn’t mean an end to our giving!

This time of year is big for charitable giving. Non-profits reach out to donors for an end-of-year push. Givers full of holiday giving spirit and tax break hopes are often generous this time of year.

This year, the charitable giving tax deduction will be realized by fewer taxpayers due to the higher standard deduction. Some experts fear Americans who cannot write off donations might be tempted to sit on their wallets. However, we believe this should be incentive to give! Here are five reasons to make giving a priority—plus three strategies to get that tax break after all!

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Year End Financial Checklist and 7 Principles Review

“Start where you are. Use what you have. Do what you can.”
―Arthur Ashe

We’ve seen many a year-end financial checklist that promote the same ineffective strategies. This shouldn’t be a surprise, since it is the financial institutions that benefit doing the promoting. Typical advice brings typical results and typical challenges!

Typical financial advice tells us to load up our portfolios with mutual funds and stocks subject to systemic risk.

Typical financial advice instructs us to max out our qualified accounts, put our dollars out of reach and out of our control—under the government’s (and our employer’s) rules.

Typical financial advice tells us to pay off our mortgage as quickly as possible—even though it is often our most efficient debt, and even through we could end up far ahead putting additional dollars into investments rather than into home equity.

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Bullet-Proof Wealth: 7 Strategies for Volatility

These are uncertain times for investors. There’s volatility in the stock market, uncertainty in the housing market, and massive unpredictability in the political arena. Let’s take a look at what’s happening and—most importantly—effective strategies for volatility that will keep you building wealth in any market!

The stock market: We try not to make predictions at all. But we may have been right in August of this year when we asked, “Is Now the Time to Go to Cash? 7 Signs Point to Yes.”

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