One of the most widely recognized investing principles is portfolio diversification. Surprisingly, novice and seasoned investors alike often misinterpret the true meaning of diversification. A common misconception is that diversification means no more than investing in many different companies. Subscribers to this fallacy may fill their portfolio with high profile glamour stocks, for example, that appear in the headlines day after day. Akin to a collection of unrelated shiny objects, these investments typically offer few of the benefits of diversification. A well-diversified portfolio bears little resemblance to a random collection of shiny objects.
Ode to Anderson
Forbes Magazine’s 2016 list of Best Cities for Young Professionals ranks Cincinnati a very respectable #15 in the nation, even among hot-spot regions like San Francisco, Silicon Valley and Denver. As a young professional, this is exciting confirmation of what I already knew. But as Cincinnatian’s know, each neighborhood here is its own organism and some areas are more attractive to young professionals than others.
When I was nearing graduation from Xavier University, many of my peers were clamoring for job offers in the popular and trendy Over-The-Rhine (OTR) neighborhood. OTR is charming with lots of character and is within easy walking distance of a multitude of unique restaurants, clubs, and bars that draw crowds of young professionals at lunchtime and after work. Other XU grads opted for jobs in the central business district at one of Cincinnati’s 10 Fortune 500 companies. I was an outlier (I prefer to think trendsetter) when I accepted a position in the suburbs, namely Anderson Township.
My decision to work in Anderson proved to be an excellent choice. On the surface, there are obvious positive attributes — beautiful parks, close proximity to highways, and a pleasing mix of city and rural life, to name a few. Once I started working here, though, I learned Anderson has even more to offer those who dig below the surface.
USDA Loans Helping Millennials Crack the Housing Market
Millennials have surpassed Baby Boomers as the nation’s largest living generation, according to the U.S. Census Bureau. This generation is forming most of the new households and buying a majority of the new and existing homes. One-half of all U.S. homebuyers are younger than age 36, according to recent housing trends.
However, while many Millennials are buying homes, many others are not. That’s because, financing hurdles are keeping a significant number Millennials out of the market. The most common roadblocks include student loan payments and high rental costs that sap the ability to accumulate a down payment on a mortgage. This results in a “rent trap” that is difficult for many to escape.
There is, however, a little-known mortgage alternative available through the United State Department of Agriculture (USDA) that can be a boon for many Millennials, as well as, other first-time homebuyers.
Continue reading “USDA Loans Helping Millennials Crack the Housing Market”
Risk: Not the Haunted House it Seems
Halloween is upon us! The season of scary is filled with a crisp chill in the air, trick-or-treaters showing off their costumes and spooky decorations lining the streets. For many investors, though, the fear looming in the shadows isn’t a goblin, ghoul, or ghost; it’s investment risk.
Will Kroger Buy Whole Foods Market?
MCM securities analyst, John Meyer, tells The Cincinnati Business Courier that tasty Kroger/Whole Foods merger deal is unlikely to happen. Will investors go hungry?
Small but Mighty: How Individual Investors Can Compete With Large Institutions
Institutional Investors. These are the big wigs as far as investors go. They invest money for themselves, for other institutions (e.g. endowments, pension funds, etc.), and typically have billions of dollars at their disposal. This enables them to buy a majority stake in any S&P 500 company, and if they feel like having a chat with the CEO, or commanding a seat on the Board, both are just a quick phone call away.
How are individual investors supposed compete with these guys? Continue reading “Small but Mighty: How Individual Investors Can Compete With Large Institutions”
Limited Time Opportunity for NEW MCM Clients
For a limited only, new MCM clients who qualify are eligible for one full-year of free equity and ETF trade commissions, making now a great time to refer someone you know!
Personal referrals are MCM’s primary source of new business growth. We are actively seeking to grow so that we can bring more of MCM’s great benefits and services to more people. We are very thankful for each referral we receive and for all of our existing clients who joined the MCM family via referral. If you appreciate someone who shared MCM with you, it’s likely someone you know will also appreciate the gesture. So…share the wealth, figuratively of course, by referring someone you know. They’ll be grateful, and we will too.
Why High Earners Still Live Paycheck-to-Paycheck
If you live in the United States and have yearly family income of $150,000 or more, a recent study by Nielsen Global Consumer Insights reveals that there is a 25% chance that you have little or no savings because you consume every last dollar you earn. This is called living hand-to-mouth or, to put it bluntly, you’re basically broke. Isn’t that hard to believe?
The average family income in the U.S. is just under $47,000 as of 2014. It would be reasonable to think those fortunate souls making over $150,000 would not be struggling each month to make ends meet. Not so, according to Nielsen. Far from it, in fact. The same study revealed 33% of households making between $50,000-$100,000 and 50% of households making less than $50,000 are in the same hand-to-mouth situation.
Continue reading “Why High Earners Still Live Paycheck-to-Paycheck”
4% Rule: Made to Be Broken?
A common concern among investors is running out of money in retirement. Combating this concern, the “4% rule” is widely presented as a simple way to help your money last. Created in 1994 by financial planner William Bengen, the 4% rule says if you withdraw 4% of your nest egg each year, adjusted annually for inflation, there is a 90% chance your money will last at least 30 years. Yet despite its notoriety, the 4% rule is not without issue.
MCM’s Backbone: Administration
“I’m a Portfolio Administrator at a registered investment advisory firm, Meyer Capital Management.”
“So… you’re a secretary?”
“No, actually. I’m not a secretary.”
There is a stereotype, across various industries, that all administrative professionals are secretaries. This attitude isn’t always fair for individuals, such as myself, whose titles encompass the word “administrator,” since we are much more than secretaries. So what gave the title such a bad reputation?
Off Wall Street 