Obama’s armor shines

I am impressed with the organizational skills and magnetism Barack Obama has shown since his election. His emergence has been more gratifying than expected, and I’m sure I am joined in this sentiment by many other hopeful Americans.

Most of the public talks about challenges President-elect Obama faces. I have been trying to focus on the opportunity he has to grab this historical moment by the horns and use the universal support that’s currently at his disposal to shape an administration that will actually change the course of this country.

Government, by nature, is like an armored tank without a steering mechanism. It’s bureaucracy and the insulation that holds it together contradicts all promises of change. On the other hand, there seems to be an impending scenario, in Mr. Obama’s case, where his administration might share adequate resolve to make a difference.

As many experts have noted, preparation and readiness will be the key to success in the first 100 days of taking over the helm of the new goverment. This is where Americans of all colors and sizes are wishing our new leader an abundance of intelligence and courage. Meanwhile, the free world seems to follow this theme.

I have not ceased to be amazed at Mr. Obama’s ability to rally an assortment of egos among political aspirations toward a unified movement to meet an unprecedented crisis. Indeed, some of the components of his cabinet might deserve closer scrutiny. Yet, it is conceivable that the total dynamic of the new administration can accept new challenges in the spirit of teamwork and stewardship.

I am happy that I lived long enough to see the ultimate demonstration of equal opportunity in this country. As an African American citizen, I experienced this concept for nearly all of my life. It gives me great satisfaction to witness a new national reality.

God Bless America!

Hudster

I Dont Flip-Flop, but…

Right after the debates on economic issues began, I could see a problem with our choices for chief executive of the United States. On both sides, thanks in part to the media, the dubious platforms that we see presented of late cause me to wish we had more choices.

To be sure, John McCain is out. His aging image borders on being repugnant. On the other hand, my earlier pick for President is demonstrating that he thinks he can talk his way through critical confrontations. He has the basic posture and a very cool head, which should get him past his opponent. However, Mr. Obama has stretched his charisma to the point where he has lost credibility on several fronts. In fact, when you think about it, he is leading marginally against a very weak opponent.

At present, I doubt that we can count on either candidate to rein in the executive intelligence to face the economic problems that lie ahead. Neither of the combatants have indicated that they are even aware of the important connection between the economy and other major issues, such as leadership and ethics.

Our immediate future is likely to be an experience of very slow recovery during the next few months, and it won’t really matter which candidate is voted into office. We Americans need to see the importance of knowing where our vulnerability lies and try our best to prepare for some difficult times.

BH

Senator Obama, please don’t say ‘because’

I have become addicted to the Democratic side of the Presidential 2008 campaigns. To say that I am impressed with Senator Barack Obama’s rise in popularity would be an understatement. The reason I won’t spend time searching for a more appropriate word is THAT I have a more pressing mission here.

In view of Mr. Obama’s poise and oratory skills I feel it is my faithful duty to point out the reason he should avoid the common abuse committed by too many average Americans. While it seems almost natural to use the  words, ‘reason’ and ‘because’, in the same sentence, the misusage can deteriorate the most powerful message, especially when heard by an erudite audience.

In short, I wish the senator would listen to good advice with regard to this minor grammatical flaw. You are a speaker, Mr. Obama, endowed with exemplary charisma, and since you are so well spoken and enjoy the power of words, please, PLEASE try to stick with the proper placement of the two words, ‘reason’ and ‘because’. It is redundant to use them both in a single phrase.

I’m with you Senator and will stand with you in November!

God’s speed! 

Bill Hudley 

Retirement Bully

Retirement bull, in some instances.

Are we seeing more reports about American workers who cannot afford to retire, or is it my imagination?

Just the other day, I read a news report indicating that nearly 40 percent of baby boomers will have to work for the rest of their lives. My first reaction to that information was: “so, what else is new?” When I decided to backtrack in my thinking, I immediately began to question such a broad prediction.

One of the reasons I think the media gets it wrong is that sifting through and analyzing data is not a requisite to publishing a sensational story. In other words, I don’t take mass media seriously when I want to know what’s really happening in financial markets. That is not where you will find guidance for future planning. No sir (ma’am).

Just from studying the statement above for a minute, one starts to wonder, why?

My best guess (a damned good wond, too) is that there is an abundance of surveys taken from suspects who are presented with the universal method for measuring current income, savings, investments and real assets in what might be loosely called ‘realistic’ or ‘standard’ investment models. This is where the projections fail to be functional.

When I first became an investment broker, I took the position that mutual funds are to financial planning as aspirin is to body building. Sure, you can try each one for a minor benefit, but you had better have a deeper, well-designed customized program if you want to reach your objective(s) on time. I was right in 1988 about the dangerous ‘vanilla effect’ of financial planning, and I am assured of being more correct today.

In up and down markets I have seen dozens of individuals with three, five and ten year horizons, meet their marks on or close to schedule. The key, in general, was counseling that helped them make important financial decisions at critical intervals throughout their investment terms. Mutual funds were not at the center of these success stories. As time permits, I will continue this series on the dilemma and the solution for most workers who would like to retire in ten to twenty years. Hint: don’t be bullied!

It’s time some of us broke away from public inertia. I will return with some really good news. Stay tuned.

Hudster

Stock Power In Book Stores Soon!

We have had our share of delays in the past six months; but, Stock Power (The Novel) is on its way to the presses!

The story within a story is that this new epic novel has finally reached the point of no return – a date with Trafford Publishing of British Columbia, Canada. Thanks to several individuals who have shown their faith, moral and financial support, my dream will come true at the book stores in about six weeks from now. It won’t be a minute too soon.

We are hoping for a decent return on our labors within the next six months. During the next six weeks, there will be plenty of publicity about the story, its author and locations where the book-signings are likely to take place.

To all of my supporters, many thanks for your interest and patience with this long awaited book. I am hopeful that your patience will be compensated by an enjoyable adventure with Bill Haydon.

One Million In Five Years!

WLH Communications Inc. has positions open for three to four sales professionals who possess an entrepreneurial outlook.  We seek only the individual that wishes to join a success-motivated sales team. Experience is not as important as having high-level communications skills and a winner’s attitude. Leave the rest to us!  The stakes are high; but so is the compensation. Total package includes, health benefits, vacations and bonuses. All inquiries (incl. resumes) should be directed to the email address below. Offer will be closed on May 14, 2007.

Contact: Greta Montoya, Asst. Sales Mgr.

gmontoya@wlhcommunications.com

Thank you!

Irrational Dementia

I did not know you could actually sit down and write a total piece of crap and get it displayed on a default home page of your browser – until just now.  Holy mackerel!  I am marking this date for future reference. 

I have spent most of my 25 years as a financial professional offering investors sound advice on saving for retirement. It’s worked so well for my clients (and, yes, for me too). More than 60% of the investors I have worked with are retired and happy that they met me. 

I turned my computer on only to be knocked out of my chair with a headline that reads: “You’re Saving Too Much For Retirement!” The author’s and the media midget’s names are deliberately omitted here because I don’t want to contribute to their link popularity. 

The biggest fallacy to this most unfortunate waste of bandwidth is the writer’s lack of logic. (Oh, he couldn’t wait to brandish a $16 word in his first paragraph which I suspect is misused.)  If his argument is taken literally, we are to believe that, just because Fidelity or Vanguard publishes a calculation of a future value necessary for retirement, it means we are saving too_much_money!  What does a fund manager’s digital hypothetical numbers have to do with actual, up-to-date statistics on what people are saving these days?  Not a damned thing. 

By the way, this hired agitator (actually, his punctuation wasn’t so bad) either doesn’t know or did not want his readers to know that Goldman Sachs and Merrill Lynch compete for large assets held by millionaires, which leaves 90% if the American populace out of the loop.  I wondered if the writer is aware of other brokers on the industry roster – the ones that represent more than half the retail market that provide a necessary service.   

Immediately, I scrolled down to see if this voided mentality had included any hard-core stats from the U.S. Labor Department to back up his statements. There were none in sight. He chose instead to do some name dropping of people I never heard of – one from the seedy halls of academia in Bean Town and another inconsequential source working for a living somewhere in Texas. Very impressive!

*  *  *  * *  *  *  *

I suspect that someone in this camp has an axe to grind. Certainly, if he had any kind of fiduciary responsibility in the financial sector, the S.E.C. (Securities Exchange Commision) would have his head, regardless of its miniscule dimensions for the advice offered here.  They are grossly impertinent and misleading. 

Fortunately for me and my crowd, I have been collecting the economic data that points to a real dilemma for the average American worker.  Naturally, the stats support the fact that, in spite of all the warnings issued by brokers and managers, too few people save enough for their retirement. 

Average income in America weighed in at roughly $56,000 before taxes in 2005. According to the BLS (Bureau of Labor Statistics), average expenses in the same year rang up a receipt for $46, 409 in the same year, per the 117,000 BLS reports.   

So-o-o-o-o!  How much can the U.S. worker really save toward his or her extra slice of cheese on a toasted roll in year 2010, P.F.?  Too much? Get outta here. 

Hawk 

P.S.: Arroyo Grande.  How can can anyone live or work in this quaint little coastal California town and get so twisted?  I am more anxious to visit now than ever.

Money Wins Over Grass!

I was invited to speak at an investment club inauguration. The group represented several distinct age groups. Toward the end of my presentation, I asked for a show of hands from people who would prefer to watch money grow rather grass.

 

Fortunately, the consensus was that, as a spectacle, grass was less attractive.

 

Although, I knew what to expect from my compliant audience, I was also not surprised to find out that less than half of the attendees knew whether or not CitiGroup would be considered a growth stock. Worse than that, only four people had reviewed their investment accounts within the past thirty days. Yet, these same investors were excited about the new investment club they had just organized. There were nearly fifty members present.

 

“Why do you want to start an investment club?” I asked.

 

The spokesperson reiterated what she told me during our first conversation. Most of the members did have an ambition to learn more about investing in stocks. Their premise was correct. The few that approached me at the end of the meeting confirmed that they were happy about the knowledge they received in forty minutes.

 

In my opinion, this story reflects the disposition of thousands of Americans who, either because of busy schedules or social distractions, domestic or otherwise, are not in touch with their investments. A quick “drive by” at any lay financial forum on the Internet confirms this view. If index funds were band-aids, Johnson & Johnson should shut down all of its non-band-aid operations and go vertical.

 

I use the plastic strip analogy to build an image of how thousands of people relate to index funds. You might use a better symbol. Nonetheless, facts show that billions of dollars have been transferred away from other investment vehicles, in favor of market tracking funds. This behavior has created a dilemma for investors who plan to retire soon or rich or both. 

 _____________

For the benefit of those who believe index funds will repeat their 12-month trailing performance, I have planted this year-to-date chart of the Vanguard 500 Index Fund (VFINX) as a free gift, courtesy of Vanguard.

                      

It’s obvious that this index trend was very wobbly during the 16 days between February 26 and March 14, along with the collapse of the broad markets. This benchmark of index securities continues to be the fund to watch for anyone attempting to simplify the challenge of investing with safety. Of current importance is whether or not the share price will get back to, or exceed its February high and for how long.

 

One final note worth digesting is the fact that this fund (and many just like it) has averaged a little over 6% over the past five years*. There dozens of bond funds that have done better. Yet, the masses swear by index funds. I predict many of them will be heading for the exits (the alert one’s will) by year end. Think what you will; but watch, by all means. Diversification, as a panacea for safety, is overblown.

 

Hudster 

Source data and quotes courtesy of Yahoo! Finance.

* As of 4/12/07

Dream + Desire + Drive Work Well Together

People ask me, “So tell me Bill, what’s the best investment out there right now?”

Well, that’s really a loaded question because it can depend on a number of things. However, there is one investment that I believe tops all others; and I think it’s becoming more obvious as we experience the changes in our lives.

The single most important investment is you – me – us! The very reason you are reading this blog is probably due to an interest in making yourself more valuable. You might not have expressed your motives in those exact words, but it’s still true. (Quite frankly, I want to sharpen my blog-writing skills because I believe this to be the best medium of all time. So, indulge me just for another few seconds. Thanks!)

To complete this message, I had three important investments in mind.  The first has already been covered. The next two are also very obvious: stocks, bonds and mutual funds are what I consider to be very important for increasing one’s net worth. Then, there is real estate for building wealth on a grander scale. 

If you can find a way to earn more money, the opportunity to build a nest egg follows immediatley afterward.

Take, for example, a web-based business that produces a monthly income of $3000.  30% of that money can be re-invested back into the business for the next several years.  Another 30% ($600) can be invested in a stock, bond or mutual fund…indefinitely. Putting together a strategy for making money automatically entitles you to apply for a mortgage, perhaps sooner than you expected.

It’s unlikely that you had this kind of discussion with the Human Resources person at your old job. That’s because the title of HR is a thin euphemism crafted from the tired old label of “personnel director” used in the seventies.

Interestingly enough, the chances for success are greatly improved the minute we understand the responsibilities of being an entrepreneur; and studying successful business models is a step in the right direction.

The benefits? There are many “perks” to running the show, and they are far more outreaching than workers’ comp and hospitalization (important components of a well-run business). Keep the word “freedom” at the center of your dream. If you have the desire and a clear idea of what it is you are looking for, you can make it all happen.

Go break a leg in 2007. There is still time!

Hudster

It’s Not The Shoes

Work from home and make tons of money!

If you think about it, that statement sounds a little ridiculous.  A ton of which money? What denominations? Are we talking coins? What we’re saying here is that a ton of money is a poor description of a measure of success.  On the other hand, a life of emotional and financial security, one in which we can provide a comfortable quality of life for ourselves and immediate family, is a goal worth shooting for.

So, the mark of success might not have so much to do with the brand of shoes we buy as it has does with the way we maintain a healthy body and spirit.  I know a guy who lives in Colorado who actually owns the 1995 Le Sabre that he drives. Meanwhile, he lives on 2oo acres of land. Could be he’s better off than the poor schlepp who has to drive an hour and forty-five minutes to work and back six days a week just to pay the mortgage on his two-year old house and the lease on his luxury car. It was just a thought worth thinking.