Warren Buffett: You should be able to do one simple thing before buying any stock

But Berkshire Hathaway CEO Warren Buffett says there’s one you should always avoid: Buying a stock merely because you think it’s going to increase in price. That’s because even the best investors aren’t able to predict how the market will perform. Instead, you should invest in companies that you both understand and believe will offer long-term value, according to Buffett. No matter how much or how little you’re buying, you should be able to get your reasoning down on paper without relying on out


But Berkshire Hathaway CEO Warren Buffett says there’s one you should always avoid: Buying a stock merely because you think it’s going to increase in price.
That’s because even the best investors aren’t able to predict how the market will perform.
Instead, you should invest in companies that you both understand and believe will offer long-term value, according to Buffett.
No matter how much or how little you’re buying, you should be able to get your reasoning down on paper without relying on out
Warren Buffett: You should be able to do one simple thing before buying any stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-24  Authors: emmie martin
Keywords: news, cnbc, companies, thing, able, going, stock, companies, warren, invest, index, simple, predict, buying, think, told, buffett


Warren Buffett: You should be able to do one simple thing before buying any stock

There are an infinite number of reasons you might decide to invest in a certain company. But Berkshire Hathaway CEO Warren Buffett says there’s one you should always avoid: Buying a stock merely because you think it’s going to increase in price.

That’s because even the best investors aren’t able to predict how the market will perform.

Instead, you should invest in companies that you both understand and believe will offer long-term value, according to Buffett.

No matter how much or how little you’re buying, you should be able to get your reasoning down on paper without relying on outside resources, Buffett told Becky Quick on CNBC’s “Squawk Box” on Monday.

“Everybody when they buy a stock should be able to take a yellow pad” and write down exactly why they plan to invest in that particular company, Buffett said.

He also doesn’t think investors should worry about how the stock will perform in the near term. If you want to predict what the stock price is going to do, “you can have a separate piece of paper,” he said. Rather, Buffett recommends focusing on businesses that will hold their value over time. As he told CNBC in 2018, “nobody buys a farm based on whether they think it’s going to rain next year.”

“You’re buying businesses,” Buffett told Quick on Monday. Because people can “make decisions every second with stocks,” as opposed to investing in a physical entity like stores or farms, “they think an investment in stocks is different than an investment in a business. But it isn’t.”

Buffett follows three general rules when deciding which companies to invest in: “First, they must earn good returns on the net tangible capital required in their operation. Second, they must be run by able and honest managers. Finally, they must be available at a sensible price,” he wrote in his 2019 annual letter to Berkshire shareholders.

That said, any individual stock can over- or underperform, and past returns do not predict future results. Beginner investors are encouraged to look into low-cost index funds instead, which are much less risky.

The rate of return for each index fund is determined by the performance of the companies that are in the fund, which can balance each other out. Say you buy an index that contains only two companies. If one company goes up by 3%, but another goes down by 2%, you’re still up by 1%.

Buffett is a fan, too: “Consistently buy an S&P 500 low-cost index fund,” he told CNBC’s “On The Money” in 2017. “I think it’s the thing that makes the most sense practically all of the time.”

Check out: The best credit cards of 2020 could earn you over $1,000 in 5 years

Don’t miss: Warren Buffett doesn’t make money by predicting ‘what’s going to go on next week or next month’


Company: cnbc, Activity: cnbc, Date: 2020-02-24  Authors: emmie martin
Keywords: news, cnbc, companies, thing, able, going, stock, companies, warren, invest, index, simple, predict, buying, think, told, buffett


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9 money myths we hear all the time—but can actually hold you back from getting rich

There’s so much money advice out there that it can be difficult to differentiate the good ones from the bad ones. To make money, you have to worry about money. “The more time I spend thinking about money, the less time I have to think of the next great idea that can make money. Whether you’re an entrepreneur or an employee, your current revenue stream isn’t necessarily how you’ll make money in the future. “Many people will tell you to invest in the stock market and let compound interest turn you


There’s so much money advice out there that it can be difficult to differentiate the good ones from the bad ones.
To make money, you have to worry about money.
“The more time I spend thinking about money, the less time I have to think of the next great idea that can make money.
Whether you’re an entrepreneur or an employee, your current revenue stream isn’t necessarily how you’ll make money in the future.
“Many people will tell you to invest in the stock market and let compound interest turn you
9 money myths we hear all the time—but can actually hold you back from getting rich Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-20  Authors: the oracles
Keywords: news, cnbc, companies, cofounder, money, founder, timebut, hear, youll, rich, hold, actually, business, invest, follow, stock, getting, myths, youre, market


9 money myths we hear all the time—but can actually hold you back from getting rich

There’s so much money advice out there that it can be difficult to differentiate the good ones from the bad ones. To save you some trouble, we asked nine financially savvy business owners and Advisors in The Oracles to share the biggest money myths that can stunt your financial success:

1. To make money, you have to worry about money.

“The more time I spend thinking about money, the less time I have to think of the next great idea that can make money. Overthinking always limits creativity. Instead, I just trust my gut. When something doesn’t feel right, it’s usually for a good reason, even if I can’t put my finger on why. Your gut is a collection of past experiences — and mine has never steered me wrong!” —Barbara Corcoran, founder of The Corcoran Group, podcast host of “Business Unusual,” and Shark on “Shark Tank.”

2. Stick to the status quo if you want to get rich.

“Don’t be romantic about how you make money. Whether you’re an entrepreneur or an employee, your current revenue stream isn’t necessarily how you’ll make money in the future. When you climb the ranks, it’s easy to lose creativity and that desire to change the status quo — until you’re replaced by someone who still has those things. Never let money make you comfortable. Always be innovating and thinking ahead.” —Gary Vaynerchuk, founder and CEO of VaynerX; five-time New York Times bestselling author of “Crushing It!”

3. Save your pennies and watch the dollars grow.

“Many people will tell you to invest in the stock market and let compound interest turn your paychecks into millions. The problem with that advice is that you have to work for 40 years. Instead, invest in yourself by learning a skill you can monetize. If you’re always sharpening new skills, you’ll make incrementally more money. That’s real compound interest. You can’t save your way to wealth, but you can educate yourself there.” —James Sixsmith, founder and CEO of Trade Context, co-founder of SpeedUpTrader, and former professional hockey player. Follow him on Instagram and LinkedIn.

4. Financial success relies on past performance.

“Companies like Blockbuster, Pets.com and MySpace were household names — until they crashed. In contrast, many that Wall Street dismisses outperform the market significantly. The right investments are the ones that genuinely interest you, whether that’s Bitcoin, stocks or any other asset classes. If you talk to people, read the news and actually use the products you invest in, you’ll have a better understanding of where your investments should go than the ‘experts’ do.” —Dan Schatt, co-founder and CEO of Cred. Follow him on LinkedIn.

5. Prioritize security over market volatility.

“An annuity salesperson convinced my client to sell his Tesla stock because of market volatility, so he gave up control and liquidity in exchange for ‘security.’ But when he lost his job, he had to pay an early withdrawal fee to access his money. His $500,000 annuity was only worth $300,000, compared to the $3.2 million his stock would be worth today. The salesperson didn’t disclose that he owned stock in the annuity and was working on commission. Always question others’ interests and how they align with yours. Are they getting a commission, or do they only make money when you do?” —James Daily, founding partner of Daily Law Group. Follow him on LinkedIn.

6. Build a nest egg as soon as possible.

“The highest rate of return on your money is not in a house or savings account, where it will sit and get eaten by inflation. Invest in your primary asset: Yourself — and your business, if you own one. This multiplies the abilities that create your income, so you can achieve financial independence. When your money is still, it’s ill. When it’s flowing, it’s growing.” —Corrie Elieff, co-founder and chairman at YESA; founder of Cardone Canada.

7. It takes money to make money.

“Don’t let the idea of starting a business — or even a side hustle — intimidate you; the barrier to entry in business is lower than ever. Using tools like WordPress, PayPal and social media, you can create a website, advertise with how-to content and accept payments for free. As long as you know how to sell and you’re solving other people’s problems, all you need is a little creativity and willingness to take risks and outwork everyone else.” —Bedros Keuilian, founder of Fit Body Boot Camp. Follow him on Instagram, Facebook and YouTube.

8. Having a ‘normal’ routine will make you richer.

“I do my best thinking between midnight and 3 a.m., when I’m free from dinging email and text alerts. Figure out when your mind works best, capitalize on it, and don’t feel bad if it’s not during the standard 9 a.m. to 5 p.m. “The world’s wealthiest people didn’t become successful because they were coloring inside the lines or doing what everything thinks they’re ‘supposed’ to do.” —Michelle Luchese, co-founder and chief product officer of wedding band company Manly Bands. Follow her on LinkedIn.

9. Real wealth means having an enormous bank account.


Company: cnbc, Activity: cnbc, Date: 2020-02-20  Authors: the oracles
Keywords: news, cnbc, companies, cofounder, money, founder, timebut, hear, youll, rich, hold, actually, business, invest, follow, stock, getting, myths, youre, market


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50% of Americans don’t know if it’s better to invest in a single stock or a mutual fund

In the report, 50% of Americans said they didn’t know whether buying a single company’s stock “usually provides a better return” than investing in a mutual fund. “They don’t understand the basics of interest rates, the basics of inflation and the basics of investing.” For the record, mutual funds usually provide better returns than investing in a single company’s stock because this strategy spreads out risk. Instead, they reflect the gains or losses of a broader sector or stock index, which is c


In the report, 50% of Americans said they didn’t know whether buying a single company’s stock “usually provides a better return” than investing in a mutual fund.
“They don’t understand the basics of interest rates, the basics of inflation and the basics of investing.”
For the record, mutual funds usually provide better returns than investing in a single company’s stock because this strategy spreads out risk.
Instead, they reflect the gains or losses of a broader sector or stock index, which is c
50% of Americans don’t know if it’s better to invest in a single stock or a mutual fund Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: alicia adamczyk
Keywords: news, cnbc, companies, investing, neuhaus, americans, dont, basics, understand, mutual, fund, know, usually, stock, single, invest, better


50% of Americans don't know if it's better to invest in a single stock or a mutual fund

Recent headlines have touted stock market records and low unemployment numbers. But behind the data, the vast majority of Americans are still stressed about their finances and would have trouble paying out-of-pocket for a minor emergency, according to a new report from J.D. Power.

More than 75% of Americans say they are stressed about their money, J.D. Power found, and 35.5% have less than $1,000 saved across checking, savings, retirement and other investment accounts. While economic trends look positive, a skyrocketing stock index doesn’t mean much if you don’t have enough money to invest, Bob Neuhaus, vice president, global financial services at J.D. Power, tells CNBC Make It.

The trouble is deeper than an inability to save, Neuhaus says. In the report, 50% of Americans said they didn’t know whether buying a single company’s stock “usually provides a better return” than investing in a mutual fund. And over 35% could not answer the following question: At a 2% interest rate, how much would $100 be worth after five years?

“I think people in the financial industry often make the assumption that people understand these products, but this data says that’s wrong,” says Neuhaus. “They don’t understand the basics of interest rates, the basics of inflation and the basics of investing.”

For the record, mutual funds usually provide better returns than investing in a single company’s stock because this strategy spreads out risk. Your returns don’t depend on the ups and downs of a single company. Instead, they reflect the gains or losses of a broader sector or stock index, which is comprised of many companies. That’s what is known as diversification, which has been proven to be a more effective long-term investing strategy than picking single stocks.


Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: alicia adamczyk
Keywords: news, cnbc, companies, investing, neuhaus, americans, dont, basics, understand, mutual, fund, know, usually, stock, single, invest, better


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Bed Bath & Beyond to invest $1 billion in buybacks and store upgrades in a bid to turn around business

Top of mind for Tritton, who just took the reins in November after a successful stint as chief merchandising officer at Target, is fixing Bed Bath & Beyond’s stores. Tritton said same-store sales at those locations are up 2% to 4% compared with Bed Bath & Beyond’s entire fleet. Currently, Bed Bath & beyond is planning to remodel about 25 locations this fiscal year. After receiving the influx of cash, Bed Bath & Beyond now pays rent to Oak Street. Bed Bath & Beyond has also said it plans to close


Top of mind for Tritton, who just took the reins in November after a successful stint as chief merchandising officer at Target, is fixing Bed Bath & Beyond’s stores.
Tritton said same-store sales at those locations are up 2% to 4% compared with Bed Bath & Beyond’s entire fleet.
Currently, Bed Bath & beyond is planning to remodel about 25 locations this fiscal year.
After receiving the influx of cash, Bed Bath & Beyond now pays rent to Oak Street.
Bed Bath & Beyond has also said it plans to close
Bed Bath & Beyond to invest $1 billion in buybacks and store upgrades in a bid to turn around business Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: lauren thomas
Keywords: news, cnbc, companies, business, upgrades, tritton, invest, store, locations, bed, million, buybacks, turn, bid, bath, stores, billion, fiscal, beyonds, plans


Bed Bath & Beyond to invest $1 billion in buybacks and store upgrades in a bid to turn around business

Bed Bath & Beyond is beginning to test changes in stores that it eventually could roll out to hundreds of locations, if it can draw shoppers in.

The big-box retailer said Tuesday it plans to spend up to $400 million on store remodels and supply chain upgrades, along with about $600 million this fiscal year on share repurchases and debt reduction.

The company has a “track record” of spending money and not reaping any returns, CEO Mark Tritton said in an interview with CNBC. But he said he is trying to change that.

Top of mind for Tritton, who just took the reins in November after a successful stint as chief merchandising officer at Target, is fixing Bed Bath & Beyond’s stores. It has roughly 1,500, including under its other banners, such as Christmas Tree Shops, World Market and buybuy Baby.

The company is currently testing, with a small batch of three Bed Bath & Beyond locations, various remodeling strategies that consist of slashing inventory by as much as 20% and adding more marketing signage. Tritton said same-store sales at those locations are up 2% to 4% compared with Bed Bath & Beyond’s entire fleet.

“I want to strike … once I get those plans finalized,” he said about a broader store remodel rollout. Currently, Bed Bath & beyond is planning to remodel about 25 locations this fiscal year. And there could be more to come in 2021.

“We will continue fixing our total portfolio,” Tritton said.

Bed Bath & Beyond earlier Tuesday morning announced it had agreed to sell its PersonalizationMall.com business, known for selling gifts for special occasions and holidays, to 1-800-Flowers.Com for $252 million. Its shares had closed Tuesday up more than 5% on the deal news, then climbed more than 3% in extended trading, as Bed Bath & Beyond laid out its spending plans.

Tritton said the deal with 1-800-Flowers.Com, which is expected to be completed during the first quarter of fiscal 2020, is part of Bed Bath & Beyond’s broader strategy to focus more on its core home, baby and beauty businesses.

“As we look at the core business … we really see we have more strength in baby and beauty,” he said. “We will look into how we can reinforce that.”

Last month, Bed Bath & Beyond said it has completed a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital, netting it $250 million in proceeds. The properties sold represented about 2.1 million square feet of commercial real estate, including stores, office space and a distribution center. After receiving the influx of cash, Bed Bath & Beyond now pays rent to Oak Street.

Bed Bath & Beyond has also said it plans to close about 40 of its namesake stores this fiscal year.


Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: lauren thomas
Keywords: news, cnbc, companies, business, upgrades, tritton, invest, store, locations, bed, million, buybacks, turn, bid, bath, stores, billion, fiscal, beyonds, plans


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This is the best robo-advisor for new investors

Beginner investors considering using a robo-advisor have no shortage of options, with digital upstarts like Wealthfront and Ellevest competing with the old guard of Vanguard and Fidelity to invest your money. But the best option for newbies is Betterment, a new report finds. You simply answer a few questions about your goals and risk tolerance, and an algorithm determines how to best invest your money. One important note: Betterment’s management fee is in addition to any fees charged by the fund


Beginner investors considering using a robo-advisor have no shortage of options, with digital upstarts like Wealthfront and Ellevest competing with the old guard of Vanguard and Fidelity to invest your money.
But the best option for newbies is Betterment, a new report finds.
You simply answer a few questions about your goals and risk tolerance, and an algorithm determines how to best invest your money.
One important note: Betterment’s management fee is in addition to any fees charged by the fund
This is the best robo-advisor for new investors Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-13  Authors: alicia adamczyk
Keywords: news, cnbc, companies, vanguard, fee, minimum, roboadvisor, report, best, invest, management, planning, money, overall, investors


This is the best robo-advisor for new investors

Beginner investors considering using a robo-advisor have no shortage of options, with digital upstarts like Wealthfront and Ellevest competing with the old guard of Vanguard and Fidelity to invest your money. But the best option for newbies is Betterment, a new report finds.

Backend Benchmarking’s recent Robo Report monitors robo-advisors on an ongoing basis on more than 45 different metrics, including account minimums, overall costs, financial planning options, customer experience, transparency and more.

Robo-advisors are generally marketed to beginners because they take much of the legwork out of picking actual funds to invest in. You simply answer a few questions about your goals and risk tolerance, and an algorithm determines how to best invest your money.

While Fidelity Go and Vanguard are the firm’s top picks overall, Betterment is the Robo Report’s choice for entry-level investors for a number of reasons:

It has a $0 minimum balance requirement

It also offers a linked high-interest savings account

The platform itself is sleek and easy-to-use

It charges a low 0.25% annual fee on assets under management

Another perk: Betterment’s goal forecaster tool allows investors to “see how one-time or recurring investments would impact the probability of achieving a goal.” That’s useful for people who aren’t familiar with how investing works over the long term.

Betterment’s $0 minimum is clearly a differentiator, especially when a top overall pick like Vanguard Personal Advisor Services has an account minimum of $50,000 (Fidelity Go has a $0 minimum for digital only planning, and a $25,000 minimum for advice and planning). If you’re new to investing, you might not have a lot of money to spare. But time in the market is a key factor in building wealth, because the earlier you get started, the more time your investment earnings have to compound.

One important note: Betterment’s management fee is in addition to any fees charged by the funds you invest in. The funds themselves can have expense ratios ranging from zero to 1% or more. You want to keep these fees as low as possible. The management fee shouldn’t necessarily be a deal breaker, but it’s an important consideration, as you wouldn’t incur this fee if you built a portfolio yourself.

Typically, robos charge less than human advisors, because a robot doesn’t earn a salary or need health insurance. How much a financial planner charges depends on the planner and how much money they are managing for you, but you can expect to pay around 1% of assets under management, much more than the 0.25% to 0.89% charged by the robos Backend Benchmarking’s report tracked.

SoFi is the runner-up for beginners. Its top selling points include no minimum balance requirements and no management fees.


Company: cnbc, Activity: cnbc, Date: 2020-02-13  Authors: alicia adamczyk
Keywords: news, cnbc, companies, vanguard, fee, minimum, roboadvisor, report, best, invest, management, planning, money, overall, investors


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This 33-year-old paid off his $300,000 house in 3 months—here’s why he didn’t invest the money

Watching extended family members and friends lose their homes during the Great Recession had a profound impact on Jack Washington. This savings mentality has manifested from the time Washington was in high school, when he began considering what he wanted for his future. Though he lives with his wife, LaTaya, Washington paid off the full amount of the mortgage with his own investments and savings. “They didn’t have work life balance, and I knew that I did not want that to be me.” Had he taken the


Watching extended family members and friends lose their homes during the Great Recession had a profound impact on Jack Washington.
This savings mentality has manifested from the time Washington was in high school, when he began considering what he wanted for his future.
Though he lives with his wife, LaTaya, Washington paid off the full amount of the mortgage with his own investments and savings.
“They didn’t have work life balance, and I knew that I did not want that to be me.”
Had he taken the
This 33-year-old paid off his $300,000 house in 3 months—here’s why he didn’t invest the money Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-13  Authors: alicia adamczyk
Keywords: news, cnbc, companies, money, market, financial, washington, didnt, 33yearold, savings, monthsheres, having, pay, paid, 300000, mortgage, house, hes, invest


This 33-year-old paid off his $300,000 house in 3 months—here's why he didn't invest the money

This story is part of CNBC Make It’s Millennial Mortgage series. If you’re interested in being featured, email reporter Alicia Adamczyk at alicia.adamczyk@nbcuni.com. Watching extended family members and friends lose their homes during the Great Recession had a profound impact on Jack Washington. Though his own family made it through the financial crisis mostly unscathed, Washington began to realize from a young age how important it was to put money away and never owe anything to anyone. So he started saving. His ultimate goal: Put away as much as he could, so his home couldn’t be taken from him. This savings mentality has manifested from the time Washington was in high school, when he began considering what he wanted for his future. The now-33-year-old received his bachelor’s and master’s degrees without taking on any student loan debt, thanks to a combination of scholarships and working as a residential advisor. He pursued degrees in business and forged a career in human resources to ensure he would make good money right out of school, and have ample career opportunities. In the first five years after he graduated, he saved over $300,000. His next step: buying a house. He closed on his 1,600-square-foot home in Richardson, Texas — just outside of Dallas — at the beginning of June 2019, and paid off the mortgage by the end of August.

Washington and his wife, LaTaya. Courtesy of Jack Washington

For the human resources manager, owning a home outright was more important than any potential stock market gains his savings could have accrued. So important, in fact, that he paid off his $300,000 home in around three months, cashing out around $225,000 from a brokerage account rather than keeping the funds invested for retirement. He took the rest from more conservative investments, like CDs and liquid savings accounts. Washington’s decision to pay off his home decades early comes from a deeply-held conviction that it’s better to be completely debt-free than owe money to anyone, regardless of if it’s “good” debt or not. His family and friends “loved the idea,” he says. But the bank and his financial advisors were less than thrilled, warning that he’d potentially lose out on some serious stock market returns. “I wanted financial stability and security. I wanted somewhere we could set down roots,” Washington tells CNBC Make It. “I look at it as a utility, not an investment.” With no mortgage payment, here’s how his home costs break down each month: Property taxes: $500 ($6,000 paid annually)

$500 ($6,000 paid annually) Homeowners Association (HOA) fee: $160

$160 Utilities: $485 ($65 home warranty, $200 cable, $80 gas, $80 water, $60 alarm)

$485 ($65 home warranty, $200 cable, $80 gas, $80 water, $60 alarm) Homeowners insurance: $400

$400 Repairs: $150

Investing in his future

Washington’s current salary is $120,000 per year, but he managed to save over $300,000 while earning between $85,000 at his first job out of business school and around $100,000. Though he lives with his wife, LaTaya, Washington paid off the full amount of the mortgage with his own investments and savings. Washington was able to save so much by living a “generally frugal lifestyle” on an above-average salary: He’s driven the same car since college, significantly scaled back his and LaTaya’s wedding and cuts his own hair. Each year since he started working full time at 27, he’s set “mini goals” for himself to slowly scale up his savings. He acknowledges that not having student loans gave him a “leg up,” though he intentionally went to schools that would give him scholarships and worked as a RA so that he wouldn’t have to take any on (LaTaya graduated with around six figures in student loan debt, but has been aggressively paying it off with her own salary).

With his business degree, Washington knew he’d get ample job opportunities with higher-than-average salaries, and having a partner with a similar, though not identical, money mentality has made saving and working toward his financial goals easier. It was this combination of strategies that worked for Washington. “That’s my approach to building up wealth and money,” he says. “It’s not one big thing that helps you get to a good place, it’s a million little things and the choices that you make every day that add up.” He credits his money mentality to his parents: His dad worked at a transit company in Chicago and his mom was a secretary. “They never made a ton of money, but they had good sense,” he says. “They paid their home off in about 15 years. I make more now individually than they do collectively.”

Furthering other financial goals

Peace of mind isn’t the only benefit to paying off his mortgage so quickly. It also gives him the freedom to pursue a secondary long-term financial goal: Leaving the workplace at 40. By having one less bill to worry about each month, Washington reasons, taking a break from the corporate world relatively early in life will be more manageable. He intends to work — and his wife has no plans to leave her full-time job — but just not continue the “grind.” He’s dreamed of that kind of independence since high school.

Washington in his kitchen. Courtesy of Jack Washington

“I felt like my family and friends and older people that I knew were always talking about how hard they were working,” he says. “They didn’t have work life balance, and I knew that I did not want that to be me.” While he liquidated almost all of his savings to pay off his home, he’s rebuilt it over the past year (not having a housing payment every month helps) and says he now has around $140,000 socked away in various accounts. That’s his focus going forward. Washington’s goal is a different take on the financial independence movement, which typically evangelizes saving and investing as much money as possible in order to retire early. Obviously, having a partner who will continue to work full-time makes taking a break from the workforce easier to manage; he will likely join her health insurance plan, and her salary will, hopefully, cover any surprise expenses that crop up. But Washington plans to save aggressively in the years to come to cover as many expenses as he can on his own. Not having a housing bill — which is the typical American’s top monthly cost — gives him more freedom.

The numbers question

Despite the other goals Washington is now able to pursue without a mortgage payment, pulling his money out of the market was a big sacrifice. He acknowledges that most financial advisors would say he should have kept the $240,000 beyond the down payment invested in the stock market, but he’s okay with what might not be considered the most prudent financial move. Paying off the balance gives him the stability he’s craved, and, mentally, that is worth more than any potential investment gains. “If you look at it from a purely financial point of view, okay, they might be able to convince me to keep it in the market,” he says. “But peace of mind was the main motivation to pay the house off.” But is it advice others should take? There’s no easy answer, Danielle Schultz, an Illinois-based certified financial planner, tells CNBC Make It. A major downside is that he has “completely lost the value of compound return,” she says.

Traditionally, financial advisors say it does not make sense to pay off loans with interest rates lower than what you could earn in the market. That varies, of course, but a good rule of thumb is to focus on investing, rather than loan repayment, if your loan has an interest rate below 5%, says Schultz. Another reason you’re typically advised not to pay off your mortgage early: The mortgage interest deduction lets couples filing jointly deduct the interest paid on a mortgage up to $750,000, with some restrictions. Washington doesn’t qualify for that tax break now. Washington also had to pay capital gains tax on his withdrawal from the brokerage account. Had he taken the money from a retirement account, he also would have been hit with an early withdrawal penalty.

In his spare time, Washington pilots planes. Courtesy of Jack Washington


Company: cnbc, Activity: cnbc, Date: 2020-02-13  Authors: alicia adamczyk
Keywords: news, cnbc, companies, money, market, financial, washington, didnt, 33yearold, savings, monthsheres, having, pay, paid, 300000, mortgage, house, hes, invest


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Three things every new investor needs to know

Three things every new investor needs to knowJosh Brown, CEO of Ritholtz Wealth Management, says new investors need to worry less about which stock to buy and more about why they want to invest. Understanding why you want to invest can help you determine a level of risk that you are comfortable maintaining. Watch this video to learn the other tips Josh Brown says new investors need to know.


Three things every new investor needs to knowJosh Brown, CEO of Ritholtz Wealth Management, says new investors need to worry less about which stock to buy and more about why they want to invest.
Understanding why you want to invest can help you determine a level of risk that you are comfortable maintaining.
Watch this video to learn the other tips Josh Brown says new investors need to know.
Three things every new investor needs to know Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-12
Keywords: news, cnbc, companies, watch, investors, brown, know, things, video, invest, tips, worry, understanding, investor, wealth, need, needs


Three things every new investor needs to know

Three things every new investor needs to know

Josh Brown, CEO of Ritholtz Wealth Management, says new investors need to worry less about which stock to buy and more about why they want to invest. Understanding why you want to invest can help you determine a level of risk that you are comfortable maintaining. Watch this video to learn the other tips Josh Brown says new investors need to know.


Company: cnbc, Activity: cnbc, Date: 2020-02-12
Keywords: news, cnbc, companies, watch, investors, brown, know, things, video, invest, tips, worry, understanding, investor, wealth, need, needs


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Billionaire Yusaku Maezawa launches entrepreneur competition offering to invest $91 million

Retail mogul Yusaku Maezawa has launched another competition, offering to invest a total of 10 billion Japanese yen ($91 million) in the businesses of 10 entrepreneurs. Any proposals which don’t pass the screening stage would be notified of the result with written comment from Maezawa, the website stated. In separate tweets, Maezawa explained that the 1 billion Japanese yen was just a guide of investment per business and that the “Maezawa fund” could allocate as much as 3 billion yen to each com


Retail mogul Yusaku Maezawa has launched another competition, offering to invest a total of 10 billion Japanese yen ($91 million) in the businesses of 10 entrepreneurs.
Any proposals which don’t pass the screening stage would be notified of the result with written comment from Maezawa, the website stated.
In separate tweets, Maezawa explained that the 1 billion Japanese yen was just a guide of investment per business and that the “Maezawa fund” could allocate as much as 3 billion yen to each com
Billionaire Yusaku Maezawa launches entrepreneur competition offering to invest $91 million Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: vicky mckeever
Keywords: news, cnbc, companies, invest, competition, launches, entrants, yusaku, offering, yen, explained, businesses, business, website, japanese, entrepreneur, billionaire, screening, billion, million, maezawa


Billionaire Yusaku Maezawa launches entrepreneur competition offering to invest $91 million

Retail mogul Yusaku Maezawa has launched another competition, offering to invest a total of 10 billion Japanese yen ($91 million) in the businesses of 10 entrepreneurs.

The Japanese billionaire announced on Twitter on Friday that he would look to expand the businesses he picked, with the aim of them listing on a stock exchange, according to a translation.

He shared a link to a website outlining the terms of the competition, which explained that entrepreneurs had to email their business proposals to enter, including details as to how they would spend the funds among other information.

It also specified that entrants were required to pay 10,000 Japanese yen to enter, as a “screening fee,” to be transferred within three days of submitting their proposal.

Maezawa and his management staff would then send questionnaires to applicants who pass the screening stage, followed by initial and final interviews.

Any proposals which don’t pass the screening stage would be notified of the result with written comment from Maezawa, the website stated.

It also said that Maezawa would look to own around 20% of the business through his investments.

Entrants had until just before midnight Tokyo time on February 16 to apply for the competition.

In separate tweets, Maezawa explained that the 1 billion Japanese yen was just a guide of investment per business and that the “Maezawa fund” could allocate as much as 3 billion yen to each company.

Maezawa also said he could be flexible with the size of his stake in the business, ranging from 10% to close to 50%.

The billionaire said entrants’ businesses could have already received investment from venture capital firms and other companies. At the same time, Maezawa said applicants could also use the opportunity to start a new business, “launch a student venture or increase the size of the company you have taken over from your parents.”

He explained to potential entrants that they would not have to return the funds if they made a mistake, adding that “failure to start a business is a big plus of a life experience, and if you succeed, that’s fine.”

This is not Maezawa’s first attempt to make his Twitter followers happier, as the businessman gave away 1 billion Japanese yen at the beginning of the year as part of a social experiment.

Maezawa also attracted attention after canceling his public search for a “life partner” to accompany him on his trip around the moon on Elon Musk’s SpaceX Starship rocket.

The billionaire started out selling records from his home but went on to found Japan’s largest fashion retail website, Zozotown, in 1998.


Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: vicky mckeever
Keywords: news, cnbc, companies, invest, competition, launches, entrants, yusaku, offering, yen, explained, businesses, business, website, japanese, entrepreneur, billionaire, screening, billion, million, maezawa


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Kelly Clarkson on what fueled her fame and the pledge she’s made for an even brighter future

But even though the singer-songwriter has reached superstardom, Clarkson continues to make pledges to invest in herself to keep her future on track. Clarkson’s determination to pursue her dream is undoubtedly what fueled her fame: In 2000 Clarkson decided to abandon all thoughts of college in order to pursue her dream of becoming a singer. There, Clarkson put a demo together and hustled to make some money doing some side jobs. Any option that was available to make money singing, I was like, ‘OK.


But even though the singer-songwriter has reached superstardom, Clarkson continues to make pledges to invest in herself to keep her future on track.
Clarkson’s determination to pursue her dream is undoubtedly what fueled her fame: In 2000 Clarkson decided to abandon all thoughts of college in order to pursue her dream of becoming a singer.
There, Clarkson put a demo together and hustled to make some money doing some side jobs.
Any option that was available to make money singing, I was like, ‘OK.
Kelly Clarkson on what fueled her fame and the pledge she’s made for an even brighter future Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: aj horch
Keywords: news, cnbc, companies, dream, waitress, fame, brighter, money, pledge, worked, pursue, pledges, shes, invest, doing, kelly, singing, fueled, clarkson, future


Kelly Clarkson on what fueled her fame and the pledge she's made for an even brighter future

Before she became America’s first Idol, before the record deals, three Grammys and hit daytime talk show, Kelly Clarkson was a broke cocktail waitress in Los Angeles trying to make ends meet. But even though the singer-songwriter has reached superstardom, Clarkson continues to make pledges to invest in herself to keep her future on track.

Like so many Americans making pledges in 2020 — to gain financial freedom or find true happiness — Clarkson is committed to pursuing her own dream: “to invest in love, and encourage everyone to do the same.”

Clarkson’s determination to pursue her dream is undoubtedly what fueled her fame: In 2000 Clarkson decided to abandon all thoughts of college in order to pursue her dream of becoming a singer. In an interview with NPR radio host Guy Raz, Clarkson recalled her decision, saying, “I knew that I’d rather go out and almost, like an apprentice-style, just start doing background vocals for people and then just kind of work my way up. So I chose to move to L.A. randomly.”

There, Clarkson put a demo together and hustled to make some money doing some side jobs. “I worked at Six Flags. I did the singing and dancing, like all those shows. Any option that was available to make money singing, I was like, ‘OK.'” Investing in herself meant taking any paying gig she could find. She worked as a cocktail waitress, at a comedy club, Papa John’s and even Subway.


Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: aj horch
Keywords: news, cnbc, companies, dream, waitress, fame, brighter, money, pledge, worked, pursue, pledges, shes, invest, doing, kelly, singing, fueled, clarkson, future


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