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"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

44:21 min | 3 months ago

"jason moser" Discussed on Motley Fool Answers

"The. Multiple answers I'm out Southwick and I'm joined, is always by broke camp. Personal Finance expert here at the Motley Fool. Hey, BRO, well! Hello Alison. It's the July mailbag where we answer your questions and this month it's with the help of multiple analyst Jason Moser. Should you buy a house now? What is modern portfolio theory and also here Jason's thoughts on a lot of stocks all that and more on this week's episode of Molly fully answers. Jason thanks coming back. <hes> you know I mean i. told you you invite me. I'M GONNA. Be here every single time. Thanks for having me back. I mean we appreciate it because we know you're a busy man, and so we do appreciate that you carve out time for us in our little show, don't. Always always make time for those important people in my life rule number one make time for allison and Bro I love. It sounds like a good one to me. Everybody wins. All right well, I guess we should just get into it, so the first question comes from Darren I've subscribed to the full for over a year and I'm really pleased with the service. I would like to know your thoughts about my holdings in Shop Affi- I've bought several times over the last three years, and it's now over thirty five percent of my portfolio and I. Don't know if I should continue holding or trimmed down. What would you advise a good problem to have I was gonna say that exact same thing? That's a good problem have? In a very glad, you have subscribed to our services in your really pleased. That's that's what we aim to to do. We aim to please help you make money and so yeah. This is one of those situations that we will find ourselves in from time to time as investors. A nice problem to have but something you do need to address at some point because it is going to be a little bit different for everybody. In so coming from the perspective of I, also own shop, a Fi stock in it's it's a wonderful investment. It certainly is taking up a bigger. Part of my portfolio a not at thirty five percent where you are. I think for me. It really does boil down to. That sleeping at night test in other words, you need to be able to go to sleep at night without worrying about this kind of stuff, and if you feel like shop, a Fi represents too much. Of your portfolio if you feel like you're overly allocated their, then, you may need to consider pulling it back a little, but now I mean it's. It's I think it's always important. Note you know. It's a big difference between building up a position buying a position to make this size to make this type of allocation in your portfolio. It's another thing entirely to have position grow into beat into becoming that size i. mean that that is that is in a little bit of a different dynamic there, so people all the different ways, some sometimes folks will, they will just sort of looking at it from the house money, concept or you. You just sell enough shares to recoup your initial investment, and then you let the rest of it go. Some people are perfectly fine with thirty five percent. Some people are not. They want a pair back so i. do think you need to kind of figure out what helps you sleep at night I do think that shop by a great business. I think the biggest risk in only shop, if I right now is valuation, just because it's dominating, it's space, but it's not making any money yet, and it's probably going to be a little while until they do <hes> so that valuation risk is there, but ultimately yeah I think determine. Where you feel most comfortable with it, and if you feel like you need to put a little bit of that money off the table, and he thirty five percents a lot, certainly very understandable. If they've said something you need to do if you do decide to pair it back a little bit. You've made multiple purchases, so you can identify the shares to sell to manage the tax consequence if this isn't a brokerage account and not an IRA. All right next question comes from Steven. If you are forced into unemployment, you are paying federal income taxes on unemployment payments are not contributing to social security nor to Medicare. How does this affect your future calculation of social security benefits and can one contribute to the social security fund during unemployment to mitigate any adverse effects on benefits, it is a little bit adding insult to injury, but you do owe federal income taxes on your unemployment benefits, and if your state charges has a state income tax, you probably have to pay state tax on that, although there are a handful of states that exempt unemployment benefits, so that's good news. And by the way you, you could have taxes withheld from your unemployment benefits you file. This form called form w four V. if you want, they withhold ten percent, or you can do quarterly estimated payments if you wanNA avoid that big tax bill at the end of the year, but if you're strapped for cash is probably just better to get the money now worried about your taxes later <hes> Eh. Stephen notes out. You do not pay payroll taxes. Those are the things that go into social security and Medicare so. So. It could result in a lower social security benefit, however, keep in mind that social security is based on your thirty five highest earning years, so if you enter the workforce at say twenty two and you work until you're mid to late sixties. That's more than forty years where the working so hopefully. If you miss out, if this year is not so good somewhere among those other forty, five or so years, you've had thirty five really good year so that this year won't be that big of a deal. So it probably will be okay. And then to address the last question. Unfortunately, no, you cannot make voluntary contributions to social security. There is at least one academic working paper out there. That suggested that people could buy into social security by like extra credits as opposed to contributing to your 401k, but so far that has not been passed by Congress I had an ex. Question comes from Sam. I heard to stocks discussed on another full podcast. When I read articles about them, it mentions they are thinly traded. I have two questions one I'm sure my position would still be quite small so I think I'd still be able to get in and out, but are there other things I should think about when it's a thinly traded stock and question number two. Is there a certain amount of? Daily volume you like to look for when considering a stock foreign investment. What volume do you want to see to not be? Quote thinly traded stock. Yes very good question in thinly traded stock just refers to the either the amount of shares or the dollar volume of shares that would trade on any given. Market Day and so. The. Thinly traded stock. The the problem is that you may not necessarily able to buy and or sell at the prices. You necessarily think you might be able to in other words when you look at a stock's price and you're looking through the. What what's going on throughout the day on the market, you'll see that did ask spread, which is essentially the bid. Ask spread is it's what someone's willing to pay for the stock versus what someone is asking to be paid for the stock? Because you know you have a buyer and a seller on on in every transaction they're. Normally most cases, these business business bread is very tiny, the couple of pennies maybe for most stocks because they're. They're heavily traded right there. There are plenty of dollar volume. But there are a lot of smaller companies small caps in particular in in you know a micro cap, specifically that don't necessarily meet these kinds of thresholds, and so you definitely have to be aware of that now I'll go back in time just a little bit, too. When we were running the service here at the fool called million dollar portfolios Roman Romani portfolio that we help manage members, and it was never really a problem, but we did have a condition in there. We were always looking for at least ten million dollars in average. Trading volume total daily volume now understand I'm not saying the number of shares saying the amount of money so basically shares times price, but we're always looking for at least ten million dollars. That wasn't set in stone it. It was an idea for us. It wasn't ever really a problem because we had a very diversified portfolio with a number of different types of companies, but when you're looking for smaller companies, you would've just keep that in mind that did ask. Spread is is something that <hes> just because it says the stock is twenty dollars. That doesn't necessarily mean you'll pay twenty dollars if there is a a big spread there between the bid, and the ask in so I think whenever you're considering stocks that have any lighter trading volume or thinly traded stock. Just be sure to use limit orders. Limit Orders of let us stipulate the price that you are willing to pay for or that you're willing to. To accept a if you're selling a limit, order is just a really good way to protect yourself from any unwanted surprise thinly traded stocks. You might not always necessarily get them when you want them, so you might have to lead that limited are in there for a little while, but but a limit order is a great way to protect you from any unwanted surprises. Next question comes from Randall. I'm in my late thirties now, but earlier in my life. I was very very bad with my money. Collection Calls Welfare and bankruptcy or not strangers to me. I've been at the bottom then I met the love of my life, and she convinced me to turn things around ten, and a half years later and I have done a complete one eighty, I took control of our finances rebuilt my credit and started investing and listening to all you find folks all. I opened it investing account with the goal of saving and building enough a down payment on a home. I'm happy to say we've now reached that goal. I recently sold at a profit because I didn't want that. Money tied up in the market. If we are close to needing it for a house, but now that we're here, I'm not sure what to do. We currently rent a basement apartment and our neighbors general living situation are less than ideal to put it mildly. So, we're champing at the bit to jump into the housing market that being said the experts have been calling for a drop in the housing market for a while, and that was before the pandemic hit now I'm worried that if we buy right away a year or two or three from now, interest rates will spike, and we could be put in a difficult situation. I live near Toronto. Canada or the housing market is already highly inflated in relation to the rest of the country should I be worried? While Randall first of all congrats on turning your financial life around love hearing success stories like that so good job on that. So I'll start with my standard answer with the rent versus buy decision, and that is just pull up spreadsheet and compare the all in cost of renting, including what you could earn on the money that use for down payment versus the all in cost of buying including the opportunity cost of putting down payment as opposed to having invested as well as insurance and taxes and maintenance, and all that stuff and project, where you might be in five to ten years based on various scenarios on what happens to stocks, if you. Rent an invest the down payment versus what happens to? What you'd look like depending on where home prices go. Generally speaking. If mortgage rates go up, that could way down on real estate prices we did see mortgage rates. Go Up for a bit a few years ago, but the housing market did find, but you could certainly envision a scenario where rates went much much higher, making houses, much less affordable and prices would have to adjust. But I don't expect that to happen anytime soon. I think we're. GonNa have low rates for awhile, but beyond that I don't know I've given up trying to predict where interest rates are going or even paying attention to people who try to predict where interest rates are going, so who knows? That said since you live in Canada. I thought I'd check. In where rates are these days and I and I got a brief reminder that things are actually different in Canada so I did a little bit of research. And then realize I had reach out to someone who knows, I reached out to Canadian Motley fool analysts Jim Gillies, and he had some thoughts so first of all just for you non-canadians out there. It is really different so in America. We get this thirty year mortgage than we have the same payment for thirty years. It's fixed. They don't have that in Canada. What's the most common is a twenty five year? But only the first few years or fixed. And then adjusts so in that context you can understand why Randall is worried about interest rates going up because over the next depending on which alone he gets the most popular is a five year fixed, and then you basically have to go get a new loan probably. So that put that in context, a little more, but also Toronto, really is crazy expensive. Vs from the end of last year that put it as the most overvalued real estate market in the world behind Munich. As Jim pointed out in our call here in the US we had our housing peak in two, thousand, six, two, thousand seven, and then we had what he called a reset, which is basically prices came down significantly candidate and have that slight downturn at home prices, but then they just kept on going up, so it really is different there, so when Jim explain all this to me, the difference in mortgages and the difference in home prices. Frankly he was inclined to say to this guy. You Might WanNa rent for while more and see what happens, but he also had the good advice of okay. What if you buy in prices? Come Down Fifteen percent twenty percent. What if they come down to a point where he upside down? You owe more than the home is worth. Are you okay with that? If. You're okay with that. Maybe it's okay to do that. But it certainly sounds like dicey situation than if someone were telling me like I'm thinking of do this in Dubuque Iowa or something like that. <hes> couple of other differences. In case you're curious about Canada in the US. Your mortgage is portable in Canada south. You Buy A. Get the five year mortgage, but then move get to take the mortgage with you for the next house and <hes> interest is not tax deductible. US Look at you, Robert, broke? Camp Can Canadian real estate experts there you go. Next! Question comes from Chris. I was on twitter the other day and saw that one of your contributors Brian Feroldi tweeted that he doesn't believe in a long list of technical trading terms and then modern portfolio theory. Can you help me understand what not believing an MP? T with mean this? He believed that diversification doesn't reduce risk. Also every financial adviser I've ever talked to his preached empty, so I would love to hear the counterargument. Jason you're not Brian for all the. Question I am not Brian for all the do get the talk of Brian Pretty good bit though. I I must admit I. Don't know what he said here in regard to modern portfolio theory and all of these technical trading arms. But I think I can take a guess. Generally speaking I agree with them, and I think you could sit there and look up the portfolio theory in you know read about it as much as you want. Just go to google modern portfolio theory, and you can dig right in there, but in a nutshell ultimately, what modern portfolio theory is the intention behind it? It's meant to reduce risk while maximizing returns. It assumes that investors don't like risk. They prefer less risky portfolios to riskier ones in order to achieve a certain level of return so right there. I kind of kind of lost me right there because I don't believe that every ever investors risk averse I think some investors have a very. Healthy, appetite for risk, and frankly I would say I got a pretty high tolerance for risk when it comes to investing, made it just because of what I do for a living but I. You know to me I like having that trade off least unhappy. Happy to take some risks there. If I feel like that upside, it's going to be potentially worth. So with modern portfolio theory, it introduces a lot of fancy math in the form of variances and correlations in order to come up with this. Quantifiable, investing strategy that ultimately helps reduce risk while allowing the investor to achieve. Certain returns in. Maybe it works for some not I'm not dismissing it personally I. Don't use it, I don't personally subscribe to it I. Don't need it. I think honestly for us. In a really believe it's extends to to most people in our full universe is that is individual investors I think a more meaningful way to reduce risk. is to just extend your timeline like invest longer. So like Tom Gardner said a number of years back when we were. Working on Motley, fool one basically take your take the time line that you think you want to own any individual stocks you buy shares of starbucks and I plan on owning it for you know five years. Okay, we'll just double it. Cloning it for ten in all of a sudden right there. You've given yourself more time. Time is one of the big advantages we have is individual investors. Money managers don't have that advantage, Wall Street done generally handed abandoned, either, but if you can be patient and just invest in good businesses. That risk really starts to come down over time. There are plenty of studies out there. That show that risk comes down the longer you hold onto those stocks, which into me, just renders modern portfolio, theory, more or less not useful mean on things, not useful for everybody, but it's not useful for me and <hes> based on Chris. Question <hes>. It sounds like a agree with what Brian was saying there. We think I'll add to. That is I agree that risk is really not that much of a consideration if you are saving for retirement. But once you are in retirement man, and just say like you know what the market's not I'm going to extend my time highs in ten years. Because you need to spend money in that situation, I think diversification is important. It's important to have assets that don't always move the same direction at the same time. For some fools. That's just as simple as keeping any money need the next five years in cash, so you're right out any ups and downs, and that can be fine. But I. do think it makes sense to have. A mix of investment so that right now, technology stocks are doing very well, and we hope that continues to do well, but we remember was that happened in two thousand from two thousand to two, and there were down for quite a while anyone who retired in one, thousand, nine, hundred nine, or so it was very happy to have some small caps value maybe a. A little international, some reits to ride out the storm Yeah I think we talk about that often like recognizing where you are as an investor in life, are you in the grow your wealth stage, or are you in the protector stage, because they are two very different strategies, and we're all hopefully going to be in both of them at one point or another right? I personally and still on the grow your wealth stage I. Think we all probably are, but you will at some point get to where you need to focus on protecting the wealth that you've made so that you can then have that money to spend, and that definitely will dictate your investment strategy things that you're invested in and whatnot. Generally speaking I do like the idea for people who are just risk averse and have this notion that investing is just too risky. I mean the fact of the matter is not investing as far away greater risk like not investing. You will never grow your money if you don't the best, so if if if risk is a problem, I think generally speaking. Along the lines of diversification idea that that bros. talking about him, he just invest in invest in SNP index fund is something that just follows the progress and p. you know you're going to be participating in and if you look at that over the over the stretch of time, their five ten twenty thirty years, I mean that trend does go one way. It, but clearly the older you get, the more you need to start focusing on protecting your wealth, and that will change the way you view things. Right next question comes from Alex from Alexandria if I buy Muny bonds from another state in my IRA. Is it still taxable and Alexander with who we have a bond on and we do have a bunch. I know Alex up super excited about having a bunch on in Alexandria to I can't believe I haven't been there. It's like two miles from my house, but we still haven't been oh i. know because there's a global pandemic going on and we. saw. Alyx if we buy me bonds from another state in my IRA is still taxable. Bro, help him out or her or so Muny Barnes. People Invest Immunity bonds because they're free of federal taxes and in many cases. If you're buying bonds issued by the place you live, they might be free of state and local taxes, so that can be doubly triply tax free. That's why people buy 'em. There are some times, however that if you own immune, abound outside of an IRA. Pay Taxes and this surprises some people. There's something called the minimum tax. If you buy immunity bond at a discount, and then it matures at par. If you buy a distress, Muny bond for like you put an eight thousand dollars, and you sell it later for ten thousand dollars as a capital gain. You'll be taxed on that. So, there are some times when you would pay taxes on media. Now, Alex is asking what if it's an IRA? Do I have to worry about paying tax interest. If it comes from another state and the answer is no, you won't have to worry about that. The only thing I would say is. Generally speaking immune bond already has built in tax advantages, so you wouldn't keep it in an IRA, unless there's the example of the stuff I was saying previously like for. It's one of those exceptions when him UNIBOND would result in taxes than you might WanNa keep it an IRA, but generally speaking. If you're going to buy Muny Bond, keep it out of an IRA. Next question comes from Boone. I just did my first. Roth conversion and looked at that old account for the first time in. There was the expected dividend producing fund I remembered, but there was a stock chesapeake energy that I had completely forgotten about since I purchased the stock in two thousand, six fifteen. It's down way down like eight point five percent off the purchase price. What should I do with it now? It's in a tax deferred accounts so I. Don't think the loss is realized until I. Start to pull money out of the account and that might not. Not Be for fifteen years current value of all my shares will be about one percent of the value of the account after the conversion. Do I sell in the very little value? I had left and depend on E. Trade to keep up with lost for me or should I hold on based on the slim chance. The stock will be worth more in the next ten years. Oil Stocks do act unusually on occasion, only oil stocks. Stock everything else makes that usually. Chesapeake has been really. Interesting Story to follow and frankly. I don't I. Don't know that I would look at it today. As a business that I'd WANNA own so typically if I. You know I think it was yet idea. Didn't sound like a position are actively building united investment didn't work out. I mean that that happens to all of us. We don't get them all right. We have a philosophy here at the full. A lot of do we like to? Water flowers and pull the weeds, and that's just a nice way of saying. Add to our winners in to get rid of losers in. This I think is more than likely slated to continue being a loser I mean. Chesapeake has lost a lot of value. In it does sound like based on when you purchased this, these is absolutely busted I mean. There there are all sorts of reasons to sell one of them is if you thesis busted and the reason why you invest in the company is is no longer the case, and I would he probably is the case with Chesapeake so to me like you know, you could sit there and let it go, but but what's the goal trying to get back to even, or are you trying to get back a couple of bucks for me a lot of times? I'll I'll take a little opportunity here and there to just go ahead and pull those weeds sell it. Be Done with it. In even though it's just unique out a little bit value there, you can still take that money and do something more productive with it. So. Yeah T to me. I can't tell you to buy or sell obviously, but I can certainly understand. Selling in this case, but I you know. As as oil and natural gas energy can can turn around. This is going to be one that has a lot of headwinds in in. You might be waiting a very long time <hes> to to get any of this money back. I point out here that I it seems that maybe boone has a slight misunderstanding of how taxes in aries work because he talked about realizing the loss when he takes the money out and trade keeping track of the loss for him, it sounds to me that he thinks that he can write the loss off whence he takes the money out. That may not be the case, but just to be clear. One of the great benefits of an IRA is you don't pay taxes on the gains, interest and dividends from year to year. But. One of the drawbacks is. You can't take a capital loss on that as well so there's really no no way to benefit on your tax return from this loss. Next question comes from Benjamin. You recommend seeing a fee. Only financial adviser for check in every so often I know there is the Garrett planning network and others to help find an advisor. But what questions do you ask? And what answers do you listen for when trying to find one that is worth his or her one hundred fifty to two hundred fifty per hour. So I would say start first with asking yourself some questions. What are you looking for? You could go for the whole launch. Lada where someone is managing your money analyzing retirement plan helping new save and a five twenty nine. Maybe even doing your taxes with some financial planners do help with the state planning, or are you looking for something more targeted? You just want advice about am I saving enough for retirement, or are you close to retirement? You're like I just WanNa make sure that I'm doing right when terms like choosing my Medicare plan and claiming social security at the right time, so first of all just be very clear of what you're looking for. Then if it involves investments in any way, you WanNa, make sure that you find someone who is at least in the general same area philosophically and I say this, because many financial planners are hardcore index. And if you come to them as a motley fool, listener member with a lot of individual stocks. They may say okay. I'll give you some general asset allocation guidance, or they'll say I don't care if you like to pick. Stocks are not my advises, sell the stocks and go to index funds, so you want to make sure that if you're gonNA, ask for any sort of investment. Advice that you wanna find someone who's someone somewhat at least aligned for what you're looking for. Once, you've got that then. Just asked some of the typical stuff. You might expect so credentials certified financial planner. Are they a CPA either their personal financial specialist. How long they've been in the business. There are lots of people who. <hes> have not been in the business very long. Even though they're not young people, a lot of people choose financial planning as a second career, which I think is great, but just because someone may be look like they're in their forties or fifties. Sixties doesn't mean they've been in the business that long, and you WANNA. See if they've worked with someone like you right so if you have. Maybe. You have a large amount of wealth large income huge portfolio. You WanNa make sure that they have experienced with dealing with those issues, but on the flip side to if if you have, are you know middle income, decent size portfolio, but nothing too complicated. You don't WanNa. Go to someone who's used to dealing with someone who's wealthier partially because those people charge a lot more. You want to find someone who's kind of a little more lined up with what you're doing. Then make appointments with three folks. All of them will do get do free. Get acquainted means, and you're just looking for someone who you feel comfortable with. Since, you mentioned Garrett Big Fan of the Gary Planning Network and other is is not for the National Association of Personal Financial Advisers. But Garrett on their website has a how to choose an adviser section. Just Google attitude visor Garrett Planet Network has a great chapter from a dummies book that they wrote about how to choose adviser, and they have a good questionnaire that you can print out in US asking lots of good questions of financial planner. It's tough. Choosing a financial planner like my mom just went through that Bro! Is You know and she didn't really have a lot of options in Boise Idaho. Maybe two and one of them, she I never called her back, and never got back her, and the other one was just so busy just so busy, and just she just never. It's it can be rough. Finding a financial planner can be I. Think what we'll see is one of the consequences of this. Of the coronavirus pandemic. Just, like we are all used to working from home, many financial advisors and financial planners an now working from home. So in what they're doing is they're becoming licensed in more states. So, if you are more comfortable, working with someone over zoom remotely I think you don't have to stick with someone in your area. You can go beyond your locations, but you know some people don't feel comfortable that if if they're going to have someone managing their life savings, they want to be able to meet them in person. That's just a personal choice. All right next question comes from twitter. Is that right from sully what I hear? Okay? I just listened to the episode mentioning Your Weakness Two. Shopping carts and Tj, Maxx that me or you Jason. Accused me. Thoughts on the stock. If I had a war on Amazon, basket would be Costco TJ maxx Home Depot tractor supply. What would be your basket against online retail? That's funny. Well okay, listen I wouldn't have basket against online retail, because online retails where it's at. The whole idea. The whole idea behind the basket approaches to find a long term trend that you feel like the world is headed toward and so the war on cash basket, for example that was always one about people using cash war, <hes> traffic payments now with that said I get the spirit of the question some going to answer it because I do like some of these ideas. And I I would definitely include Costco in their <hes> in Home Depot's well. Home Depot gets a lot of my money. Doesn't, but they have a very loyal fan base of customers that just are happy to renew year in year out. So I love those membership models there, so costco and a Home Depot for sure <hes> you know I'm going to give a little shout at my wife Robin I. Know that she would approve of my adding target to the mixer. She hasn't been raving about targets APP and ordering on the APP the able to go to the store. Just pick it up right there <hes>. I've talked with Ron Gross on more than one occasion about target and how this really has. Become a twenty first century resale right they're doing. They're doing everything online and in physical stores. What they call Alma Channel and then my fourth and I'm GONNA. Take this. You probably aren't expecting this when Alison. I'm GonNa Shock and all you. I'm ready. I'm ready Alta. We're going. Make up my I know my daughter's love. It ugly ugly Mug like this. What do I know about makeup? Tell you what. Get! A House with two daughters and a wife. That's what I know about make. There's a lot of it in an Ulta is a really really good business. They actually have a very nice diversified revenue stream. They've got the salon a`dynamic of the business which encourages people to go there <hes> they do have an online business. They have an augmented reality function there at where you can actually like. Try things on makeup to see how it looks. Mary Dillon just a phenomenal other adults of that's my fourth, their Ulta but they I appreciate the spirit of the question I like the idea I'm not saying this is the basket. I'm not tracking this basket in a not a not backing this basket, but in the spirit of the question if I had to develop. A basket, such as this one I think it'd go with those four. Yeah, I mean I guess you just have to think about what retail out there is something that you would still physically go to. Because the actual retail experience is being in the space is the experience and what you're there for? And I know I mean before Corona virus we I would go to target and just just couldn't believe how much money I had spent from walking through a few of the aisles. TJ Max is just a phenomenal business I mean what they've done through the years. Is really capitalized on the nature of the business, the advantage they have in that treasure hunt kind of nature like you go to TJ Max, maybe not necessarily looking for something, and then you end up finding a lot of things, and it can be a little bit lumping at times, but but generally speaking like management's a very good job of running that business, and they know how to exploit the advantage of experience. I think they're online game. Though I think they could probably get something going with online, and they just have not have not yet and so I. Haven't since Corona Virus for example. I haven't spent a single dollar there, but I continue to still shop at. Home Depot I. Think Yeah! We still shopping at home depot because we're doing. You know you gotta buy lumber somewhere. And I know my grandparents out in my my inlaws out in rural Virginia. They love tractor supply store, but that's not. That's not in <hes> where we live, but. Still New deck at the house there allison. I mean you, can you see? A big exposed beam behind me and some drywall work that needs to happen. Have lots of drywall work that needs to happen now though. Yeah Anyway get to that. All right next question comes from Matthew. I got married to my amazing wife nine days ago in a small Kobe nineteen wedding in our front yard after we postponed it from its original date in April all. It was definitely different, but still very special. My question is in relation to this wonderful event. My salary has been at a level that has allowed me to fund a roth. Ira I love the optionality of it, but after marrying my bad ass, wife are combined. Salaries are now over the limit that would allow me to fund the Roth. IRA does this affect occur immediately? Do I need to now open up a traditional. IRA and begin funding it or do I have until the end of the year. Matthew wants a Roth Bachelor party one last. Well Matthew I have bad news. When it comes to most things in taxes, your status and your age and things like that depends on where you are on the last day of the year, said if you're married on the last day of the year, you were considered married for the whole year. So that means if you contributed started contributing to a Roth IRA for twenty twenty. You need to call up your brokerage. Firm and re characterize that as a traditional. Now don't have any other traditional IRA, as it's very easy to do the back door, Ross which we've talked about before you can just google it or even when you call the brokerage, just say I want to do the backdoor. Roth and they'll tell you what to do. If, you have other traditional IRA as you can still do. It just becomes more complicated and you'll probably pay more taxes. So you, but you may not be totally out of luck and I should say that's only if you have a traditional IRA doesn't matter if your wife has traditional areas. One exception by the way <hes> of of what I just said. In terms of tax status and last day of the year is distributions from retirement accounts before it's age fifty nine and a half, you actually have to be age fifty nine and a half to avoid that ten percent early distribution penalty, unless some of the many exceptions that are out there exist. Right next question comes from Warren Warren Buffett. Maybe I don't know that's why I was thinking. He's asking about coq, so maybe maybe. Once James Opinion on coke. By? Or hold? Wants to now. I'd give buffet night give. Kiesel Warren of the same advice and I would say. For some I'm not buying it. Not Buying it I'm not holding it if I own it. I guess that means sell it. Even Atlanta Georgia person like you i. feel like it's almost sacrilege. I am pretty close to probably not being ever even invited back. But the facts are the facts. Okay, I mean you do have to look at the stock itself has been ain't bad stockton for the last five years. I mean I do understand why when you look at it what they do, I mean they have. Four hundred master brands, and less than fifty percent of them are the big global brands that are actually responsible for almost all of their revenue when I say almost only ninety eight percent, so it's a business. It's very reliant on on. You know a small portfolio of really successful grants. The problem is now. We've always talked about cocoa beans such a great distribution story and that's true. They've got a distribution network. It's just phenomenal, but the problem is now. They're what they're distributing is is being seen as not so good for you in so you're seeing them. Have it into to essentially pivot away from what you know brought them all of the success for all these years. Years in soda and that that's not going to change I. Mean you're always GonNa have people to drink soda? People are not to drinking as much soda going forward in the numbers of just kind of the kind of shown that through that through the quarters in the years of Coca, Cola and Pepsi Pepsi. Has the salty snacks division, which I've always been very. Impressed by I, mean I love a good Cheeto, and so I mean anytime you can throw a bag of those cheetos in my Patriot Amok GonNa, turn it their coq. Interrupting, but I think this is also very important point. You tried the Jalapeno White Cheddar crunchy cheetos. The White Shit or so. I've tried to Jalapeno ones but I've not seen the white Cheddar White Cheddar Jalapeno crunchy cheetos. Don't get the puffy. The poofy ones are not as good, but the crunchy white Cheddar Jalapeno Cheetahs. them by them. They're amazing. I have to back. Pain you. I'll get those next time. I promise I, mean Eh. One. crunchy wants the puffy ones, so that people won't you're not? You're not seeing poopie. Who using poofy Joe Copy? We'll be <hes>. Coca doesn't have that dynamic of their business. They don't have that dynamic to their business, and they've suffered from that Pepsi's Pepsi's outperform coca-cola over the last several years. It's not safe. Pepsi or coke get it back. I'm sure they probably can. But what I am saying is I think there are a lot of better ideas out there, and so I wouldn't be putting new money into Coca Cola and frankly if I did own it. I probably would look at selling it and you know if you've got a beverage company, maybe own starbucks. It seems like the science coming out in support of coffee, right? It's coming and telling you that these sodas. They're gonNA. Make you fat. Coffee, it could extend your life. It could help you live longer. SMART Mexican looking this a starbucks as well is. That sounds like study from the copy roasters of America. Do! Something that Chris Hill sent me the other day. that. We sleep at night. I'm glad I've been drinking coffee as long as I have God knows what I would look like otherwise. You're a good looking man. Rick. good-looking next question comes from. A. I'm trying to save money for my kid's College. Fund while the five nine is a great option. I'm limited to investing in mutual funds, which means at best I'm going to get what the market gets assuming I do some sort of low cost index fund and I be a capital F. Fool investor have been doing much better than the market in the last three years of being a member of. Of Stock Advisor Enroll breakers, even during this pandemic mess by listening to every full podcast and following David and Tom's and yours and every one else's in the full universe. My portfolio of about one hundred stocks is up here today. Thirty percent to the market's down five percent as of day as of today weighed down by three sluggish five to nine plants that are also down five percent each. I feel like throwing away money by using the five to nine, and not being allowed to select my own great companies in which to invest. What's more, my understanding is that the five to nine does not count as an asset for the kid when applying for student aid, but the coverdale does. So I come to you with a simple question. Can I have my cake and eat it, too? What if I wanted to use the coverdell to buy individual stocks? Until the child is nearing college? At which point I then converted to a five to nine. This allows me to get better returns and avoid it being an asset for financial aid and get the favorable tax benefit. So, chose this question, because first of all Dune does a good job explaining the benefits of the coverdell over the five twenty nine, you can buy individual stocks. You can buy and sell them all day long. We recommend that, but you can. Whereas with the five twenty nine, you can only make two changes to the investments a year, and it's all mutual funds. So. That's you did a good job of explaining that. I will point out with the coverdell. It's gotta low contribution limit of only two thousand dollars a year, so for some people save more for college, but they can max out to cover it out, but then put the rest in a five twenty nine. One thing that doomed does not have quite right. Is The financial aid treatment the financial aid treatment? Coverdale's and five twenty nine is identical. They're treated as assets of the parent, not the kid that is favourable from a financial aid perspective. It's not negligible doesn't mean it doesn't have any effect on financial aid, but it's better than an asset that is owned. By the kid. He can. Transfer money from the Coverdell to the five twenty nine. If for some reason, he decides to do that, but you can't transfer it. The other way around so were convinced to try out the covered. You have money in a five twenty nine. You can't move it from the five twenty nine. To the coverdale. What other interesting thing that he pointed out is that he is doing very well with his investments, and he owns about one hundred stocks. We get this question a lot. Either on the show, or on the full live that we run every day for members of full services, and that is how many stocks should I own, and if I owned too many are not just owning index fund watering down my returns, but here's an example if someone owns a one hundred stocks is still crushing the market. Idol last question comes from Cameron thoughts on the valuation of Stone Co in light of the corona virus for a fragile country like Brazil. This could be the tipping point after so many other headwinds. But how does that affect stone? coz Business Jason I. Don't even know what Stone Co is. What is still business? Yes, don't Coz a payments company that's focused on Latin American markets in Brazil and particular in so <hes>. I guess it could be. Draw you can draw a parallel to to a with square through pay pal at, but generally speaking I mean it's payments. Company focused on Latin America. Primarily Brazil. Is the big money making market kind of like Marco Libra, they're. In I, I, it's a it's. A NEAT opportunity, <unk> gained a lot of headline recently, when and it was, it was seen that Berkshire hathaway. Warren Buffett's company Berkshire hathaway taken a five percent position in the company, which is pretty considerable <hes> i. Think in the near term. You have to acknowledge the fact that. They're gonNA, be some real headwinds in in Brazil particularly because of the pandemic I mean. The flip side of that is role in same boat kind of in that regard. The entire world is dealing with it, so it's not specifically you know it's. It's not particular to one economy or one country some. To get hit harder than others I, do feel like Brazil. Be at a place where they can recover from this given <hes>. You know some of the other businesses in the area. I mean that that that I think is. Who knows ultimately how? That's GONNA shake, but generally speaking. I think the move away from cash towards cashless. Transactions in and financial software that's not stopping if anything, this hastens that which which is what I think, Cameron's talking about there and <hes> for a company like stone. Co, neither are other companies in the space pags bureau in roquetas libra to <hes>, but you know moving money around is a big big market opportunity, and there's nothing that says they won't be able to expand well beyond the Latin American markets, too, so I I'd say cautiously optimistic I mean I

Molly Jason allison Darren
July Mailbag with Jason Moser

Motley Fool Answers

44:21 min | 3 months ago

July Mailbag with Jason Moser

"The. Multiple answers I'm out Southwick and I'm joined, is always by broke camp. Personal Finance expert here at the Motley Fool. Hey, BRO, well! Hello Alison. It's the July mailbag where we answer your questions and this month it's with the help of multiple analyst Jason Moser. Should you buy a house now? What is modern portfolio theory and also here Jason's thoughts on a lot of stocks all that and more on this week's episode of Molly fully answers. Jason thanks coming back. you know I mean i. told you you invite me. I'M GONNA. Be here every single time. Thanks for having me back. I mean we appreciate it because we know you're a busy man, and so we do appreciate that you carve out time for us in our little show, don't. Always always make time for those important people in my life rule number one make time for allison and Bro I love. It sounds like a good one to me. Everybody wins. All right well, I guess we should just get into it, so the first question comes from Darren I've subscribed to the full for over a year and I'm really pleased with the service. I would like to know your thoughts about my holdings in Shop Affi- I've bought several times over the last three years, and it's now over thirty five percent of my portfolio and I. Don't know if I should continue holding or trimmed down. What would you advise a good problem to have I was gonna say that exact same thing? That's a good problem have? In a very glad, you have subscribed to our services in your really pleased. That's that's what we aim to to do. We aim to please help you make money and so yeah. This is one of those situations that we will find ourselves in from time to time as investors. A nice problem to have but something you do need to address at some point because it is going to be a little bit different for everybody. In so coming from the perspective of I, also own shop, a Fi stock in it's it's a wonderful investment. It certainly is taking up a bigger. Part of my portfolio a not at thirty five percent where you are. I think for me. It really does boil down to. That sleeping at night test in other words, you need to be able to go to sleep at night without worrying about this kind of stuff, and if you feel like shop, a Fi represents too much. Of your portfolio if you feel like you're overly allocated their, then, you may need to consider pulling it back a little, but now I mean it's. It's I think it's always important. Note you know. It's a big difference between building up a position buying a position to make this size to make this type of allocation in your portfolio. It's another thing entirely to have position grow into beat into becoming that size i. mean that that is that is in a little bit of a different dynamic there, so people all the different ways, some sometimes folks will, they will just sort of looking at it from the house money, concept or you. You just sell enough shares to recoup your initial investment, and then you let the rest of it go. Some people are perfectly fine with thirty five percent. Some people are not. They want a pair back so i. do think you need to kind of figure out what helps you sleep at night I do think that shop by a great business. I think the biggest risk in only shop, if I right now is valuation, just because it's dominating, it's space, but it's not making any money yet, and it's probably going to be a little while until they do so that valuation risk is there, but ultimately yeah I think determine. Where you feel most comfortable with it, and if you feel like you need to put a little bit of that money off the table, and he thirty five percents a lot, certainly very understandable. If they've said something you need to do if you do decide to pair it back a little bit. You've made multiple purchases, so you can identify the shares to sell to manage the tax consequence if this isn't a brokerage account and not an IRA. All right next question comes from Steven. If you are forced into unemployment, you are paying federal income taxes on unemployment payments are not contributing to social security nor to Medicare. How does this affect your future calculation of social security benefits and can one contribute to the social security fund during unemployment to mitigate any adverse effects on benefits, it is a little bit adding insult to injury, but you do owe federal income taxes on your unemployment benefits, and if your state charges has a state income tax, you probably have to pay state tax on that, although there are a handful of states that exempt unemployment benefits, so that's good news. And by the way you, you could have taxes withheld from your unemployment benefits you file. This form called form w four V. if you want, they withhold ten percent, or you can do quarterly estimated payments if you wanNA avoid that big tax bill at the end of the year, but if you're strapped for cash is probably just better to get the money now worried about your taxes later Eh. Stephen notes out. You do not pay payroll taxes. Those are the things that go into social security and Medicare so. So. It could result in a lower social security benefit, however, keep in mind that social security is based on your thirty five highest earning years, so if you enter the workforce at say twenty two and you work until you're mid to late sixties. That's more than forty years where the working so hopefully. If you miss out, if this year is not so good somewhere among those other forty, five or so years, you've had thirty five really good year so that this year won't be that big of a deal. So it probably will be okay. And then to address the last question. Unfortunately, no, you cannot make voluntary contributions to social security. There is at least one academic working paper out there. That suggested that people could buy into social security by like extra credits as opposed to contributing to your 401k, but so far that has not been passed by Congress I had an ex. Question comes from Sam. I heard to stocks discussed on another full podcast. When I read articles about them, it mentions they are thinly traded. I have two questions one I'm sure my position would still be quite small so I think I'd still be able to get in and out, but are there other things I should think about when it's a thinly traded stock and question number two. Is there a certain amount of? Daily volume you like to look for when considering a stock foreign investment. What volume do you want to see to not be? Quote thinly traded stock. Yes very good question in thinly traded stock just refers to the either the amount of shares or the dollar volume of shares that would trade on any given. Market Day and so. The. Thinly traded stock. The the problem is that you may not necessarily able to buy and or sell at the prices. You necessarily think you might be able to in other words when you look at a stock's price and you're looking through the. What what's going on throughout the day on the market, you'll see that did ask spread, which is essentially the bid. Ask spread is it's what someone's willing to pay for the stock versus what someone is asking to be paid for the stock? Because you know you have a buyer and a seller on on in every transaction they're. Normally most cases, these business business bread is very tiny, the couple of pennies maybe for most stocks because they're. They're heavily traded right there. There are plenty of dollar volume. But there are a lot of smaller companies small caps in particular in in you know a micro cap, specifically that don't necessarily meet these kinds of thresholds, and so you definitely have to be aware of that now I'll go back in time just a little bit, too. When we were running the service here at the fool called million dollar portfolios Roman Romani portfolio that we help manage members, and it was never really a problem, but we did have a condition in there. We were always looking for at least ten million dollars in average. Trading volume total daily volume now understand I'm not saying the number of shares saying the amount of money so basically shares times price, but we're always looking for at least ten million dollars. That wasn't set in stone it. It was an idea for us. It wasn't ever really a problem because we had a very diversified portfolio with a number of different types of companies, but when you're looking for smaller companies, you would've just keep that in mind that did ask. Spread is is something that just because it says the stock is twenty dollars. That doesn't necessarily mean you'll pay twenty dollars if there is a a big spread there between the bid, and the ask in so I think whenever you're considering stocks that have any lighter trading volume or thinly traded stock. Just be sure to use limit orders. Limit Orders of let us stipulate the price that you are willing to pay for or that you're willing to. To accept a if you're selling a limit, order is just a really good way to protect yourself from any unwanted surprise thinly traded stocks. You might not always necessarily get them when you want them, so you might have to lead that limited are in there for a little while, but but a limit order is a great way to protect you from any unwanted surprises. Next question comes from Randall. I'm in my late thirties now, but earlier in my life. I was very very bad with my money. Collection Calls Welfare and bankruptcy or not strangers to me. I've been at the bottom then I met the love of my life, and she convinced me to turn things around ten, and a half years later and I have done a complete one eighty, I took control of our finances rebuilt my credit and started investing and listening to all you find folks all. I opened it investing account with the goal of saving and building enough a down payment on a home. I'm happy to say we've now reached that goal. I recently sold at a profit because I didn't want that. Money tied up in the market. If we are close to needing it for a house, but now that we're here, I'm not sure what to do. We currently rent a basement apartment and our neighbors general living situation are less than ideal to put it mildly. So, we're champing at the bit to jump into the housing market that being said the experts have been calling for a drop in the housing market for a while, and that was before the pandemic hit now I'm worried that if we buy right away a year or two or three from now, interest rates will spike, and we could be put in a difficult situation. I live near Toronto. Canada or the housing market is already highly inflated in relation to the rest of the country should I be worried? While Randall first of all congrats on turning your financial life around love hearing success stories like that so good job on that. So I'll start with my standard answer with the rent versus buy decision, and that is just pull up spreadsheet and compare the all in cost of renting, including what you could earn on the money that use for down payment versus the all in cost of buying including the opportunity cost of putting down payment as opposed to having invested as well as insurance and taxes and maintenance, and all that stuff and project, where you might be in five to ten years based on various scenarios on what happens to stocks, if you. Rent an invest the down payment versus what happens to? What you'd look like depending on where home prices go. Generally speaking. If mortgage rates go up, that could way down on real estate prices we did see mortgage rates. Go Up for a bit a few years ago, but the housing market did find, but you could certainly envision a scenario where rates went much much higher, making houses, much less affordable and prices would have to adjust. But I don't expect that to happen anytime soon. I think we're. GonNa have low rates for awhile, but beyond that I don't know I've given up trying to predict where interest rates are going or even paying attention to people who try to predict where interest rates are going, so who knows? That said since you live in Canada. I thought I'd check. In where rates are these days and I and I got a brief reminder that things are actually different in Canada so I did a little bit of research. And then realize I had reach out to someone who knows, I reached out to Canadian Motley fool analysts Jim Gillies, and he had some thoughts so first of all just for you non-canadians out there. It is really different so in America. We get this thirty year mortgage than we have the same payment for thirty years. It's fixed. They don't have that in Canada. What's the most common is a twenty five year? But only the first few years or fixed. And then adjusts so in that context you can understand why Randall is worried about interest rates going up because over the next depending on which alone he gets the most popular is a five year fixed, and then you basically have to go get a new loan probably. So that put that in context, a little more, but also Toronto, really is crazy expensive. Vs from the end of last year that put it as the most overvalued real estate market in the world behind Munich. As Jim pointed out in our call here in the US we had our housing peak in two, thousand, six, two, thousand seven, and then we had what he called a reset, which is basically prices came down significantly candidate and have that slight downturn at home prices, but then they just kept on going up, so it really is different there, so when Jim explain all this to me, the difference in mortgages and the difference in home prices. Frankly he was inclined to say to this guy. You Might WanNa rent for while more and see what happens, but he also had the good advice of okay. What if you buy in prices? Come Down Fifteen percent twenty percent. What if they come down to a point where he upside down? You owe more than the home is worth. Are you okay with that? If. You're okay with that. Maybe it's okay to do that. But it certainly sounds like dicey situation than if someone were telling me like I'm thinking of do this in Dubuque Iowa or something like that. couple of other differences. In case you're curious about Canada in the US. Your mortgage is portable in Canada south. You Buy A. Get the five year mortgage, but then move get to take the mortgage with you for the next house and interest is not tax deductible. US Look at you, Robert, broke? Camp Can Canadian real estate experts there you go. Next! Question comes from Chris. I was on twitter the other day and saw that one of your contributors Brian Feroldi tweeted that he doesn't believe in a long list of technical trading terms and then modern portfolio theory. Can you help me understand what not believing an MP? T with mean this? He believed that diversification doesn't reduce risk. Also every financial adviser I've ever talked to his preached empty, so I would love to hear the counterargument. Jason you're not Brian for all the. Question I am not Brian for all the do get the talk of Brian Pretty good bit though. I I must admit I. Don't know what he said here in regard to modern portfolio theory and all of these technical trading arms. But I think I can take a guess. Generally speaking I agree with them, and I think you could sit there and look up the portfolio theory in you know read about it as much as you want. Just go to google modern portfolio theory, and you can dig right in there, but in a nutshell ultimately, what modern portfolio theory is the intention behind it? It's meant to reduce risk while maximizing returns. It assumes that investors don't like risk. They prefer less risky portfolios to riskier ones in order to achieve a certain level of return so right there. I kind of kind of lost me right there because I don't believe that every ever investors risk averse I think some investors have a very. Healthy, appetite for risk, and frankly I would say I got a pretty high tolerance for risk when it comes to investing, made it just because of what I do for a living but I. You know to me I like having that trade off least unhappy. Happy to take some risks there. If I feel like that upside, it's going to be potentially worth. So with modern portfolio theory, it introduces a lot of fancy math in the form of variances and correlations in order to come up with this. Quantifiable, investing strategy that ultimately helps reduce risk while allowing the investor to achieve. Certain returns in. Maybe it works for some not I'm not dismissing it personally I. Don't use it, I don't personally subscribe to it I. Don't need it. I think honestly for us. In a really believe it's extends to to most people in our full universe is that is individual investors I think a more meaningful way to reduce risk. is to just extend your timeline like invest longer. So like Tom Gardner said a number of years back when we were. Working on Motley, fool one basically take your take the time line that you think you want to own any individual stocks you buy shares of starbucks and I plan on owning it for you know five years. Okay, we'll just double it. Cloning it for ten in all of a sudden right there. You've given yourself more time. Time is one of the big advantages we have is individual investors. Money managers don't have that advantage, Wall Street done generally handed abandoned, either, but if you can be patient and just invest in good businesses. That risk really starts to come down over time. There are plenty of studies out there. That show that risk comes down the longer you hold onto those stocks, which into me, just renders modern portfolio, theory, more or less not useful mean on things, not useful for everybody, but it's not useful for me and based on Chris. Question It sounds like a agree with what Brian was saying there. We think I'll add to. That is I agree that risk is really not that much of a consideration if you are saving for retirement. But once you are in retirement man, and just say like you know what the market's not I'm going to extend my time highs in ten years. Because you need to spend money in that situation, I think diversification is important. It's important to have assets that don't always move the same direction at the same time. For some fools. That's just as simple as keeping any money need the next five years in cash, so you're right out any ups and downs, and that can be fine. But I. do think it makes sense to have. A mix of investment so that right now, technology stocks are doing very well, and we hope that continues to do well, but we remember was that happened in two thousand from two thousand to two, and there were down for quite a while anyone who retired in one, thousand, nine, hundred nine, or so it was very happy to have some small caps value maybe a. A little international, some reits to ride out the storm Yeah I think we talk about that often like recognizing where you are as an investor in life, are you in the grow your wealth stage, or are you in the protector stage, because they are two very different strategies, and we're all hopefully going to be in both of them at one point or another right? I personally and still on the grow your wealth stage I. Think we all probably are, but you will at some point get to where you need to focus on protecting the wealth that you've made so that you can then have that money to spend, and that definitely will dictate your investment strategy things that you're invested in and whatnot. Generally speaking I do like the idea for people who are just risk averse and have this notion that investing is just too risky. I mean the fact of the matter is not investing as far away greater risk like not investing. You will never grow your money if you don't the best, so if if if risk is a problem, I think generally speaking. Along the lines of diversification idea that that bros. talking about him, he just invest in invest in SNP index fund is something that just follows the progress and p. you know you're going to be participating in and if you look at that over the over the stretch of time, their five ten twenty thirty years, I mean that trend does go one way. It, but clearly the older you get, the more you need to start focusing on protecting your wealth, and that will change the way you view things. Right next question comes from Alex from Alexandria if I buy Muny bonds from another state in my IRA. Is it still taxable and Alexander with who we have a bond on and we do have a bunch. I know Alex up super excited about having a bunch on in Alexandria to I can't believe I haven't been there. It's like two miles from my house, but we still haven't been oh i. know because there's a global pandemic going on and we. saw. Alyx if we buy me bonds from another state in my IRA is still taxable. Bro, help him out or her or so Muny Barnes. People Invest Immunity bonds because they're free of federal taxes and in many cases. If you're buying bonds issued by the place you live, they might be free of state and local taxes, so that can be doubly triply tax free. That's why people buy 'em. There are some times, however that if you own immune, abound outside of an IRA. Pay Taxes and this surprises some people. There's something called the minimum tax. If you buy immunity bond at a discount, and then it matures at par. If you buy a distress, Muny bond for like you put an eight thousand dollars, and you sell it later for ten thousand dollars as a capital gain. You'll be taxed on that. So, there are some times when you would pay taxes on media. Now, Alex is asking what if it's an IRA? Do I have to worry about paying tax interest. If it comes from another state and the answer is no, you won't have to worry about that. The only thing I would say is. Generally speaking immune bond already has built in tax advantages, so you wouldn't keep it in an IRA, unless there's the example of the stuff I was saying previously like for. It's one of those exceptions when him UNIBOND would result in taxes than you might WanNa keep it an IRA, but generally speaking. If you're going to buy Muny Bond, keep it out of an IRA. Next question comes from Boone. I just did my first. Roth conversion and looked at that old account for the first time in. There was the expected dividend producing fund I remembered, but there was a stock chesapeake energy that I had completely forgotten about since I purchased the stock in two thousand, six fifteen. It's down way down like eight point five percent off the purchase price. What should I do with it now? It's in a tax deferred accounts so I. Don't think the loss is realized until I. Start to pull money out of the account and that might not. Not Be for fifteen years current value of all my shares will be about one percent of the value of the account after the conversion. Do I sell in the very little value? I had left and depend on E. Trade to keep up with lost for me or should I hold on based on the slim chance. The stock will be worth more in the next ten years. Oil Stocks do act unusually on occasion, only oil stocks. Stock everything else makes that usually. Chesapeake has been really. Interesting Story to follow and frankly. I don't I. Don't know that I would look at it today. As a business that I'd WANNA own so typically if I. You know I think it was yet idea. Didn't sound like a position are actively building united investment didn't work out. I mean that that happens to all of us. We don't get them all right. We have a philosophy here at the full. A lot of do we like to? Water flowers and pull the weeds, and that's just a nice way of saying. Add to our winners in to get rid of losers in. This I think is more than likely slated to continue being a loser I mean. Chesapeake has lost a lot of value. In it does sound like based on when you purchased this, these is absolutely busted I mean. There there are all sorts of reasons to sell one of them is if you thesis busted and the reason why you invest in the company is is no longer the case, and I would he probably is the case with Chesapeake so to me like you know, you could sit there and let it go, but but what's the goal trying to get back to even, or are you trying to get back a couple of bucks for me a lot of times? I'll I'll take a little opportunity here and there to just go ahead and pull those weeds sell it. Be Done with it. In even though it's just unique out a little bit value there, you can still take that money and do something more productive with it. So. Yeah T to me. I can't tell you to buy or sell obviously, but I can certainly understand. Selling in this case, but I you know. As as oil and natural gas energy can can turn around. This is going to be one that has a lot of headwinds in in. You might be waiting a very long time to to get any of this money back. I point out here that I it seems that maybe boone has a slight misunderstanding of how taxes in aries work because he talked about realizing the loss when he takes the money out and trade keeping track of the loss for him, it sounds to me that he thinks that he can write the loss off whence he takes the money out. That may not be the case, but just to be clear. One of the great benefits of an IRA is you don't pay taxes on the gains, interest and dividends from year to year. But. One of the drawbacks is. You can't take a capital loss on that as well so there's really no no way to benefit on your tax return from this loss. Next question comes from Benjamin. You recommend seeing a fee. Only financial adviser for check in every so often I know there is the Garrett planning network and others to help find an advisor. But what questions do you ask? And what answers do you listen for when trying to find one that is worth his or her one hundred fifty to two hundred fifty per hour. So I would say start first with asking yourself some questions. What are you looking for? You could go for the whole launch. Lada where someone is managing your money analyzing retirement plan helping new save and a five twenty nine. Maybe even doing your taxes with some financial planners do help with the state planning, or are you looking for something more targeted? You just want advice about am I saving enough for retirement, or are you close to retirement? You're like I just WanNa make sure that I'm doing right when terms like choosing my Medicare plan and claiming social security at the right time, so first of all just be very clear of what you're looking for. Then if it involves investments in any way, you WanNa, make sure that you find someone who is at least in the general same area philosophically and I say this, because many financial planners are hardcore index. And if you come to them as a motley fool, listener member with a lot of individual stocks. They may say okay. I'll give you some general asset allocation guidance, or they'll say I don't care if you like to pick. Stocks are not my advises, sell the stocks and go to index funds, so you want to make sure that if you're gonNA, ask for any sort of investment. Advice that you wanna find someone who's someone somewhat at least aligned for what you're looking for. Once, you've got that then. Just asked some of the typical stuff. You might expect so credentials certified financial planner. Are they a CPA either their personal financial specialist. How long they've been in the business. There are lots of people who. have not been in the business very long. Even though they're not young people, a lot of people choose financial planning as a second career, which I think is great, but just because someone may be look like they're in their forties or fifties. Sixties doesn't mean they've been in the business that long, and you WANNA. See if they've worked with someone like you right so if you have. Maybe. You have a large amount of wealth large income huge portfolio. You WanNa make sure that they have experienced with dealing with those issues, but on the flip side to if if you have, are you know middle income, decent size portfolio, but nothing too complicated. You don't WanNa. Go to someone who's used to dealing with someone who's wealthier partially because those people charge a lot more. You want to find someone who's kind of a little more lined up with what you're doing. Then make appointments with three folks. All of them will do get do free. Get acquainted means, and you're just looking for someone who you feel comfortable with. Since, you mentioned Garrett Big Fan of the Gary Planning Network and other is is not for the National Association of Personal Financial Advisers. But Garrett on their website has a how to choose an adviser section. Just Google attitude visor Garrett Planet Network has a great chapter from a dummies book that they wrote about how to choose adviser, and they have a good questionnaire that you can print out in US asking lots of good questions of financial planner. It's tough. Choosing a financial planner like my mom just went through that Bro! Is You know and she didn't really have a lot of options in Boise Idaho. Maybe two and one of them, she I never called her back, and never got back her, and the other one was just so busy just so busy, and just she just never. It's it can be rough. Finding a financial planner can be I. Think what we'll see is one of the consequences of this. Of the coronavirus pandemic. Just, like we are all used to working from home, many financial advisors and financial planners an now working from home. So in what they're doing is they're becoming licensed in more states. So, if you are more comfortable, working with someone over zoom remotely I think you don't have to stick with someone in your area. You can go beyond your locations, but you know some people don't feel comfortable that if if they're going to have someone managing their life savings, they want to be able to meet them in person. That's just a personal choice. All right next question comes from twitter. Is that right from sully what I hear? Okay? I just listened to the episode mentioning Your Weakness Two. Shopping carts and Tj, Maxx that me or you Jason. Accused me. Thoughts on the stock. If I had a war on Amazon, basket would be Costco TJ maxx Home Depot tractor supply. What would be your basket against online retail? That's funny. Well okay, listen I wouldn't have basket against online retail, because online retails where it's at. The whole idea. The whole idea behind the basket approaches to find a long term trend that you feel like the world is headed toward and so the war on cash basket, for example that was always one about people using cash war, traffic payments now with that said I get the spirit of the question some going to answer it because I do like some of these ideas. And I I would definitely include Costco in their in Home Depot's well. Home Depot gets a lot of my money. Doesn't, but they have a very loyal fan base of customers that just are happy to renew year in year out. So I love those membership models there, so costco and a Home Depot for sure you know I'm going to give a little shout at my wife Robin I. Know that she would approve of my adding target to the mixer. She hasn't been raving about targets APP and ordering on the APP the able to go to the store. Just pick it up right there I've talked with Ron Gross on more than one occasion about target and how this really has. Become a twenty first century resale right they're doing. They're doing everything online and in physical stores. What they call Alma Channel and then my fourth and I'm GONNA. Take this. You probably aren't expecting this when Alison. I'm GonNa Shock and all you. I'm ready. I'm ready Alta. We're going. Make up my I know my daughter's love. It ugly ugly Mug like this. What do I know about makeup? Tell you what. Get! A House with two daughters and a wife. That's what I know about make. There's a lot of it in an Ulta is a really really good business. They actually have a very nice diversified revenue stream. They've got the salon a`dynamic of the business which encourages people to go there they do have an online business. They have an augmented reality function there at where you can actually like. Try things on makeup to see how it looks. Mary Dillon just a phenomenal other adults of that's my fourth, their Ulta but they I appreciate the spirit of the question I like the idea I'm not saying this is the basket. I'm not tracking this basket in a not a not backing this basket, but in the spirit of the question if I had to develop. A basket, such as this one I think it'd go with those four. Yeah, I mean I guess you just have to think about what retail out there is something that you would still physically go to. Because the actual retail experience is being in the space is the experience and what you're there for? And I know I mean before Corona virus we I would go to target and just just couldn't believe how much money I had spent from walking through a few of the aisles. TJ Max is just a phenomenal business I mean what they've done through the years. Is really capitalized on the nature of the business, the advantage they have in that treasure hunt kind of nature like you go to TJ Max, maybe not necessarily looking for something, and then you end up finding a lot of things, and it can be a little bit lumping at times, but but generally speaking like management's a very good job of running that business, and they know how to exploit the advantage of experience. I think they're online game. Though I think they could probably get something going with online, and they just have not have not yet and so I. Haven't since Corona Virus for example. I haven't spent a single dollar there, but I continue to still shop at. Home Depot I. Think Yeah! We still shopping at home depot because we're doing. You know you gotta buy lumber somewhere. And I know my grandparents out in my my inlaws out in rural Virginia. They love tractor supply store, but that's not. That's not in where we live, but. Still New deck at the house there allison. I mean you, can you see? A big exposed beam behind me and some drywall work that needs to happen. Have lots of drywall work that needs to happen now though. Yeah Anyway get to that. All right next question comes from Matthew. I got married to my amazing wife nine days ago in a small Kobe nineteen wedding in our front yard after we postponed it from its original date in April all. It was definitely different, but still very special. My question is in relation to this wonderful event. My salary has been at a level that has allowed me to fund a roth. Ira I love the optionality of it, but after marrying my bad ass, wife are combined. Salaries are now over the limit that would allow me to fund the Roth. IRA does this affect occur immediately? Do I need to now open up a traditional. IRA and begin funding it or do I have until the end of the year. Matthew wants a Roth Bachelor party one last. Well Matthew I have bad news. When it comes to most things in taxes, your status and your age and things like that depends on where you are on the last day of the year, said if you're married on the last day of the year, you were considered married for the whole year. So that means if you contributed started contributing to a Roth IRA for twenty twenty. You need to call up your brokerage. Firm and re characterize that as a traditional. Now don't have any other traditional IRA, as it's very easy to do the back door, Ross which we've talked about before you can just google it or even when you call the brokerage, just say I want to do the backdoor. Roth and they'll tell you what to do. If, you have other traditional IRA as you can still do. It just becomes more complicated and you'll probably pay more taxes. So you, but you may not be totally out of luck and I should say that's only if you have a traditional IRA doesn't matter if your wife has traditional areas. One exception by the way of of what I just said. In terms of tax status and last day of the year is distributions from retirement accounts before it's age fifty nine and a half, you actually have to be age fifty nine and a half to avoid that ten percent early distribution penalty, unless some of the many exceptions that are out there exist. Right next question comes from Warren Warren Buffett. Maybe I don't know that's why I was thinking. He's asking about coq, so maybe maybe. Once James Opinion on coke. By? Or hold? Wants to now. I'd give buffet night give. Kiesel Warren of the same advice and I would say. For some I'm not buying it. Not Buying it I'm not holding it if I own it. I guess that means sell it. Even Atlanta Georgia person like you i. feel like it's almost sacrilege. I am pretty close to probably not being ever even invited back. But the facts are the facts. Okay, I mean you do have to look at the stock itself has been ain't bad stockton for the last five years. I mean I do understand why when you look at it what they do, I mean they have. Four hundred master brands, and less than fifty percent of them are the big global brands that are actually responsible for almost all of their revenue when I say almost only ninety eight percent, so it's a business. It's very reliant on on. You know a small portfolio of really successful grants. The problem is now. We've always talked about cocoa beans such a great distribution story and that's true. They've got a distribution network. It's just phenomenal, but the problem is now. They're what they're distributing is is being seen as not so good for you in so you're seeing them. Have it into to essentially pivot away from what you know brought them all of the success for all these years. Years in soda and that that's not going to change I. Mean you're always GonNa have people to drink soda? People are not to drinking as much soda going forward in the numbers of just kind of the kind of shown that through that through the quarters in the years of Coca, Cola and Pepsi Pepsi. Has the salty snacks division, which I've always been very. Impressed by I, mean I love a good Cheeto, and so I mean anytime you can throw a bag of those cheetos in my Patriot Amok GonNa, turn it their coq. Interrupting, but I think this is also very important point. You tried the Jalapeno White Cheddar crunchy cheetos. The White Shit or so. I've tried to Jalapeno ones but I've not seen the white Cheddar White Cheddar Jalapeno crunchy cheetos. Don't get the puffy. The poofy ones are not as good, but the crunchy white Cheddar Jalapeno Cheetahs. them by them. They're amazing. I have to back. Pain you. I'll get those next time. I promise I, mean Eh. One. crunchy wants the puffy ones, so that people won't you're not? You're not seeing poopie. Who using poofy Joe Copy? We'll be Coca doesn't have that dynamic of their business. They don't have that dynamic to their business, and they've suffered from that Pepsi's Pepsi's outperform coca-cola over the last several years. It's not safe. Pepsi or coke get it back. I'm sure they probably can. But what I am saying is I think there are a lot of better ideas out there, and so I wouldn't be putting new money into Coca Cola and frankly if I did own it. I probably would look at selling it and you know if you've got a beverage company, maybe own starbucks. It seems like the science coming out in support of coffee, right? It's coming and telling you that these sodas. They're gonNA. Make you fat. Coffee, it could extend your life. It could help you live longer. SMART Mexican looking this a starbucks as well is. That sounds like study from the copy roasters of America. Do! Something that Chris Hill sent me the other day. that. We sleep at night. I'm glad I've been drinking coffee as long as I have God knows what I would look like otherwise. You're a good looking man. Rick. good-looking next question comes from. A. I'm trying to save money for my kid's College. Fund while the five nine is a great option. I'm limited to investing in mutual funds, which means at best I'm going to get what the market gets assuming I do some sort of low cost index fund and I be a capital F. Fool investor have been doing much better than the market in the last three years of being a member of. Of Stock Advisor Enroll breakers, even during this pandemic mess by listening to every full podcast and following David and Tom's and yours and every one else's in the full universe. My portfolio of about one hundred stocks is up here today. Thirty percent to the market's down five percent as of day as of today weighed down by three sluggish five to nine plants that are also down five percent each. I feel like throwing away money by using the five to nine, and not being allowed to select my own great companies in which to invest. What's more, my understanding is that the five to nine does not count as an asset for the kid when applying for student aid, but the coverdale does. So I come to you with a simple question. Can I have my cake and eat it, too? What if I wanted to use the coverdell to buy individual stocks? Until the child is nearing college? At which point I then converted to a five to nine. This allows me to get better returns and avoid it being an asset for financial aid and get the favorable tax benefit. So, chose this question, because first of all Dune does a good job explaining the benefits of the coverdell over the five twenty nine, you can buy individual stocks. You can buy and sell them all day long. We recommend that, but you can. Whereas with the five twenty nine, you can only make two changes to the investments a year, and it's all mutual funds. So. That's you did a good job of explaining that. I will point out with the coverdell. It's gotta low contribution limit of only two thousand dollars a year, so for some people save more for college, but they can max out to cover it out, but then put the rest in a five twenty nine. One thing that doomed does not have quite right. Is The financial aid treatment the financial aid treatment? Coverdale's and five twenty nine is identical. They're treated as assets of the parent, not the kid that is favourable from a financial aid perspective. It's not negligible doesn't mean it doesn't have any effect on financial aid, but it's better than an asset that is owned. By the kid. He can. Transfer money from the Coverdell to the five twenty nine. If for some reason, he decides to do that, but you can't transfer it. The other way around so were convinced to try out the covered. You have money in a five twenty nine. You can't move it from the five twenty nine. To the coverdale. What other interesting thing that he pointed out is that he is doing very well with his investments, and he owns about one hundred stocks. We get this question a lot. Either on the show, or on the full live that we run every day for members of full services, and that is how many stocks should I own, and if I owned too many are not just owning index fund watering down my returns, but here's an example if someone owns a one hundred stocks is still crushing the market. Idol last question comes from Cameron thoughts on the valuation of Stone Co in light of the corona virus for a fragile country like Brazil. This could be the tipping point after so many other headwinds. But how does that affect stone? coz Business Jason I. Don't even know what Stone Co is. What is still business? Yes, don't Coz a payments company that's focused on Latin American markets in Brazil and particular in so I guess it could be. Draw you can draw a parallel to to a with square through pay pal at, but generally speaking I mean it's payments. Company focused on Latin America. Primarily Brazil. Is the big money making market kind of like Marco Libra, they're. In I, I, it's a it's. A NEAT opportunity, gained a lot of headline recently, when and it was, it was seen that Berkshire hathaway. Warren Buffett's company Berkshire hathaway taken a five percent position in the company, which is pretty considerable i. Think in the near term. You have to acknowledge the fact that. They're gonNA, be some real headwinds in in Brazil particularly because of the pandemic I mean. The flip side of that is role in same boat kind of in that regard. The entire world is dealing with it, so it's not specifically you know it's. It's not particular to one economy or one country some. To get hit harder than others I, do feel like Brazil. Be at a place where they can recover from this given You know some of the other businesses in the area. I mean that that that I think is. Who knows ultimately how? That's GONNA shake, but generally speaking. I think the move away from cash towards cashless. Transactions in and financial software that's not stopping if anything, this hastens that which which is what I think, Cameron's talking about there and for a company like stone. Co, neither are other companies in the space pags bureau in roquetas libra to but you know moving money around is a big big market opportunity, and there's nothing that says they won't be able to expand well beyond the Latin American markets, too, so I I'd say cautiously optimistic I mean I

IRA Jason Moser Google Chris Hill Brian Feroldi Canada Starbucks Warren Warren Buffett Twitter Toronto Alison United States Muny Bond Brazil Alex
Zoom Communications stock climbs as analysts cheer earnings and predict coronavirus boost

MarketFoolery

03:29 min | 8 months ago

Zoom Communications stock climbs as analysts cheer earnings and predict coronavirus boost

"Start with zoom video fourth quarter revenue for zoom video grew seventy eight percent one of those interesting stock moves because initially the reaction on Wall Street was well. That was good. Wasn't we're looking for a little more? And I realized the stock has had a run up but Zoom video was down at the open. It's bounced back up. It's up about seven percent so far it is at the moment. Yeah but Wait wait a little bit. You'RE NOT. You're not closing the books on that. Are you right now? We still have several hours to the trading. Yeah that was a great quarter and it's not only been Another great quarter resume which is in what now more likely appears to be the early part or the middle part of a great growth story But it has. It's it's doing well At this very moment in time Which distinguishes it from a number of other companies and is not going to be one of the companies Reporting Hey you know this. We did last quarter but we need to temper expectations for the future. Just the opposite for zoom just the opposite and Similar to what Jason Moser and I were talking about the other day with Tele. Doc you know this is Eric Von. Ceo At zoom video being very very measured and not saying something like boy this corona virus holy cow. This good for our business. He would never say that you would not want him to say that but holy cow is this. Is this whole situation like he wouldn't say that. But your Sierra putting those words into his head you don't you don't think he's had those one I'm just I'm just saying that he's a smart guy. You're absolutely had those words in his head. He's also smart enough not to say them out loud on a conference call if we got him on on online right now say hey. Have you been thinking that? Then he would. He would be smart enough. Say No of course not we're measuring or we're managing our business for the long term and so I think what they are getting a lot of people signing up for free trials right now which ultimately have good chance of being upgraded into part of the more expensive parts of the system the paying and Subscription part and. I think that a lot of businesses are being forced to try either zoom or products like zoom the the competition and systems Cisco SYSTEMS has a competing video platform. Right yeah did we used to use that. Yeah and well. Then we switch to And and so I think a number of places are gonNA find Just is one of the dangers for airlines. Right now is not just that. They're losing current Current trips but as businesses find. Oh we can do many things just as well Over Zoom is sending people around and in fact It's a lot cheaper That is what I think. People buying zoom stock today are thinking. Because it's it's certainly not cheap on almost any metric that you would come up with

Jason Moser Eric Von CEO
Teladoc Health Stock Rises on Earnings and Possible Coronavirus Boost

MarketFoolery

01:25 min | 8 months ago

Teladoc Health Stock Rises on Earnings and Possible Coronavirus Boost

"But we're going to start with the stock of the day and then as tele doc somewhere Jason Moser smiling because shares have tele doc up about twenty percent after fourth quarter. Revenue came in higher than expected. The loss was smaller than expected. And it's hard for all of the enthusiasm around the business of Tele Doc. It's hard for me to look at this and not think at least a little bit of the rise that we're seeing today with a telemedicine business is tied to current. Oh virus possibly It's hard to ask the market. What percent of the enthusiasm is About the results just reported in and what part is about Things to do with the headlines. Although the guidance is good and Really the company kind of avoided on the Call giving any any specific numbers about how current virus might affect the business but In a world where more people are staying indoors staying home looking for medical advice and prescriptions and help but not wanting to be out in public not wanting to spend time in hospital and a doctor's office the Tele Doc model becomes that much more attractive.

Jason Moser
Its not an easy business.

MarketFoolery

13:13 min | 1 year ago

Its not an easy business.

"Thanks your to grammar Lee for supporting market. Fully Gramley is a communication tool that helps people improve their writing to be mistake. Free clear effective. You can start writing confidently by going to grammar dot com slash fool and get twenty percents off a grammar Lee premium account today. Monday may six welcome to market fuller. I'm Chris hill. Joining me in studio today, Jason Moser in the house. Thanks for being here. Alot we're going to dip into the full mailbag. Let's start with the Berkshire Hathaway meeting which always gives us a couple of headlines coming out of the meeting have you ever been? I've never made. I have. Yeah. It went. I think he was just once I win in. So of course, when you go with us. I mean, you get to go you have the press badge, and you sit up on the top and you get spoiled with the lunch and everything's easy in. So that was like no way, I'm topping that experience ever. So there's no way I'm going all the way out the Omaha just a wait in line to hear some guy say something I heard him say five years ago. You know, what else you can follow it on Twitter now, it's so robust and in. It's like you're there. I was thinking it's just like I don't watch a lot of baseball anymore. I love the Red Sox. But man, I tell you follow the Red Sox on Twitter, you I mean, they are that that's a. A great baseball Twitter presence right there. So you can do so much. Also, I think Yahoo finance has done. The livestream for people who are looking and watch the video I've talked to other analysts around here. It's like are you going out to along? Like, no, I'm just getting up and watching it in my pajamas really a lot of clips are still floating out there. So it's it's easy go over and over and over again. So let's get to a couple of headlines, and I up his craft Hines which. You know, it's it's impossible to read Warren Buffett's mind. But I'm wondering to what extent if any he's regretting the craft how the participation in the craft highs because Kraft Heinz came out and said that they're going to restate their earnings for twenty sixteen and for 2017 due to misconduct on the part of some employees. They say it's not going to be material. And I'm just going to go ahead. And grant them the benefit of the doubt and say, okay, it's not material. And if you look at the stock it's not falling through the floor. So clearly smarter more invested people literally more invested people than me are taking them at their word. Well, it's not falling through the floor any more. I mean like it's been an awful year date. It's basically been cut in half of horrible, twelve months and has really been a horrible existence ever since the merger in two thousand fifteen. So I mean at some point or another that floor kind of set itself, but you know, I started thinking about this with buffet. And so there was this one point like I dunno years ago where my wife kind of basically called me out on. It's you know, sometimes you as married couples. Do you talk with each other? And sometimes you just sort of the words are just kind of going in one ear and out the other. And and so whenever that would happen with me. And I would say something like, oh how about that? Eventually my wife figured out that how about that meant. Oh, I'm not listening. And so she called me on it. And I so now I can't do that anymore in with buffet. It's starting to feel like whenever he's like, you know, we're just going to give him the benefit of the doubt. It's kind of like he's just those words going in one you're out the because he does the same thing with with Wells Fargo, essentially, he's doing it with craft Hines. He kinda tends to do that. And that's fine. He's got billions doesn't really matter at the end of the day. But I do wonder how much this kind of grinds his gears because it has been obviously an awful existence since the merger. It is a very buffet style investment. I understand his perspective when he was asked about the long term value this company in regard to the brands that's kind of what he fell back on the brands. I don't know that I necessarily. We believe that going forward though, I think those brands are in in a bit of a bind. Red flags. Yes. And having to restate things, perhaps it's nice to see they're actually get out getting out in front of this kind of resolving and all, you know, I I don't know that I'm looking at this as an investment I want to have anything to do with anyway. So let's move away from Kraft Heinz for a second. When you see a company that you own shares of come out and say, hey, we blew the math. We have to go back and restrain like, I is it on a case by case basis because I was I was looking at this and sort of thinking through my own holdings and thinking to myself, you know, what depending on which company I own if they came out and said, oh, we're going to restate two years worth of earnings depending on which stock it is. I'm either rolling with it and saying, okay, you blew it. But it was lower level employees, and you're on topic. Whereas other stocks, I own I would think boy, I don't know this. This is one more check against you. Yeah. I mean, I think it is a case by case basis, but I will say. And we talk about these companies a lot on this show. It feels like for a while. It was Bank of America than it was Wells Fargo. So there are companies that get out there and are really in the spotlight, and they kick get out of their own way. Facebook is another one. I mean, it seems like every week we could just have that one segment of the show where it's like, you know, this week in Facebook screwing up again in so eventually privacy. Right. Eventually you get a little bit tired of it. Right. And so then you have to ask yourself is this really accompany worth owning? I in. I I think that is again, it's a case by case thing when I look at something like a craft Hines. I mean, it just don't see any kind of a competitive advantage there with the business to begin with. So this certainly would not be one of just sort of gloss over. I think it'd be one more reason to probably not want to own a so for this next story that comes out of the annual meeting it's worth remembering that? Last month. Yulon mosque said on Tesla's earnings call that tesla was going to be launching its own insurance product in the month of may and not surprisingly Warren Buffett was asked about that annual meeting and said point blank, it's not an easy business. And you know, there's some people online today said boy, he really called musk out there. I, you know, I don't know that I want to ascribe that to buffet. But she clicked, you know, the most generous interpretation of what Buffett said regarding tesla getting into the insurance business is good luck. But he did go out of his way to say. I'm not worried about them. I'm I'm more, you know, because Berkshire Hathaway owns Geico. I'm not worried about that. I'm worried about progressive. Yeah. Well, I mean, listen, given given EON Musk's track record of behavior. I mean is this really someone you want to be getting your peace of mind from seriously? Like, I mean, you wanna mind sure. From that guy. I don't think so. And I mean, I'm a big fan of you must listen very clear. I support what he's doing. I love is big picture thinking, I'm rooting for the I there are points in time where I feel like maybe he's just you know, that's kind of silly candy. I think that was probably pretty silly. And apparently that candy still coming out insurance pales insurance is hard. That's why we like great reputable insurers that requires a lot of capital. There are a lot of regulations in. It's not easy. I mean, it was it was interesting. I thought when when he was asked about this potential insurance product in he noted that they would be writing these policies based on data. I mean, we'll dumb that's all like all good insurance companies right there policies based on data. Like, there's an entire industry that you know, the actuaries to get out there and figure this risk out based on data. So I mean, I think that when you look at what musk is trying to do with tesla with spa. Sex solar city somewhere in there as well. Yeah. I mean, I is is insurance for this Jews really worth the squeeze. I don't think it is. I love the back and forth. I think you've got yesterday versus tomorrow and in buffet in musk and two guys. I really appreciate in in honestly love as an investor. But there's no question that insurance is a very difficult business to run. I'd have to believe if they were going to be writing insurance product, it would be with another partner that actually dozen sure. And then I would imagine it would be basically just for people who have a tesla. Like if you don't have a tesla. I don't know why you would get insurance from them. But I mean, hey, he says a lot of stuff what about dating app? I feel like you know, owning a tesla. That's a that's a bar to clear socially. And it was like start matching people up. Tesla owners. I think I don't know. I mean. Yeah. And instead of going to be helpful sure instead of swiping left and swiping, right? Like musk. I'm sure would add a dimension. Right. Instead of that. It'd be like swipe diagonally or swipe four D or something of that nature. He's always throwing a bit of a bit of a forward-looking twist on things so Starbucks got a surprising promotional boost this morning Twitter was all a buzz about Sunday night's game of thrones episode that is to be expected because it's the final season of game of thrones. What was not expected is the fact that apparently a Cup of Starbucks Coffee made its way into the episode of game of thrones people were posting video of this and screen caps of this a half to believe there's a production assistant who is in the process of getting fired today for leaving a Cup of Starbucks Coffee on their unless I don't watch game of thrones. Maybe there was a story line about the first Starbucks opening in west rose. I don't know. But but. That's amazing. Because you hear the phrase all the time you can't buy that kind of publicity. And I would say the majority of time someone says you can't buy that kind of publicity if you step back and look at a given situation. No, you really can this is a situation where really Starbucks couldn't have bought this. I yeah, I feel like sometimes there are situations where things like this. Are there not accidents there planned out, but they are made to look like accidents? Now, I'm not I I have HBO. So you think this claimed? Well, no. And that's what I'm saying. I don't think it actually was. I mean thinks in some cases these types of things are it does it does feel like this was genuinely just someone missed this. Now, I don't watch game of thrones. Which is fascinating because I have HBO. And I and I love it for whatever reason just never got into game with bronze. But it strikes me. That of the rabid fan bases out there. Starbucks and game of thrones are two very rabid fan bases to tie these two together. I mean, there is there is some serendipity here that I think is going to work out for both entities. I I don't think there is a downside for either. Now, maybe there is a production assistant out there who's who's out of a job today. I don't know who we just we won't even go there. But I I don't think there's really any downside to something like this happening not for Starbucks product placement has been around for decades. And if they had gone. The idea to go to the producers of gaming throws me. Like, here's ten million dollars. We just want to scar. And of course, the producers would be like, no that doesn't make any sense. But but I mean now all of a sudden, we're thinking, okay. Is there some type of is is there some type of of time-warp here in game of thrones that didn't exist it possibly now. Does is this how they continue to tell that game of thrones story after the end of this. He's who knows. I mean, we as the viewer or potential viewer. And I tell you like I said, I don't watch it. But now I'm feeling like I may want to start because who knows what could develop from this. But I have to believe they're gonna milk it for all. It's worth quick shout out to Gramley for sporting today's episode grammar as a communication tool that helps people improve their writing to be mistake free clear and effective day. Encourage everyone even the best students even the top professionals to use grammer to do their best work and accomplish even more their goals. They help people show their best self through writing. And it's available across platforms, including online. Extension. Desktop editor and mobile keyboard checker, it's available on multiple browsers, chrome, Firefox safari. It's on platforms like I o s Android windows. Mac their free product reviews critical spelling and grammar, but Graham, really premium looks out for spelling grammar, plus structure style within context vocabulary suggestions conciseness readability for different occasions. Whether you're writing a business proposal or an essay for school, whatever it's so easy to use. I've actually been using it and Graham really free is easy to use. But premium just gives you a lot more great suggestions on vocabulary. I have found anyway. So whether you're looking to polish up your resume or just look smarter in your emails at work. Do yourself a favor checkout Gramley, go to grammar Lee dot com slash full and get twenty percents off your grammar Lee premium account today, that's grammar dot com slash fool for twenty percent off

Starbucks Coffee Tesla Twitter Hines Warren Buffett LEE Gramley Musk Kraft Heinz Red Sox Chris Hill Omaha Facebook Baseball Production Assistant Jason Moser Yahoo Eon Musk Graham Berkshire Hathaway
"jason moser" Discussed on Motley Fool Money

Motley Fool Money

01:51 min | 1 year ago

"jason moser" Discussed on Motley Fool Money

"Welcome back to motley. Fool money Priscilla here in studio with Jason Moser, Erin. Bush and run grows. Ebays fourth quarter report comes out next Tuesday. But shares were up nearly ten percent this week when activists investors publicly called on EBay to consider selling off its classified business as well as stub hub Aaron their conference. Call just got a lot more interesting. Lots of lots of ways that this could go, but really I'm not surprised to see this happening. I mean, what does we talked about earlier this week? What they does a great job of this buying these companies early on buying pay pal? Fantastic. Buying stubhub fantastic. Spinning up the classifieds business fantastic. But as it turns out EBay the core. Marketplace platform is really bad as a connection point for all of these different things. Like, they don't go together. Very well. And in the case of stubhub in particular. I think it makes a lot of sense that we could see. See logical pressure be put on them. And stubhub does go go standalone on the classifieds business. I'm not assure of though because I feel like that does people buying and selling goods and services, even if it's more international. I think that does still connect NC the the the core EBay business. But yeah, it'll be really interesting to see how open minded the CEO is what what tone. He takes their earnings call to determine how EBay attacks this situation. So in the lead-up to EBay spinning off payback. And there were a lot of people. I think including all four of us who were pretty excited for pay pal to be a standalone company, and to own shares of that if they end up spinning off stubhub is that a business that you're putting on your watch list. I think that it could probably a good business because ticket fees argest exorbitant, no matter, no matter where you go because if you have to buy.

EBay stubhub motley Jason Moser Priscilla Bush CEO Erin NC ten percent
"jason moser" Discussed on Motley Fool Money

Motley Fool Money

03:03 min | 2 years ago

"jason moser" Discussed on Motley Fool Money

"Chris hill here in studio with Jason Moser, Jeff Fisher, Andy cross. It's been a rough year for the consumer goods industry, but don't tell that to Proctor and gamble first-quarter. Quarter sales growth was the biggest in five years and shares a p. and g. up eight percent on Friday, Jeff. It's a, it's a growth stock. That's a big jump for a two hundred billion dollar company, two hundred, fourteen billion dollars, but I wouldn't get too excited about it yet. Even management in the conference call was pessimistic, Chris. What do you want to say? I was just going to say, normally we look to run gross to be the wet blanket Jewish, but I'm glad someone's filling his step in and try to fill those big shoes. So organic sales were up four percent by volume growth of three percent, and they say pricing was neutral in the quarter when you're so focused on just trying to grow your volume low ever. You can and pricing as your two main focal points. You know, competition is a problem, and that's what they proceeded to then talk about for much of. The call, it's they say, actually the most competitive challenging environment. They've seen in many years if not ever don't want to misquote them from the call but in a long time. And so they're worried about the growth of new brands, online pricing, competition, shopping, consumer habits, all these things. So they're still expect sales growth. Chris of all in with currency of down two percent for the year more or less so and earnings per share guidance is three percent growth to eight percent growth, which is a wide range and really depends on a lot of things including commodity causing competition, and they're nowhere near the high end of that guidance right now. So even they were the wet blanket in the quarter shares of Domino's down a bit this week, despite the fact that third quarter sales were up more than twenty percent from year ago, Jason feels like dominoes has done so well for so long that they are now kind of a victim of their own success. We talk about that with restaurants from time. Time, and perhaps that is we're Domino's is today. But I mean looking at the quarter itself, it was a very good quarter. So concerns over domestic sales soar Saint store, sales growth. Those should be kept in context they, we're good. Perhaps the expectations were flogged, Chris, because really these guys are selling a lot of food in. I think that, you know, we talked about Papa John's shortcomings this year, and there was a good question on the call where analysts Raskin were they seeing a pickup share their based on the witness and Papa. John's in management made a good point that you know, look, it's not that people are leaving Papa John's and then going to Domino's the restaurant industries, a really big one. So it's not like they're always just going from one pizza to another pizza. They're all sorts of different choices out there. So they, they continue to have to work hard to pick that share up. And I think that's a lot of to do with Domino's sort of changing that identity from Domino's pizza to being Domino's. They offer more than just pizza at this point which is encouraging, but but it is a growth story still. They do see the US as an eighth. Thousand store business over the next ten years. And they finished up two thousand seventeen with around fifty, six hundred stores. So plenty.

Domino Chris hill Papa John Jason Moser Jeff Fisher Proctor US Saint store Andy cross Raskin eight percent three percent two hundred billion dollar fourteen billion dollars twenty percent four percent two percent five years ten years
Amazon Announces All New Hardware

Motley Fool Money

00:22 sec | 2 years ago

Amazon Announces All New Hardware

"I'm Chris l. joining me in studio this week, senior analyst, Jason Moser, Matt, arguing her and Ron Bros. He was always gentlemen, hey, we've got the latest headlines from Wall Street. Bestselling author, Ashley Vance is our guest. And as always we'll give you an inside look at the stocks on our radar. But we begin this week with till Ray, be well known Canadian cannabis company. I've never heard of until this

Ron Bros Ashley Vance Jason Moser Senior Analyst Cannabis Chris L. Matt RAY
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

03:56 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"Massive market opportunity attended discount that one hundred trillion a little bit. Just preposterous for a deal won't conservative. But I think that the point still remains that this gives you excellent exposure to companies that are really guiding. The way they're so for me, I'm going war on cash over the funds, ten times out of ten, would you would you split up the the investment equal? Yes. And that was the point of the basket was to keep it simple and just do twenty five percent in each holding and and and it doesn't. It doesn't mean you can't add positions as time goes on and find really the companies that that perhaps are outperforming and build those positions up a little bit more over time or you can just continue to to add to them equally. But I think it really works and I think it's going to be something that lasts for a long time. Do you think we perhaps made the mistake with this question that Jordan, her Jason on another show, talk about this and then he wanted a second opinion, but instead of getting a sense of. Really. Weeks ago, Jason Moser said that you should buy these four stocks agree that that is still. You know what he's talking with clear here too. I mean a lot of this depends on the individual investors risk tolerance, right? So I mean, I coming from my perspective, I would say I had a much higher risk tolerance versus other people who may not have by Ziya risk tolerance. And there's no question that that this basket of four stocks is more concentrated than than most funds out there, and that's going to be the the. The nice part of the having a fund is it will be more diversified. Probably less volatile. Perhaps that caps the returns, right? Maybe the basket of stocks outperforms because it's a bit more concentrated. So you have to weigh that and it's going to be different for each individual investor. But bottom line, Jason Moser agrees with Jason Moser. Yeah. Well, of course, as always been, I think really the bottom line is here that this payments market opportunity is tremendous. I think it's long lasting and I think it's one that every investor needs to have exposure to next question is for Abby and it comes from clay, what is the best money investment advice you can give to a college student. I have some. That I would like to invest, but I don't know how where when or if I should, I think this is a really good question. I think probably a lot of people face. So just taking it step by step there should you? Yes, you should when I would say sooner rather than later. Now if you're thinking about it, data shows that because of compounding returns, you'll actually set yourself in a stronger financial position by starting sooner. So I think. Claes obviously on top of it, he's still in college already thinking about it. So I commend him for that. And then for an answer of that, you don't know how I would recommend that the first place you start is by comparing brokerage account options? Opening one. So I personally use TD Ameritrade. I think they have a lot of flexibility to have options traits and plenty of research which I use. But for young adults, I recommend at least looking at Robin Hood. They were previously mobile based app, but now they do have a website actually, and they offer commission free trades and they recently launched commission free options trading as well. I think it's pretty interesting, and I think it's a low cost. And when we think about maybe opening account, it's probably a little bit smaller. So keeping those commission costs in check or zero is ideal. But again, there's a lot of options. So I think just starting to research and pick one and then where after you've opened your brokerage account, so where to put your money is obviously the million dollar question. And if I had a great answer to that, I would be running this company. But I mean, I think there's a couple different strategies to start. I think you could start by buying ETF's or just index funds for instantly diversified portfolio. I also think it's another effective strategy to buy high-quality companies that you're interested in holding for the long-term, just sort of build out your portfolio. So starting with one or two, and then maybe just adding over time again, keep your commission costs at a minimum..

Jason Moser Claes Robin Hood Abby Jordan twenty five percent million dollar
"jason moser" Discussed on MarketFoolery

MarketFoolery

03:55 min | 2 years ago

"jason moser" Discussed on MarketFoolery

"Dan thursday june twentyfirst walking market flory i'm chris sale joining me in studio jason moser is back yes sir thank you for being here i said this yesterday i will say it again today the news fairies working overtime this week spitting good week that's been a good week we ought to have a very very full episode of molly for money this week oh yeah we we absolutely will we're gonna get to intel ceo in a moment and we've got some earnings in the grocery industry we gotta start across the river in washington dc where the supreme court has ruled in close ruling that states may require online retailers to collect billions of dollars in sales tax revenue and the first thing i saw about this story when it broke had to do with one of your favorite companies wayfair and we'll we'll get to the individual stocks in a second let me just start as an aside just one interesting thing when i was reading about this decision it was a five to four decision and it's interesting to see who is in the majority because you basically had risen mater ginsburg arguably the most liberal judge on the bench and justice alito and justice thomas arguably two of the most conservative members of the bench anyway that's the those sort of coalitions are interesting to me they have nothing to do with investing let's get to the investing part here like how bad is this for wayfair because the first thing is on twitter was like man wayfair is tanking and the and the and it's not tanking essense bounce back up a little bit the trading volume though very heavy for for wayfair yeah i mean i think i'm i'm glad you mentioned the five to four nature of the ruling because i saw that and i'm like man you know it's just nothing like a compelling ruling right majority rules and seems like they really were all in agreement there i mean that's the one thing i just hate about these types of rulings is a five four you feel like at some point or another there's going to be some political swagger in they're trying to tilt the scales in another direction but any which way you cut it i think this is honestly the right call and i think that the big biggest businesses out there today the most important ecommerce companies out there today foresaw this i think they recognize it's it's the right thing and they they've been planning for this accordingly so whether it was amazon or wayfair or oetzi these are all businesses that have been practicing collecting taxes for for some time now so that's why i think we're not seeing any big hammering in the share pressure right volume was a little bit crazy for for for a few minutes after the decision was released but all in all i think you're to see a headline or to pontificating the effects of this only in his honour wave here at cnn inc if you think this is something that affects amazon negatively i think you need to go back and rethink that to me i mean if you remember as more than a year ago when amazon started collecting sales tax in all forty five states that levy it with with inventory that was held by amazon now they they have recently also been rolling that on the third party side as well so it's nothing new i think it's just more or less finalized and i think the thing alternately is when we look at the commerce environment today compared to the commerce environment that you and i grew up with you and i grew up in an era where there just wasn't a lot of choice if you wanted something you had to go get it right today there's a lot more choice and consumers ultimately have a more profound way to value their time and i think that's what these businesses recognized so early on in focusing not as much may be on being.

Dan jason moser
"jason moser" Discussed on Motley Fool Money

Motley Fool Money

01:34 min | 2 years ago

"jason moser" Discussed on Motley Fool Money

"Services group ticker h c s g housekeeping and nutritional services for thirty five hundred facilities such as hospitals retirement homes nursing homes the really long history of profitability recently expanded into food services it's a very fragmented industry but they're out of the big guns here they've increased their dividend for fifty eight consecutive quarters that dividend now stands at two percent yield and i think the stock still has some nice upside to it steve question about healthcare services group energy find this thing this is a recent recommendation in the total income service jason moser what you're looking at sure we're gonna jump back down to georgia for ameris bank core tickers abc cb little two billion dollar market cap bank there that just keeps on growing and it's really been a story of total assets the fdic saw this is a worthy partner back in the days of the financial crisis kind of help cleanse the banking system of bad business and so they've grown that total assets base from around two and a half billion in two thousand ten it's gonna be about eleven billion by the end of this year with a couple of acquisitions that rolling in just a well managed a little bank and at the time you know you've been crazy to invest your money in a in a small cab georgia bank that was ground zero at the time but these guys have really made it work the stock is just been on a tear since since that financial crisis up about four hundred percent and i really don't see any reason for it to stop steve ameris bancorp when we hear a lot about this war on cash is does this bank is this.

jason moser georgia partner steve fdic steve ameris bancorp four hundred percent two billion dollar two percent
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

01:37 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"Thing uncommon sense for the thoughtful investor by howard marks wolf it was three years ago that i participated in that survey you're welcome all very good books i think i've read most of the books that you listed there i'll go with a couple of extra ones one that i always point to is peter lynch's one up on wall street that's just sort of the quintessential sort of foolish mentality some of the names in there perhaps a little bit dated but the concepts are all very very concepts the book needs a little bit of a new addition yeah well and speaking of new additions are our investment guide that molly fool investment guide that we just a new addition but of course by by our founders tom and david garner they really i think put together a great book that that not only talks about our style of investing but just really deep benefits of investing in general pretty pretty inspirational stuff honestly and there's one more that i will throw out there i believe robert hagstrom wrote a book called the warren buffett way and everybody knows we love warren buffett here this is a book that religious kind of pinpoints the ideas that sort of guide buffets investing philosophy it's it's easy to understand timeless stuff good book awesome well that's it for the questions today how about a disclaimer that would be great the molly full may have formal recommendations for against the stocks we talked about today don't buy and sell stocks based solely on what you hear jason we'll do that disclaimer from memory as well i cannot i'm still trying to get over this tattooed for malta man.

peter lynch tom david garner robert hagstrom jason howard marks warren buffett malta three years
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

02:18 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"Yeah i two out of four well now but you make a compelling case for payback i paid for my tattoo multo via paypal tattoo and malta you know feel like there's a story there we hear more about revenue it's not that good of a story in malta all right let's move onto the next question next question comes to us from jay new great to have j mo on the april bag i'll be grateful if he and broke and dive into their shared passion to get children investing at an early age more specifically i'm interested in hearing perspective on the different account types available to parents who wished to get their kids investing lastly connecting this to your recently published college savings episode how does the ability to qualify for financial aid affect the decision to open an account in your child's name so we'll start it just by saying that money in the kid's name in a regular taxable count like custodian account that will count more against financial aid then if the money is in the parents name that said if you are listening to this podcast you're probably not likely to get a lot of financial aid anyhow so wouldn't go crazy about trying to avoid that the other options are if your kid has earned income to open up a retirement account that would not count against the kid when applying for financial aid yeah i mean i've done this in in in so i i have accounts for both girls we they each have their own individual account ended in its custodial accounts just like a savings again at a bank i mean it's the same thing like i'm the custodian there the kid and they get the account when they turn eighteen or twentyone or whatever and that to me was the simplest way to do it i think we had you know some concerns in consolidating the accounts from the tax perspective or whatever so that's why the each have their own individual accounts in for me personally i think the question we always get the question i talked about this at our recent financial health day with a group in in that point of like if you account for your child and it's stowed accountants there's in that affects their financial aid prospects and be that as it may like to me you're making a bit of a trade off there.

malta jay
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

01:31 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"If you're worried about expenses obviously the place to go is van guard and they have a couple of good etf's there's the vanguard high dividend yield etf just two point oh eight expense ratio ticker vm and its yield is three percent so that's pretty good for current yield if you're looking for stocks with a growing dividend so it's not necessarily how yielding yet but they're growing quickly there's the vanguard dividend appreciation etf vi yield is just one point eight seven percent so what should you do again i think it's smart to do a little bit of all of them if you want to do individual stocks i think that's great we talk about that all the time here at the motley fool you can pick a few but i think it's fine to to have a little bit of your money in these diversified dividend oriented atf's as well next question comes to us from twitter again and it is from nam read love five i'm pretty sure that's not how our listeners on twitter our listeners on twitter i'm considering consolidating my war on cash basket pick one to keep paypal mastercard visa square can you first explain what the war on cash is welcome it's the money is again isn't it no they weren't everything in nadi millennial in the war on cash basket has actually a basket of four stocks that i put together back in july low oh so the question is.

atf twitter eight seven percent three percent
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

02:10 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"You know what you own your picking the companies as opposed to mutual fund you don't always know what's in there and you have more control of your taxes because even if you hold onto the mutual fund if the folks who are also your co shareholders are doing a lot of selling or the managers are doing a lot of selling buying you'll have tax confidence now for dance case he's he says he has the money in the ira so it's not a concern for him but it's a concern for other people if his money outside of an ira now the benefits of having the fund are that you get professional management and you get diversification so all of that's good and so the first thing would say don is it's not either or you can buy some individual stocks as well as some good dividend ats and we'll talk about those in a little bit he had mentioned the dividend aristocrats and they're actually a few flavors of that so the original honor the one that's probably most well known is basically that the companies and the s and p five hundred that have increased their dividend payouts for twenty five consecutive years or more so they are known for out a solid dividend for a long time you can invest in the dividend or scots through the prochet s and p five hundred dividend aristocrats etf ticker and ob l no bull right but so it does have a point three five expense ratio so that's income you're essentially having to give up to have management of the fund and its yield is only one point eight seven percent which is important to think about when you're choosing a dividend oriented etf because just because it has dividend the name doesn't mean it's necessarily high yielding that has about the same yield as overall s and p five hundred yeah a lot of those dividend aristocrats actually have a higher yield than that because they've been growing there for so long that kind of odd right now there is another one that is the spider snp dividend ticker is s d y this looks at the snp fifteen hundred composite so it's largecaps mid caps and small caps and chooses the highest yielding among those also has point three five percent expense ratio a slightly higher yield of two point four percent little bit over one hundred stocks so it's pretty well diversified.

ira don snp eight seven percent three five percent four percent
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

02:04 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"Are not expecting that classic ten percent annualized year from the stock market of course we've been saying that for a couple of years keeps going up started this show keep on saying it browse right that's right so so again theoretically you're probably better off investing for long term especially since you're thirty four year old ideally this is long term money maybe for your kids college educations or something like that but you go wild to write out any bumps there is a psychological factor to having less debt so there is the specter between you and your wife about how comfortable you are with having a beer mortgage and i would also say if you put down twenty percent look at that monthly payment are you comfortable with that monthly payment or is that going to stretch your budget if that's going to stretch your budget maybe more money down next question comes to us from lorenzo should i take profits from my mutual funds now that they're at all time highs put the money in cash and buy more shares when the next bear market occurs i would still keep making the monthly automatic purchases on all the funds while i wait for the bear to start solo renzo far be it from me to tell you when to buy and sell i like where your head's at a year i mean you wanna you wanna take some profits of the market is obviously doing very well i mean i think that there's probably a decent chance we may see a pullback at some point or another the difficult part is telling you win that actually may happen so if you decided to do this i don't think that we could sit there and blame you for that decision but you have to at least keep in mind that there will likely be tax implications that you want consider you very well could be selling early and miss on of future gains but it sounds like you're countering that by at least continuing the regular investing even after you sell so i think you're getting a little bit of the best of both worlds they're not a bad strategy again i think just make sure you take into consideration any potential tax implications that could come from selling and and then i mean good luck in trying to figure out when the next bear market.

lorenzo renzo thirty four year twenty percent ten percent
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

01:55 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"The s the vanguard five hundred etf as with any other etf that tracks the five hundred you're still owning a little bit a little piece of each of those companies and you do get a dividend all right next question comes from tony too many stocks into little time i have about thirty stocks and would love to keep up to date on these businesses besides the motley fool what is the single best way to keep on top of these stocks a publication website sec filing annual report helped me prioritize my time well everybody's time is valuable tony i certainly understand what you mean there that is a lot of stocks to own a lot of stocks keep up with now i mean you could sort of take this from the charlie munger angle and just you know he recommends that really good investing is just buying good companies in sitting on your button doing nothing right so sometimes it just takes a little bit of faith that you've already got your portfolio set up in the right businesses but with that said you still need to be keeping track with what's going on and whether you want to do that on a quarterly basis a semi annual basis or an annual basis i think you could center it around earning season kind of dictate what matters to you most perhaps you prioritize the companies in your portfolio that you feel like a little bit on the riskier side that need a little bit more of keeping up with it and then you just pursue keeping up with them via the investor relations sites of for those particular companies just easy enough is going into google you know putting the name of the company adding investor relations to it'll take you right in the investor relation site where you'll see earnings reports usually transcripts investor presentations that's going to be probably the easiest way to do it in dictating around earning season means that it's predictable you know you're not going to overwhelm yourself with having to do it all the time and hopefully that could get into something where you feel a little bit more comfortable many companies and we've talked on the show before about how when you buy a stock you should write a little note to yourself about why you bought it and you.

google tony charlie munger
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

01:52 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"And then you choose a broker that has a good selection of mutual funds with no transaction fees if you just want index funds obviously the choice there's probably vanguard if you're going to be an active trader then you would focus on someone that offers lower commissions if you're going to be an options trader which you can do with some ira's covered calls then you wanna go with a broker that has that as an option and allows you to do it now one place to look to choose is the motley fool has a broker center so you can go there and see which brokers are there and the different things that are offered but also you can just google like best brokers two thousand seventeen two thousand eighteen in many publications and organizations will rank brokers and say this type investor go here if you're this type investor go there like nerdwallet yeah nerdwallet jd power all kinds of folks the one thing i'll just say though is make sure that whenever you transfer money between retirement accounts try to get it as a trustee to trustee transfer so one organization to the other you want to avoid receiving a check if you do a check in the mail you gotta get it into another retirement account pretty quickly i remember i was so terrified the i did the role overnight the check and i was just like i could not get it out of my house fast enough i was so terrified looking back now with nothing much money because i was so young but it was the most i'd ever seen because if you don't get it in there quickly enough it's considered distribution you pay taxes and penalties and on top of that they may have when they sent you the check withheld some money and send it to the government you have to make up that difference which you get back when you file your tax return so if that check is for less than what you had in your 401k call them and make sure that you understand why they withheld that money taxes taxes everybody get their taxes one this year.

trustee google 401k
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

02:01 min | 2 years ago

"jason moser" Discussed on Motley Fool Answers

"I i mean this is a good question on this i i have to ask at least the question of do you have a brokerage account yet or not my assumption is that you do but in case you don't that really is the first step in opening a brokerage account is as easy as opening an account at your bank you can do it online it's it's essentially like opening a bank account and you just going to go to a brokerage of your choice and that's probably the most difficult part of it all is just picking on lots of great names out there those you can't go wrong you open that brokerage account and then you deposit your money in there and then you are now an investor and you can really start making all of this happened now you mentioned you are a member i'm going to approach this as if you are a stock advisor member and this is really i think we're stock advisor shines particularly for the the beginning investor because we do offer so many options and really sort of a clear path to get started but once you have the brokerage open a matter of figuring out which stock you wanna buy i think we make it easy in the sense that we have our concept of starter stocks and if you go to the stock advisor website you will see that area on the recommendations page they are in stock advisor in rule breakers by the way we think they are just ideal holdings for any foolish investor we think that if you're going to own individual stocks you should try to own at least fifteen and so these starter stocks are are sort of recommended in the context of that idea and i think also if you look beyond starter stocks we also have best buys now every month and that's a list of the stocks that we think are the best opportunities right there at that point in time that month so if you happen to see a best buy now that is also a starter stock or the other way around then that could be a great signal that maybe there's a great opportunity there but it is also a little bit about you right david gardner likes to talk about making your portfolio sort of of of how you view the.

advisor david gardner
"jason moser" Discussed on Motley Fool Money

Motley Fool Money

01:50 min | 2 years ago

"jason moser" Discussed on Motley Fool Money

"As always on the program interest in stocks they talk about the motley fool may have formal recommendations for against saddam buyer stocks based solely on what you here welcome back to full money chris sale here in studio once again but jason moser david pressman and ron gross our email address is radio at fooled dot com question from dmitri who has one company that's come across my radar that intrigues me is a company called boston omaha it's tiny compared to berkshire hathaway and while it's been public for less than a year it has already doubled in price one of warren buffett's grand nephews his one of its ceo's and the company seems to follow the berkshire model pretty closely has boston omaha come across your radar at all i wanted to get your take before i take the plunge run abana i've never heard of boston omaha before but it does seem like it may fall into the quote unquote baby berkshire category yeah you gotta be careful with that baby berkshire thing because sometimes people think any conglomerate can fall into the category of baby berkshire but i think it's more of a cultural title than it is a business model one where you have to kind of think like warren buffett or you have to like tom gainer over at marquel it's not just about a diverse set of businesses yeah i think i agree with ronnie wanna be careful here because people have been saying similar things about sardar gloria book lara holding that stock has gone nowhere over the past five years and i think people are also saying similar things about eddie lampert when he took the the helmet sears and that i don't think that's gone so we'll have to check in on that story but you wanna you wanna like the company for the sake of the company and not just aspirins of following one key person or another it's reading through the markelle shareholder letter recently one of the things i love about those guys they constantly referred to it as quote your company.

dmitri warren buffett ceo omaha tom gainer ronnie wan saddam jason moser david pressman ron gross berkshire hathaway berkshire boston gloria lara eddie lampert five years
"jason moser" Discussed on KBNP AM 1410

KBNP AM 1410

02:06 min | 2 years ago

"jason moser" Discussed on KBNP AM 1410

"The dollar is the the the bill as always be on the program have interests in the socks we talk about on the motley forming formal recommendations for or against so don't buy or sell stocks based solely on what is year welcome back to mali for money chris hill hearing studio once again with jason moser august singer and wrong gross tend to get to the stocks on our radar will good on man on the other side of the glass deep rather hit you with the question by the way also sitting in with steve on the other side of the glass this week it's the poor family grit from virginia assad spencer and well thanks so much for hanging out with us wrong grocer up first what are you looking at this week i've got amazon phnom just gets i've got gotta american tower a mt there a real estate investment trust one of the largest owners of wireless communications towers in the world critical part of the infrastructure of our digital revolution great unit economics great yield n dividend growth i'm they've increased their dividend for the past twenty three consecutive quarters dividend currently stands at two point one percent and the stock looks good st broader question about american tower while i'm a shareholder in my question is who are their biggest competitors because american towers banned a rock star performer i would say that the two other big guys are crowned castle in sba communications those three to combine makeup of the bulk of of the industry jinsam moser what are you looking at this week a yet talking about ellie may ticker e l l y in as we wrap up burning season nelly natshe health update other good quarter of their software platform encompass now has over two hundred forty two thousand users i liked the dual revenue stream in subscriptions in transactions and in just sort of an example of this in the quarter revenue for the company grew seventeen percent in the face of mortgage origination volume actually falling nineteen percent and you know something that caught my interest the other day and i can't believe i've got to do this but amazon yes amazon is looking to hire some one to lead their newlyformed mortgage lending division in so i just can't i'm not connect the.

steve assad spencer american tower ellie amazon chris hill jason moser virginia sba seventeen percent nineteen percent one percent
"jason moser" Discussed on 790 KABC

790 KABC

01:50 min | 2 years ago

"jason moser" Discussed on 790 KABC

"You can follow me on twitter at t m f j m all jason moser how're are you ages fine i real air pretty good it's how can you tell us what happened to damage we start to begin to worry i don't think so i'm think we um it it it's interesting when you look at the past couple of days and if we harken back like two thousand eight two thousand seven the you know the time of the housing crisis really uh played out of the market markets i mean that really did um sort of prep us for the toughest of times to come so when he you see what's happened he's past few trading day then you'd know we've been condition that kind of take uh some volatility like this and it and it was a bit of a madhouse at first it it it started on friday i think with the jobs report and there was some concern perhaps that the economy was to the point where it was healthy enough the navy inflation would be a concern in then that affect how the fed may dictate monetary policy and it it it's a bit of a it's a sort of the double edged sword there you you i wanna see the economy get better but by the same token if he gets a little bit better and they start raising rates up within the markets go down and needed sort of that that battle between main street and wall street and we'll try to find that happy medium but the thing that you have to remember from two thousand and seventy thousand unaided there was a real uh fundamental crisis in the housing market i mean the bottom fell out in the housing market is is a major uh cornerstone of our economy there isn't really anything like that going on here i mean this was i think uh part partly speculation uh partly just the fact that we have so many uh sort of exotic sort of financial instruments in the market now that that all sorts of best can be made one way or the other uh i think it was the culmination of.

jason moser fed