Laughter & Big Financial News

I’m checking in on you in the middle of the day today. Your fellow members of the Charisse Says community liked that I did so last week, so I’m trying again. If you need a laugh, press play again on the BBC video with the Dad side-swiping his little girl as she playfully interrupts him on live television. If you haven’t seen it, you’ve been working too hard, and I’m not judging you for missing out (wink wink).

In a follow-up interview, it is clear that the Dad loves his kids. While I do not have kids, I have plenty of godchildren and nieces and nephews, and I am a child of beautiful parents. Recently, I’ve gotten a lot of interest from parents about what they should be doing to help save and invest for their kids. I’m collecting the list and so if you have specific questions, please leave them on my blog so that we can address.

To get the ball rolling, here’s a few to ponder for your life, or for those around you with little ones:

• What’s my retirement nugget (dollar value) that would allow me to set up my kids for success?
• What kind of insurance coverage do I need to ensure that my kids are covered?
• If I have godchildren with whom I might be responsible for down the line, am I prepared to financially support them?
• Is a 529 right for me?

Keep Watching

And while we are laughing at funny videos, the market continues to roll forward. Over the last week, all eyes have been on energy prices, which have tanked. Remember what I said last week – stick to your investment philosophy and be cautious of your own human biases. A New York Times article highlighted that “Oil Price Drop Triggers Herd Mentality in Selling.” Have a read and let me know your thoughts on my blog.

Also, I read this comprehensive article on “The High Cost of Health Care in America.” Considering that health care has taken on a bigger and bigger piece of our wallets, we will need to see how Washington deals with this continued crisis. Oh boy!

And, a special shout-out to all my Pisces compadres. My husband’s birthday was yesterday (go, honey!) and mine was earlier in the month, and so I hope you too are celebrating with the close Pisces in your life!

It's Been Quite the Week

There’s been lots to digest over the past week…. A week ago this Wednesday, it was the start of Lent. For my fellow Christian sisters and brothers, blessings to you as we journey inward to grow in our relationships with God. Wherever you find yourself in this season, may it be a fruitful one.

A week ago this Wednesday, the Dow Jones was soaring above 21,000. Some readers have asked – What should I do with my investments? In short, I say – stick to your investment philosophy, no one can time the market, take some profits if you have serious gains, examine what is truly driving the market and its sustainability, and continue to speak to your financial advisor to help deal with it all. Check out my blog for previous articles on my views on a rising market. Here’s an NPR story that gives another view – keep investing in low-cost vehicles. I agree but I think this is part of your overall investment philosophy and approach.

A week ago was also the coming out party for Snap, the parent company to Snapchat. While it was priced at $17, everyday individuals like you and me could only get it when it popped to $24. For a reminder on why big institutional investors get preferred pricing, check out my episode on “How the Stock Market Works.”

I did not buy any Snap shares, but plenty of people in the Charisse Says community did and proudly shared their enthusiasm with me. A few messages went like this:

• “I don’t use Snapchat but I wanted to buy it because it looks like a hot stock. “ – Mark

• “I would like to tell you that I carefully did my research before making my decision, but I didn’t. It was totally irrational.” - Arianna

These comments underscore that some of our investment decisions are made out of emotion. I want to remind you that money IS emotional. Embracing this reality will help you realize that sometimes these moves will work in your favor and sometimes they won’t. At some point, we all make investment decisions that involve emotion over reason. The important thing is to recognize this bias and figure out how to protect yourself if things don’t go as planned and how to make money if things do go as planned. In the meanwhile, you’ll have to roll with your decisions and learn along the way.

Time will tell whether Snap will be a good investment. I must admit, I downloaded the app for the first time this week. Here are a few things that stick out to me:

• In its IPO filing, Snap identifies itself as a “Camera company,” and this rationale is spelled out in this worth-the-read Vox article. Others have put Snapchat in the social medial box, and pointed to the reality that Snap has eaten its social media competitors for lunch when it comes to going after the 18-34 market.

• Snap recorded $404.5 million in revenue in 2016, compared with $58.7 million in 2015. Net losses grew to $514.6 million in 2016, compared with a net loss of $372.9 million in 2015. As mentioned in this Market Watch article, Snap warned that it “may never achieve or maintain profitability.”

• The owners have an incredible amount of control and ownership. The company has three classes of common stock, and its common A stock does give stockholders any voting power – Wow!

Want to share what has stood out to you or why you invested (or did not)? Please leave a comment on my blog. It will be fun (yup, fun for me and perhaps for you too), to see Snap journey in the public markets.

Until then, enjoy the rest of your week.

And the Oscar For Best Investing Guru IS….

……YOU! I surely wish we had a Money & Investing Oscars for our everyday gurus. If we actually celebrated the achievements of everyday people for making great investing moves, that would be something. [Side note – I LOVED the movie Moonlight – if that doesn’t represent an investment in bringing to life the stories of everyday people, I don’t know what does.]

In the interim, I am going to continue to celebrate members of the Charisse Says community who make bold moves. Last week, Danielle B., one of our members said:

“Charisse – You would be so proud of me because I paid off a big chunk of my student loan debt. I now know what it feels like to have a mindset around wealth building.”

I believe that having a mindset around wealth building means that you must:

• Actively plan to build wealth, and preserve it. By taking action on the plan, you will be ahead of the game;
• Continue to educate yourself and others on wealth creation and preservation  strategies;
• Become involved in some form of business ownership, one of the main drivers of wealth creation; and
• Invest over the long-run in a diversified portfolio can aid in the wealth creation process

If you have other wealth facets that you want to contribute, leave a comment on the blog.

How to Link A Wealth Building Mindset to Actions Today: 

I read several articles over the last few weeks that really highlight the importance of having a wealth mindset today.

I was shocked by an Employee Benefit Research Institute analysis that said that people in the U.S. ages 65 to 74 hold more than 5x the borrowing obligations Americans their age held two decades ago. I found this info cited in a WSJ article, “With $15 Left in the Bank, a Baby Boomer Makes Peace With Less.” If you are a Baby Boomer, leave a comment on my blog and let me know what you are doing to build wealth amidst a more debt-burdened environment. And if you are a child of Baby Boomer, like me, it will be important for you to understand what your parents are dealing with as it will have implications on the overall family wealth transfer.

Simultaneously in the last two decades, “assets in ETFs have expanded to more than $2.5 trillion in the United States alone, making them one of the fastest-growing investment products in history.” The Atlantic’s “Wall Street Diversifies Itself,” reminds that ETFs are an efficient way to invest because they have low fees and give you access to the market’s returns. If you’re unfamiliar with ETFs, please check out my webseries on how ETFs work and what they can do for you – you’ll laugh and stay informed. One of the best actions you can take now is to consider adding ETFs to your investment strategy. Again, continue to educate yourself and you too will be on your way to winning the wealth game.

Just to keep it real, everyone WILL have investment blunders. While it may not be as horrifying as what we witnessed on Sunday night, it’s par for the course. In order to claim your Money & Investing Oscar, you’ll have to embrace it all.

Guilt-Free Finances

I hope you enjoyed your President’s Day holiday yesterday. If you were not off, it’s OK – you worked for the rest of us. Consider this –

“Investors like to get rich quick, like to gamble and have too much faith in their own analysis, so stocks that look like lottery tickets are particularly appealing.”

It’s a quote in one of today’s WSJ articles, Kraft-Unilever Deal Is Off, but Warren Buffett’s Anomalies Live On. The quote reminds me of how our own human behavior can sometimes make us the worst investors. But, there’s hope – if you can be aware of your human biases, you can try and position yourself to be a good investor, like Buffett.

I say this to you because you might be preparing for a windfall of cash to hit your account, or you’re sitting on it already, from a tax refund or bonus from your job.

Before you go and plop all of your money into the market, here’s a few things to remember:

1. Determine whether it’s best to pay down debt, invest, spend, or save. I know this seems like a tough action, but you can do it. Ask yourself what your number one priority is? If you have high-interest rate debt, then paying it down should be a priority since it’s crippling your ability to do much else. Put at least a little dent in the debt nugget if your interest rate is greater than 6-8%. I choose this range because it’s hard to find a return on your investments higher than this range over prolonged periods of time. As such, if you choose to invest the money instead, and only earn 5%, the cost of your debt is higher than this, which means that all of your investing gains will be eaten up by the debt payment.
2. Take your time. Many people feel as if they have to go out and use their windfall of cash right away. We often infuse our own arbitrary dates to take action, but I recommend spending some time to truly think about all of the wonderful possibilities. If you need a few more smart ideas to do with your money, check out this Kiplinger’s article on “10 Smart Uses for Your Tax Refund.”
3. Talk it up. Often you are thinking about your situation in your head. Talk to someone you trust, and who knows a little something about money matters. This could be your financial advisor or a friend/family member who acts smartly with their money. By discussing your situation and desires with your pot of cash, you’ll be surprised what other ideas might arise. Furthermore, you can contemplate the benefits and costs of your actions.
4. Indulge in spending GUILT-FREE. If you want to spend your money on something you’ve been saving up for, go do it. Just remember – the best money spent is that which is guilt-free.

I’m looking forward to hearing about what you are doing with your potential extra cash. Leave a comment on my blog and let other members know how you’re planning to use your money.

It was 70 degrees in Chicago this past weekend, so I got outside a lot. I hope the sun shined on your this weekend too. Have a great week!

Love & Finances

I hope that this Valentine’s Day brings love, joy, and peace your way. I simply ask:

What’s Love Got to Do With It?

Well, most of the time, I say…..”A lot!”

Borrowing the question from Tina Turner, one of my favorite performers, I am answering it in my own voice.  I think most of us want to build wealth for not only ourselves, but for the people we love. Most people tell me that if they want more wealth in order to have more experiences with their loved ones, leave something behind for posterity, and/or have new experiences.

Wealth is no replacement for time, but it might help make more time for doing things with (and for) the people you love. I think many pending retirees, whether yourself or a parent, are thinking a lot about their own wealth situation and may agree with me. I received this bold question from a fellow Charisse Says member:

What would you recommend to someone who is 5-10 years from retirement?

Here’s my take on a few things you can do:

1. Figure out your post-retirement lifestyle monthly number. Basically, figure out what will your post-retirement life cost you. I went through this exercise with my own parents, and it’s important to be honest with whether your cost of living to be the same, increase, or decrease. Many pending retirees want to downsize their living situation but also go on more trips, spend money on their grandbabies, and incur more medical expenses.

2. Determine how you will fund your lifestyle, and for how long. You need some money coming in to fund your lifestyle. If you’re lucky, you will have some pension money. But, most people will need to tap into their retirements accounts (401k, IRAs, 403b, etc.), so this then triggers other questions:

   1. Can your current portfolio can completely fund your future lifestyle?

   2. Can I afford to retire in 5-10 years, or do I need to work in my current job for more than I thought?

   3. What are my other complementary benefits going to be – Social Security, Medicare, etc.?

   4. Should I have some other form of income coming in during retirement?

   5. How long will I live? - I know, a bit morbid but think positively.

   6. Assess whether you need help navigating the waters. Some people want to change their asset allocation in their portfolios in order to either make extra money, or not lose any money, in retirement. It all depends on whether it’s worth it to try and gain a little extra money, or avoid losing any. Since many people are retiring at later ages, your personal preference may vary. Consider consulting a financial advisor. Check out my video on “Dating a Financial Advisor.” If you have more specific questions on changing portfolio allocation to meet retirement needs, leave a comment on my blog.

Boldness in action

I told you that I would continue to share bold moments with you in my personal journey, so here you go – check out this unexpected scene with this parrot on my head on my recent trip to San Diego. My husband was clearly game too.

Again, I come back to…”What’s Love Got to Do With It?”....

Everything!

Enjoy this week and continue to hug those people in your life that you love – that’s why many of us are on this pursuit to build wealth.

How do Presidential Actions Affect Your Income?

Good Evening! The first week of February has hit us with lots of stuff – members of the Charisse Says community are acting boldly when it comes to their money, Black history month, more Presidential activity that could affect your wallets, and economic news that affects the stock market.

First and foremost, Grant C. shared with us that he opened up a Roth IRA account and specifically:

“It’s been on my mind for a good while and I told myself - I just need to do it. I can forego a couple of records this month! I couldn’t afford to start off with a ton of money but, I plan on contributing into it for the long run. Just wanted to thank you for the financial investing tips/education/energy!  Looking forward to mastering it over time and adding other investments.”

Congrats to Grant! If this isn’t bold, I don’t know what is. I want to encourage you to reflect on the trade-off Grant made to make his investment happen. You may be thinking of taking a bold move and I’m hopeful that Grant’s story inspires you too. Get to it!

Now, here’s what you need to know:

• Black History Month Wealth Spotlight. This week, I’m highlighting the Oprah Winfrey Network series Queen Sugar. You know that I love movies and creative content. I spent my Christmas holiday binging on the first season of this new series directed by Ava DuVernay. It’s full of wealth-related concepts and specifically highlights how a Black family in Louisiana is forced to revisit how it thinks about generational wealth and investing in high return projects. I don’t want to give it away, but let’s just say that it was my favorite series from 2016.
• Dodd-Frank Act Investigation. President Trump signed a memorandum ordering “a review of the Dodd-Frank Act, the post financial-crisis regulatory overhaul that has guided regulators such as the Federal Reserve.” Trump’s goal to “cut out a lot” of the rules means that he is trying to make it easier for financial companies to conduct business without hefty regulatory oversight. Now, this can go a bunch of different ways, so the test will be in what the investigation brings forth. I will be looking out for any information on how we maintain enough oversight so that we don’t find ourselves in another crisis. But, the fact that we saw bank stock prices go up means that investors take it as a positive sign that banks might be able to return more money to shareholders. Are you looking to invest in themes based on Presidential actions?
• Fed’s Decision and Jobs. Last week, the Fed left the fed funds rate the same last week as anticipated. Furthermore, the U.S. added 227,000 jobs in January, signaling continued strength in the economy. The stock market reacted positively to these new pieces, so keep this in mind when you see market movements because of economic data.

Lastly, I was recently interviewed by YouCollective, a platform that democratizes voices of individuals with achievement and impact.  I was humbled to be selected as a YouCollective Pathmaker and shared my personal story on how I forged my path and overcame challenges along the way. Feel free to listen to my story here.

Wealth & Staying #Woke

Thank you for all of the responses – via email, Twitter, Facebook – on the Year of Boldness.  We are ready for action. Boy, doesn’t it seem like we have already been through emotional whiplash over the last few days? My goodness. In the words of my pastor, stay #woke, please.

In true spirit of being bold, you have the power to put your money where your mouth is in this moment.  Your wealth is directly affected by how you spend your dollars. How can you make a difference today?

• If you disagree with how certain companies (or founders) are dealing with our crisis, don’t shop there.
• If you have a business idea that you want to get off the ground, make sure you’re putting money aside to fund the endeavor so you can make your own mark on what’s happening around you.

Now, in case you missed it last week amidst all the chaos, the Dow topped 20,000.

Boeing and Microsoft reported strong earnings last week, and these two companies contributed significantly to the Dow’s move. One of the most frequent questions I received this week was – “Will the market keep going up?” Well, I have a real answer for you – “I don’t know.” As unsatisfying as that might seem, it’s true. No one, not even me, can predict what the market will do. If someone tells you that they can predict the market, I would run away.

What I do feel very confident in reminding you is that you need to examine your portfolios and assess whether you need to take any profits. As a rule of thumb, I like taking some profits when my U.S. equity stock holdings make 15-20%. And, by “some,” I usually sell the amount of the profit. So, if it cost me $10,000 to buy a stock, and it went up to $12,000 because of a 20% gain, I will sell $2,000 worth, which locks in my gain of 20%, minus any commission I pay to trade the stock. This way, I still have $10,000 invested. If the stock(s) goes down, I can decide to buy more if I still fundamentally believe in the stock. At the very least, I won’t suffer guilt from not selling the stock when I had the chance to make some money.

What Should You Do?

Stock prices are a function of how the market values the future growth of a company.  As such, we expect stock prices to grow at the same pace of earnings growth. When prices grow faster than earnings growth, we have a problem: the market gets overvalued, and thus we are susceptible to falling stock prices and potentially losing money.

So the question you should be asking yourself is whether earnings will keep up with stock prices. The Wall Street Journal addresses this very question by reminding us that many companies have yet to report earnings.  This week, many more companies will be reporting earnings, and thus we must be paying attention to not only how these companies performed last year, but also their earnings expectations for 2017 and beyond. [If you have forgotten how company earnings reports work, or why they’re important, no sweat – check out my video on company earnings.]

In short, pay attention to what’s happening around you and evaluate how you will respond.

Best Money & Life Advice for 2017

After all the planning, plotting, and presents, are you peaceful? I hope so. I spend a lot of time talking about money and investments, but if there’s no peace behind it, I know that all of the materials and experiences tend to feel empty.  

So, my hope for you in this last week of 2016 is that you recognize your value, because when you value all that you are, the peace comes. As such, know that I see you….

I see your desire to take control of your money and investments.

I see that you want some things to be different next year.

I see what you have to offer this world---- BIG things

I see that you’ve been reading my stuff most times (lol…yes, I know if you open my emails – no pressure, almost).

You didn’t know that I could see all of that, right? Well, I do. If you still need a little pick-me-up, check out the gifts I gave you a few weeks back.

I can’t believe this year is almost over! When we started 2016, I declared it to be the “Year of Action.” As you reflect on your own money successes and failures, I hope that you latch onto the highs and learn from the lows, as they all contribute to be your full self.

I want to leave you with a few goodies before 2016 ends:

Plan & Make it Happen. What I’ve learned from all of the money mavens that I admire (including my mom), very few money successes come without planning. I’ve used this approach in my own investment advice. Thus, if you can spend 60 minutes sometime this week getting your financial house in order, I promise that you won’t regret it.

Read these 3 Great End-of-Year Investing Articles.

• How the Twinkie Made the Superrich Even Richer – Learn how superrich investors are making money while we are still eating Twinkies. I grew up eating these delightful snacks, and you’ll be surprised to read about how fortunes have been made.

• Startup Investing for the Little Guy – I’ve talked about ways for everyday people to invest, and here’s a really good summary.

• The Next Hot Trends in Food – I know that many of you are foodies and always looking to make some investment bets on the food industry. Well, take a look at hottest trends in food for ideas.

Check Out 40 Semi-Obvious Lessons: From Building, Selling A Business & Working with 100’s of Entrepreneurs. As you know, I often highlight the successes of Charisse Says members. Well, Seyi Fabode is an active member and he just released his new book. It’s on the money, for sure and you can purchase it here. For you aspiring entrepreneurs, and for us seasoned ones too, it’s worth the read.

See You in 2017!

I am taking a few weeks off to recharge from an amazing year of life. I can’t WAIT to share the new “Year of ______” in 2017. If you have any guesses or want to see something in particular, leave a comment below. Otherwise, I’ll leave you in a little bit of suspense.

Thank you for journeying with me in 2016 and I’ll see you in 2017, God-willing.

Peace,

Charisse

P.S. Send your family and friends this newsletter as your own gift. They deserve some TLC too.

Special Holiday Gifts for 2016

Since Christmas is my favorite holiday, I want to get my gifts to you early. If you do not celebrate Christmas  

Yes, I got 3 for you right now.

My time and care went into developing these special gifts, so I hope you enjoy.

Gift 1: Special Tips from my interview with Farnoosh Torabi

I go behind the scenes in my interview and share what it has been like for me to raise capital, work in the very busy, crowded, competitive FinTech space. I also share some of my top investing principles, including “Being the CEO” of your money.

Check out my exclusive interview with Farnoosh HERE for all the goodies.

Farnoosh is host of the #SoMoney Podcast, and a money maven herself.

Gift 2: Top Recommendations on Where to Get Money to Invest in Your Business.

Interested in starting a business?

Well, many businesses are challenged to scale because they lack sufficient capital. While strong management expertise and a pathway to profitable growth also contribute to a positive growth trajectory, the right financial capitalization matters.

I provide specific funding sources based on affiliation—from ethnicity to geography—which can help business owners secure capital and increase financing options.

Check it out the details of my funding advice gift to you here.

Gift 3: Discounts on Your Gala Dresses

Got a holiday ball to attend?

Well, you don’t need a fairy godmother to go completely glam. Charisse Says member Jennifer Burrell, created The Frock Shop to meet your needs. The Frock Shop is a designer dress rental service that allows you to look great for every event, without breaking the bank.  It’s as simple as rent, wear, and return. And the best part? Your ensemble will last long past midnight.  Just choose your dress, look fabulous at your event and return it after you are done.  If you order online, Poof!  Your package arrives in the mail, and you are ready for that ball (or wedding, or company soirée...). Better yet for those of you in Chicago, head directly into the Chicago showroom and try on your frock before making a decision.  After the big event, just return your dress by mail or in person, no dry cleaning required. Now if only we could rent the perfect date...hey, a girl can dream.

Order Online HERE!

That’s it folks!

I hope you enjoy your gifts. Keep reading and their might be a surprise gift for you over the next few weeks.