Money Management for Women

Lesson #1 – Find your Financial Goals

Posted on 04/14/2012 by Marina K. Villatoro

This is a really tough start. I mean, I’m sure we all know what we want as far as our financial goals :

Get the greatest return on our money!

But that’s sooo much easier said than done.

This is the first lesson of Investools, and in some ways I don’t totally agree with it.

Defining your Financial Goals

How many years until you reach your goal – is this for retirement, short term, long term, college fund, etc…
Do you want to high risk, low risk?
Are you planning on being active or passive?
What do you plan on adding into your portofolio? Stocks, bonds, mutual funds, CD’s, etc…
Do you want to use a financial planner or go at it on your own?

As you can see there is a lot to take into account.

The Disadvantages and conflicts of having a Financial Plan:

There is no doubt in my mind that having a plan is essential road mapping to where you want to invest your money. However, the main downside to this is you CANNOT predict anything when it comes to the returns you’ll be getting.

How do you know if you’ve chosen the next big winner
How do you know what the market will do - it’s becoming more and more unpredictable, certainly not enough to say – ‘I will be earning 12% return yearly’
What if in the next few months you decide you want to go more aggressively with your investing

In my opinion, you definitely need to have a GENERAL layout. But don’t get to wrapped up in the exact numbers. Have an outline. You can at least decide on what percentage of investments for the portfolio you will have. Ex: 25% stocks, 25% ETF’s, 25% dividends, 25% money market or savings

This will help you figure out more of where you should start.

My Financial Goals and Where Do Start:

I have two accounts that I will be working with – my individual trading account and my Roth IRA account

Goals for my Individual Account

This is my aggressive account – I plan to go nuts here. I’m not that young, almost 40, but what the heck – you only live one right! So why not just do it. Don’t get me wrong, I won’t be doing it just like that – I plan to learn all the ins and outs of it first, but my views are aggressive:

25% emerging markets – etf’s mainly, however, if a certain stock or 2 catch my eye, I’ll test them out

25% penny stocks – I’ve always had a weird pull to these stocks, and some of them can really do well.

25% Commodities – strictly ETF’s – but am definitely into this sector (including precious metals)

25% Dividend stocks and ETF’s – This isn’t as aggressive as the others I plan on working with, but I love the fact that I can get some cash back, and working with DRIP programs, helps to reinvest the money back into the stocks/ETF’s I will be choosing

Goals for my Roth IRA

This account I plan on being a lot less aggressive and even more passive if possible.

25% Commodities – precious metals in general aren’t too aggressive since I am sure our resources are dwindling and no matter what these will always come out the strongest in the long run, so for me it’s not an aggressive move

25% Emerging markets – living outside of the US for the past 10 years I get to see personally that the US is not the strongest power. There are many nations that are equally powerful with very strong economic foundations. However, as opposed to my individual account, I won’t be investing in the newer more emerging nations, but in the ones that have been established for a while.

25% Dividend stocks and ETF’s

25% Index funds – these are the least risky of all and many MANY people swear by them!

What are your financial goals?

Posted in Financial Advice, How To Invest, Investing | Leave a comment

Confession Time – Switching Brokers and Starting to Invest

Posted on 04/14/2012 by Marina K. Villatoro

In the past few weeks I’ve had an interesting turn of events.

My girlfriend, who has been with Ameritrade for years, was in negotiations with them. I’ve been using Scottrade for over seven years and have been trying to convince her to switch over due to the $7 a trade price which is way better than Ameritrade’s $9.99. Instead the tables turned on both of us – in a good way!

Ameritrade promised her the same $7 trade commission fee and told her that they are interested in bringing me over to their company. For me to join them, she will get 25 free trades so it was rewarding for her – to say the least – for me to transfer everything over to them.

Then one day, I get a call from an Ameritrade representative and the plan they laid out for me was way more lucrative than I could have ever imagined. Here’s what they offered me:

1. $7 commission fee – forever

2. 15 free trades

3. Free – basic – education- with their subsidiary Investools.

The education itself is worth $500 for what I’m offered. I know to most somewhat experienced traders this may not be that big of a deal. But since I’m in the process of learning all I can – since I’m a very BEGINNER, this offer was hard to resist.

But to give Scottrade the benefit of the doubt, I told them what Ameritrade laid out on the table for me. They couldn’t match it, simply because they don’t have any real education center. The only workshops they offer is at their office, which is an impossibility for me since I live in another country for the most part of the year.

Aside from the basic foundation of Investools, I am finding tons of seminars and workshops that I get to access with my membership.

Free Financial Education – My Gift to You!

Since not everyone is able to afford an education – I know I couldn’t until this offer fell into my lap. I will be summarizing exactly what I’m learning through Investools, so that you can enjoy my perks too!

Posted in Confessions, Financial Advice, How To Invest | Leave a comment

My Portfolios – Individual and Roth

Posted on 03/21/2012 by Marina K. Villatoro

Keeping track of your portfolio is crucial to your investing success. Since I was extremely all over the place and not really hands on, this is my portfolio for the time being. It’s in the process of being changed!

Individual Account

GLD

Bought March 2006 – $54.02 – 5 shares

Today April 2012 – $159. 54

BHP

Bought March 2006 – $34.32 – 22 shares

Bought again – April 2006 – $43.97

Today – April 2012 – $73.41

BND

Bought September 20122 – $83.79 – 172 shares

Today – April 2012 – $83.73

Today – $33.89 - 15 shares

CEO

Bought May 2006 – $83.11 – 5 shares

Today – April 2012 – $207.97

IAG

Today – April 2012 – $12.30 – 5 shares

NOV

Today – April 2012 – $77.68 – 6 shares

SLW

Bought April 2006 $10.68 – 10 shares

Today – April 2012 – $29.38

VEU

Bought – September 2011 – $41.57 – 292 shares

Today – April 2012 – $43.19

VTI

Bought – September 2011 – $60.31 – 222 shares

Today – April 2012 – $70.82

VWO

Bought September 2011 – $41.68 – 194 shares

Today – April 2012 – $42.75

AAPL

Bought April 16 2012 – $604 – 49 shares

Today – April 20 – $572.98

PCLN

Bought April 16 2012 – $717 – 20 shares

Today April 20 2012 – $710.17

Roth Ira Account

BND

Bought September 20122 – $83.79 – 40 shares

Today – April 2012 – $83.73

EWZ

Today April 2012 – $62.13 – 30 shares

FXI

Today – April 2012 – $38 – 90

GLD

Bought March 2006 – $54.02 – 7 shares

Today April 2012 – $159. 54

SLV

Today – April 2012 – $30.75 – 70 shares

VEU

Bought – September 2011 – $41.57 – 108 shares

Today – April 2012 – $43.19

VTI

Bought – September 2011 – $60.31 – 78 shares

Today – April 2012 – $70.82

VWO

Bought September 2011 – $41.68 – 73 shares

Today – April 2012 – $42.75

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Confession Time – I Don’t Own A Credit Card

Posted on 03/15/2012 by Marina K. Villatoro

It’s hard to believe that someone in this day and age really doesn’t own a credit card. I do have a debit card, which in truth is hardly the same. This was a voluntary choice and a choice that has been scrutinized by many from my parents and friends to the obvious sufferers – credit card companies!

I don’t regret my decision which my husband and I made over 10 years ago.

History of my Money Management Tactics

I am one of those people that simply can’t owe money to anyone. If I borrow, I pay back immediately or else it eats away at me.
I have never ever been late with the rent or a bill
I have never ever bounced a check
And when I did own credit cards I only bought what I knew I can pay for and found myself sending checks to the CC company before my bills arrived

Making the Move from Credit Card owner to Debit Card Owner

For me it was simple as compared to others. But one way to stay away from credit card debt is to tear them up and have only what you can at your disposal via debit cards!
Plus, when you have a debit card, it still feels and looks all the same, but takes away that huge baggage of DEBT from you!

Benefits of NOT having a Credit Card

Buy only what you can afford
Never worry that a bill will be arriving at your doorstep
Never worry that a CC bill wasn’t paid for and then having to owe 20% interest on top of the money owed
You can use it like a CC so people won’t be constantly asking you where’s your CC

Disadvantages of Not having a Credit Card

It still looks and feels like a credit card and unless you are on top of what you have in the bank, you can leave yourself completely penniless for the month.
Credit score and rating – a lot of people say this move will really affect my credit rating when I want to borrow money. I actually have friends that say that they need to make a huge purchase with their credit cards (owe the money later) so that they can get a better credit rating. This to me is absurd! And if you really want to get a loan, you will be able to do so by showing that you are good with your bills.
Emergencies – yes, this is a huge one and at times I have even considered getting a credit card just for that particular reason in itself. What if I am in a huge jam – stranded somewhere, car broken down, hospital bills – what happens? Honestly, I’m still battling with this one – so will have to get back to you later on it!

Posted in Confessions, Financial Advice | 8 Comments

Deciding What To Trade and Then Sticking To It!

Posted on 03/14/2012 by Marina K. Villatoro

With all the overwhelming information out there, one must decide:

What is it that you want to trade in?

It’s an endless supply of options on how you can invest your money:

Stocks and equities
Dividend Stocks
ETF’s
Mutual Funds
Emerging Markets
Bonds
Commodities
Sectors
Indexes
FOREX trading
Real Estate Markets
Annuities

These are just a few, because you can then breakdown each one to even more finely tuning your interests. Which will be a must eventually. But you first need to narrow your scope and decide what you feel most comfortable with.

Since I have a base knowledge in ETF’s, Stocks and Dividends, Emerging Markets, and Commodity trading via ETF’s this is what I decided to keep my focus on for the starting point.

You can choose whatever is best for you, because at the end of the day it’s your money, your passion.

Plus, the amount of work and discipline is the same no matter what you decide to put your hard earned cash into!

Posted in ETF's, Financial Advice | 8 Comments

Yakezie Challenge

Posted on 03/14/2012 by Marina K. Villatoro

I’m taking the plunge and committing full on to making this personal finance blog as good as it can be for you!

How I’m doing it? I’m taking the Yakezie Challenge!

About one month ago I stumbled on this excellent website and found a super large and supportive group of personal finance bloggers all ready to network and help out with other blogs.

The challenge is a minimum of six months of writing excellent content, networking with other Yakezie members and blogs and most of all supporting each other.

Sounds like a pretty sweet deal to me – how can I resist!

I’m so up to the challenge.

Posted in Investing | 2 Comments

What Kind Of A Trader Are You?

Posted on 03/14/2012 by Marina K. Villatoro

Since starting my quest to align myself to the best position of trading, one that will give me the best returns and benefits but also not become a full time job, I started to hear about the different trading methods out there.

I had always assumed there was only two types:

Day traders - the full-on people that devote every waking moment watching the stock market and playing it daily

The Buy and Hold people – which I’d say is the majority of the people!

But there is also the Swing Trader, which falls between both of the above!

I’m officially calling myself a Swing Trader! Don’t get me wrong, it still involves as much work as any other committed trader and the same amount of discipline, but it’s not about trading on a daily basis but more of coming up with a formula that works best for you.

So let’s find the right formula and stick to it!

Posted in Financial Advice, Investing, Playing the Market, Stocks | Leave a comment

Investing – How To Start?

Posted on 03/07/2012 by Marina K. Villatoro

Seven years ago, when I had some extra time, not sure where it came from, but it was there, I threw myself into learning all about investing in stocks, bonds, ETF’s and mutual funds.

I read and devoured everything I could get my hands on. I bought a bunch of stocks, quite wisely, and let them sit.

They were doing really well, some made up to 30% profits. But then time became scarce and other things happened in my life that I let this sit and sit and sit.

Now I found that time again. Basically, I have made it priority. I feel horrible knowing that the little money I have worked so hard to earn is literally earning .03%!!!! I mean that’s an outrage. So much for making my money work for me.

So I’m back to where I was 7 years ago. But the main difference between then and now, is the insane explosion of information on the web. About every subject, including investing.

I’m sifting through it, and coming up with the best there is and will break it down in my own – DUMMY – terms that is easy to understand.

First Step To Finding What’s Out There – Narrow the field and find what is most interesting to you.

I reached out to a few people to help send me off on the right direction. One man in particular, was so helpful, and told me that these are the sites that he swears by:

Daily and Weekly Reports about the Market with Bill Cara

Financial Spread Betting

Wishing Wealth Blog

Commodities Expert – Peter Brandt

Max Keiser Financial Reports

Here are the sites that I’ve found to be the best help and will start breaking them down – one by one:

Now it’s time to learn, learn and invest!

Posted in Financial Advice, Investing | Leave a comment