Financial Tips For The New Investor

The new year is only a few days away. Get a jump start on financial success and claim what’s yours!

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  • Getting 2019 started right concentrating on three key steps.

  • Results may vary depending on your investing style.


The new year is on its way and you are ready to get serious about investing in the stock market! Now you can either jump right in and invest, or you can take necessary precautions and plan for success.

It took me some time to really get a grasp of how the stock market works and what investing style worked best for me. I look back and wish I wouldn’t have rushed the process at first, and because I did it cost me hundreds of dollars. So learn from my mistakes and check out these financial tips before you dive right in this year.

Minimize your expenses and relinquish your debt.

Be Aware Of Your Spending Habits

This is the most challenging part of all, but if you are afraid to check your personal bank account on a daily basis, don’t invest in the market. Learn to manage your personal finances, minimize your expenses and relinquish your debt. Being responsible for your spending habits is a must if you want success with your investments.

Life catches us by surprise often…

Emergency Savings

I was told by a wealthy businessman to always have at least $1,000 emergency fund on the side of your investing endeavors. And once you have started with that, build it to $2,000 (and so on). If you have a family, your emergency fund may need to be $3,000 – $10,000. But, if your main source of income stopped today, how long could you survive from your current savings?

Why?

Life catches us by surprise often, so it’s best to have a side savings fund to be prepared- sudden surprises such as car repair, house repair, etc. It’s not recommended to have all of your savings placed in the stock market. If you placed it all in a brokerage and suddenly needed the money, it could take several business days to complete the transactions (fees could be involved). You may also consider holding your securities long-term for tax purposes.

Concentrating on these two tips will help you to become a better investor in 2019. Be patient and learn from others. It’s very common for investors to have come excited, but have a strong game plan and keep your eyes open to new opportunities.

Please see About Me & Disclaimer for additional information about Black Tea.
Closing Disclaimer:

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market. We are a participant in the Amazon Affiliate Services LLC program, an affiliate advertising program designed to provide means for us to earn fees by linking to Amazon.com and affiliated sites.

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Johnson & Johnson: Damaged Forever?

Things aren’t looking good for Johnson and Johnson. What can we expect next?

  • Second time this year in 2018, JNJ (Johnson&Johnson) has been targeted for it’s knowledge of asbestos in its world-famous talc baby powder.
  • Will thse issue conintue to occur? Should investors be concerned for the company’s reputation?

JNJ ( Johnson & Johnson, $133.10) stocks tumbled down 10% Friday 14th, 2018 as the company has been handling their pressures of the public knowing of asbestos in it’s baby powder. Some investors are concerned for how the issue is going to be managed and if this will effect their next earnings report. Yet, other investors aren’t concerned since the company is vastly know for their award-winnning products and their loyalty to their customers. However, this is not the first time they been hit with public shame for asbestos this year.

What Happened?

 

July 12th, 2018, JNJ was also hot in the news for being sued by 22 women for receiving cancer and /or poisoning for asbestos found in their famous talc baby powder. But should JNJ be shamed for this? Does this make JNJ a bad company?

According to mesothelioma.com, Trelomite, also known as amphibole asbestos, is created in the same nature as talc. Tremolite is often found in the same mines as talc and without special quality testing, it can contaminate the talc. However, talc can not only be used in baby powder but chewing gum, oils, makeup cosmetics, hair products, and more.

Read: Tariffs: What Are They? How Are They Affecting My Portfolio?

JNJ’s lead attorney, Bart Williams had more to say on the issue,

Johnson & Johnson doesn’t believe it should be intimidated into removing a product that’s been out over 100 years, that has diapered hundreds of millions of babies around the world, simply because plaintiff lawyers have put a target on the back of Johnson & Johnson.We believe in the product. The product works. The product is beloved. The best scientists in America have reviewed it again and again.



Does this event make JNJ a bad company? Investors and customers still believe in the company and await its next press release.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNBC.com, Mesothelioma.com, Factsabouttalc.com, Cnn.com

Christmas Gifts for Stock Investors

It’s that special time of year and Christmas will be here before you know it. Perhaps you are shopping for a gift for your friend who loves investing, but what do you give them besides money? We have a few ideas for you that may make this holiday season extra special.

Books Or Magazine Subscriptions

From stock analysis to mind-tugging economy books, there is always a great book that hasn’t yet been read.

However, if the investor doesn’t prefer reading from books, perhaps he or she would prefer a business magazine subscription. Magazines give quick visuals and snippets about what is happening in the economy.

Top Selling Investing Books

Popular Investing Magazines (select highlighted links)






You can also visit Magazines.com.

Stockpile 

Stockpile is a stock brokerage app that allows you to purchase gift cards in the form of a physical gift card or e-gift card that can be used to buy ETFs (exchange-traded funds) or fractional stock shares. The gift card can only be used towards the brokerage (unless stocks sold and money transferred to his or her bank account). Yet, the brokerage has no monthly fees and provides an option for the investor to reinvest their dividends if they chose to do so. Stockpile has low trading fees and is easy to use for those new to stock investing.

To find out more, visit Stockpile.com.

Stock Certificate

A stock certificate is a formal certificate representing the ownership the holder, select amount of shares owned, identification number and signatures and company seal. You can get a certificate by asking the company’s investor relations department directly, a stock brokerage, or a company called Give-A-Share.

An image example stock certificate

Give-A-Share can provide professional framing for authentic stock certificates. For additional information, visit giveashare.com.


Of course depending on what the investor wants it’s easy to ask, however, there is always something extra to give to make this holiday season extra special.


Please see About Me & Disclaimer for additional Information about Black Tea.

Closing Disclaimer:

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market. We are a participant in the Amazon Affiliate Services LLC program, an affiliate advertising program designed to provide means for us to earn fees by linking to Amazon.com and affiliated sites.

IG Snapshots

A Tool For Every Stock Investor

Do you have investments in Mutual Funds, Index Funds, or ETFs? Find out what tool investors are using to find hidden managment fees.


ETFs (Exchange Traded Funds) are great investments due to their low management fees and flexibility. However, many new investors forget that even ETFs can have high expense ratios and have great potential to eat away at your profits overtime.

Meet Fund Analyzer

Fund Analyzer is a website made by the FINRA (financial industry regulatory authority) that calculates and compares fund expenses. This is an excellent tool to use if you are searching for any fund to buy and hold for a long period of time. The analyzer breaks down funds costs for the investor and shows the following:

  • Front-End Loads (fees upon purchase)
  • Redemption Expenses (fees for early checkout)
  • Annual Operating Expenses (operational costs)
  • Back-End Loads (exit fees)
  • Additional Account Costs

To use the analyzer: Simply search for a fund by typing the stock ticker symbol or the full name that you are looking for. Select your fund or find additional funds to compare the fund to. Once the fund(s) are selected, select “ANALYZE” at the top right of the screen and view the results! There are advanced search options, but the base example they give is preset on an initial contribution of $10,000, rate fo return set at 5.00%, and holding period set for 10 years– you can change this if you like depending on what you are looking for.

The analyzer gives ratings based from MorningStar. The “fee category” shows a vivid graph of comparable funds that range in the same field as your investment funds (you can click the graph dots and find other funds in the same expense ratios).

The Fund Analyzer is also a recommended tool to use by the SEC to deliver appropriate information for investors and awareness of brokerage fees. This analyzer is a simple way to work smarter, not harder.

Honest Review

Personally, I wish I would have found this analyzer before I started investing. A majority of my portfolio consists of ETFs and it’s important to understand how much fund expenses will cost you overtime. I definitely suggest this to be a tool for you to use on a daily basis or when you find it necessary to rebalance your stock portfolio.

 

Disclaimer:

This blog is not a paid advertisement from any financial institution or the owners from Fund Analyzer and I was not paid prior to writing this post.


We are a participant in the Amazon Affiliate Services LLC program, an affiliate advertising program designed to provide means for us to earn fees by linking to Amazon.com and affiliated sites. Please see About Me & Disclaimer tab for additional information about Black Tea.

Information Attained: FundAnalizer.com

Honest Review: Acorns Investing App

Honest Review for one of the hottest investing apps on the market!

Image Credit


Acorns is a stock investing app that has many special features customized for the beginner investor. Its main selling point for customers is their specialized “round up” feature. If you connect your bank account to the app, they will monitor your personal bank account and round up every dollar spent and use the cents toward your stock account.

For example: If you bought a cup of coffee this morning that cost you $2.75, Acorns will round up to the nearest dollar to $3.00 and place the $0.25 cents towards your stock portfolio to be invested.

(Another example presented by Acorns to round up to $4.00)

Fees Involved

  • $1 a month for holding an account Acorns Core (standard). However, this feature is free for college students
  • $2 for Acorns Core + Acrons Later (standard account and retirements
  • $3 for Acorns Core + Acorns Later + Acorns Spend (standard account, retirement account, and Acorns exclusive checking account)
  • Additional fees may vary

Investments Allocated

Simplified, Acorns does all the work for you. When you sign up for a free account, you will be asked a few questions that will customize your investment portfolio. You will be able to choose your investing style from categories that range from conservative, moderate conservative, moderate, moderate aggressive, and aggressive. These customized stock portfolios will have a range of investments from government bonds and real estate stocks to corporate bonds and emerging market funds.

Image Credit


In my humble opinion…

This is a very simplified way to invest into your stock account, however, I didn’t make many purchases and I found that it was best for me to add my own money instead of using their automated feature.

Acorns use stock advisors form Vanguard and Blackrock to customize their managed portfolios. This is exceptional, however, Blackrock’s ETF’s at times has higher fund management expenses that may give your a less return from other ETFs.

Also, I prefer taking charge of my own investments and arranging my own stock portfolio. Acorns didn’t give me the liberty to add or take away any stocks.

This app is best for the new investor that doesn’t want to put a lot of time into studying the market. If you find yourself in the position with a very busy career or you find the stock market confusing but you still want to invest, this may be an application for you to try.

Please see About Me & Disclaimer for additional information about Black Tea.

Stock Investing 101: What Am I Looking for When I Start Investing?

Do you want to start investing but you don’t know what to look for? Let’s take the first step together and find out what is important.

  • There are many things you could look for in a company, but if your new to stock investing it can get be overwhelming.

  • Today we are looking for a company that has two characteristics: a special product or a special service.
  • Always look for consistency and growth and any long-term investment. Let’s get started.

There are many exceptional companies you can find on the stock market, but some of the greatest corporations will have at least one of these characteristics: a special service or a special product. And if the company has both, you may have found the jackpot. Now, this sounds very simple considering most corporations have something to sell to make a profit from, yet what is special about this product? What is unique about this service that attracts repeat customers to want to use more than other companies? Let’s dig deeper into what to look for in a company if they have a special service.

A Special Service

Leading companies on the stock market that have a special service may be companies such as WFC (Wells Fargo), WTW (Weight Watchers INTL. INC.), AWK (American Water Works Company Inc.), or FDX (FedEx). You will find that most of these companies listed are businesses you have already heard of because they have mastered the technique to be people specific.

For example: If you want to lose 10 pounds, you may want to subscribe to a Weight Watchers meal plan. Or perhaps you want to mail a monetary gift to a friend who is getting married? You can use FedEx or send money through an app through Wells Fargo. These companies have solved and everyday people problem and these everyday solutions have made these companies millions of dollars in revenue.

 

Read: How To React When Your Portfolio Is Plunging

A Special Product

You may not have to look far to find a special company that owns a special product. The fastest place to look may be your bathroom counter or you daily vitamins that are placed in your pantry. Companies such as PG (Proctor & Gamble), USANA (United Health Sciences Inc.), or EL (The Estee Lauder Companies, Inc.) are companies that mastered a way to sell a special product to maintain repeat customers. Their special product(s) aim to solve a problem for the consumer and if the products are good enough, there is no need to make revisions this lead to fewer company costs that will save the company more money in the long run.

Fast Analysis: Sysco Corporation Ready, Set, Goals!

There are many great corporations I may not have mentioned today, but when looking for a particular company to invest in, find a company that has a durable competitive advantage over other corporations. This company with a special product or service needs to stick out from the crowd from their competitors. After you have found the company’s niche, look through their history of performance and look for consistency of growth in areas such as revenue, gross profit, dividends, and production. Is the company holding profit or are they struggling with debt?

Take your time to do your research on the company that deserves your money and time for maximum profitability.

 

Closing Disclaimer:

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market. We are a participant in the Amazon Affiliate Services LLC program, an affiliate advertising program designed to provide means for us to earn fees by linking to Amazon.com and affiliated sites.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

TheStreet.com

JD.com: What’s Your Competitive Advantage?

  • JD.com had a productive year so far, but their performance is still average in their competitive industry.
  • A global company with such potential should have higher revenue.
  • Is JD a quality long-term investment for you?

JD (JD.com Inc., $33.16) is China’s second largest e-commerce retail website and as affordable, the stock price is, many investors are anxious for better financial results.

Fast Analysis

JD has a history of low GPM (gross profit margins) ranging from 11% to 14% from 2014 to 2017. Leading corporations that have a higher competitive advantage may have a percentage that lies in 20% or above such as BABA (Alibaba Group Holdings) at 57% and AMZN (Amazon.com Inc.) at 23%.

Investors are also mindful of JD’s earnings history. Limited or erratic growth in earnings may be a sign of the company’s poor management of supply- also known as “boom and bust”.

Image Credit

Though investors do not solely use GPM’s or earnings as a sole deal-breaker for investing, a company that shows consistent growth in these areas is a positive sign of long-term durability.

Read: Honda VS. Toyota- Which Stock Is The Better Buy?

Recent Acquisitions, Mergers & Investments

JD had a busy summer with the large partnership made with GOOGL (Google/Alphabet) and acquisition of a large european fashion brand, Finish Line.

JD also partnered with L. Catterton Asia for a convertible note investment of $175 million in SECO (Secoo Holding Limited), one of the world’s leading online luxury brand. This joint venture was made to further expand revenue and audience in the online retail market.

Related: Alibaba Group Holdings Ltd: The International Powerhouse

Image Credit

On the other hand, analysts such as Zack’s are currently listing JD as a “strong sell” due to the low annualized return rate below 5%.

Should investors wait until the trade dispute subsides between Asia and the United States? JD is taking immediate action through the right investments to broaden their audience.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

Nasdaq.com, Zacks.com, Msn.com/Money, CNBC.com