November 21, 2016

Tom Sirois on saving money!

TOM SIROIS is an expert on financial matters. He advises investors to save money in the best possible way.
Instead of depending on the government, Tom Sirois advises people to invest sensibly. You should do your research before choosing investment options. If you fail to understand the strategy, you should not invest. There should be clarity on the investment. The golden opportunities will come and those opportunities should be utilized in the best possible way so that you can make the most of your investment.
If you listen to the advice given by the government, you will not get the full story. You should get access to the information provided by experts. They will analyze various facts and better conclusions will be reached. You should remember certain financial truths revealed by TOM SIROIS.

Build your knowledge base
You should take steps to build knowledge base. By following a set of newspapers and magazines on a consistent basis, you will be able to grasp the reality. The obstacles can be overcome by planning in a very efficient manner. Instead of investing all your money in high growth funds, you should diversify the portfolio. Even though a fund performs well for many years, there is no guarantee that it will deliver the same results in the coming years. Hence, you should invest in various funds to minimize the risk and maximize the earning potential.
As you care for the money, no one will take care for you. You will know your short-term and long-term financial needs. Hence, there should be proper planning to save money. If you do not have plans, you will fail.
Spend less than you earn
You should always spend less than the money earned by you. If you spend more than the earnings, you will land in debts. If you are purchasing goods, you should shop around and choose the best place so that you will not only get quality goods but will also make great savings.
The budgeting is the key to managing financial affairs. You should have a budget for various categories. There should be a budget for charity as well. The money that you share with others will give you back. This is natural law.
There is a difference between wants and needs. All wants are not needs. If you need something badly, you should go for it as per the availability of funds. To cut down spending, you are advised to use cash. If you go for plastic money, you are prone to spend without any cap. Hence, you should spend wisely. The spending should be calculated with time. If you have non-productive time which can spend, you can afford to wait.

Personal finance
To meet your needs in future, you should have strict financial discipline. The spending should be done very wisely. If you are investing in shares, you should be aware of the book value of the stock. There will be fluctuations based on the market sentiments. If you purchase stocks of reputed companies at a lower price, you can reap benefits. There will be benefits in the long run.
You should be aware of the factors that contribute to your credit score. To manage better credit score, the loan installments should be paid as per the due date. As you go through the credit score, you should bring discrepancy to the notice of the credit reporting agency. You should go for loans if there is an absolute necessity. The repayment should be done as per the due date. If you fail to repay the installment, you will not only pay the penalty but also get a negative impact on the credit score.

How to save money?
TOM SIROIS explains various ways to save money. If the income is not consumed immediately by buying goods and services, it will be saved. There is a difference between saving and savings. With saving, there will be an increase in one’s assets. The saving will take place over a period.
Saving is considered as a flow variable. ‘Savings’ is a part of one’s assets. It is deposited in the savings account. Savings will exist one at a time. You should understand the fact that it is stock variable.
The disposable money is the money that is available after spending and paying income tax. The state of economy will be gauged through the available disposable personal income. It is one of the key economic indicators. The personal income minus income tax payments is disposable money.
You should have confidence in saving money. You should be aware of the public sentiment as well. The consumer confidence is measured by the US Consumer Confidence Index (CCI). The optimism expressed by consumers on the state of the economy will be noticed through the CCI. Consumers express through saving and spending measures.
The Consumer Sentiment Index (CSI) is a consumer confidence index which is published by University of Michigan. The value of the index is 100 which is normalized in the year 1964.

Objectives of the Index

TOM SIROIS stresses the need to understand the terminology used in economic circles so that you will be able to understand the latest concepts very easily. As you follow the news very closely, you will have the capability to understand and forecast changes in the national economy.
You will be able to understand the right means to save money. You will follow the best methods to invest so that there will be gains in the long-term. There should be a long-term strategy on savings. The investment made in fixed deposits, mutual funds, gold, shares and debentures should be done as per the market conditions.
The keen observation of market sentiment will help you in this direction. By being able to understand economic principles, it is possible to invest in a systematic way, and all your needs will be fulfilled. TOM SIROIS offers simple but effective solutions to overcome the financial crisis. The
management of money and resources should be done in the best possible way so that you will not land in bankruptcy.

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November 14, 2016

If you fail to plan, you are planning to fail: BK

Yes, a great quote from Ben Franklin that relates to pretty much every aspect of life.

Here is a great article supporting this advice: 8 Retirement Questions a 50-Something Couple Needs To Answer.

If you are "coupled" and in your 50s, at least have this conversation w/ your significant other today.


Tom Sirois
Great Barrington, MA

November 5, 2016

Why choose the lesser of two evils?

Many claim this election is the “most important of our lifetime,” but I am not convinced. I strongly believe 2020 will be much more consequential because voters will lose their confidence in our government. If you are an observer of “social mood,” it is not surprising that this year we are faced with the choice before us: The Politician v. The Outsider.
Hillary Clinton is everything one loves and hates in a politician. She holds herself as a “champion for women, children, and the underserved” while using every means necessary to profit from her (and her husband’s) stature in our society. This election has revealed Clinton’s ability to profit personally from her family’s charity work by selling government favors to foreign contributors. Yes, this may be “legal,” but it does not pass the smell test to me and many Americans are repulsed by her lack of morality.
Donald Trump is simply the vessel to which many Americans are pouring their hatred and disgust for politicians. Evidently, this hatred and disgust are pretty strong since they are willing to overlook the many (and there are many) morally reprehensible displays of disgusting behavior from this man. I do not see the electorate’s rejection of government, and its current out of touch politicians going away anytime soon, but my hope is Mr. Trump will.
No matter who is elected in this cycle, I feel there will be little change in how things operate in Washington. At this point, the way our government has been run for decades will still be the order of the day: more deficits, more inflation, and more (senseless) wars to name a few. Our country needs to understand simple economics: we cannot afford our government any longer. This lack of economic realism can be exhibited by the way our government collects taxes where a small fraction of citizens pay for the majority of government spending (with borrowing making up the difference); this creates the illusion that government services are “free.” Today, less than 15 percent of the population pay for more than 70 percent of all income taxes. If the cost of our government was equally supported by everybody, each would pay $55,000 per year. Do you think you, your family and friends would support our government if we had to pony that up each year? But much of this election has been this discussion of voters wanting more government services: free college, free healthcare, cheap mortgages, etc. This is wrong; we cannot and should not live at the expense of our neighbors. Our government deliberately hides the true cost of our government to our citizens resulting in the mentality: We can simply vote and make someone else pay.
The next president may have different approaches, as each has campaigned on,  but I believe both potential candidates will utilize the government to “fix” our problems. This will cast the die for the next four years and sow the seeds for our country to ultimately lose confidence in our government. This will be more painful than we can imagine, but it will be necessary for us as a nation to realize government was never intended, nor does it belong, central to our lives. Though it will not be fair, whoever is president (and his or her party) will be blamed for this crisis. The consequence will be a rejection of this political party AND the Government in general. These candidates are the result of our society looking to solve our problems through the lens of politics.
At this time, I am NOT voting for either mainstream candidates because by doing so, I am endorsing the way our government is run, and we cannot afford it any longer. If I DO vote, it will be for Independent candidate Gary Johnson. He is a Libertarian, and I strongly believe MORE individual freedom will result in MORE prosperity for our country.
The main consequence of this election is that it will lay the groundwork for the next round in 2020 — assuming America still has elections by then.
Tom Sirois