Archive - August 6, 2010

SERIES: Wagon Staplers – Part Five – Rewards

August 6, 2010 in Wagon Staplers with 0 Comments

In this series, I will be sharing some key wagon staplers - tools that I believe are essential to keeping one stapled to the wagon - because we all have the potential to fall off the wagon - these wagon staples' will help keep you on the wagon even in your moments of weakness! Part Five Reward Yourself For Victories! It is extremely important to establish key milestones in your financial journey and celebrate as each goal is accomplished!   If you are in an incredible financial mess and are just getting started on your financial journey, make sure you reward yourself for the small (but extremely important) victories.   Victories when you are just getting started out include:
  • Not using the credit card for an entire month
  • Preparing a budget and following it for an entire month (we offer several free ones - they are located HERE!)
  • Getting completely caught up on your bills - no late payments!
Of course, the celebration/reward needs to align with the goal that was accomplished.   Maybe the beginner celebrations would be going out to eat at McDonald's and using the Dollar Menu. As you make progress, the celebrations can be greater.   Here are some examples.
  • Paid off all non-house debt! REWARD:   Use the payments you used to make for debt to fund a weekend getaway
  • Hit $100,000 net worth REWARD:   Give $1,000 to a non-profit that you care about greatly
  • Pay off the house! REWARD:   Throw the biggest blow-out mortgage burning party ever and then depart for a 14-day trip to Costa Rica.
  • Pay cash for a new car! REWARD:   Drive the car on scenic three day trip and stay at a different Bed & Breakfast each night
  • Hit $1,000,000 net worth REWARD:   Buy a ski boat and give away the same amount to a cause you care about greatly
  • Pay for kid's college in cash REWARD:   See your child start out life with ZERO debt AND go visit them regularly and take them and their friends out to eat at really nice restaurants!!!
I can go on and on and on and on ... with this subject because I know that encouragement toward goals is what helps us stay on the wagon the most! QUESTION FOR THE READERS:   What rewards have you given yourself for "staying on the financial wagon" and achieving your goals? I hope this series has been helpful to you!   If you did not get a chance to read all of the posts, you can click the link below to read them. Read the entire series Read recent posts by Joe Receive each post automatically in your E-MAIL by clicking HERE

The Mutual Fund Series: Dodge & Cox

August 6, 2010 in Mutual Fund Companies with 0 Comments

This is a continuation of The Mutual Fund Series here on JosephSangl.com. During each part of this weekly series, we will be looking at a specific mutual fund company. Today's company is Dodge & Cox Funds. DodgeAndCox Dodge and Cox Funds is a privately owned investment management company based in San Francisco, CA. The company has approximately $212.31 billion of assets under management and has prided itself with conservative investment standards. Dodge and Cox's reputation has recently been put to the test when it increased investments in AIG, Wachovia, and Fannie Mae in 2007, only to see the stocks of all three severely drop, making 2008 one of Dodge and Cox's worst years. What I Like About Dodge & Cox Funds
  • Stable History - Dodge and Cox was founded in the 1930s, in the midst of the Great Depression, giving the company a great reputation of strength, perseverance, and stability through tough times.
  • Manager-Retention Rates - Dodge and Cox has a remarkable 97% manager-retention rate because of their focus on long-term contributions, rather than focusing on the managers' quarterly performance. From 2003 to 2008, less than 5% of managers left the company annually.
  • Excellent Stewardship - Dodge and Cox is at the top of the list when it comes to taking care of finances for investors. They have consistently shown strong customs, good boards, sound manager incentives, and organized records.
  • Low Expenses and No Fees - All five mutual funds that Dodge and Cox manage are no-load funds with an expense ratio kept as low as possible.
What I Would Like To See Improved
  • Minimum Investment Required - Like Fidelity, Dodge and Cox Funds have a $2,500 minimum investment required, which excludes a lot of investors.
  • No Other Services Offered - Dodge and Cox is a pure and simple investment company of funds, which could be a plus in the companies eyes, but most people like to see a full service investment company that can take care and manage their IRA's, 529's, 401(k)'s, and ESA's.
Dodge & Cox Mutual Funds I Own
  • Dodge & Cox International Stock Fund [Ticker: DODFX]   This fund has taken a BEATING over the past two years.
Dodge & Cox Mutual Fund To Look At
  • Dodge & Cox Stock Fund [Ticker: DODGX] - The object of this fund is to seek long term growth of principal and income, as well as achieving a reasonable current income. This fund has existed since January 4, 1965 with total assets of $42.7 billion and an annual fee expense ratio of 0.52%. The fund also has an average annual return of 10.63% since the inception date.
Read about other mutual fund companies Read recent posts NOTE:   Clemson student Anna Briscoe, a senior majoring in Economics with a minor in Financial Management has been so gracious to research and write the majority of this post.