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Wagon Staplers jsangl on 06 Aug 2010

SERIES: Wagon Staplers – Part Five – Rewards

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.

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Mutual Fund Companies jsangl on 06 Aug 2010

The Mutual Fund Series: Dodge & Cox

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.

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.

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.

Wagon Staplers jsangl on 05 Aug 2010

SERIES: Wagon Staplers – Part Four – Automatic

Part Four AUTOMATE The Important Things

Have you noticed that even though some things are important to us, we still fail to do them? We want to exercise, but we don’t. We want to eat healthy, but the Big Mac (McFat) looked too delicious.

Luckily, when it comes to finances, we can actually automate many things that are important to us!

For example, you all know that I love my ING Direct on-line savings accounts and I have written about it several times. I actually have three ING savings accounts. One of the top reasons is the ability it provides me with to make things AUTOMATIC!

Here are key financial goals you can automate (and I have!):

401(K), 403(b), SIMPLE IRA, 457, or TSP contributions (automatically from paycheck)
College 529 savings (automatically draft from bill pay account)
Tax savings account (the taxes are going to be due – save for them!)
Known Upcoming Non-Monthly Expenses (vacation, Christmas, new car tires, annual insurance premium, property taxes, furniture, 30-06 rifle, etc.)
New Equipment (automatically draft from bill pay account to ensure no debt!)
Roth IRA (automatically draft from bill pay account)

We may not be able to automatically hitch ourselves to the treadmill, but we can make sure the 401(k) and college fund are automatic.

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Wagon Staplers jsangl on 04 Aug 2010

SERIES: Wagon Staplers – Part Three – Accountability

Part Three Establish accountability AND embrace it!

If you are wanting to lose weight and get into shape, accountability to someone else is essential. When you know that your accountability person will be at the gym at 5AM waiting for you, the chances are much greater that you will show up! The same is true for your finances. When you know that you will have to drive that 100%-financed car over to your friend who is holding you accountable, you are much less likely to buy a car with 100% financing! Even more so when that person holding you accountable is your bride!

If you are married, it should be obvious that your spouse would be your number one accountability to your financial plans! They know your weaknesses the most, AND they can really help you stick to the plan.

It is important that the person who is going to hold you accountable also possesses the following characteristics:

Winning with their own money!
Not trying to sell you anything!
Available to you – so that when you are making a major financial decision, you can have ready access to their thoughts!

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Wagon Staplers jsangl on 03 Aug 2010

SERIES: Wagon Staplers – Part Two – Budget

Part Two Have a budget AND follow it!

There is nothing more important to remaining on the wagon than to prepare a written plan for every single dollar you are expecting to receive. Whether you choose to plan your spending every week, once a month (my favorite!), or once per quarter – the importance of this activity simply can not be overstated!

I have discovered a key fact that the following formula is true for every single one of us:

INCOME – OUTGO = EXACTLY ZERO

Regardless of whether one earns $400/month or $40,000/month, you will not prosper if you spend more than you make.

The act of planning forces one to recognize that this fact is true and helps staple us to the wagon!

Application in my own life – I have prepared a written spending plan with my bride every single month since July 2003. I can not imagine operating my life without this plan. It has allowed me to fire myself from Corporate America and pursue this dream of helping others accomplish far more than they ever thought possible. It has brought a new level of unity to my marriage. Our planning has ensured that our children’s college is funded and that we will be able to retire well someday.

Helpful tools and resources

We have some AWESOME & FREE budget tools located HERE.
Book: I Was Broke. Now I’m Not. – my story and I teach the exact tools that my bride and I used!

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Wagon Staplers jsangl on 02 Aug 2010

SERIES: Wagon Staplers – Part One – Intro

“They keep falling off the wagon.”

Surely you have heard this statement made before. It can refer to relapses related to an addiction or failing to uphold an exercise plan or diet.

Falling off the wagon.

I see it occur far to often when it comes to personal and business finances. People know what they need to do, but they fail to follow through. They might even know that their actions will result in great anguish and stress, yet they choose to continue.

Falling off the wagon leads to pain, heartache, frustration, stress and can have long-lasting consequences.

This should be a great series, and I look forward to the conversation!

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Mutual Fund Companies jsangl on 30 Jul 2010

The Mutual Fund Series: Franklin Templeton Investments

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 Franklin Templeton Investments.

Franklin Templeton is a global organization known for frugal and conservative investment management. The company is based in San Mateo, CA and serves in more than 150 countries with offices in over 30 countries. They currently manage $586.8 billion in investments and the number of investments is continually growing.

What I Like About Franklin Templeton Investments

Stable History – Franklin Templeton was founded in 1947 and for 63 years it has maintained stability and success.
Diversification – Franklin Templeton Mutual Funds offers 11 types of mutual funds for investors: International, Global, Growth, Value, Blended, Hybrid, Sector, Asset Allocation, Fixed Income, Tax Free Income, and Money Funds.
Globalization – Franklin Templeton has offices in countries representing 84% of the World’s GDP and the company is the second-largest cross-border fund manager.
Strong Capital Management – Franklin Templeton has been given strong credit ratings with a stable outlook from both Standard & Poor’s (AA- / A-1+) and Moody’s (A1 / P-1). The company’s dividend has also increased every year since 1981.
Variety of Products and Services– Not only does Franklin Templeton offer mutual funds, they also offer 529 College Plans, Coverdell ESA’s, IRA’s (Roth and Traditional), and multiple online financial tools.
Easy Transfers – If an investor has a change in their investing objective, they can easily transfer from one fund to another, with little or no cost.

What I Would Like To See Improved

Minimum Investment Required – Franklin Templeton’s minimum investment required is $1,000, which is lower than the previously mentioned Vanguard and Fidelity, yet it is still four times higher than a mutual fund from American Funds.
Charges and Fees – Franklin Templeton offers very few no-load mutual funds (shares sold without commissions or sales charges). About 82.4% of funds are load mutual funds and about 17.6% are no-load funds. A no-load mutual fund usually outperforms front-end load (when fees are charged at the time of purchase) and back-end load (when fees are charged at the time the mutual fund is sold) mutual funds.

Franklin Templeton Mutual Funds I Own

I do not currently own any Franklin Templeton mutual funds.

Franklin Templeton Mutual Fund To Look At

Franklin Growth Fund [Ticker: FKGRX] – The Franklin Growth Fund primarily invests’ in common stocks, across a variety of industries. This fund has net assets of $2.4 billion with an annual fee expense ratio of 1.00% and an average annual return of 9.92% since inception.

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.

Mutual Fund Companies jsangl on 23 Jul 2010

The Mutual Fund Series: Oppenheimer Funds

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 Oppenheimer Funds.

Oppenheimer Funds is an asset management company with headquarters in New York, NY, with $255 billion of currently managed assets. Founded in 1960, Oppenheimer Funds was affiliated with the brokerage firm Oppenheimer & Company, Inc. However, Oppenheimer Funds is now owned by Massachusetts Mutual Life Insurance Company (Mass Mutual) and has no corporate ties to Oppenheimer & Co., Inc. or Oppenheimer Capital.

What I Like About Oppenheimer Funds

Diversification – Oppenheimer Funds offer 12 types of mutual funds for investors: global, growth, large growth, value, quantitative, portfolio solutions, taxable bond, municipal bond, specialty, money market, cash reserves and institutional. However, Oppenheimer Funds has become well-known for their niche with bond funds in the mutual bond market.
Variety of Products and Services – Oppenheimer Funds offer other products and services, such as IRA’s (Roth and Traditional), 403(b), 401(k), 529 college plans, and Coverdell ESA’s.
Award Winning Website – www.oppenheimerfunds.com was designated as “Excellent” by DALBAR in 2009 for the websites functionality and usability.

What I Would Like To See Improved

Minimum Investment Required – The minimum investment for OppenheimerFunds is $1000, which is the same as Franklin Templeton: not as high as some mutual funds, but you could find it lower elsewhere.
Front-End Load Funds – Many of Oppenheimer Funds’ top rated mutual funds by Morningstar carry large front-end loads of 3.50% to 5.75%, which will start off your investment with a 3.50% to 5.75% LOSS! Even worse, only 8.7% of Oppenheimer Funds’ assets are no-load funds.
Fund Performance – Oppenheimer Funds owns several five-star and four-star mutual funds as of February 2009, which are excellent ratings; however, the company’s municipal and taxable bond funds have recently experienced poor performance.

Oppenheimer Mutual Funds I Own

I do not currently own any Oppenheimer mutual funds.

Oppenheimer Mutual Fund To Look At

Oppenheimer Equity Fund Inc. [Ticker: OEQAX] – This mutual fund’s inception date was October 2, 1947 with a focus on investments in medium to large-capitalization companies. The fund has assets of $1.62 billion, an average annual return of 9.54% since inception, and an expense ratio of 1.03%.

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.

Mutual Fund Companies jsangl on 16 Jul 2010

The Mutual Fund Series: Janus Funds

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 Janus.

Janus

Janus Capital Management is a subsidiary of Janus Capital Group, Inc. that is based in Denver, Colorado and it was founded in 1969 by Thomas Bailey. Janus Capital Group, Inc. is comprised of Janus Capital Management LLC, INTECH Investment Management LLC, and Perkin Investment Management LLC. All three of these subsidiaries currently manage $165.5 billion. Janus Capital Management handles balanced, alternative, fixed-income, and money market funds.

What I Like About Janus Funds

Intensive Research – Janus is a devoted to thorough research of each stock they invest in. Millions of dollars are spent each year for research purposes.
Employee Investments – Janus requires every mutual fund employee to invest in the funds they represent in order to ensure that the interest of the employees is always in alignment with the interest of the clients.
Award-Winning Funds – Janus has been recently honored by Lipper with awards for “delivering consistently strong risk-adjusted relative performance” and the company has won multiple awards for individual funds. Around 95% of Janus’ funds are no-load.
Rejecting Buyouts – Janus Capital Group rejected buyout offers from MassMutual and FranklinTempleton, which is extremely important for their hometown Denver, CO. Even though Janus is a smaller fund company compared T. Rowe Price, FranklinTempleton, and Oppenheimer, the company has seen growing fund performance rates in the past few months, giving Janus hope of staying independent.

Something To Consider

Reputation – Unfortunately, Janus was involved in the mutual fund scandal in 2003 by allowing favored clients to participate in illegal “market timing” trading. Janus eventually agreed to a $226 million settlement with federal and state regulators in 2004. Even though Janus seems to be showing great fund performance now, investors should always be cautious.

Janus Mutual Funds I Own

I do not currently own any Janus mutual funds.

Janus Mutual Fund To Look At

Janus Advisor Large Cap Growth [Ticker: JDGAX]– The objective of this fund is long-term growth of capital by investing in common stocks with growth potential. This fund’s inception date was February 5, 1970. It has an annual expense ratio of 1.04%, an average annual return of 12.06%, and a minimum investment of $2,500. Morningstar gave this fund a 3-star rating.