My father-in-law passed last week. Les was a person who was willing to take risks when the potential payoff seemed to warrant doing so. This led him to stop his graduate school studies at the University of Chicago and join what was then a brand-new government agency: NASA. His attitude toward risk carried over to investing where, like many investors, he realized profits and occasionally incurred some bad luck, such as the Enron bonds he owned. Though many of the conversations Les and I had involved non-financial topics, it was not unusual for him to discuss investing with me. Les even once gave me his copy of Benjamin Graham’s “The Intelligent Investor” to read, not realizing I already owned a copy of it.
Among the best financial steps Les made didn’t involve security selection or portfolio allocation, but rather the management of his finances. The process of assisting my mother-in-law with her finances has been greatly helped by what my father-in-law did before he passed. I’ll share some of the actions Les took with you in the hope you’ll consider following in his footsteps.
Conversations: I cannot begin to stress how helpful I am now finding the conversations Les and I had to be. My wife and I know about all the accounts my in-laws have, bank or brokerage. We also know about the sources of retirement income and the life insurance policy. There are also no disagreements about how to manage the money, since it was previously discussed. The simple act of conversing has allowed me to me quickly start on the transition, including making calls on my mother-in-law’s behalf. Continue Reading »
More on AAII.com
- When It’s Time to Transfer Financial Decision-Making – Actionable steps for transferring control of your finances to someone you trust.
- Steps to Smoothly Transfer Control of Your Family’s Finances – Guidance for preparing your family members to step in and take over management of the finances.
Highlights from this month’s AAII Journal
- Options for Handling Inherited IRAs – Unique rules apply to inherited IRAs, and those rules differ based on who the beneficiary is.
- Better Fortune Magazine Rankings Are Good for CEOs – An improved ranking on Fortune’s Most Admired Companies list yields benefits for CEOs.
AAII Sentiment Survey
Neutral sentiment rose to its highest level since mid-February as pessimism fell for a second consecutive week. More about this week’s results.
This week’s results:
- Bullish: 35.3%, up 4.1 points
- Neutral: 34.2%, up 4.1 points
- Bearish: 30.5%, down 8.2 points
- Bullish: 38.5%
- Neutral: 31.0%
- Bearish: 30.5%
Take the Sentiment Survey.
The Week Ahead
Five members of the S&P 500 are scheduled to report: Red Hat Inc. (RHT) on Monday; Carnival Corp. (CCL), Darden Restaurants (DRI) and McCormick & Company (MKC) on Tuesday; and Paychex (PAYX) on Wednesday.
The week’s first economic reports will be February international trade, the January S&P Case/Shiller home price index and the Conference Board’s March consumer confidence survey, all of which will be released on Tuesday. Wednesday will feature February pending home sales. The second revisions to fourth-quarter GDP will be released on Thursday. Friday will feature February personal income and spending, the March Chicago purchasing managers’ index and the final University of Michigan’s March consumer sentiment survey.
Seven Federal Reserve officials will make public appearances: Chicago president Charles Evans on Monday and Wednesday; Dallas president Dennis Kaplan on Monday, Tuesday and Thursday; Kansas City president Esther George on Tuesday; Boston president Eric Rosengren on Wednesday; San Francisco president John Williams on Wednesday and Thursday; Cleveland president Loretta Mester on Thursday; and St. Louis president James Bullard on Friday.
The Treasury Department will auction $26 billion of two-year notes on Monday, $34 billion of five-year notes on Tuesday, and $13 billion of two-year floating rate notes and $28 billion of seven-year notes on Wednesday.
Local Chapter Meetings
AAII Local Chapter Meetings offer you a variety of presentations from expert speakers who will give you their view on the world of investing. A bonus of attending a Chapter Meeting near you is the opportunity to meet other AAII members who share your interest and enthusiasm for investing. You can even share the Chapter experience with your family and friends by inviting them to attend Chapter Meetings with you!
Join AAII Today and Receive Full Site Access Plus Stock Screens, Online Guides and More
The AAII.com website is a treasure trove of investment knowledge and tools that are all geared toward making you a smarter and more profitable investor. The site offers a full archive of AAII Journal articles, our library of stock screens, investor classrooms, discussion boards, investment guides and topical areas covering investing basics, stocks, mutual funds, bonds, research and much more.
Please note, this small description doesn’t do justice to our website. It houses almost every imaginable investment tool, resource and service you might need. Once you dig into the AAII website, you’ll have a difficult time signing off! As a brief example of the power of AAII.com, let me take a moment to share with you a little bit about the free members-only stock screens we provide online. Tom D. from Pittsburgh, Pa., says, “The AAII.com stock screens are awesome!” We tend to agree.
The Stock Screens area allows you to quickly tap into the investment philosophies of popular professional investors as well as to see the resulting stock picks. As a user, you’ll be able to pick a name (or investment strategy) from our online menu and see the resulting companies that meet the criteria of each specific stock screen.
Here’s a quick peek at some of our more popular screens and their impressive 2017 returns:
T. Rowe Price up 13.8%…
MAGNET Complex up 13.3%…
Driehaus up 12.9%…
MAGNET Simple Revised up 11.5%…
O’Shaughnessy: Growth up 10.7%…
(Return data as February 28, 2017)