Cool weather in So FL :)

 The weather in south florida has finally turned to cooler temperatures. It is so brutally hot year round here. Which is great for many reasons but not for running. As mentioned in a previous post, the heat makes it miserable to be a runner here.

The cooler temperatures has been amazing for my running. It has made it fun again. I have gotten off the treadmill and back out on the roads. Running comfortably and longer. I will be taking advantage of this as long as it will last, even though it sure won't last long enough. Two month out of the year just isn't enough. Spring is generally bearable but not pleasant.

Well I am off  to enjoy some miles. 🏃🏃🏃🏃

The future of the Finance industry...... PayPal

 ***Please make sure to do your research and consult a professional. I am not a professional and content is intended to be used and must be used for informational purposes only.****

The big financial institutes have dominated for centuries. I think the new technology is testing those institutes and this can be a great thing for consumers. Look around and you can see all the daily tech we are using for our new form of banking. The two companies that have stuck out to me are PayPal (PYPL) and Square (SQ). 

Let's take a look at some of the recent trends:

Digital, Peer to peer, Online shopping, Buy now pay later or in instalments, Digital wallets, Mobile pay, Crypto, AI, Automation, Rewards, lower fee structure.

You can look around as she how technology is disrupting the industry. Here are just a few companies doing the disrupting:

PayPal, Square, Robinhood, Apple Pay (Google pay, Samsung pay. Amazon..), Acorns, Chime (?), Varo Money, AfterPAy....

As you can see there are plenty of examples. I have chosen to speak on PayPal but I also like Square. I am just more familiar with PayPal. Over the years, PayPal was primarily known as the eBay payment. That is far from true now. I first noticed a big shift once I saw PayPal as an option at Home Depot. They had been spun off from eBay by that time. Even recently. people made a big fuss when eBay announced that PayPal would not be its primary payment processor. However, it was going to still be an option. I was a little shocked people reacted that way, because by this time PayPal was already making big moves outside that eBay connection. Look at where you have shopped online in recent month and you will see how prevalent it is as a payment option.  

The reasons why I like PayPal? 

Offers peer to peer in multiple currencies, Consumer to Business payment (where it started), Business POS, PayPal Credit, Venmo (yes venmo!!), and now they are dipping into Crypto. 

They hit on most of the big trends. They are looking to continue to innovate and enter new areas. They don't hit all the notes but I like the story and they aren't tied to a bigger company (Apple Pay, Amazon..), are a public company (Robinhood, Acorns), are known (Chimes, afterpay).

I think this is an area with plenty of investment options for the long run. One very large trend is the buy now pay later type formats and for that I would say keep an eye on AfterPay. The trend is the modern online version of layaway. It is less diversified in its business offerings and is a riskier pick. Again, I also like Square (Square card, CashApp, POS, Jack Dorsey).

These would have all been great buys during the March dip. I still think there is value here in many of these Fin Tech companies that will continue to disrupt the industry. Some of these I would keep an eye on for  a future IPO or a buying opportunity. 

My 401(K)

***Please make sure to do your research and consult a professional. I am not a professional and content is intended to be used and must be used for informational purposes only.****

The company I work for offers a 401(K) as a retirement benefit for its full time employees. At the time I joined the company, they offered a matching program after one year of service and a fully vested after 4 years. Although the company has changed requirements throughout the years, that is what it was for me when I joined the company. It now offers matching almost right away and no time period for before becoming fully vested. 

The matching component is where the company matches what you put into the account up to a specific amount. Vested refers to the ownership of that amount contributed by the company completely and wholly. Meaning, the company can't claw any of that back and you fully own the entirety of the funds. 

401(K) ( FYI 403b is very similar)

Before we take a dive into how I have mine setup, let's look at what a 401(k) is. According to the IRS: A 401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts. Elective salary deferrals are excluded from the employee's taxable income (except for designated Roth deferrals). Employers can contribute to employees' accounts.

A few key components are:

1) Tax deferral- Your contribution is excluded from your taxable income bow but instead pay the tax when you withdrawl. This allows you to utilize those funds take advantage of compounding interest.

2) Retirement Plan- This plan is for your retirement years.Withdrawing the money early, before 59.5, will generally cost 10% + the income tax owed with the exception of a hardship withdrawal. There are also annual maximum contribution limits.

3) Employer can contribute- In my opinion, you should really only contribute if your company is matching because you have other vehicles available with better control to utilize. You should invest up to the amount the company is willing to match and put the rest in another retirement vehicle.

My Setup

As far as my setup, I keep it pretty simple. Your outlook should be long term and you should invest accordingly. Each plan has a set of available investment options that you can choose to put the 401K funds into. They are generally limited and is why I feel you should only put up to the match amount. I fund the account up to my company's matching amount to take maximize the benefit. The rest of the amount you want to put toward savings, utilize in another retirement vehicle such as an IRA. 

Most programs have a target date fund based on your retirement year. You can buy into that and it is rebalanced to fit the needs as the retirement year comes. In short the tend to move money out of stocks into safer investments to balance risk. I think these tend to be to safe as retirement approaches. I put my funds in a target fund 10 years out from my date to be a little more aggressive but still allow some safer investments. You should follow the same rules with general investing, if you need the money in the next 5-10 years move that portion to a safer investment, otherwise keep it in the market.  

The rest of my funds are in an index fund. I chose an index fund that mostly mirrors the S&P 500. They have funds that track various indexes and a few options for industries such as real estate. I believe in concentrating on a just a couple funds and sticking to that instead of putting money in a bunch of funds. Pick your top ones and focus on those. These funds are already generally diverse and reflect the market you are interested in. Over diversifying can be damaging by limiting your upside.

I evaluate the funds and distribution every quarter but rarely make any major changes. I have a few times moved the funds from one investment to another due to it being discontinued or a new better option being added to the program. 

When you leave your company, remember to move the funds in the account. Most companies give a period before you become liable for the expense of your account and that will diminish your returns. Plus without the match you can take advantage of other retirement plans. Make sure you don't withdraw your funds but transfer it directly to a new retirement plan to avoid paying the additional taxes. 

Remember, when it comes to investing and taking care of your income to always pay yourself first. Future you will thank you. Your future peace of mind is much more valuable than that latte or night out. Although those are important, first make sure you are setting yourself up for long term financial stability. I setup my accounts to auto deposit or transfer so I don't even see these funds each pay period. Whenever I get a raise so does my investment accounts. Start investing early, the compounding factor is real and delaying will have a big impact on the long term results. 

Summary:

-401k is a retirement program with tax deferral, early withdrawal tax, and maximum contribution limits

-Take advantage of it up to the matching amount from your company is offering, put the rest of your budgeted retirement money in another account

-keep it simple and invest in one or two funds and when you leave your company move the funds

-PAY yourself FIRST and start EARLY and consistently. 

-Your company may offer a 403(b) and is very similar and can follow the same strategy. 

DNKN- COVID buy

***Please make sure to do your research and consult a professional. I am not a professional and content is intended to be used and must be used for informational purposes only.****

Dunkin' Brands Group, Inc. is the  holding company of Dunkin and Baskin-Robbins. When I bought Dunkin Brands stock I was looking to buy something that was adapting to COVID well. I was late on the Home Depot, Amazon, clorox ,Kroger/Publix. I didn't understand Docusign, Zoom, and equipment companies. I was nervous about Netflix but covid may have given it the lift it needed. 

This is where looking at companies I was still using came in to handy. I started looking at the things I was still doing or starting to do. I noticed more streaming, more work from home (new devices/desks..), eating in, working out more, virtual meetings/communications, and to go food. 

The places that seemed to still be doing business regular if not more that I frequented were Target, Walmart, Publix, Dunkin' and Starbucks. I noticed other places were also picking up business like McDonalds, Gaming and liquor stores but I don't really patronize those places. Out of those I used Dunkin the most and actually realized I was utilizing them more. This was because their app and pricing. I took a look over their stock and noticed it hadn't yet seen the run up like many of the other companies I was looking at. 

I am one that typically favors buying best of breed in an industry, in this case it was Starbucks. I am also a believer of buying companies I am more familiar with, Dunkin. This put me in a spot to make a decision. I believed both would be great picks. However, Starbucks had moved up more at that point. The final straw that pushed me to land on Dunkin was it has seen revenue increases over the previous 3 years. It was investing in new concepts and had seen a huge dip from the mid 70s down to 40s and had plenty of run way to go.

What is the next stock to be looking at? Disney? Comcast (Universal)? If you are looking for value, take a look at stocks that would be poised to do well with a vaccine or going back to a new normal. Who is positioning themselves for success in the new landscape. Avoid companies that are struggling to adapt or may not make it out. 

Apple Inc (AAPL) 4 for 1!!!

  ***Please make sure to do your research and consult a professional. I am not a professional and content is intended to be used and must be used for informational purposes only.****

Apple Inc is an interesting ownership for me. It starts with wanting to own one of the big tech companies for years but never buying in. The "big four", or"big 5" (aka FAAMG) depending on who you talk to, are Facebook, Apple, Amazon, Microsoft (or Netflix for FAANG), and Google (Alphabet) . Although they all operate in different arenas they are all ultimately tech companies. I have always passed on the opportunity to put these stocks in my portfolio for various reason often because they were too expensive for my taste. They sell at a high PE and I was not willing to pay so much money for one stock. But in actually I should have bought as I would have made a fortune on them.

Which brings me to how I have come to own Apple shares. As a consumer, I have had a back and forth relationship with Apple and Google's Android devices. Lately I have taken more to the Google/Samsung side (I am writing this on a Samsung Chromebook). I like to stick to stocks I am a consumer of since I tend to better understand the company, customers, products, and brand.

However, in this case I went with Apple over Google stock. It goes back to the same reason why I was always hesitant to buying into these stocks and is relevant to today, perceived value in the price. Apple had a 7 for 1 stock split when the stock was at about $700. It was my chance to get in at price I could afford. Now it is back to the Mid $400's and about to have another split (4 for 1).

When a company splits its stock it is simply increasing the number of shares in a company which in effect lowers the market price per share but IT DOES NOT CHANGE THE COMPANY'S MARKET VALUE.  This is why I earlier stated perceived value.

If doing this doesn't increase the actual value of the company why do it? Why is Tesla doing a split as well? Typically this done to make a single share more affordable to smaller investors. It is also a positive sign about how the company feels about its outlook on its stock.

To me this signals another possible trend, the importance of smaller and individual investors. These two tech companies feel that making their stock available to the everyday investor maybe a telling story. As more individuals are now investing on their own due to apps like Robin Hood and zero fee trading. (that is us!!).  And yes Tesla is a tech company not a car company, it trades like tech not like car companies do but that is another post. It will be interesting to see if other high priced companies follow with splits.

Back to Apple, this may be another opportunity to get in on Apple. However, with many companies offering factional stocks you already had a chance to get it a a lower price point.  

I also feel comfortable enough understanding Apple, its products are all over the place and I interact with it as a consumer and with its consumers. Everyone seems to have an Apple product these days, I have an ipad and ipod sitting next to me. Even with Apple hardware sales being softer these days, their innovation starting to slow, government looking at tech giants, and legal issues with the app store, I think they are a buy. I believe in Cook and Apple has been able to increase its revenue in its services division along with its customer base are all positive signs. Apple also has ALOT of cash on hand (about $200 B).

I think owning stock in  FAAMG (FAANG) stocks is a good idea but I wouldn't buy all of them for diversification purposes. It is possible these stocks could be facing a bubble. 

T. Rowe Price Equity Index 500 Fund (PREIX)

 ***Please make sure to do your research and consult a professional. I am not a professional and content is intended to be used and must be used for informational purposes only.****

PREIX is my go to when I am looking to invest more to my portfolio. It is my largest single holding. It is an Index fund the is based of the S&P 500. I am a believer that the everyday person is likely best off investing in a solid index fund for a big portion (or all) of their self managed portfolio. This is especially true for those that don't have time do the research for individual stocks but want the exposure to the stock market. The indexes historically have a much higher return than any other investment type and is easier than actively managing your portfolio. Index Funds are a great option for retirement accounts (more about that later). 

You can also choose different indexes that focus on different segments. Alternatively you can also look at mutual funds or ETFs.  Mutual funds are like index funds but tend to have higher expenses. EFTs have lower fees than Mutual Funds as it isn't actively managed. 

The reason I choose PREIX over other available funds is because I  personally tend to follow the S&P 500 over many other indexes. It also tracks well-known American based businesses representing a wide range of industries (safer & diversified). Other top indexes are Russel, Dow, NYSE, Nasdaq. There are international index funds as well.

Another reason I have chosen PREIX is because it doesn't have a minimum buy in and a low expense ratio. Expense Ratios represent the main cost of owning the fund and is subtracted from each fund shareholders returns as a percentage of the investment. In general index funds have lower expense ratios since it is managed to reflect the index it is based off but they can vary from fund to fund. Some index funds require a minimum investment. Ones with higher investment requirements tend to have a lower expense ratio. Over a long period (compounding factor) this could impact your overall return. If you have the money to invest into an index fund with a lower ratio you should but this is a good fund to start with.

PREIX does have a minimum hold time before being allowed to sell without penalty. Since I plan to hold long term this isn't an issue for me but should be considered when buying.

Summary:

-PREIX is an Index fund based on the S&P 500

- Doesn't have a min investment requirement

- Expense ratio (.19%) isn't the lowest but isn't the highest

-Index funds are great low cost options to not have to actively manage your account, don't have the time to do the regular research for stocks, and provides exposure to stocks

-9.57% standardized return since inception and 13% in last 10 year (just under the actual s&p 500)

Ford (F)

***Please make sure to do your research and consult a professional. I am not a professional and content is intended to be used and must be used for informational purposes only.****

Ford is one of my holdings. I have bought a little at a time over time as to limit the risk of buying all of the shares at the same time for a higher price. This allows for a better average price. Some higher and some lower to help reduce risk and test out your theory as you buy.

The reasons I have bought Ford are several. One it is the one company that didn't take bailout money, which meant it had more on the line to succeed. 

The main reason however, was F's consistent dividend. This drives revenue and a rate of return that is a much higher rate than a savings account. I also like stocks that offer consistent dividends with good yields as it generally protects the floor on its price.  This is because, if the company is viewed as a good company, once the yield gets high due to the stock price dropping, buyers will jump in to take advantage of that high yield. Thus stopping the decline of the stock price. Many investors look for these high yielding companies during a downturn but remember to buy best of bread companies.  

 A few things to be mindful of using the strategy of a high yield is that it could be a sign of bad times and to remember that dividends are not guaranteed. Before you buy a high yield stock make sure you understand how the stock got there and where the company might be heading. 

Friends Summit Schedule

Outline of Friends Summit Schedule

1 Day virtual Summit

Opening Session- 25 Minutes

Session Two- Choose one: Subject 1, Subject 2, Subject 3- 45 Minutes

Session Three- Choose One: Subject 2, Subject 4, Subject 5-  45 Minutes

Panel Discussion-Closing - 45 minutes

Subject 1 will be an intro topic (eg, "Investing") 

Subject 2 will be an popular topic ( eg, Stocks, "Business")

Subjects 3 will be a broad topic (eg, Retirement, Real estate, Banking, Legal, Life Planning)

Subject 4 & 5 will be subtopics to 1,2, or 3 (eg, Stock strategies, forming a business, rental property, IRAs, Taxes, Budgeting, Wills/Trust, )

---

2 Day virtual Summit

Day 1:

Opening Session- 15 Minutes

Session Two- Choose one: Subject 1, Subject 2, Subject 3- 45 Minutes

Session Three- Choose one: Subject 2, Subject 3, Subject 4-  45 Minutes

Panel Discussion - 30 minutes

Subject 1 will be an intro topic (eg, "Investing") 

Subject 2 & 3 will be an popular topic ( eg, Stocks, "Business")

Subjects 4 will be a broad topic (eg, Retirement, Real estate, Banking, Legal, Life Planning)

Day 2:

Opening Session- 10 Minutes

Session Two- Choose one: Subject 5, Subject 6, Subject 7- 45 Minutes

Session Three- Choose a room: Discussion Room 1, Discussion Room 2, Discussion Room 3- 30 minutes

Panel Discussion 2- Closing - 45 Minutes

Subject 5,6 & 7 will be subtopics to previous topics (eg, Stock strategies, forming a business, rental property, IRAs, Taxes, Budgeting, Wills/Trust, )

Discussion Rooms are an open forum with a moderator to discuss ideas, ask questions, form interactions on a specific topic (ig, Real estate, Retirement, Stocks)

Broward Sheriff's Office: Harassing citizens out on a bike ride

I had a very negative experience with the BSO today. I just got racially profiled with my 14 year old cousin (black) riding bikes in my neighborhood by BSO. He is visiting and wanted to go for a bike ride to the beach. I live about 2.5 miles from the beach. We drove around the neighborhood and over the bridge to the beach. We rode around for a bit before heading back. I was thirsty so we stopped at the 7-11 for a drink before heading back to my apartment. 

As we were riding up 13th  (a somewhat busy connecter road) a SUV pulled up behind my cousin and honked. Even though he legally had the right of way he pulled off into a driveway to allow the car to pass and got back on the road. A Broward Sheriff SUV was sitting at the intersection. We both nod at the two officers as we pass.

We continue on home just a minute up the road and  right when we got off the bikes the SUV pulled up beside me. He questioned me about where we came from. Instead of being an ass because my cousin was with me, I said the beach. He said "I saw him drive out of a driveway. Why was he in that driveway." I am thinking you were there and saw the whole thing but I explained it to them thinking that would be the end of it. 

Off course that wasn't the end of it. He said "why were you at the beach". I said riding we went to 7-11 and showed him our bag as proof. He asked if I lived here, said I never seen you around here before and asked who my cousin was. I said I lived here 3 years (actually I am on my third year living here but still) and that he is my cousin. I was getting irritated at this point and felt me starting to get an attitude. I was like Why does it matter. He said why didn't you just go to cumberland farms instead of the 7-11 (it is just across the street). Why drive all the way over there. I gave him a dead stare and said cousin let's go and walked away. I put up the bikes and they drove off. Later my cousin said when I walked off the cop called me something along the lines of a fucker. 

I am glad I didn't hear that shit. I am a little hot headed especially when it comes from people trying to flex their perceived power. If my cousin wasn't with me I wouldn't have been as nice but I bet if my cousin wasn't with me they wouldn't have followed me. I say that because I have been running, riding, and walking in this neighborhood for over 2 years. I have never had an encounter with the BSO and I see them virtually daily. If this officer covers this area, I am sure he has seen me around.

This officer could have had a positive encounter but he and his partner just couldn't help in harrasing a citizen in the neighborhood they work in. All he had to do was ask his initial two questions and moved on with his day. Although annoying, would have left me thinking he was just doing his job in making sure the neighborhood was ok. Or better yet why didn't he follow the SUV that honked a young bike rider off the road? Just another reason BSO and the police in general continue to build a bad reputation. 

Investing in these times

It has been interesting as of late if you follow the market. It is crazy  how the market seems to be in a separate reality what is going on around us. Over the last year I have been watching my investments and trying to figure out what this next election cycle was going to bring to the market. Then the COVID-19 and recent protests showed up. These making it even more confusing.

How is the marketing rebounding so much through these tragedies in our nation. Unemployment is up, small business are shuttering, global economies are strained and we are divided as a nation on something that should be unifying us (BLM & Police Brutality). We saw oil futures go NEGATIVE, the stock market pument and almost completely rebound.

Here are some of the things I did during this time:

-Bought index funds as the market went down and back up to lower my  average cost basis
-Bought into stocks I believed were good stocks for the long term and thought would come out of this environment strong (value)
-DIDN'T dump and of my index funds or retirement holdings. Although I considered selling and rebuying lower. I ultimately decided against it since I didn't react instantly and didn't know when that bottom was. It ultimately was the right decision as I am almost back to even on my 401K and could have missed out on those gains. Although, if done correct would have been a big gain but it was to risky for me to try.

Moving forward I am interested in a few things. I have been working on a project to bring people in my circle together to discuss investing and building wealth. A discussion I think doesn't happen enough in minority communities.

A second item I am interested in is looking to continue to support small business with an extra plus for supporting minority business or businesses within my circle. I don't want to simply be a customer. I want to figure out how to leverage my skills and resources to help support and build these.

A third interest of mine is building knowledge with my nieces to empower them to build a financial understanding to be successful in whatever they decide to do. I have already started a saving plan and discuss the importance of savings but I want their knowledge to expand into ownership (business, investments, realestate...). I also encourage them to an overall balanced education and want them to explore their interests. It scares me thinking that they, as black women, will need to work twice as hard to get half the opportunities others will.

Road warrior to treadmill warrior

As I mentioned in my last post, running in south florida sucks. Now that "spring" has turned to summer it is even worse. I have decided to move to the treadmill. It has been an interesting transition as I have dreaded the treadmill throughout the years. Often it is boring and doesn't feel like my natural running flow.

Over the last 2 months I have been able to adjust to the change. I have been able to run for longer distances without having to stop. Although my pace has been slower than when I was running on the road  most recently it is faster than when I ran outside last summer. My average distance completed has also been much higher. One of the things I have added to make running on the treadmill more bearable is adding watching tv instead of just music or staring at the wall. This has contributed to me getting extra miles in as I get caught up in the show that I just keep running,

Overall, it still isn't as fun but it is serving the purpose of keeping me moving. I don't think I will be beating any records with this but I am also not losing my fitness, which is the main purpose of my running. I have also been adding in speed work once a week and doing those outside. I have been surprised at the quality of those workouts despite me running on a treadmill most days.

Pros:
Running everyday
Run anytime of day (vs night or early morning for outside)
High miles per run
staying healthy
more comfortable environment
more tv time

Cons:
Inside
controlled enviromnent (no hills, heat, change ups)
slower average mile
Not building speed
more tv time

Back to Running again, for now

I have gotten more free time lately due to COVID-19 and the slow down at work. I have gotten back into a regular running schedule since the new year but have now been able to pick up the training. Here are my thoughts from lately:

Running in South Florida Sucks:
-It is always hot (a few cools day but still)
- You need to run before Sun rise or after Sunset
-Both options suck. You either have high humidity or heat and often both
-I hate treadmills
-No good trails to run
-How did I ever run cc down here? Maybe that is why I sucked so much.
-No elevation unless you find a bridge.... I think everyone knows this but makes trying to change things up a bit harder and isn't much worse then South Georgia
- I miss the South Georgia Running Community. I haven't has luck finding one I gel with here.

Running as I have gotten older:
- I use to be pretty fast, comparatively ( I didn't often feel that way, although I didn't feel slow either)
- I use to workout hard- I knew that but man did I put the effort in. I find it hard now to do (lack of community? Accountability?).
- 15-20 lbs makes a difference and is harder and harder to keep off
- I eat bad.... Well really I eat to much and that doesn't help with the above issue
-I don't care to race so much as to be healthy and have a positive outlet. Although putting a race on the schedule has motivated me to run more consistent and have something to work toward in the past.

Making Running exciting while alone :
- I play little games on my runs. This has gotten me out of the habit of running the same boring route every day and gotten me to explore new areas of the neighborhood.

• Try to not  run down a dead end
• Run down every dead end
• Don't run on the same street twice. 
• Try to run a mile in a random neighbor hood
• guess how long a street is
• Try and run down every street in a neighborhood
• I always used running as a way to relieve stress or think about something that is going on or get always from thinking about something that is going on. I don't drink, I don't smoke, have many other hobbies and running has always been my outlet. 
• You get the point.