And the Oscar For Best Investing Guru IS….

……YOU! I surely wish we had a Money & Investing Oscars for our everyday gurus. If we actually celebrated the achievements of everyday people for making great investing moves, that would be something. [Side note – I LOVED the movie Moonlight – if that doesn’t represent an investment in bringing to life the stories of everyday people, I don’t know what does.]

In the interim, I am going to continue to celebrate members of the Charisse Says community who make bold moves. Last week, Danielle B., one of our members said:

“Charisse – You would be so proud of me because I paid off a big chunk of my student loan debt. I now know what it feels like to have a mindset around wealth building.”

I believe that having a mindset around wealth building means that you must:

• Actively plan to build wealth, and preserve it. By taking action on the plan, you will be ahead of the game;
• Continue to educate yourself and others on wealth creation and preservation  strategies;
• Become involved in some form of business ownership, one of the main drivers of wealth creation; and
• Invest over the long-run in a diversified portfolio can aid in the wealth creation process

If you have other wealth facets that you want to contribute, leave a comment on the blog.

How to Link A Wealth Building Mindset to Actions Today: 

I read several articles over the last few weeks that really highlight the importance of having a wealth mindset today.

I was shocked by an Employee Benefit Research Institute analysis that said that people in the U.S. ages 65 to 74 hold more than 5x the borrowing obligations Americans their age held two decades ago. I found this info cited in a WSJ article, “With $15 Left in the Bank, a Baby Boomer Makes Peace With Less.” If you are a Baby Boomer, leave a comment on my blog and let me know what you are doing to build wealth amidst a more debt-burdened environment. And if you are a child of Baby Boomer, like me, it will be important for you to understand what your parents are dealing with as it will have implications on the overall family wealth transfer.

Simultaneously in the last two decades, “assets in ETFs have expanded to more than $2.5 trillion in the United States alone, making them one of the fastest-growing investment products in history.” The Atlantic’s “Wall Street Diversifies Itself,” reminds that ETFs are an efficient way to invest because they have low fees and give you access to the market’s returns. If you’re unfamiliar with ETFs, please check out my webseries on how ETFs work and what they can do for you – you’ll laugh and stay informed. One of the best actions you can take now is to consider adding ETFs to your investment strategy. Again, continue to educate yourself and you too will be on your way to winning the wealth game.

Just to keep it real, everyone WILL have investment blunders. While it may not be as horrifying as what we witnessed on Sunday night, it’s par for the course. In order to claim your Money & Investing Oscar, you’ll have to embrace it all.

Guilt-Free Finances

I hope you enjoyed your President’s Day holiday yesterday. If you were not off, it’s OK – you worked for the rest of us. Consider this –

“Investors like to get rich quick, like to gamble and have too much faith in their own analysis, so stocks that look like lottery tickets are particularly appealing.”

It’s a quote in one of today’s WSJ articles, Kraft-Unilever Deal Is Off, but Warren Buffett’s Anomalies Live On. The quote reminds me of how our own human behavior can sometimes make us the worst investors. But, there’s hope – if you can be aware of your human biases, you can try and position yourself to be a good investor, like Buffett.

I say this to you because you might be preparing for a windfall of cash to hit your account, or you’re sitting on it already, from a tax refund or bonus from your job.

Before you go and plop all of your money into the market, here’s a few things to remember:

1. Determine whether it’s best to pay down debt, invest, spend, or save. I know this seems like a tough action, but you can do it. Ask yourself what your number one priority is? If you have high-interest rate debt, then paying it down should be a priority since it’s crippling your ability to do much else. Put at least a little dent in the debt nugget if your interest rate is greater than 6-8%. I choose this range because it’s hard to find a return on your investments higher than this range over prolonged periods of time. As such, if you choose to invest the money instead, and only earn 5%, the cost of your debt is higher than this, which means that all of your investing gains will be eaten up by the debt payment.
2. Take your time. Many people feel as if they have to go out and use their windfall of cash right away. We often infuse our own arbitrary dates to take action, but I recommend spending some time to truly think about all of the wonderful possibilities. If you need a few more smart ideas to do with your money, check out this Kiplinger’s article on “10 Smart Uses for Your Tax Refund.”
3. Talk it up. Often you are thinking about your situation in your head. Talk to someone you trust, and who knows a little something about money matters. This could be your financial advisor or a friend/family member who acts smartly with their money. By discussing your situation and desires with your pot of cash, you’ll be surprised what other ideas might arise. Furthermore, you can contemplate the benefits and costs of your actions.
4. Indulge in spending GUILT-FREE. If you want to spend your money on something you’ve been saving up for, go do it. Just remember – the best money spent is that which is guilt-free.

I’m looking forward to hearing about what you are doing with your potential extra cash. Leave a comment on my blog and let other members know how you’re planning to use your money.

It was 70 degrees in Chicago this past weekend, so I got outside a lot. I hope the sun shined on your this weekend too. Have a great week!

Love & Finances

I hope that this Valentine’s Day brings love, joy, and peace your way. I simply ask:

What’s Love Got to Do With It?

Well, most of the time, I say…..”A lot!”

Borrowing the question from Tina Turner, one of my favorite performers, I am answering it in my own voice.  I think most of us want to build wealth for not only ourselves, but for the people we love. Most people tell me that if they want more wealth in order to have more experiences with their loved ones, leave something behind for posterity, and/or have new experiences.

Wealth is no replacement for time, but it might help make more time for doing things with (and for) the people you love. I think many pending retirees, whether yourself or a parent, are thinking a lot about their own wealth situation and may agree with me. I received this bold question from a fellow Charisse Says member:

What would you recommend to someone who is 5-10 years from retirement?

Here’s my take on a few things you can do:

1. Figure out your post-retirement lifestyle monthly number. Basically, figure out what will your post-retirement life cost you. I went through this exercise with my own parents, and it’s important to be honest with whether your cost of living to be the same, increase, or decrease. Many pending retirees want to downsize their living situation but also go on more trips, spend money on their grandbabies, and incur more medical expenses.

2. Determine how you will fund your lifestyle, and for how long. You need some money coming in to fund your lifestyle. If you’re lucky, you will have some pension money. But, most people will need to tap into their retirements accounts (401k, IRAs, 403b, etc.), so this then triggers other questions:

   1. Can your current portfolio can completely fund your future lifestyle?

   2. Can I afford to retire in 5-10 years, or do I need to work in my current job for more than I thought?

   3. What are my other complementary benefits going to be – Social Security, Medicare, etc.?

   4. Should I have some other form of income coming in during retirement?

   5. How long will I live? - I know, a bit morbid but think positively.

   6. Assess whether you need help navigating the waters. Some people want to change their asset allocation in their portfolios in order to either make extra money, or not lose any money, in retirement. It all depends on whether it’s worth it to try and gain a little extra money, or avoid losing any. Since many people are retiring at later ages, your personal preference may vary. Consider consulting a financial advisor. Check out my video on “Dating a Financial Advisor.” If you have more specific questions on changing portfolio allocation to meet retirement needs, leave a comment on my blog.

Boldness in action

I told you that I would continue to share bold moments with you in my personal journey, so here you go – check out this unexpected scene with this parrot on my head on my recent trip to San Diego. My husband was clearly game too.

Again, I come back to…”What’s Love Got to Do With It?”....

Everything!

Enjoy this week and continue to hug those people in your life that you love – that’s why many of us are on this pursuit to build wealth.

How do Presidential Actions Affect Your Income?

Good Evening! The first week of February has hit us with lots of stuff – members of the Charisse Says community are acting boldly when it comes to their money, Black history month, more Presidential activity that could affect your wallets, and economic news that affects the stock market.

First and foremost, Grant C. shared with us that he opened up a Roth IRA account and specifically:

“It’s been on my mind for a good while and I told myself - I just need to do it. I can forego a couple of records this month! I couldn’t afford to start off with a ton of money but, I plan on contributing into it for the long run. Just wanted to thank you for the financial investing tips/education/energy!  Looking forward to mastering it over time and adding other investments.”

Congrats to Grant! If this isn’t bold, I don’t know what is. I want to encourage you to reflect on the trade-off Grant made to make his investment happen. You may be thinking of taking a bold move and I’m hopeful that Grant’s story inspires you too. Get to it!

Now, here’s what you need to know:

• Black History Month Wealth Spotlight. This week, I’m highlighting the Oprah Winfrey Network series Queen Sugar. You know that I love movies and creative content. I spent my Christmas holiday binging on the first season of this new series directed by Ava DuVernay. It’s full of wealth-related concepts and specifically highlights how a Black family in Louisiana is forced to revisit how it thinks about generational wealth and investing in high return projects. I don’t want to give it away, but let’s just say that it was my favorite series from 2016.
• Dodd-Frank Act Investigation. President Trump signed a memorandum ordering “a review of the Dodd-Frank Act, the post financial-crisis regulatory overhaul that has guided regulators such as the Federal Reserve.” Trump’s goal to “cut out a lot” of the rules means that he is trying to make it easier for financial companies to conduct business without hefty regulatory oversight. Now, this can go a bunch of different ways, so the test will be in what the investigation brings forth. I will be looking out for any information on how we maintain enough oversight so that we don’t find ourselves in another crisis. But, the fact that we saw bank stock prices go up means that investors take it as a positive sign that banks might be able to return more money to shareholders. Are you looking to invest in themes based on Presidential actions?
• Fed’s Decision and Jobs. Last week, the Fed left the fed funds rate the same last week as anticipated. Furthermore, the U.S. added 227,000 jobs in January, signaling continued strength in the economy. The stock market reacted positively to these new pieces, so keep this in mind when you see market movements because of economic data.

Lastly, I was recently interviewed by YouCollective, a platform that democratizes voices of individuals with achievement and impact.  I was humbled to be selected as a YouCollective Pathmaker and shared my personal story on how I forged my path and overcame challenges along the way. Feel free to listen to my story here.

Wealth & Staying #Woke

Thank you for all of the responses – via email, Twitter, Facebook – on the Year of Boldness.  We are ready for action. Boy, doesn’t it seem like we have already been through emotional whiplash over the last few days? My goodness. In the words of my pastor, stay #woke, please.

In true spirit of being bold, you have the power to put your money where your mouth is in this moment.  Your wealth is directly affected by how you spend your dollars. How can you make a difference today?

• If you disagree with how certain companies (or founders) are dealing with our crisis, don’t shop there.
• If you have a business idea that you want to get off the ground, make sure you’re putting money aside to fund the endeavor so you can make your own mark on what’s happening around you.

Now, in case you missed it last week amidst all the chaos, the Dow topped 20,000.

Boeing and Microsoft reported strong earnings last week, and these two companies contributed significantly to the Dow’s move. One of the most frequent questions I received this week was – “Will the market keep going up?” Well, I have a real answer for you – “I don’t know.” As unsatisfying as that might seem, it’s true. No one, not even me, can predict what the market will do. If someone tells you that they can predict the market, I would run away.

What I do feel very confident in reminding you is that you need to examine your portfolios and assess whether you need to take any profits. As a rule of thumb, I like taking some profits when my U.S. equity stock holdings make 15-20%. And, by “some,” I usually sell the amount of the profit. So, if it cost me $10,000 to buy a stock, and it went up to $12,000 because of a 20% gain, I will sell $2,000 worth, which locks in my gain of 20%, minus any commission I pay to trade the stock. This way, I still have $10,000 invested. If the stock(s) goes down, I can decide to buy more if I still fundamentally believe in the stock. At the very least, I won’t suffer guilt from not selling the stock when I had the chance to make some money.

What Should You Do?

Stock prices are a function of how the market values the future growth of a company.  As such, we expect stock prices to grow at the same pace of earnings growth. When prices grow faster than earnings growth, we have a problem: the market gets overvalued, and thus we are susceptible to falling stock prices and potentially losing money.

So the question you should be asking yourself is whether earnings will keep up with stock prices. The Wall Street Journal addresses this very question by reminding us that many companies have yet to report earnings.  This week, many more companies will be reporting earnings, and thus we must be paying attention to not only how these companies performed last year, but also their earnings expectations for 2017 and beyond. [If you have forgotten how company earnings reports work, or why they’re important, no sweat – check out my video on company earnings.]

In short, pay attention to what’s happening around you and evaluate how you will respond.

Best Money & Life Advice for 2017

After all the planning, plotting, and presents, are you peaceful? I hope so. I spend a lot of time talking about money and investments, but if there’s no peace behind it, I know that all of the materials and experiences tend to feel empty.  

So, my hope for you in this last week of 2016 is that you recognize your value, because when you value all that you are, the peace comes. As such, know that I see you….

I see your desire to take control of your money and investments.

I see that you want some things to be different next year.

I see what you have to offer this world---- BIG things

I see that you’ve been reading my stuff most times (lol…yes, I know if you open my emails – no pressure, almost).

You didn’t know that I could see all of that, right? Well, I do. If you still need a little pick-me-up, check out the gifts I gave you a few weeks back.

I can’t believe this year is almost over! When we started 2016, I declared it to be the “Year of Action.” As you reflect on your own money successes and failures, I hope that you latch onto the highs and learn from the lows, as they all contribute to be your full self.

I want to leave you with a few goodies before 2016 ends:

Plan & Make it Happen. What I’ve learned from all of the money mavens that I admire (including my mom), very few money successes come without planning. I’ve used this approach in my own investment advice. Thus, if you can spend 60 minutes sometime this week getting your financial house in order, I promise that you won’t regret it.

Read these 3 Great End-of-Year Investing Articles.

• How the Twinkie Made the Superrich Even Richer – Learn how superrich investors are making money while we are still eating Twinkies. I grew up eating these delightful snacks, and you’ll be surprised to read about how fortunes have been made.

• Startup Investing for the Little Guy – I’ve talked about ways for everyday people to invest, and here’s a really good summary.

• The Next Hot Trends in Food – I know that many of you are foodies and always looking to make some investment bets on the food industry. Well, take a look at hottest trends in food for ideas.

Check Out 40 Semi-Obvious Lessons: From Building, Selling A Business & Working with 100’s of Entrepreneurs. As you know, I often highlight the successes of Charisse Says members. Well, Seyi Fabode is an active member and he just released his new book. It’s on the money, for sure and you can purchase it here. For you aspiring entrepreneurs, and for us seasoned ones too, it’s worth the read.

See You in 2017!

I am taking a few weeks off to recharge from an amazing year of life. I can’t WAIT to share the new “Year of ______” in 2017. If you have any guesses or want to see something in particular, leave a comment below. Otherwise, I’ll leave you in a little bit of suspense.

Thank you for journeying with me in 2016 and I’ll see you in 2017, God-willing.

Peace,

Charisse

P.S. Send your family and friends this newsletter as your own gift. They deserve some TLC too.

Special Holiday Gifts for 2016

Since Christmas is my favorite holiday, I want to get my gifts to you early. If you do not celebrate Christmas  

Yes, I got 3 for you right now.

My time and care went into developing these special gifts, so I hope you enjoy.

Gift 1: Special Tips from my interview with Farnoosh Torabi

I go behind the scenes in my interview and share what it has been like for me to raise capital, work in the very busy, crowded, competitive FinTech space. I also share some of my top investing principles, including “Being the CEO” of your money.

Check out my exclusive interview with Farnoosh HERE for all the goodies.

Farnoosh is host of the #SoMoney Podcast, and a money maven herself.

Gift 2: Top Recommendations on Where to Get Money to Invest in Your Business.

Interested in starting a business?

Well, many businesses are challenged to scale because they lack sufficient capital. While strong management expertise and a pathway to profitable growth also contribute to a positive growth trajectory, the right financial capitalization matters.

I provide specific funding sources based on affiliation—from ethnicity to geography—which can help business owners secure capital and increase financing options.

Check it out the details of my funding advice gift to you here.

Gift 3: Discounts on Your Gala Dresses

Got a holiday ball to attend?

Well, you don’t need a fairy godmother to go completely glam. Charisse Says member Jennifer Burrell, created The Frock Shop to meet your needs. The Frock Shop is a designer dress rental service that allows you to look great for every event, without breaking the bank.  It’s as simple as rent, wear, and return. And the best part? Your ensemble will last long past midnight.  Just choose your dress, look fabulous at your event and return it after you are done.  If you order online, Poof!  Your package arrives in the mail, and you are ready for that ball (or wedding, or company soirée...). Better yet for those of you in Chicago, head directly into the Chicago showroom and try on your frock before making a decision.  After the big event, just return your dress by mail or in person, no dry cleaning required. Now if only we could rent the perfect date...hey, a girl can dream.

Order Online HERE!

That’s it folks!

I hope you enjoy your gifts. Keep reading and their might be a surprise gift for you over the next few weeks.

3 Tips to Plan Your Investments for Year-End

I hope you enjoyed the Thanksgiving holiday!  

We have just over a month remaining in 2016, and it’s going to go by super quickly. To be honest, I was both annoyed and excited by the Christmas music I heard before Thanksgiving. I wanted to just enjoy Thanksgiving. Since Christmas is my favorite holiday, however, you’ll have to bear with my side-eye excitement.

Are you ready to close the year?

I saw Arrival this past weekend, and it reminded me that we have little control over the future. If you’ve seen it, you know what I mean.

If you haven’t yet, I encourage you to see the movie because it provides an interesting twist on our ability to control (or change) the future. I will whet your appetite with this question – If you could change the trajectory of your life’s journey thus far, would you?

Well, I asked this loaded question to several people over the weekend. Many responded that they would make different financial and investment decisions to put them in a different position today. If you can relate to this feeling, leave a comment below and let’s chat it up. If not, I want you to leave a comment about one financial action you made that changed your life’s trajectory for the positive.

Either way, I want you to read these 3 tips that you can use over the next 30 days to help set you up for a 2017so that you can (or continue to) feel ahead of the game:

3 Tips Before 2016 Ends:

1. Make changes to your 401k contributions as needed. If you want to stash some extra cash away for retirement and get a tax deduction, it’s not too late. Check your 401k statement, where you will find out how much you’ve contributed thus far.

If you got an increase in salary, or stopped paying social security tax already this year, then you probably have the capacity to put a little more money away if you haven’t maxed out at the $18,000 cap already. Or, if you just want to be a badass investor and get ahead of the game, go for it. If you missed last week’s post on how to do a full 401k check-up, check it out.

1. Plan your tax deductions now. Most people think about taxes after the calendar year ends, when they are about to file their tax return. But, now is really the time to start planning what and how much you will deduct. Drop your tax advisor a note now to ask how you might strategize for the end of the year today. I’ve previously talked about how a Trump Presidency could affect your money, and here’s another insight – favorable tax deduction policies could change, as denoted in this Wall Street Journal article –“Maximize Your Deductions Now. A Trump Presidency Means You Could Lose Them.”

1. 2017 planning starts now. Whether you are single or married, now is the time to start thinking about your financial situation for next year. Make a date with yourself and/or your partner, and start the money conversation. You’re already doing this indirectly by planning those trips, weddings, baby celebrations, or investments you want to make. But, now is the time to do this holistically with some concrete goals in mind. Want to know how? Leave a comment below.

As 2016 winds down, my wish for you is joy and peace. And, let’s get that money right!

What Mrs. Janet Has to Say About the Market

In case you think I’m talking about Mrs. Janet Jackson, I’m not![Side note: The market hit a trifecta today – all 3 indices (S&P, Dow Jones, and Nasdaq) hit ALL-TIME highs. Read my commentary below for more details.]

Before you get there, I’m talking about Mrs. Janet Yellen, the Fed chairwoman. [Woot woot for this woman doing her thing in the market]. She spoke on Capital Hill last Thursday about the state of the economy, saying:

“At this stage, I do think that the economy is making very good progress toward our goals, and that the judgment the [Fed Policy] committee reached in November still pertains.”

In short, she thinks that the economy is strong enough to withstand an interest rate hike, and signaled that the Fed may raise rates at its meeting in mid-December. Mrs. Janet’s conclusion is based on several recent data points:

• Housing starts were the strongest since 2013. Strong home starts means that residential housing projects are on the move, and this is good for the overall economy.

• U.S. consumer prices rose at its fastest rate in two years. Remember, rising consumer prices signal inflation, or the tendency of prices to rise over time. When the Fed sees signs of inflation, which it wants to keep in check, it will evaluate whether or not to raise rates to prevent inflation.

• The number of people filing for unemployment insurance (or as you might know it - “unemployment checks”) dropped to the lowest level since 1973.The less people getting unemployment checks, supposedly the more people going back to work.

She, and the committee, will be keeping her eyes on what President-elect Trump does too because it will affect the economy in the long-run.

How will Mrs. Janet’s comments affect your investments?

First, take it all in. If you've never cared about this before, now's your chance because it affects you. Remember, this is economic data, and investors are all over it because economic data helps investors make bets on where to put their money.

You may have noticed a surge in financial stocks over the last few days. Well, this is because with the potential rise in interest rates, banks can charge consumers (that’s us) more for borrowing money. Therefore, banks will be poised to make more money, increasing their future cash flow, and thus driving up their stock prices today. We saw this first-hand with the stock market reaching all-time highs across all three indices, which all moved higher largely because investors are piling into financial stocks.

But, also keep in mind that higher interest rates over the long-term are bad for stocks. Why you might ask? Well, stock prices are driven by the market’s perceived value of what the underlying companies are worth. This “value” is derived by determining how much cash flow these companies will generate in the future, and then that amount is discounted (or lowered) to how much that value is worth today. The discount back to today’s dollars is directly linked to interest rates. The higher interest rates are, the lower overall stock prices will be in the long-term.

So, here are some things you can do:

1. Go back to your investment philosophy and examine what you hold. Ask yourself whether you need to make any adjustments to your holdings – do you want to take some profits given the strong rise in the markets recently? Do you want to re-allocate anything?
2. Ask your advisor how they are thinking about your asset allocation, or how much of your money is sitting in bonds vs. stocks vs. something else (e.g. real estate, cash).
3. Do a 401k check-up. Read how HERE!
4. Continue to pay attention to the market.

And, as Mrs. Jackson (now Janet that is), would say----- CONTROL! You have control over your situation and I want you to feel empowered to digest what’s happening around you and make moves accordingly or at least be comfortable with not taking action.

I hope you have a WONDERFUL Thanksgiving! I remain grateful to you for being part of the Charisse Says community. Enjoy time with your family and friends this week! I sure will!