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How The World’s Massive Debt Affects You!

We are drowning in debt! With so much debt in the system and with key debt to GDP ratios being pushed so high the risks created by all this worldwide debt is substantial. There is more debt in the system today than there was during the 2008 financial crisis. A new debt crisis could emerge at any time. So, we believe individuals should work towards getting out of debt and staying out of debt to decrease the risks associated with this environment. Easier said than done…but watch to learn more! #debt #loans

To learn more about this get My Money Trainer’s Mid-Year Macroeconomic Update here:

MyMoneyTrainer – Macroeconomic Outlook_2017_Q2

Are Stocks Going Up Or Down?

When You’re Crying You Should Be Buying…When You’re Yelling You Should Be Selling!

We don’t know who said that but it is the absolute best piece of investment wisdom we have ever come across.  Today we will look at one of the most popular valuation indicators for stock investing.  The PE Ratio is the stock price to per share earnings ratio. Several studies indicate that this indicator is also one of the indicators that most closely correlates to future returns. The S&P 500 Case/Shiller PE Ratio is particularly effective since it looks over 10 years of history and is great at smoothing out short-term bumps. In short, the higher the current PE Ratio the lower the future expected returns are likely to be and vice versa.

So where is the S&P 500 Case/Shiller PE Ratio right now? Unfortunately (or is it fortunately), the current ratio is extremely high. Only two times in history has it been higher: 1) Right before the stock market crash of 1929 and 2) During the 2000 Internet Bubble. Both of these times the valuation of the stock market was at historical highs (well above historical highs). We know what happened next! Since 2008 the S&P 500 Case/Shiller PE Ratio has doubled from 15 to over 30. Given this information we should expect that the next 10 years will have real annualized returns of less than 5% for stocks (which is well below the historical average of 11%+).

MyMoneyTrainers Take: With stock valuations approaching near historic highs the likelihood of lower than average future returns (or even a full-blown market correction) is increased.

Learn more about what to expect from your investments with:

MyMoneyTrainer’s 45 Year Asset Class Overview

 

Stop Wasting Your Most Precious Asset (Time)!

Wasting Time Is Robbing Oneself! Why not spend a little bit of the time we all waste every day investing in yourself! Changing your financial life can change your life for the better. Stop wasting your time and start investing it! Let MyMoneyTrainer help improve your financial life! #time #bored

Rent or Buy My Home? That Is The Question! REDUX (Episode #11)

Your biggest expense…your biggest investment…we couldn’t fit it in one episode. We continue this week!

  • Deciding where to live is a big life decision filled with all kinds of emotions. Figuring out how to finance it is even harder!
  • From a strictly financial perspective you have to think about down payments, liquidity, the inflation rate, financing, price appreciation (or depreciation…yikes), tax incentives, insurance, and property taxes!
  • From a lifestyle perspective you have to think about whether you want to own or rent the place you call home. You’ll have to make sure the place you choose will match where you need to live to earn a living and will meet the needs of your family while you live there. Then depending on your answer you have to decide how you’ll take care of maintenance, repairs and remodels.
  • Is renting or buying better from a straight dollars and cents standpoint?
  • Together we’ll learn how you can Spend It Wisely and Invest It Wisely as you determine how you will address what is most people’s biggest expense and biggest asset!

Compare your home’s return to other investment’s returns in this free PDF!

MyMoneyTrainer’s 45 Year Asset Class Overview

Rent or Buy My Home? That Is The Question! (Episode #10)

  • Deciding where to live is a big life decision filled with all kinds of emotions. Figuring out how to finance it is even harder!
  • From a strictly financial perspective you have to think about down payments, liquidity, the inflation rate, financing, price appreciation (or depreciation…yikes), tax incentives, insurance, and property taxes!
  • From a lifestyle perspective you have to think about whether you want to own or rent the place you call home. You’ll have to make sure the place you choose will match where you need to live to earn a living and will meet the needs of your family while you live there. Then depending on your answer you have to decide how you’ll take care of maintenance, repairs and remodels.
  • Is renting or buying better from a straight dollars and cents standpoint?
  • Together we’ll learn how you can Spend It Wisely and Invest It Wisely as you determine how you will address what is most people’s biggest expense and biggest asset!

Also…come back next week and we will finish this topic as we do some math and do a straight dollars and cents comparison to see which option is better.