Investing Latina 103 with Jully-Alma Taveras

On YouTube and insta as investingLatina

The power of networking within your community.


Racial issues in wealth gap. Systemic issues. 


‘Don’t take risks’ ‘buy a house’ ‘save save save’ culture holds us back. 


Finance Education. Support small business. Vote advocates. Invest. Create estate plan. 


Support communities that are out of the risk slice. 


Summarizing these in the action notes with all other sessions from Jully  


Generational Wealth :

70% of wealth gets lost after one generation - estate and communication helps close this gap.

15K / year - gift - you can also front load for 5 years and not pay for 5 years.

Irrevocable life insurance trust  

Family limited partnership

Qualified personal residence trust - NFT/art/real estate

Intra-family lending - on the books - strategically done - passing wealth - taking a loan out of parents/grandparents


Importance of Investing

Stocks 

  • Always have an exit strategy.
  • Earnings growth - data? Trajectory over time - innovated / competed out - finance / investment websites 
  • Strength compared to peers - competition 
  • Debt to equity ratio - all companies have debt, some have lot of cash, some like Tesla have cash that they put into crypto, apple - cash. Owe : worth : income. 

- depends on the size of company. User 5% is usually a good percentage. Companies investing into infrastructure - Tesla

  • Price earnings ratio - more expensive than they have to be. Overvalued? Fundamentals based on history. Timing decisions. .5 is good ratio.
  • Dividend Treatment - do they give dividend / reinvesting dividend / too high dividends affecting bottom line? 
  • Dividend aristocrats 
  • Mutual fund / ETFs that are dividend aristocrats - might not be stable / maybe risky
  • Executive Leadership
  • Long term strength
  • Don’t sell when low :) don’t be emotional. 


Dividend stocks - can be an extra 1k per month

  • Cash flow / reinvest dividends - passive income / no distribution restriction
  • Yield = annual dividend / stock price = 1.50/25 = 6% - that’s a high dividend yield (maybe risk depends - cash flow problems)
  • Safe yield = 3.5 to 4%
  • Forward dividend yield - for companies for long time (lot of aristocrats) - over 12 months
  • Dividend payout ratio = Percentage of Earnings paid out 
  • Know where cash is going from the company you invest in
  • Yield is used by investors who are looking for steady cash flows
  • Payout is used by investors looking for growth stocks
  • Yield = market price comparison. Payout = earnings comparison
  • Ex dividend date = to be in the stock to get the next dividend payout
  • Mutual funds - some pay dividends
  • What is stock split : when stock continues to grow - the company splits so people can continue to buy without getting scared about the price. Apples does this. Amazon should do this. Now we have partial share options.
  • Earnings per share = profit / shares.
  • Higher EPS - higher profit
  • 100+ years divident cos
  • By sectors - research - makes it little easier 
  • Energy. IT. finance.  Real estate. Utils. Health . Materials. telecom. staples. industrials. 
  • Some examples - I’ve taken some notes of these cos by sector


Taxes:

Capital gain tax

Short term tax < 365 days 

Exit strategy

Qualified dividend - 60 days held after 120 days after ex-dividend - non sheltered account - even dividends get tax - taxed at capital gains

Ordinary dividends - taxed at fed rate


Yahoo finance. Seeking alpha. Dividend watch(paid)


QnA

- cash flow - should dividends be done during high growing years or low income years - it's a balance - passive income. if you are trying to manage tax, then maybe do dividend in tax sheltered accounts.


- reinvesting dividend back - still gets tax - if you get loss - then wash sale - balance loss. 

- reinvesting is good. check that box.


- IRS witholding calculator - if you think you will owe tax - then stop salary deductions 


chip financial planners - fee based or percentage based. 


side hustles : after stability , monetize our expression. get your creativity out. something that comes from deep down that helps others. 

she did it after 15 years after corp 


tax is your responsibility in stocks. not like employers.

even vanguard / fidelity don't allow automated dividend investment in ETF - what brokerage to go to? none. companies don't want to take responsibility. robinhood allows, but you may be at slight disadvantage cuz volume trading. 

van/fid/etrade/charles is good. 

ETFs are based on index and have low fees. index can be automated. ETFs are not since the price changes. 

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