As you enjoy the last days of 2013, start planning ahead and mark your calendars for our first webinar of the new year, Evaluating the Coffeehouse Portfolio in the 2014 MarketCoffeehouse author, Bill Schultheis will discuss the ins and outs of the Coffeehouse portfolio and how its balanced approach plays out in the 2014 stock market.  The Coffeehouse’s three principles will take on an even more important role in the upcoming market and Bill will play a little Outfox the Box for all of you who still believe you can beat the market.  Stick around until the very end of the webinar, Bill will answer all of your questions and more!  To register, click here.

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Mix Hollywood and Wall Street and you get Martin Scorsese’s new film, The Wolf of Wall Street opening Christmas day.  The New York Times writes a great analysis of the movie’s twist and turns and halfway through reading the article, I started to drift away thinking “why does investing have to be so complicated?”  When dealing with your own money, have a clear understanding of your financial plan, where and what you are investing in, and how you actually make and lose money.  Now I don’t think you need to explain all the components of the Fama-French Three Factor Model but clarity with your long term financial plan and your investment strategy is important.  Whether you are a do-it-yourself investor or you work with an advisor, make sure you have a clear understanding of your investment plan.  If not, start asking questions.  If you go see the movie, settle in as this movie is three hours long and full of (as the NYT’s article title suggests) sex, drugs, and I.P.O.’s.

After ignoring Wall Street, let’s get on with our life one blog at a time … by Julie Klingler


We may have reached a new frontier in the world of money management.  The all in one COIN card’s advertising campaign was released to the public this fall and has made quite an impression.  All of your reward cards, debit, and credit cards in one smartcard and without the bulky wallet, too good to be true?  The COIN company plans to roll out its product in the summer of 2014 but you can purchase preorders with 50% off right now.  Hurry you’ve got one day left to take advantage of the 50% pre-order deal.  The idea behind the product seems pretty good, the company has produced a lot of fanfare, but we’ll have to wait and see if all the buzz is worth talking about 6 months from now.  Until then, keep it simple and find ways to automate your financial life.

photo credit: Coin

After ignoring Wall Street, let’s get on with our life one blog at a time … by Julie Klingler


With only two 1/2 weeks left in the holiday shopping season, we would be remiss if we didn’t give a shameless plug on the most perfect gift (in our opinion) to give this year.  The Coffeehouse Investor book is now in paperback and provides a wealth of advice on investing with common sense, financial planning long term, and how to get on with your life while ignoring Wall Street.  Bill’s quick wit and simple strategies are perfect for the beginning investor or the person who continues to try and beat the market with dismal success.  Besides, gaining a wealth of knowledge on finance, Bill includes his infamous pumpkin pie recipe to savor your taste buds.

Give the gift of common sense investing this year and we promise, you won’t regret it.

After ignoring Wall Street, let’s get on with our life one blog at a time … by Julie Klingler



I’m telling ya, there is no stopping the stock market.  It seems like for the past two years all the prognosticators have been calling for a market correction, and still the market keeps on setting record highs.

Through the end of November, the S&P 500 had recorded eight straight weeks of gains.  According to The Wall Street Journal, it hasn’t had a run like this in over a decade.

But with each passing day that the stock market sets a new record, another market guru seems to come out of the weeds and scare us into thinking the market is overdue for a big correction.  Today the guru happens to be Bill Gross who is telling us to watch out for a stock market bubble.

Here are some thoughts to ponder . . .

First, while the stock market IS overvalued, it isn’t by much, at least according to Vanguard.  With large cap stocks sporting a price-to-earnings ratio of 17.6, this is hardly bubble territory.

The stock market has had quite a run, up over 20% so far this year.  Time to take profits? Maybe, maybe not.  According to Jeffrey Keintop, chief market strategist at LPL Financial, the average return on common stocks after a yearly gain of 20-25%, is 13% the following year.

Oh, and one more thing . . .

Why all the fuss over a market drop?  Isn’t that what stock markets are supposed to do every once in a while.  The stock market is two steps forward, one step back. Always has been, always will be.  Sometimes the steps are big, sometime the steps are small.

If you are squirming over a potential market drop, it means one of two things. Either you need to get on with your life and ignore the market, or reallocate dollars out of the market so that you don’t need to sell stocks for living purposes during the next market decline (and then get on with your life.)

That is where your financial plan comes in handy.

What matters most when integrating all this stuff into your portfolio and into your life, is not what the stock market does over the next 4 months, but what it does over the next 10-15 years.  Almost assuredly, stocks will significantly outperform bonds during this stretch, and good reason to have a healthy chunk in your portfolio today.


If you don’t know what I’m taking about, you haven’t read Chapter 5 of The Coffeehouse Investor.  Bill writes extensively about the biggest piece of the investment pie – compounding.  When you reinvest your stock dividends instead of spending them, you are able to earn dividends on the original dividends and those dividends earn more dividends and it goes on and on and you get compounding.  If you’re continuously selling stocks and not giving your investments a chance to compound, you may be missing out on the largest piece of the “money pie” as Bill calls it.

Whether it’s pumpkin or sweet potato or pecan pie you may be enjoying this Thanksgiving, remember to think about your investment pie and take full advantage of the magic of compounding.

Speaking of pumpkin pie, below is Bill’s recipe published in The Coffeehouse Investor.  Happy Thanksgiving from our Coffeehouse family to yours.

1 16-ounce can solid-pack pumpkin

1 egg                                                     

1 cup of sugar                                                    

1 teaspoon cinnamon

1 teaspoon pumpkin pie spice

1 12-ounce can evaporated milk          

9-inch pie shell

Preheat oven to 425 degrees (F). Mix all ingredients in a bowl and pour into the pie shell.  Place pie in the oven for 15 minutes and then decrease oven temperature to 350 degrees (F).  Bake for an additional 40-45 minutes.  Enjoy!

After ignoring Wall Street, let’s get on with our life one blog at a time … by Julie Klingler 

You think economists can create a better index fund?  There are many skeptics including index fund pioneer John Bogle, but read more into the research and work transpiring to create an index fund that doesn’t just match the market return, but can beat the market.  Too good to be true?  The verdict is still out but we will watch and see.


After ignoring Wall Street, let’s get on with our life one blog at a time … by Julie Klingler

If you tuned in during our last webinar, you may have heard Bill talk about reenergizing yourself for 2014.  Taking care of yourself is as important as taking care of your finances.  Review the 25 Habits of Successful People and see where you can improve.  Would you say you’re conquering all the habits? Fantastic, keep on going.  Lacking in a few areas?  Put some goals down for the upcoming year and turn those ideas into habits.  Only point the author should have included was getting an adequate amount of sleep.  Experts recommend 7-8 hours but everyone is different, it may be 6 hours, it may be 9 hours.  Figure out what works for you and stick with it.  Regardless of how the market performs, you are still going to have to get up and face the economy.

After ignoring Wall Street, let’s get on with our life one blog at a time … by Julie Klingler

As you battle ghosts and goblins tonight, take a moment and test your retirement IQ provided by a recent WSJ quiz.  How well do you know the facts about saving for your nest egg, life expectancies, and retirement incomes?   Don’t be derailed if you find your knowledge level isn’t up to par, the important part is you are saving for retirement, you’ve developed a long term financial plan, and are taking full advantage of index funds and capturing the entire return of the markets.  If you are not doing the basics, get back to the book that started it all – read The Coffeehouse Investor, take some notes, and start saving!

We wanted to say thank you to all of you who could tune in for Wednesday evening’s webinar “Five Financial Steps to Take Before 2014”. It was our most popular webinar this year which doesn’t surprise us considering the unpredictable economic climate we find ourselves in.  The most important point we hope you took from the webinar (and for those who missed it) is to focus on the things you can control and prepare for 2014 with your best foot forward.  Focus on your savings and spending, make sure your portfolio is taking full advantage of what index funds can offer, and focus your energy on more important things in life which include taking care of yourself like exercising, eating well, and meditating.

Also, we got a lot of questions about the financial planning software we recommend.  We have found Torrid Technology to be very helpful for people needing clarity.

We will take a break from our webinars and return in 2014 with a great lineup. Stay tuned for new topics, dates, and times.