Processing Your Investment Underperformance

Some of the best investments of the 20th century, which include Johnson & Johnson, Abbott Labs, Coca-Cola, Clorox, and Wal-Mart, each have contained a five-year period when they underperformed the S&P 500 or Dow Jones (back when that was the most relevant benchmark available) but went on to outperform the index from a commencement date that preceded the period of underperformance.

It should be obvious to state, but if you own any collection of investments, a sometimes lengthy period of time will occur where you are either losing in value, underperforming a basket of other stocks, and/or encountering disappointment in some other manner. This period can last years, and sometimes, even five years to a decade of underperformance from a great investment is not out of the realm of possible experience.

Correctly processing underperformance or mediocre results is a condition precedent to a successful investing career.

I will share with … Read the rest of this article!

The 2019 IRS Tax Refund Schedule: What To Expect

Supposedly, the government shutdown is not going to affect when tax-paying citizens eligible for a tax refund from the IRS will be able to do so. For those who will be filing your taxes in the first four months of 2019 for your 2018 tax obligations, the following expectations should apply:

  1. The IRS begins filing returns on January 28, 2019. If you have already filed your tax returns, be it via mail or e-filing, you will not receive a refund until this date.
  2. For those whose filings include the Additional Child Tax Credit or Earned Income Tax Credit, the IRS issued a special memorandum titled “Refund Timing For Earned Income Tax Credit And Additional Child Tax Credit Filers” that states the IRS will provide new official guidance on February 23, 2019 and that no taxpayer whose filing includes one of these credits will be processed for direct
Read the rest of this article!

John Bogle And Blue-Chip Dividend Investing

John Bogle is on the short list of my investing heroes, which may seem odd considering that he is the father of passive investing and the creation of mainstream index funds, while almost all of my writings focus on purchasing ownership stakes in individual companies.

The factor that we have very different investing styles is irrelevant—John Bogle has made it much easier for middle-class investors with incomes below $100,000 and no investment connections to get started with the wealth-building process, and I heavily suspect that we agree on far more than we disagree.

In particular, there are two areas where Bogle’s advice on index investing flows from the same type of logic that leads me towards blue-chip dividend investing.

Bogle has advocated two particular concepts for most of his adult life as a figure in the finance community.

(1)    First, he argues that investors achieve subpar … Read the rest of this article!