Maintaining a buy list, or wish list of companies to invest in at lower prices, gives the prepared investor an advantage when bargains become available.  One of the lessons we should have learned from stock market volatility is bargains can emerge very quickly. They can also disappear as quickly as they appeared.

I keep a list of the best companies and ETFs of specific industries or countries that I would like to own for long term growth. This gives me several important benefits.  First, I’m ready to act when something causes the market, or that specific investment, to fall. Investors have a hard time putting into practice the principle of buying low and selling high.  Having a buy list helps you stay disciplined to purchase bargains because you are prepared and looking for opportunities to buy low.

Another advantage of keeping a buy list is that it keeps you involved in the market. Market research and research of individual investments requires a great deal of time and should be done on a consistent basis.

Are you having trouble finding the time to do the necessary research to self direct your portfolio?  The Arbor Investment Planner provides the information you need to manage your portfolio, including the Arbor Asset Allocation Model Portfolio (AAAMP), trade alerts, and updates. For more information please contact me directly at KFinvest@aol.com,  281-719-8904, or visit our website at www.AAAMP.com.

One of the best investment strategies is to pay yourself first with automatic investing. Set up automatic deposits from your savings or checking to your investment accounts. Your first priority for investment is a 401K plan matched by your company. Always invest enough to get your company match.  This is even better than free money, because this is free money that can grow and take advantage of compounding.  It’s the equivalent of a 100% gain the first day. Once you have set up deposits sufficient to receive your “free money”, set up automatic investments to your Roth or Traditional IRA (Traditional IRA, Roth IRA, or Both: http://tinyurl.com/y9ndg8w). These retirement vehicles offer substantial tax and growth advantages.

Automatic investing has several benefits including simplicity, convenience, time savings, and keeping you disciplined. It’s too easy to find an excuse to skip an investment deposit when you have the option. Maybe you are busy or on a tight budget this month; or choose not to invest because of a market that is down or falling. Emotions, including fear and our desires for immediate gratification, can cause us to do exactly the opposite of what we should do.

Another benefit of systematic investing is that dollar cost averaging is a powerful investment strategy. Because your investment buys more shares when prices are low and less shares when prices are high; your returns can be optimized over time. By investing the same dollar amount each month the average cost of the asset being purchased is lower than buying an equal number of shares each time. In addition, investing in small regular increments removes the chance of making a large investment allocation just as the market is peaking.

Simplicity, convenience, time savings, discipline, and dollar cost averaging make paying yourself first with automatic deposits one of best strategies to grow your investment portfolio. The Arbor Investment Planner provides subscribers the information they need to successfully self direct their investments. If I can help you please feel free to call me at 281-719-8904.

More information available at: www.AAAMP.com

Many Investors are now asking “How do I invest my money using fee only advisors?”  Financial planners and mutual funds have let most investors down with poor performance and by failing to educate clients about risk management.  A lack of understanding asset allocation and risk has partly been due to the fact investors are unattached from the investment management process. 

The self directed investor is able to stay knowledgeable about his or her asset allocation and portfolio risk in a timely manner instead of receiving monthly or quarterly statements.  By using a fee only investment planning service conflicts of interest are eliminated.  The Do It Yourself Investor can use an online brokerage with extremely low commissions and avoid investments with large fees based on assets invested.  Studies show that keeping investment expenses low greatly increases long term returns.

When hiring a fee only do it yourself investment management service look for a good long term performance record and an investment style you feel comfortable with.  The Arbor Investment Planner is a conservative, risk adverse online investment planner with an excellent long term record (see www.tinyurl.com/yf3aab8) and convenient format for easy implementation.  The Arbor Asset Allocation Model Portfolio (AAAMP), Trade Alerts, and Updates are e-mailed to subscribers for a flat fee.

More Information available at: www.AAAMP.com

Our goal is to own the best mix of investments by balancing the good characteristics (growth, dividend yield, cash flow, etc.) versus the risk (market, economic, interest rates, etc.) in a way that the optimum mixture of risk and return is obtained. This philosophy allows us the flexibility to invest in aggressive investments when appropriate and stay in cash and own hedges (a conservative portfolio strategy to reduce risk) when conditions require.

Another goal is to keep subscribers focused on what is important and not get caught up in fads and trends that ultimately lead to financial ruin. We stay focused on our asset allocation and our tried and true methodology which has built long term wealth. Even though we constantly look at performance, we are focused on the long term and refuse to take unnecessary risk in order to boost short term performance.

For a more in-depth view of the Arbor Asset Allocation Model Portfolio (AAAMP) philosophy:

Diversification: http://tinyurl.com/2vfl7yj

Asset Allocation and Risk Management: http://tinyurl.com/327o5pw   

Active Asset Allocation Management Strategy: http://tinyurl.com/235hduq

How to Invest in Stocks, ETFs, and Mutual Funds: http://tinyurl.com/3aafr9o

Do It Yourself Investment Management: http://tinyurl.com/y3hf7y3

Ken Faulkenberry – Portfolio Manager

        President, Arbor Investment Planner: http://tinyurl.com/34tepqt

The most common data used in fundamental research and analysis would be revenues, expenses, profits, earnings per share, assets, liabilities, book value, dividends, cash flow, and projected earnings growth rates.  Key ratios would include the price/earning ratio (P/E), dividend yield, dividend payout ratio, return on equity, price to sales, and price to book value.

An analyst would evaluate the data and ratios in comparison to the universe of stocks available.  The goal of the investor is to invest in those companies with the best prospects given the current price.

Most investors lack the time, knowledge, or will to research individual investments and build a diversified asset allocated portfolio.  The Do It Yourself Investor can use an online subscription investment planning service such as the Arbor Investment Planner.  The AIP does the fundamental, technical, and asset allocation analysis. It provides a model investment portfolio along with trade alerts, and updates for the self directed investor.

More information available at: www.AAAMP.com

Every few years we witness the collapse, or near collapse, of major corporations.  And yet with each collapse we find investors who have placed a large portion of their investment portfolio in one stock; leaving them vulnerable to risk that can affect any company. Regardless of perceived safety or prospects of any individual company, an investor should always limit the percentage of their portfolio in any one stock.  This is particularly true for employees who frequently make the mistake of having too much invested in the company they work for.  In 2000, Enron employees not only lost their jobs, but many lost their retirement plans and life savings because they were not properly diversified.

The Arbor Asset Allocation Model Portfolio (AAAMP) never invests more than 5% of its portfolio in any one stock.  The portfolio’s average dividend growth holding is 2.4% of the portfolio, greatly reducing the risk of owning any one stock. The BP oil spill has once again demonstrated that asset allocation and diversification are critical risk management principles of investment management.

More information available at: www.AAAMP.com

Individuals can make tax free gifts of up to $13,000 per recipient per year to as many people as they want. A couple can give up to $26,000 per recipient. Repeated annual gifts can transfer a substantial amount of wealth out of an estate and reduce a family’s overall tax burden. Lifetime gifts reduce the sizes of one’s estate and therefore can reduce or even eliminate the ultimate amount of estate taxes.

Be sure to consult a tax professional to implement your family wealth management plan; especially since Congress keeps changing the estate tax laws.