On Saturday night my new daughter decided she had waited long enough and was ready to meet us and the rest of the world (a day and a half earlier than we expected).  So, as I was driving to the hospital late that night … the thought struck me that I was going to end up having to “sleep” in one of those hospital room “companion chair things” – you know the one that looks like a chair, feels like a rock, and folds out in three sections to make a “bed”?! 

Now before I get too far, the point of this story is about investing (lest you get the notion that I think that I am the only one who “suffered” that night)!  Believe me, what I had to endure for one night was nothing compared to what my wife had to endure for nine months!  Now with that disclosure out of the way – I will continue my story. 

So, as I was lying there “trying to get comfortable” something would inevitably happen — Sometimes it was a nurse checking in on my wife (seemingly every half hour or s0), sometimes it was a machine beeping, sometimes it was a draft of cold air sending shivers down my spine (since I had nothing but a sheet to lay down on)!  Throughout the night there was one interruption after another.  Every time that I thought that I had finally “beaten the chair” … some new information would come along and mess with my sleep and my peace!!

I couldn’t help but realize that this is how life is for most investors.  As soon as we get “comfortable” with our investment plan and portfolio … there seems to be some “noise” – some new piece of information (e.g., tv report, internet story, published book, investing newsletter, financial magazine, and etc) that causes us some discomfort again.  There are a lot of “beeps”, “noises”, “winds”, and etc that grasp for our attention.   But the best thing to do as an investor is to do what I did last night … find a comfort “zone” and go right back to sleep again!!  Always remember these 3 strategies to keep your investments on the right path:

1)      Do not speculate or gamble with your investments (most of the “noise” you hear involves some type of speculation).

2)       Avoid chasing performance (a lot of the “distractions” are about a fund manager’s past performance or some prediction of future returns).  Research shows that if you achieve the actual real returns of the market you will be a very successful investor.

3)       Hire a coach.  Look for someone with the heart of a teacher – someone who will help you:  a) not to speculate or gamble with your investments, b) avoid chasing performance and help you put together a no-load, low cost portfolio of funds that are extremely diversified and scientifically engineered to produce market returns, and c) be able to answer the “20 Must-Answer Questions” for investing peace of mind.  A coach will help you avoid the costly mistakes that come when you let the emotions of greed or fear affect your investment decisions.

I hope you have an investment philosophy and plan that leads to financial peace.   Here’s to looking forward to more peaceful nights and to more educated investors!

http://online.wsj.com/article/SB10001424052702304370304575151682845921038.html?KEYWORDS=The+Rich+Can%27t+Pay+for+Obamacare

Well, it’s “official” — the House voted 219 – 212 last night to “reconcile” the House and Senate bills so that U.S. Healthcare would pass. 

As you know, this month is dubbed “March Madness” because of the NCAA college basketball tournaments.   It is appropriately called because of all the upsets and exciting games as we have seen already in the first two rounds!   But, the real “March Madness” occurred before midnight last night on March 21, 2010. 

In this historic vote, the entire health care system in the United States has been altered.  While, it must still pass in the Senate (which is not entirely guaranteed) … it is one step away.   This vote/bill is tragic in several ways:

1)  How can we pay  for this?  With all the other spending taking place by the government, I don’t know how we can add such an enormous, costly, and complex industry to the federal government.  WE will pay (you and I).  In fact, we will pay for several years before this is even fully enacted.  It will cost us more over the long run in dollars than our current “costly health insurance premiums.”  Spending is out of control and the government pays their bills from the backs of working, law abiding, tax-paying Americans.   We have signed a mortgage that we will never be free from.  Look at the Post Office, Fannie Mae and Freddie Mac (federal home loans), and many other examples — to see that the federal government does not run programs for a profit.  Every “private enterprise” that they control is fiscally troubled to say the least and requires more and more of our money to bail them out.

2)  Get your new “U.S. Health care Card.”  I can’t wait.  So, instead of Humana, or Blue Cross, or Cigna, and etc, my health care will be paid by my taxes and provided by my government.  So, when I have a “claim” or need to know if my medically necessary treatments are “covered” or not, I get to speak to a federal government employee (ala, the friendly staff at your local DMV).  I will have no recourse if I’m denied medicine, treatments, etc.  Any time I need to see my doctor, I will know that all of my health records are no longer private, but the eyes of some federal employee will be able to see how many meds I’m taking or how many visits to the chiropractor I’m making.  I fear for the elderly and for those with special needs — because if the hypocrites in Washington know anything — they know how to “double speak.”  So, in an effort to “control costs” and to “listen to the people” who are concerned about costs, they will suggest not covering those that are “costing the system too much.”  It is not a matter of “if” — it is only a matter of time. 

3)  Every Senator and Congressman/congresswoman who voted for this bill will not be included in this special “U.S. Healthcare” — they will be exempt and provided with private health insurance.  Just like how they all campaign for the benefit of public schools, while sending all of their children to private schools — they have pushed the “public option” while keeping their private insurance.  I also had to wonder why so many of them were willing to vote this thing through at the risk of losing their next election — then I remembered pensions and private health care for life for those who “serve” in Congress (another tragedy). 

4)  Make no mistake — this does not create competition.   You cannot compete with the federal government (or with big government unions).  It eliminates competition.   But sadly, I believe this will also limit good people from pursuing medical careers.  It will affect the quality of care we all receive to some degree — but more importantly it will probably affect the timing of the care that we receive.

5)  Every other country who has tried to do this has failed.   Anyone with money in a country where the medicine is “socialized” flies to “free countries” to pay for the life-threatening care that they need.  Where are we going to go?

6) As always, this is just going to cost most people more and a lot of people nothing.  The only other thing I can equate this to is public schools.  I’m not against them, but if a parent wants to provide a different learning environment and send their children to a place where they can hold their teachers accountable, then they many times will choose to send them to a private school.  Those parents that do that pay twice.  They pay taxes for the local public school AND they pay out of their own pocket for private school.  It’s a choice that they make for what they believe is in the best interest of their children.  They “pay more” because they don’t want the “public option” — they “pay twice.”  The same will happen with healthcare.  Those with “means” will “pay more.”  They will pay by enforcement (taxes) for public healthcare and they will pay again to have their own private insurance (so that they can get better care and keep their physicians more accountable).  Do you get it?  If you want private health insurance after this is passed – you won’t have a “choice”, you will just simply “pay twice.”

7)  Most compassionate Americans want everyone to be able to see a doctor when necessary and to get medically necessary medications.  There is a way to do this without forcing everyone to “take the government card.”  Our government refused to listen to any other option other than full and complete control.   There are programs that could do that — they would cost money — but much less than what this bill is going to cost us.  Providing health care for some at the expense of limiting the liberty of everyone was/is not the right option.  Coverage for pre-existing conditions could have been accomplished — without limiting the liberty of all Americans.  There was/is a way to do this — without the government’s control — but they did not care. 

8)  I did not even elaborate on the funding of abortions or the coverage for illegal aliens — both of which are extremely tragic consequences of this bill as well.  

In conclusion, there are still some options available to “be heard.”  First, it  must still pass in the Senate.  Continue to call your Senators.  Second, contact your State representatives and let them know that you do not want your state to be obligated to accept government run health care.  Finally, vote in November. 

I guess “March Madness” has a new meaning for me from now on.