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General Electric Real Estate Equities

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					                     FINANCE and INVESTING
                       George Langer, D.D.S., M.S.D.


                   Applying What We've Discussed
Setting Goals
 At this point early in your career, you should have 2 goal time frames
Planning experts say good planning has 4 characteristics
 1. Be specific
 2. Be realistic
 3. Prioritize
 4. Make your goals public
Budgeting
 Keep track of your spending for one month
 A good goal of savings is to save 10% of your gross income
 Helpful budgeting hints:
Emergency Fund
    Enough money to carry you through 3 to 6 months of living expenses
Disposable income
1. Dedicate 50% to retirement account
2. Dedicate 50% to emergency fund
Asset Allocation
    Dependent on:
          o Time frame
          o Personal risk tolerance
          o Age/phase of life
    Investment categories
       Cash equivalents
       Bonds
       Large Cap U.S. Equities
       Small – Mid Cap U.S. Equities
       Real estate
       International equities
       Speculative (investments)

DRIPS (Dividend reinvestment plan)
          Walmart
          Coca Cola
          Merck
          Dow Chemical
Asset allocation models



                     VERY AGGRESSIVE

          20
          18
          16
          14
          12
  Percent 10
           8
           6
           4
           2
           0
                 C   B      LC   S-M   RE   IE   S




                          AGGRESSIVE

            25

            20

            15
  Percent
            10

            5

            0
                 C   B      LC   S-M   RE   IE   S
                 MODERATELY AGGRESSIVE

       30

       25

       20

Percent 15

       10

        5

        0
             C      B    LC   S-M   RE   IE   S




                        BALANCED

       40
       35
       30
       25
Percent 20
       15
       10
        5
        0
             C      B    LC   S-M   RE   IE   S
                           PRUDENT

          50
          45
          40
          35
          30
  Percent 25
          20
          15
          10
           5
           0
               C     B      LC   S-M    RE     IE       S




                         CONSERVATIVE

          50
          45
          40
          35
          30
  Percent 25
          20
          15
          10
           5
           0
               C     B      LC   S-M    RE     IE       S



My Holdings
Core Holdings
1. 1/4 in Vanguard 500 Index Fund
2. 1/4 in Vanguard Total Stock Market Fund, QQQ, SPDR
3. 1/4 in high dividend yielding Large Cap stocks
    Examples:
       Johnson and Johnson
       Kellogg Company
       Apple Computer
       Microsoft Corp
       Pepsico
       Time Warner
       Target Corp
       Viacom Class B
       General Electric
       WM Wrigley Jr. Company
       Marriott International
       3M
4. 1/4 in solid Large Cap or Small to Mid Cap companies
       Growth portion
            Cisco Systems Inc
            Paychex Inc
            Applied Materials Inc
            Schering Plough
            Wells Fargo
            Altria Group
            Sysco Inc
            Deere and Comp
            TD Ameritrade

           Dodge & Cox Stock Fund
           T. Rowe Price Growth Stock fund
         Value portion (potential for increase in share price due to the company
          being undervalued, underappreciated or temporarily out of favor):
           Vornado
           Sears Roebuck and Comp
           Met Life Inc
           Electronic Data Systems
           AIG
           Computer Associates International Inc
           JC Penney Inc

           Fidelity Contrafund
           T. Rowe Price Value Fund
           Vanguard Windsor fund
Small- Mid Cap stocks
 Growth
   Valuevision Media Inc
   Whole Foods
   Newfield Exploration Company
   Marvel
   Emulex Corp
   Alliance Gaming Corp
   Research in Motion Ltd
     Delafield Small Cap Fund
     Fidelity Small Cap Stock
   Value
     Hovnanian Enterprises
     Pediatrix Med Group
     Chesapeake Energy Corp
     KV Pharmaceuticals

     Meridian Value
     Royce Opportunity Fund
     RS Contrarian
International equities
     Vodafone Group
     Nokia
     Barclays Bank
     Royal Dutch Petroleum
     Credit Suisse Group
     Deutsche Telekom

   Oakmark International Fund
Real Estate
   BRE Properties
Speculative equities
 Medimmune
 Labopharm
 Vasotec
Cash
Bonds

2 Pockets:
   Tax free/deferred accounts
   Taxable accounts
Life Cycle funds (Life Style funds)


What to do now with recession looming?
Short to medium term:
    Cash
Long term:
    Stocks
          o Large Cap dividend paying
          o “Defensive” stocks
          o Buying opportunities
                                  Monthly Budget Worksheet

                  Expense                  Week 1    Week 2   Week 3   Week 4
Room and Board
              Rent/mortgage
       Utilities (gas, elec, water)
                 Telephone
                 Cell phone
   Home maintenance/improvement
            Real estate taxes
                Furnishings
                  Groceries
       Restaurants/take out food
Transportation
               Car payments
                     Gas
                Maintenance
                Tolls/parking
       Commutation (bus, train)
Personal care
              Medical/dental
                  Clothing
            Laundry/cleaning
   Personal care (hair, nails, fitness)
Recreation
     Entertainment (movies, plays)
            Cable/satellite TV
               Internet portal
                 Vacations
                    Gifts
Insurance
                     Life
                   Health
                 Automobile
                  Disability
         Homeowners/renters
Taxes
        Fed & State Estimated
Debt management
             Loan repayment
         Credit card payment
Miscellaneous
                 Child care
        Educational expenses
         Charitable donations


Total
Grand Total

				
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