Thursday, June 05, 2008


Benjamin Buffet Allocation - broke rule number 1 loss $1.09

I began implementing my CD income strategy investing $25 a day allocating the monies in 6, 9, 12, 18, 24, 30, 36, 48, 60 month intervals. I was ING'ed into rethinking my strategy as:

1. Can only purchase 50 CDs (I think they made that up as I got two different answers), hence I hit my 57th today. After conversation, I decided to allocate the funds

2. I lost $1.09 today as I cashed in all CDs that were 9-60 months. After calculating the interest earned, the yield, and new principal every 6 month to earn more income, the $1.09 loss will be earned tomorrow as I invest the cashed in CDs totaling 85.22 with the $25 investment for a total of $110.22. I may allocate the monies over a couple of days but you should get the gist.

The initial plan was sound thinking on my part. I considered being able to invest daily earning fractions of pennies. The long term goal and approach would yield a nice appreciation stream if allowed. So I decided to liquidate for a sustainable $1.09 loss of capital and invest for 50 plus days with the goal of reaching a monetary interest goal of $2.50 by the 60th day.

$15,000 would yield approx 495 in a day, twice a year or $990

Also I am earning more money because the yield was the same for 9 and 12 mos, meaning my money isn't tied up as long, reducing opportunity cost but incurring research cost.

I shall aptly name this Lesson number 1

A system such as this will be left for Family generations as a means to remove monetary frustration, lack, and resistance into their experience. The Family Trust. So in December-January and June-July let their be rain as the CDs principal shall never be touched, 75% interest reinvested towards principal and the remaining 25% distributed for the family ventures.

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