2020-02-17 04:17
There are a few irrevocable financial decisions in
retirement and the largest one for most people is selecting the filing date for
Social Security retirement benefits (SSI). This is a cr… Read More
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Timeless concepts of Financial Literacy
A weekly blog on personal finance, career planning, and investing.
2020-02-09 19:07
Creating a ratio by dividing the price of one asset by another is one way to determine if something is relatively cheap or expensive. For example, comparing gold/silver, stock market/oil, re… Read More
2020-02-02 18:24
The Acorns investing app compiled a survey from 3,000
people on financial matters; from age 18-44. A few of the notable statistics
they tallied are included below.
Respondents spend:… Read More
2020-01-26 21:17
During many social gatherings in Connecticut these days,
there is a likelihood that at some point the conversation will turn to: outrageously-high
property taxes, falling real estate pri… Read More
2020-01-19 18:45
The modern concept of an actuarially planned and funded government pension for all working citizens began in Prussia by Otto von Bismarck in 1889. At the time, the average adult lifespan… Read More
2020-01-12 18:30
Adhering to your personal values when selecting
investments that you want to support or avoid is common. You may choose to skip
investing in companies that provide sins, vices, or confli… Read More
2020-01-05 17:16
On December 31, 2019, Iranian military attacked the U.S.
embassy in Bagdad. Three days later, a U.S. drone strike killed the planner, General
Qassem Soleimani, who the U.S. claims was pl… Read More
2019-12-29 18:57
Washington just passed a new law regarding retirement
accounts called the SECURE Act (Setting Every Community for Retirement
Enhancement). A few of the notable elements include:
Offer… Read More
2019-12-22 17:56
There is a spectrum range from Total Control to No Control
over your financial accounts and investments. The term “control” in this
context refers to your money-management ca… Read More
2019-12-15 15:54
60 years ago, if you owned 10 individual stocks and a few bonds, an investing expert would consider that a “well-diversified” investment portfolio. Several decades later, in… Read More
2019-12-08 18:14
There are many locations where you may have money, but
there are two that you should be evaluating the closest. There is one money
location to minimize and the other to maximize. First… Read More
2019-12-01 17:36
Argentina has been chronic debt-defaulter and currency
hyper-inflator for a long time. Last year, they offered 100-year bonds at an
attractive interest rate and sold billions of them. Le… Read More
2019-11-24 21:37
The state of Illinois is in all kinds of financial trouble.
For example, they haven’t had a balanced budget in 19 years, the worst credit
rating among states, plus sales and income… Read More
2019-11-17 17:22
A value trap is a stock that appears to be trading at an
attractive price, luring in unsuspecting investors. But instead of being cheap,
it turns out to be a losing company or investment… Read More
2019-11-10 22:56
When you make more money, you move up into higher income
tax brackets. This progressive tax rate has been called a “success tax,”
because the more you make, the higher the ra… Read More
2019-11-03 10:59
Loan efficiency refers to how much cash a particular loan
takes out of your monthly budget. Some loans are relative Hogs while others are
relative Hummingbirds. It is best to have flexib… Read More
2019-10-27 18:32
The concept of a financial reserve will make or break your actual savings and financial goals. When
you save money, it is set aside from your current spending. This savings could
reside… Read More
2019-10-20 16:09
How wary should you be with Wall Street and new business
models without sustainability? The shared workspace company, WeWork, was moments
away from an initial public offering (IPO) value… Read More
2019-10-13 22:10
The bank manager of a large Florida branch told a friend
of mine that, “Every day we stop one of our elderly customers from trying to
wire $1,500-$4,500 to a Nigerian Prince who wi… Read More
2019-10-06 23:46
The race in lowering commissions is over, and the customer is the winner. Last week, the giant brokerage firm Interactive Brokers lowered their stock and option trading commissions to ze… Read More
2019-09-29 14:15
Large banks and companies borrow money amongst themselves for overnight cash flow planning and reserve requirements by their treasury departments. This is called the overnight repo marke… Read More
2019-09-22 15:14
There is an audio recording of personal finance expert Dave
Ramsey talking about a study that he had read. This was a large study of
retirees that had become wealthy and the researchers… Read More
2019-09-15 15:50
No matter what level of income you may have at the moment, there are businesses ready to take advantage of your financial situation. There are billion-dollar industries designed to extra… Read More
2019-09-08 16:49
In the long, long ago, when a stock, industry, or the
overall stock market fell in price, there were bargain hunting investors
willing to step in and purchase shares once they fell low e… Read More
2019-09-02 01:42
No matter which country, culture, or time period, anytime
someone’s total income tax rate approaches 40%, they scramble to lower it. High
income earners in several states are now b… Read More
2019-08-26 02:42
Nothing highlights advantages and disadvantages better
than a real-life side-by-side comparison. In this case, a colleague was the
executor for the modest estates of two relatives, in th… Read More
2019-08-18 17:57
Wall Street is skilled at turning financial products
(loans, leases, royalties, bonds) into securitized investment packages. Many of
these turn out to be garbage which create huge losses… Read More
2019-08-11 19:15
The U.S. stock market fell 5% this week when the Chinese
currency, the yuan, hit a record low. What is going on in this trade dispute?
China was approved into the World Trade Organiza… Read More
2019-08-04 21:26
If you owned a small laundry mat, you’d probably subscribe to all kinds of industry publications. This way, you’d keep up with: technology changes, trends, risks, best practi… Read More
2019-07-29 03:14
Cyril Parkinson wrote an essay in The Economist magazine published in 1955. Included is his First Law
that, “Work expands to fill the time available for its completion.” As y… Read More
2019-07-21 23:11
I spoke with a long-time friend who enjoys talking about investing opportunities. He is savvy about investing in real estate, oil and gas, stocks, etc. This time he was telling me about… Read More
2019-07-15 02:36
Want to predict whether someone’s life will be more toward
a path of achievements or mis-steps? A large portion of that can be determined
by analyzing how they make decisions. Peop… Read More
2019-07-07 13:25
A colleague’s son is four years out of college and now has $5,300 in a new stock brokerage account. Like many kids under age 30, he has followed the herd into every problematic financi… Read More
2019-07-01 03:31
Over 40 states have underfunded pensions for government
employees. Instead of setting up reasonable obligations or switching to
employee contribution funds like most companies, politicia… Read More
2019-06-24 01:34
Economics is simply the supply and demand for goods and
services, along with the price discovery where people agree to transact.
Anything that artificially caps or supports price above o… Read More
2019-06-17 02:47
Student loans, in general, cannot be discharged through
declaring personal bankruptcy. Today, there are $86 billion in student loans
owed by people aged 60 and older,
with an average amo… Read More
2019-06-09 16:07
Who wouldn’t want to live a spoiled life?
Unfortunately, there is a life lesson about earning that most people need to learn the hard way. Earning does not just refer to money;… Read More
2019-06-02 14:03
Financial infidelity is the term for hiding financial
details from your spouse or partner. These secrets can include debts, an
extravagant purchase, an investment loss, missed payments… Read More
2019-05-26 14:57
60 Years of Fed Funds RatesAfter 2008, the U.S. Federal Reserve lowered short-term
interest rates to zero; responding to the largest U.S. banks becoming insolvent
during the financial crisis… Read More
2019-05-19 16:38
Housing is one of your largest expenses, so it is
important to have your mortgage paid off before any expected date of
retirement. This dramatically increases your financial stability to… Read More
2019-05-12 19:42
In the 70s, former U.S. Treasury Secretary, William Simon, said something like: Washington is like a train running at full throttle while officials are mindlessly partying it up in the c… Read More
2019-05-05 13:34
Last month, people were meeting with their certified public accountant to file their income taxes. At this time of year, I hear all sorts of stories about advice being dispensed by CPAs… Read More
2019-04-28 22:26
State-run investment accounts promote their 529 accounts
as a tax-free vehicle for saving money for your child’s college tuition. These
accounts are so problematic that I have neve… Read More
2019-04-22 03:16
When you begin living on your own and working your way
into a higher income, one mis-step many make is to sign a lease on a great
apartment that takes all your income. I know, you finall… Read More
2019-04-14 15:19
There are two financial flywheels that you can add to
your routine cycle of earning and spending money. One of them you want to avoid
and the other you want to employ.
The Hamster-Wh… Read More
2019-04-07 15:19
While at a birthday party, I was asked for an investment
candidate that offered a minimum of a 12% annual return. I replied, “You have
to walk very far out on thin ice to get that;… Read More
2019-03-31 18:11
New York City has had some bankruptcy brinkmanship – in 1975 it was bailed out in the last second by the teacher’s pension, and in 1907 by Hetty Green (a wealthy millionaire… Read More
2019-03-24 23:41
When taxpayers receive their annual Social Security
Retirement Income statement (SSI), they look at the benefits page to see the
monthly amount that they will receive. There will be a nu… Read More
2019-03-17 18:31
Each country has a Central Bank (or entity that acts like
one) that is responsible for their monetary system. This includes increasing or
decreasing the money supply to: stabilize the ec… Read More
2019-03-10 18:17
In the 1970s, Harry Browne popularized a strategy he
called the Permanent Portfolio that he hoped would survive any calamity by
addressing 4 issues:
Take advantage of prosperity by in… Read More
2019-03-03 18:21
You may know that the State of Illinois has the lowest credit-rating of any state and is in a financial death-spiral from colossal state employee pension liabilities and over spending. F… Read More
2019-02-25 00:49
Aside from an actual casino, there are 4 other gambling
activities where people are most likely to lose money. Let’s review some generalities:
The poor gamble with lottery ticke… Read More
2019-02-17 18:09
There are many elements to career planning but the element
I notice that is missing the most is annual skill building. If you would like
an upward career trajectory for challenge, income… Read More
2019-02-10 21:03
Rob Grownkowski, a tight-end for the New England
Patriots, just won his third Super Bowl ring a few days ago. Unlike other
pro-athletes that are bankrupt 2-3 years after their career end… Read More
2019-02-03 18:47
As long as I can remember, to entice new customers, investment
brokerages have offered a few upfront commission-free stock trades. In the last
couple decades, there have been several onl… Read More
2019-01-27 20:36
Ocasio-Cortez would like a confiscatory tax rate of 70% for
personal income above $10 million dollars to pay for her socialist government
goals. Setting aside socialism, let’s exam… Read More
2019-01-20 17:01
There is nothing the matter with rewarding yourself with
fancier gadgets, vehicles, apparel, boats, or increasing your lifestyle.
However, many people do not consider the deeper conseque… Read More
2019-01-13 18:44
The world of investing is extremely competitive, and yet
people attempt to make money by casually dabbling in it on the side. Anyone
financially ambitious will come across ads for books and… Read More
2019-01-06 19:45
One income-investment newsletter writer says it is beyond ridiculous when his customers complain that his recommendations, that they purchased, fall in price. His comeback reply, “… Read More
2018-12-31 01:24
A recent study claims the average American plans on
spending $992 over the holidays, and of those that will borrow money, they are expecting
to put $1,054 on credit. Any time that you ar… Read More
2018-12-23 21:52
James Cordier and his partner Michael Gross trade commodity options for clients at OptionSellers.com. They were so good at attracting clients that their minimum deposit to join ramped up… Read More
2018-12-16 17:59
The city of Chicago has a $36 billion shortfall for their city employee pensions. Basically, Chicago’s 4 pensions are in a death spiral to insolvency. But not to worry, Mayor Rahm… Read More
2018-12-10 02:10
Last October, I pointed out that the U.S. Federal Reserve had announced their schedule of selling off assets every month going forward. This draws money out of the economy and the stock… Read More
2018-12-02 20:01
If there is no money in your wallet, it isn’t because there is a hole there – it is because there is a hole in your mind. Unless there were an exogenous financial setback, then… Read More
2018-11-26 04:14
Who doesn’t want to retire early? Or at least have the option to do so? There are claims that if you save most of your salary, live a bare bones lifestyle, then in a dozen years you w… Read More
2018-11-18 17:51
While some companies slowly march toward obvious bankruptcy (Blockbuster Video, Kodak, Sears, etc.), others are technically insolvent but still able to lope along for years. Let’s exa… Read More
2018-11-11 14:23
The Trump tax-law change taking effect for your 2018 income taxes will double the old standard deduction. (Filing single will go from $5,650 to $12,000, Filing Jointly will go from $11,300… Read More
2018-11-05 00:14
Financial technology, nicknamed “FinTech,” is a buzzword term that was all the rage and in vogue for several years, but is now beginning to slow. Fintech refers to software for… Read More
2018-10-28 17:49
The stock market lost 10% of its value this month and a few investors are asking me, in a panic, what they should do. These are investors without a short-term or a long-term plan. If your s… Read More
2018-10-22 01:26
Nothing is easier than criticism. This is true whether the subject matter is food, politics, the weather, or a movie. It takes no talent, no insight, is subjective, and doesn’t actual… Read More
2018-10-14 19:03
When someone’s income goes to zero, only then do they fully realize how critical it was to have emergency savings beforehand. When your income goes to zero, this is the moment a fuse… Read More
2018-10-07 21:41
As we enter the 4th quarter of the year, it is important to minimize or eliminate income tax refunds from the IRS, state, and city. You’ve likely heard that receiving a tax refund mea… Read More
2018-10-01 02:30
An 18-year-old receiving extra money is normally a bad combination. They could be receiving money from a lawsuit settlement in their childhood, inheritance from the passing of a relative, o… Read More
2018-09-23 19:34
While many financial experts claim that silver-as-money is a barbaric relic from 150 years ago, JP Morgan has amassed a stockpile of at least 700 million ounces (according to silver researc… Read More
2018-09-16 17:33
There is a very good reason to be low-key about revealing your finances and valuables publically; it invites all kinds of risks into your life. This includes theft, home invasion, hackers… Read More
2018-09-09 17:03
Some politicians and activists talk about the “injustice” of the income inequality between the poor vs. the rich. Luckily, there are plenty of statistics and decades of studies… Read More
2018-09-02 13:35
Every year there is at least one wealthy celebrity who passes away leaving a dysfunctional estate. You’d expect that someone with significant assets would have at least a minimal (or… Read More
2018-08-26 16:18
Every few years, some country enters a financial crisis from government mismanagement (over spending) or a catastrophic natural disaster (hurricane, earthquake, flooding, etc.) Since these… Read More
2018-08-20 04:23
Today’s modern economy rests upon a foundation of 3 industries. These most critical industries are:
Commercial farming (the last +400 years).
Mining (the last 5,000 years for metals… Read More
2018-08-12 17:43
Nothing is more important for your financial stability than saving money on a routine basis. This is more recently known as paying-yourself-first, anytime that you receive money. View your… Read More
2018-07-29 20:50
Exactly like Aesop’s fable, The Tortoise and the Hare, billionaire stock investor, Warren Buffett, says, “The stock market is a device for transferring money from the impatient… Read More
2018-07-22 23:44
If you, or someone you know, is nearing retirement age with no savings, no investments, and no home equity, then what are some retirement options? No: Do not buy lottery tickets or put $25… Read More
2018-07-15 18:28
Before reducing your student loan debts, naturally, it is best not to incur an imprudent amount of debt in the first place. There are too many student loan horror stories already of colossa… Read More
2018-07-08 17:07
The vast majority of us avoid criticism at cost. This includes countries, companies, and individuals. However, getting feedback is critical for advancing in the muddy waters of career, busi… Read More
2018-07-01 18:34
Nobody wants to live within their means, but that is the financial reality in order to have financial stability. Even wealthy people can easily blow through their income. Ken Cage is a hig… Read More
2018-06-24 21:26
In Depp’s career, he has earned an unbelievable $650 million from his movies (plus more from endorsements). Sadly, Rolling Stone reported in a June 21st interview where he admits that… Read More
2018-06-17 16:48
Which person below is more likely be on a path to promotions and raises?
In a conversation with your supervisor:
Person A, “I work harder than anyone else around here. Give me a raise… Read More
2018-06-10 17:01
One government retirement plan was just closed out as a colossal failure last year, and the statists are pressing for yet another government-run savings account. At a Detroit Economic Club… Read More
2018-06-03 13:20
As background: the State of Illinois has the worst credit rating of any state, has chronic budget deficits, and the City of Chicago is in even worse financial shape. Instead of addressing s… Read More
2018-05-27 19:12
From households to banks to countries, nothing is more predictable than a financial calamity resulting from mismatching assets and liabilities. In order to be sustainable, a debt needs to m… Read More
2018-05-20 19:37
An acquaintance in his early 50s drove himself home with a new blue Porsche convertible, just in time for summer. I asked him a few questions about it, but he quickly said that he is more p… Read More
2018-05-13 17:10
Very few careers move in a straight line from start to finish. Many people find their career options and aspirations change over time. Where ever you are in your career, it must be actively… Read More
2018-05-06 18:54
For those with the option to purchase a home or rent, inflation is a big consideration to evaluate.
To start with an example, let’s compare a $1,000 apartment rental vs. purchasing a… Read More
2018-04-29 18:03
There is an old phrase, “100% of bankruptcies result from a debt.” In order to avoid defaulting on a debt, you must have reliable income that is high enough to pay the monthly i… Read More
2018-04-22 16:20
There are people that find themselves totally broke from problematic events or circumstances: divorce, illness, civil lawsuit, business failure, investment losses, prison sentence, gambling… Read More
2018-04-15 18:41
A news organization interviewed a woman in her mid 20s, who has no savings, to highlight how horrifically difficult it is for anyone to save for retirement. She had just started to save 3%… Read More
2018-04-08 17:35
Many people have several debts and classes of debts. Sooner or later, a debtor may consider digging themselves out of their debt obligations. In order to reduce your debts, each month ther… Read More
2018-04-01 17:02
The yield curve is a plot of bond fixed-interest returns over time. The near term rates from bonds are generally lower than longer-term rates, so the chart’s curve slopes up to the ri… Read More
2018-03-25 13:59
Whether you elect to collect social security early (age 62) or late (age 70) will result in a difference of a few hundred thousand dollars over the remainder of your lifetime. Nearly 50% of… Read More
2018-03-18 16:59
A survey by Brandtrust revealed that eating out was the number one reason for breaking a budget for all ages. This makes sense because meals are: times for social and family gatherings, a r… Read More
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