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Posted by Erin E.,
under Erin E, General, In The Media, Savings |
09/3/2010
I vaguely remember learning how to read the stocks in a newspaper way back in elementary school, when newspapers still existed and dinosaurs roamed the Earth. That’s pretty much where my knowledge of investments stands today.
But last week I started reading this book, Moneyball. There’s a reason people use baseball metaphors—they’re effective. I think I’ve learned more about investment and the stock market by reading Moneyball than in a hundred (okay, a couple) of articles I’ve read on the subject in magazines. Granted the magazines I read mostly cover things other than the world of finance, because magazines about the world of finance…snore. Oh, sorry, I fell asleep just talking about it.
And now, I’ll get to the point. The general manager of the Oakland A’s, Billy Beane, along with a specialized and unusual staff, transformed the way good baseball is accomplished. They saw intricacies and truths about the game of baseball that amount, quite literally, to baseball theory. They figured out, as the lowest-budget club in the entire sport—seriously, they couldn’t afford the Yankee’s top three players, never mind a team of 25—how to make small investments that would yield major dividends. Instead of going for the glitz, glam and flash of a power hitter like A-Rod, they hired players who were young and untested (but whose college stats fit the bill) or washed up, “defective” or atypical players who had big numbers where it mattered: on-base percentages and walks, most prominently.
If you’re not a baseball fan, or only a casual one, my little summary up there might not have made a lot of headway for you. But what I’ve distilled from the book is this: If you do the legwork, you can find solid investments that cost little but will do a lot for you in the end.
A car is not one of those investments. A car is A-Rod: expensive, and sure to depreciate in value with time and use. An unsexy mutual fund, however, is one of those investments. A mutual fund is basically a low-risk way of investing your money; for all intents and purposes, it’s a high-interest-yielding savings account. Will a mutual fund help me get rich quick? Not likely. But it’ll take what I have and work it into something more valuable without the risk of getting burned.
Any other recommendations for low-risk, high-return investments?
Popularity: unranked [?]
 No Comments
Posted by ET,
under ET, In The Media, Student Loans |
08/26/2010
A great NPR article http://n.pr/axY1LG highlights research that says we must put aside 5%-9% of every dollar earned to pay for our child’s college tuition. This starts the day our child is born, and it still might only cover 75% of all costs. Public college will cost at least 3%. I find these figures to be very scary. That is a big chunk of my meager paycheck.
Are you saving for your kids college, and do you also find these numbers to be scary? Chime in and let me know!
Popularity: unranked [?]
1 Comment | Tags: College Savings, NPR
Posted by ET,
under ET, Family, Financial goals, In The Media |
08/23/2010
Budgets are very important. Without a budget, we often have no way to know if our expenses have exceeded our income until it is too late.
While I agree that they are critical to financial stability and success, I am not sure that I support Governor Arnold Schwarzenegger’s latest move. He decided to hold the proposed budget ransom until select fiscal changes have been made within California. see LA Times article here: http://www.latimes.com/news/local/la-me-arnold-budget-20100823,0,7466490.story
In order for a budget to be successful, it needs complete buy-in from the people using it. That means that the entire household (children, spouse, partner, parents, roommate, etc) need to agree on the budget or it will fail. Please speak to the other members of your house and create a plan that everyone agrees to stick to. Arnold is used to blowing things up, terminating people, and generally kicking some physical butt on film, but this strong arm tactic is doomed to fail if applied in your home.
Popularity: unranked [?]
No Comments | Tags: Arnold, California, California State Budget, Schwarzenegger
Posted by ET,
under ET, General, In The Media |
08/20/2010
What job do you have? Is it a dangerous but high paying career choice or a safe and fun job that pays like crap? CNN recently posted two lists that I enjoyed. The first was a list of the top most dangerous jobs http://bit.ly/abkadx and the second is a list of the top College degrees that don’t pay http://bit.ly/c1Icfp. I don’t know about you, but I love reading lists like these. The top 3 most dangerous were fisherman, logger and pilot while the top 3 worst paying College degrees were social worker, athletic trainer and culinary arts. Basically I can be a Fisherman for an average annual pay of $24K/year and face a death rate of 1/500 or go into Education with an average annual pay of $55K and enjoy my summers off each year. Hmmmm, tough choice. Or what about a Roofer with $33K/year and a death rate of 1/2850 vs an Athletic Trainer earning an average of $45K/year and get to wear shorts all year round while getting a front row seat to all sorts of great college and pro sporting events. Wow, this one is even tougher. In addition to earning a lot less in many of the high risk jobs you should also consider a big life insurance policy. While there is no guarantee that a college degree pays for itself over time, there is a strong indication that you can earn more and reduce risk by getting your bachelors degree. (If you have children, be sure to add their college savings to your plan). What career do you think is the most dangerous, and is it worth the risk?
Popularity: unranked [?]
No Comments | Tags: Dangerous jobs, Poor paying College Degrees, Top 10
Posted by ET,
under ET, General, In The Media |
08/2/2010
We are not out of the woods yet. Many reports indicate that manufacturing companies are beginning to hire again, which is great news. However, according to Fed Chief Ben Bernanke “We have a considerable way to go to achieve a full recovery in our economy, and many Americans are still grappling with unemployment, foreclosure and lost savings.” The good news is that construction spending went up 0.1% in June, but this was all in government building while housing and nonresidential projects declined.
While I remain optimistic that we are moving towards recovery, it is always smart to be prepared by building a rainy day fund and paying down credit card debt.
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Posted by KEJONES,
under Financial goals, General, In The Media, Retirement |
06/24/2010
And a couple quotes that I like:
“The trouble with the future is that it usually arrives before we’re ready for it.” -Arnold Glasgow
“If you do not think about your future, you cannot have one.”
-John Galsworthy
Popularity: unranked [?]
No Comments | Tags: financial planning, funny
Posted by KEJONES,
under Family, General, In The Media |
06/21/2010
There’s a bit in Disney’s The Lion King in which two of the characters (the lovable and hilarious Pumba and Timon) are trying to cheer up a newfound friend (Simba)…
Pumbaa: It’s like my buddy Timon always says: you got to put your behind in your past.
Timon: No, no no. Amateur. Sit down before you hurt yourself. It’s “You got to put your past behind you.”
There are a million lines in kids movies these days that stick with me, some because they are hilarious (and way over kid’s heads) and some because they are funny at first and then they make you think. This post started while sitting in the movie theatre over the weekend with my kids watching Toy Story 3. Without giving anything away, I’ll just say that by the end of the movie I was “emotionally moved” (“Mommy, are you sad? Buzz and Woody are ok, you don’t have to cry!”) and reminded that things change, life is in perpetual motion. You will always have your memories, but you can’t actually ever go back. And that’s not necessarily a bad thing! If we could change the past, it would be a constant worry (see “The Butterfly Effect“). I can’t even imagine having one more thing to decide, so I’m glad we are forced to keep moving forward.
Whatever financial decisions are haunting you, today is a new day. You can’t change what you’ve done in the past, but you can start today, learning from your mistakes of yesterday to make a better tomorrow!
Popularity: unranked [?]
No Comments | Tags: disney, movies, the butterfly effect, the lion king, toy story 3
Posted by ET,
under ET, Financial goals, In The Media, Retirement |
06/18/2010
In the USA, the average age of retirement is now almost 66 years. The US has one of the oldest retirement averages. Some other major Countries that are lower include ; UK 65, Canada 65, Mexico 65, Japan 63, France 62. One year might not look like much on paper, but tell that to the 65 year old that just spent the first healthy year of retirement golfing, playing shuffleboard, walking the beach and playing with their grandchildren. The scary news for many of us is that the average age of retirement is rising, not dropping. This article has some good information on why retirement ages are rising across the world. http://www.npr.org/templates/story/story.php?storyId=127907362
Those of us with a financial plan are 250% more likely to hit our retirement goals than those that do not have a plan. This fact is scary to those that don’t have a plan, but great news for those that do. By taking the time to create a financial plan with an advisor or on a website like ours, you can take the bull by the horns and help determine the age that you will retire. In a few simple steps, you will know how much money you will need at the age you want to retire (60?, 62?, 64?), along with a road map to get you there. All of us want to retire while we are young enough to enjoy the perks, so create a plan and make it happen.
Popularity: unranked [?]
1 Comment | Tags: Average US Retirement Age is 66, Retirement, When do you want to retire
Posted by ET,
under ET, Financial goals, In The Media, Savings, shopping |
06/16/2010
According to NPR, Wal-Mart has over 1,000 money centers in US stores, and has now purchased a stake in Green Dot – a pre-paid debit card service. Wal-Mart shoppers lucky enough to have a money center in their local store can now bill pay, cash checks and more without even belonging to a bank. http://n.pr/dyqcq4
Now if only Wal-Mart customers had access to a free, SEC certified, personal finance planning tool to help them create a financial plan (retirement goals, investments, loans, mortgages, education, etc). Wait, they do have this, if only they knew to visit www.GoSimpliFi.com. Please help us spread the word so that Wal-Mart shoppers will now know the best places to invest all the money they are saving by shopping there.
Popularity: unranked [?]
No Comments | Tags: Financial Plan, Green Dot, Invest money, Money Centers, Personal Financial Planning Tool, SEC Certified, Wal-Mart
Posted by KEJONES,
under Financial goals, In The Media |
06/15/2010
Recently it’s come to light that the BP oil debacle is due, in part, to their negligence and cutting corners. Apparently they were running so far behind schedule and above budget with the rig construction, they skipped a few checkpoints (in place for safety, mind you) in order to keep things “on schedule” and get the oil flowing. You know, to make money. In other words, instead of taking a bit more time to ensure things were done correctly and safely (and to ensure that the rig would be functioning efficiently and effectively for years to come) they chose to quickly rush things in order to get paid faster. I would equate this with buying a lottery ticket everyday, hoping one day to win instead of getting up everyday and going to work to pay your bills and save what you can to provide for your future. Or anything of the “get rich quick scheme” variety. You reap what you sow. Now, I’m not saying that playing the lotto is a bad thing, I just don’t think it’s something you should rely on. You can’t rely on a bailout, you have to make your own way. It’s tough and not always fun, but it’s the only way you can ensure your finances will be there for you when you need them.
Popularity: unranked [?]
No Comments | Tags: BP, finacial planning, financial bailout, get rich quick, lottery, oil spill
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Wow, that is a high percentage! With the constant rise of tuition costs, these can only go up. I don’t see how so many students afford private universities each year without going into major debt…