Archive for February, 2011

  • Risk tolerance and the appetite for risk>
    Risk tolerance and the appetite for risk
    Any savvy investor knows that one of the single most important concepts to learn as an investor is that of risk tolerance. Like a gambler, you need to know when to hold and fold. Timing is of the essence. Not timing things right could be the difference between making a great financial decision and making a terrible financial decision. Whenever you are making an investment decision, you need to know just how much of risk you can take on realistically. Risk tolerance by itself too is not the issue by itself either, because it can be either your emotional risk tolerance or financial risk tolerance that can come into question. Financial risk tolerance is all about objective. It is all about the numbers. Your portfolio and your financial situation is all about the numbers and all of it can determine  [...]
    at February 23rd, 2011 at 05:02 am
  • Investing for dummies, Seinfeld style>
    Investing for dummies, Seinfeld style
    I decided to try and inject some spark back into my writing, which I think has become a bit prosaic of late, and so I thought why not reference a character? On Youtube, I recently stumbled on a Seinfeld that cracked me up and I figured why not use him as a basis for a post? And so here is a small handbook on investing for dummies, the Seinfeld way. I’m Going Down With The Ship! That episode aired in the 1990’s, and that was the time I was just about beginning to hit double figures age-wise. I was beginning to become aware of the world around me, and this moment just stands out in my mind. George buys a stock on a hot tip and tries to get Jerry to tag along without knowing what the business is about. When Jerry’s investment (all $2,500 of it) starts to lose worth rapidly, George refuses  [...]
    at February 21st, 2011 at 12:02 am
  • Prenup agreements are such a niggling detail>
    Prenup agreements are such a niggling detail
    Picture this; you’re looking to get married to that significant other of yours but have one last thing to sign off on before it does happen…that prenup agreement. It’s not meant to be a heck of a deal, but it is. Money always is; how do you be little or talk down something of such consequence? It’s like an elephant in the room that no one wants to talk about…no matter how reasonable you are, it’s still a big deal to sign a prenup agreement and it’s even more disconcerting if the friends and family of your significant other are applying pressure for you to do so. It’s obvious that such arm twisting can end up leaving you feeling more than a little miffed. It doesn’t matter that you make less money than your to be better half. After all, money isn’t what brought the two of  [...]
    at February 16th, 2011 at 12:02 am
  • Financial advisors need to be fired too…>
    Financial advisors need to be fired too…
    You’ve probably gone to great lengths to screen through several financial advisors before settling for one, but your responsibility and role doesn’t end when you end up hiring one. If you feel that Johnny (let’s assume his name is Johnny) isn’t up to the mark, you should simply cut him loose and get someone new. There are, after all, several fish in the pond and picking a new one from several financial advisors is not that difficult. But how do you know the time has come to go your separate ways? Perhaps when you feel that the advisor is looking out for his interests more than he is yours, it’s time to say adios and do a Trump by screaming “you’re fired!!” All too often, we end up giving money to people without running a background check first. What’s worse is the fact that  [...]
    at February 14th, 2011 at 03:02 am
  • Financial budgeting is easier than ever by using technology>
    Financial budgeting is easier than ever by using technology
    The most common refrain I hear when people talk about financial budgeting (or their inability to do so) is that they don’t have the time, the know-how or the resources to get their spending under control. But all of that should be a thing of the past because technology has made it easier than ever to budget and cut back on expenses. All the tools are there to be used and they’re all simple as heck to learn. All that is missing though is the will-power and the desire to make this technology work for them. The means to leverage this technology is all there, and especially when it comes to personal finances. You can make the simplest budget using Excel or some other such program (or Numbers for you Mac users, if you so please). You can even download and print out a far more nuanced and complex  [...]
    at February 9th, 2011 at 01:02 am
  • Buyer’s remorse, such a common affliction>
    Buyer’s remorse, such a common affliction
    Just yesterday I felt really down in the dumps. And the best part was that I didn’t know why this was the case. Soon though, it hit me. Buyer’s remorse. I had been on a junket through south-east Asia and bought all sorts of crazy knick knacks I never would have bought otherwise. For example, a plastic bedside alarm that glows in multiple colors in the dark when you tap it once (okay, it cost just $2 and is maybe worth it). Or for example, the double sided lighter that has a wind resistant flame on the other side. Or all those damned silk purses I bought. Yes, they were cheap. But why did I buy so many? I don’t even know those many girls! Buyer’s remorse is such a common affliction. It makes most of us feel in a way guilty or repentant about spending money for no good reason. And that  [...]
    at February 7th, 2011 at 01:02 am
  • Pay off credit card debt, stop whining about it>
    Pay off credit card debt, stop whining about it
    I’m going to be flat out honest with you guys. I haven’t got a scientific formula down for this, but I’m pretty damn sure I’m right. Come to think of it, the last time I was wrong was when I thought I was wrong. But I digress…long story short, I’m sure that there’s a strong correlation to be found between those with a sorry financial situation and whining about the manner in which big banks have ensnared them in this mess they find themselves in. Wall Street and all the financial fat cats in the world are always to blame. Now don’t get me wrong…I think most of them are dirt bags too. But I’d rather pay off credit card debt than whine about my lot in life. And why just credit cards? Mortgages, investments, anything financial that has gone wrong with us is never our fault.  [...]
    at February 2nd, 2011 at 05:02 am
  • NFCC’s Poster Contest Is Financial Literacy in Disguise>
    NFCC’s Poster Contest Is Financial Literacy in Disguise
    The hefty debt is a common problem with most American. People of America survive in worries regarding repayment of loans and they always search for ways to reduce their debt burden. Consumer credit counseling services agencies help in his issue. These agencies come in different shapes and sizes and several names appear before you when you search for credit counseling agencies. Debtors are sure to get baffled in such a case as to which agency to choose. One of the easiest options to get the counseling service is switching to NFCC (National Foundation for Credit Counseling). It is anon-profit organization that works for the benefit of consumers who are stuck with debt burden. This agency offers financial literacy, debt counseling, debt consolidation and counseling on budgeting. Recently NFCC  [...]
    at February 1st, 2011 at 12:02 am