That’s right. Although having a million bucks isn’t as impressive as it once was, it’s still nothing to sneeze at.
In fact, Reuters reports that in 2009 there were 7.8 million millionaires in the United States.
That’s a lot of people, people. And the odds are one or two of them are living near you.
Heck, one of them might even be your neighbor. In fact, the odds are very good that it
Continue reading 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
Conventional wisdom says it’s unwise to put all your eggs in one basket. Likewise, having a large portion of your portfolio in any single asset class — be it stocks, bonds, commodities, or cash equivalents — is financial suicide. Maintaining a well-diversified balanced investment portfolio helps minimize risk by spreading out your investments across multiple classes; think of it as a form of free investor’s insurance that protects you from
Continue reading 100 Words On: The Importance of a Balanced Investment Portfolio
Many people dream about reaching the million-dollar net worth milestone, as if that lofty benchmark somehow guarantees a strife-free financial life. Preposterous! Net worth — the value of your total assets minus your total liabilities — is overrated because it’s very misleading, as evidenced by many “paper millionaires” who struggle to make ends meet. Yes, net worth is a terrific indicator for estate planning, or identifying how much insurance you
Continue reading 100 Words On: Why Tracking Your Net Worth Is So Overrated
Those who are concerned with managing financial risk understand that, when it comes to investing, it’s especially important to have a diversified portfolio — at least in theory. It’s also important to have an exit strategy in place whenever you take a position on a particular stock, bond or any other type of investment. Why? Because an exit strategy, complete with predefined selling points — at both a profit and
Continue reading Are You Smarter Than a 5th Grader? Which Emotion Is More Powerful?
It’s often said that a house is our biggest investment, yet the primary function of any house is to simply provide us with a place to live. Yes, handsome gains can be had for those with good timing. However, as investments go, houses rarely match the long-term returns of stocks. And most people forget that property taxes, maintenance costs, insurance, and even real estate agent fees eat into those returns.
Continue reading 100 Words On: Why A Home Shouldn’t Be Considered an Investment
The other day I came across an interesting article that suggested a healthy dose of skepticism was essential when you’re watching television commercials that make claims for both prescription and non-prescription drugs.
It turns out a study published in the Journal of General Internal Medicine found that 66% of claims made in television drug commercials were either misleading or flat-out false.
Actually, before paying for anything, a little skepticism can often go
Continue reading 8 Misleading Claims People Often Make To Close a Deal
With all the focus on Generation X and the Baby Boomers, it’s hard to believe that Millennials have come of age, and are now starting to plan for retirement.
Well, some are. Others could use a bit of a nudge.
Financial Finesse found through its 2012 Generational Research report that Millennials actually have a better handle on managing cash flow than their predecessors, but aren’t worried about much beyond that.
The report showed
Continue reading Calling All Millennials: 4 Key Financial Tips You Need to Know
Over the years I’ve read plenty of articles and blog posts about lying, cheating, and dumb advisors.
While lying and cheating advisors are a topic for another day, I know from experience that there are plenty of morons in the advisory business. I’ve had the er … pleasure … of meeting some of the worst. To wit:
One advisor I knew actually said, “I’m not some kind of rocket driver, but …”
Continue reading Don’t Be a Moron: How One Man Paid $87,500 in ‘Moronic’ IRA Fees
For centuries, prudent financial planning meant possessing your assets as tangible goods rather than paper money. Items of true worth are accepted and valued across cultural and language barriers, and those with the means to do so have been insuring their wealth with such goods as long as they have been treasured. There is perhaps no better example of such an item than diamonds.
Some think keeping wealth in physical goods
Continue reading Looking To Invest In Tangible Goods? Consider Loose Diamonds.
When I was a kid I used to love the fun houses found at summer carnivals and local fairs.
I loved the sense of twisted reality provided by image-distorting mirrors and the wacky side-rooms where water appeared to flow uphill and it was nearly impossible to stand straight.
Today, thanks to an extended period of near-zero interest rates, years of massive government deficits, and central bank “money printing,” we’re all stuck in
Continue reading 5 Personal Finance Tenets That Aren’t as Smart as They Used to Be