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
Continue reading 100 Words On: Why Tracking Your Net Worth Is So Overrated
I have a lot of bad habits. For example, I tend to bite my nails when I get stressed out. I also have a penchant for opening the cupboard to get a drinking glass — then walking away and leaving the door wide open. I know. I can’t explain it either, but it drives the Honeybee absolutely bonkers every time I do it.
Even so, I like to remind her that
Continue reading 50 Good Personal Finance Habits Everyone Should Follow
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
We tend to give “luck” far too much credit for people’s good fortune. Likewise, we often blame our own personal misfortunes on bad luck. While it’s true that luck is often due to pure chance, more often than not it’s the result of something we actually can control: our mindset. That’s why it’s no coincidence that the “luckiest” people tend to be optimists who are, by
Continue reading 100 Words On: Why Luck Is So Overrated
It’s been said that if the palm of your right hand itches, you’ll soon be coming into money. On the other hand (seriously, no pun intended), it’s also been said that if your left palm itches you’ll soon be paying out money.
Don’t laugh. There are folks out there who actually believe this stuff.
What is funny though is if you do an internet search, you’ll find there is no consensus at
Continue reading 10 Old Wives’ Tales Masquerading As Financial Rules of Thumb
by Gayle B. Tate
Flickr Photo Credit: robin.elaine
When Marvin Gaspar came to my office for his appointment to discuss an appraisal, I had little clue where I would end up on the roller coaster ride he was about to take me on. Marvin was a claims adjuster from an insurance company who was asking about appraising an artwork.
He showed me a few photographs of a Miró (Joan Miró – Spanish,
Continue reading 5 Key Tips to Consider Before Deciding to Buy Art Insurance
by Gayle B. Tate
This morning I find myself running to my office with a package in hand, looking desperately for something to cut the tape with. A painting has just arrived by Priority Mail, and I can’t wait to open it. It is something that was offered by a seller through our web site and, perceiving that I got a bargain, my heart is pounding with anticipation.
I am not disappointed.
Continue reading 4 Important Art Investment Tips for Newbies and Wannabies
“You can’t make money in real estate these days. It’s impossible.”
Of course you can. The market isn’t “bad” – no market for any worthwhile commodity is either unequivocally good or bad. Real estate, whether raw land or fully improved buildings, obviously has a function and will continue to. Real estate, in and of itself, is not subject to obsolescence. You know, like ambergris or Pets.com stock.
As long as people
Continue reading REITs: A TIERed Investment For Dyslexics
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
The relentless rise of health care costs can really put a strain on your household budget. Even with an insurance plan, health care expenses can add up when you consider most people still have to pay deductibles, copayments and other items not covered by insurance.
A great way to offset these rising costs is through the use of flexible spending accounts (or FSAs). FSAs are employer-sponsored accounts that allow employees to
Continue reading Flexible Spending Accounts Provide Free Money. Why Pass It Up?