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money: Are We Listening To The Wrong Advice About Money? - 04/13/09 12:09 PM
In 1974 the US Congress passed ERISA. The aim was to convince Americans that saving money was a bad idea and that investing [aka gambling] in an IRA or 401(k) was better than putting our money into guaranteed return savings vehicles. Americans listened. Wall Street and the IRS rejoiced.
In 1977 a pretty good high school coach and motivater was able to convince thousands of naive amateurs that they were "financial advisors." He taught them how to strip every penny possible from secure whole life insurance policies and - you guessed it - buy term insurance and invest [aka gamble] everything else in mutual funds. Americans listened. … (0 comments)
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money: Financial News From The Week Of July 25th, 2008... - 08/04/08 02:25 PM
August 4th, 2008
I pay close attention to the financial news. It's part of my job to know what's really going on in the general economy so I can properly train other advisors and guide my personal clients with integrity.
Below are six articles from financial news sources from last week I encourage you to skim the first five and read No. 6 carefully.
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No. 6...
March 3 2008: 3:38 AM EST
Don't expect another bull market
Stock returns may never be the same - at least for this generation of investors.
By Allan Sloan, senior editor … (4 comments)
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money: Basic Economics: Save First, Invest Later, Speculate Never... - 07/24/08 08:43 PM
July 24th, 2008
Americans have been bamboozled into thinking that they can get rich and retire comfortably by putting their money in the hands of people whose only aim is to move money from your pocket into some Behemoth's accounts; IRA's, mutual funds, variable annuities, variable insurance policies, ETF's, and on an on.
BUNK!
Here's a simple rule to apply to your personal economy: invest from savings, not from income; speculate only with money you expect to lose [if you win add the winnings to your savings.] If you never develop a savings program, you can't recover by ‘investing' unless you … (3 comments)
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money: Money Is Important, But So Are Red Marbles... - 07/20/08 05:42 PM
July 20th, 2008
Generally this blog deals with issues relating to money, saving, investing and the general economy and how that relates to your personal economy. Today's blog digresses a bit from the norm but not really too far. It recounts a story I've heard several times about how one man used some of the money in his personal economy with great results. It inspires me and perhaps it will inspire you too.
RED MARBLES
I was at the corner grocery store buying some early potatoes. I noticed a small boy, delicate of bone and feature, ragged … (0 comments)
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money: It's Only Money? How You Can Prosper With Small Savings Decisions... - 07/18/08 07:43 PM
July 18th, 2008
It's only...
How many times have you heard - or said - something like, "Let's buy it! It's only fifty bucks. That's a twenty-five dollar savings!"Guess what. There is no "only" when you are dealing with your money. And, savings are only savings when you put them into your "bank".
If, instead of spending it, you put your fifty bucks in your "bank", it would compound to over $400.00 in 30 years at 7.2%. Add to that the 25 bucks you "saved" and you'd have over $600.00. Consider that you make those kinds of decisions frequently … (1 comments)
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money: Home Equity Isn't Money But A Lot Of Families Think It Is... - 07/15/08 12:50 PM
July 15th, 2008
A recent ad by the national Association of Realtors states that home equity accounts for about 65% of the average American's wealth.
WOW! There's something wrong with that equation. That means that a family with a $500,000 house and a $300,000 mortgage - $200,000.00 in equity - plus a car loan or a few thousand dollars on a credit card has more debt than they have assets when you exclude the home's equity. Do the math. If $200,000.00 is 65% of what the family puts on the balance sheet, the total on the bottom line is about $305,000. Add … (2 comments)
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money: Short Term - Money, Long Term - Investments, And Never The Twain Shall Meet... - 07/12/08 11:38 AM
July 12th, 2008
"There's no crying in Baseball!" A League of Their Own, 1992
The baseball season is long and strenuous. Players, coaches and teams have to pace themselves. They recognize that one game in a long season - win or lose - is less important than consistently winning more than they lose. More importantly, a team has to win more than the other teams in their division if they want to get to the playoffs, compete for the league championship and make it to the World Series. We'll get back to that in a paragraph or two.
The baseball … (0 comments)
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money: American Money, American Oil, American Innovation...Revisited - 06/21/08 08:52 AM
This is a post made on May 9, 2008 and it is more relevant now than it was then...
Friday, May 9th, 2008 "Frankly, my dear, I don't give a damn." Gone With the Wind, 1939
America is committing suicide by Congressional Cowardice!
The Congress doesn't "give a damn." It has completely abrogated its sworn responsibility to provide vision, wisdom and leadership. Some in Congress have given their votes and their minds over to the insane claims of fringe groups who really hate America. Others have relinquished their power to the Behemoths; corporations, unions, lobbyists that disguise themselves as spokespersons for some group or … (0 comments)
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money: "Equity harvesting" is a gamble based on a gamble... - 06/20/08 12:07 PM
June 20th, 2008
"You got to know when to hold em, know when to fold em,Know when to walk away and know when to run."
The Gambler, Kenny Rogers
Equity harveting is the practice of acquiring the highest possible mortgage on your personal home so you can "invest" the money derived from the equity that is extracted in another appreciating asset.
Don't do it.
It's true that there is NO return on equity. If you were counting on appreciation in 2008 and had to sell a property that was appraised for $500,000 in 2006 - thinking you would see an increase - you … (0 comments)
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money: Reverse Mortgage Money Magic... - 06/19/08 06:29 PM
June 19th, 2008
"Made it Ma! Top of the world! White Heat, 1949
Reverse mortgages are often portrayed as last-resort financial tools; reserved for widows and widowers who have outlived their liquid assets and have to tap the equity in their paid-for homes to survive a few more years.
Not so.
Meet Bob and Sally.
They live in a $1.2 million home in a stable neighborhood in Denver. The house is paid for. They have three children. All three of the children are married. Each of the children is in a professional practice in a different city; Dalla, L.A. and Chicago. … (4 comments)
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money: How To Buy A Car And Make Money Doing It... - 06/04/08 09:01 AM
June 4th, 2008
"I'm king of the world!" Titanic, 1997
Americans have had a love affair with automobiles for over a century. We buy them with abondon; new, used, wrecked and restored. A car inflates our ego, provides useful transport and crystalizes our status. For many reasons it makes us feel like we are royalty; in charge of our world.
Unfortunately the opposite is true. Spending thousands of dollars on a product that is worth less than we paid for it as soon as we take possesion deflates our bank accounts and our balance sheets at the same time.
There is a way, however, … (5 comments)
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Jeffrey Reeves
Denver,
CO
More about me…
EUREKONOMICS[tm]
Address: 1270 Jasmine Street, Denver, CO, 80220
Office Phone: (303) 355-0550
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