The Money Saving Numbers I Try to Live My Life By
In these difficult and trying economic times I am reminded of the following quote: “Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” – Charles Dickens, David Copperfield, Ch. 12The Importance of Diversification
More than anything else, many people worry about running out of money once they have decided to retire. Diversifying sources of retirement income helps mitigate this risk. Diversification is…How to Take a Value Investing Approach to Teaching About Wealth Building
In today’s wild business climate of corporate downsizing, hostile takeovers, rising and falling interest rates and a stock market ever on an inexplicable spiral, you really need the help of an expensive brokerage house to help you make sense of it all, right? Not so fast! Here are some things you should consider before handing over your money to the hands of strangers.What’s Riskier: CDs or Stocks?
It was only a few years ago I’d have clients bemoaning their CD rates which were “only” 5% and how they remember bank rates north of 10%. And now…2001-2011: The Golden Years of Investing
I’m being tongue in cheek, but speaking literally of gold and all the gold hype. Before 2000…Longevity Risk
I see financial advising as a mix of many skills. Sometimes it’s that of investor psychologist, but in the nuts and bolts of it I’m a…A Second Opinion
Very recently I had a conversation with somebody that went something like this: ME: Tell me about the other advisors in your life. THEM: I have a tax advisor, an attorney set up a trust for us and another financial advisor at XYZ Firm [the name has been changed to protect the innocent]. ME: Ah good, sounds like you value advice.In Today’s Market, What’s a Baby Boomer To Do?
The year 2011 brings the first wave of Baby Boomers turning 65. Every single day…Are You a “Charlie Brown Investor?”
Many of you may recognize this as a quote from Linus in A Charlie Brown Christmas. The investing world seems to keep getting more and more Charlie Browny all the time…Sources of Passive Income
The gap between the rich and the poor is widening. Some say that if you work hard, you will always have income to survive. But what will you do if it is really hard to find a job? Actually, even the rich find it hard to keep their income. However, this is less of a problem for some who know where to find sources of passive income.How To Help a Child Create Wealth
In this modern age it is incredible that schools do not know how to teach children about money. Sure, they know how to teach children. Just not about money. Why? Because teachers are usually not taught about money either leaving them somewhat helpless to teach children about money and parents are not necessarily any better at it either.The Role of a Securities Analyst and Their Biases
It is important to first understand the function of a securities analyst at a brokerage firm. Brokerage firms are Wall Street investment banking firms on the sell side, “selling” investment securities primarily to institutional investors. Unlike a stock analyst at a mutual fund, bank, or investment management firm, research analysts at a brokerage firm do not cater their research to portfolio managers. Their job is to research a particular industry sector and “sell” their research to the brokerage’s institutional clients. Analysts narrow their focus on a limited number of companies to track them as thoroughly as possible. They want to be knowledgeable about as many details as possible so they can best assess how both internal and external factors will impact the company.