tag:blogger.com,1999:blog-266246772011-12-14T21:06:14.619-06:00Finance For Dummies offers personal finance information on investing, retirement investing, finance, insurance, credit cards, loans and more. Personal finance education is our goal.Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.comBlogger2251100tag:blogger.com,1999:blog-26624677.post-1161253940617022632006-10-19T05:32:00.000-05:002006-10-19T05:32:20.633-05:00

ETFs have become the hottest thing in the investing world--especially with more novice investors.ETFs behave just like a stock except they track a specified index. there are benefits to this and drawbacks. You can be more flexible than mutual funds because they can be traded at any time. They will help the tax-efficiency of your portfolio as well and there are no loads. However, you will have

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1161168428293957012006-10-18T05:46:00.000-05:002006-10-18T05:47:08.306-05:00

Know that errors do happen and it seems that credit reporting agencies are some of the biggest culprits.Once you have obtained your credit report you see there are errors on it. You are upset, but dread calling the credit bureaus (Equifax, Experian, or TransUnion) to straighten everything out. But the wonders of the internet have saved you from long waits on hold. You can dispute online through

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com1tag:blogger.com,1999:blog-26624677.post-1161082529287236652006-10-17T05:55:00.000-05:002006-10-17T05:55:29.310-05:00

Your parents always told you to turn off the lights when you leave a room. Now in the digital age they might be asking you to unplug your cell phone charger.Unbelievable as it may be stanby power can take up to 10-15%. Now, obviously you need to keep that refrigerator plugged in at all times, but do all of your other devices need to be plugged in 24/7? Your electrical devices drain more power

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1161005037383209292006-10-16T08:23:00.000-05:002006-10-16T08:23:57.403-05:00

Sometimes warranties are a good thing and sometimes they are a rip off.Did you know that a major portion of Best Buy's revenue is from selling warranties?Ask yourself:Have you ever had the opportunity to use a warranty you purchased?Have you ever followed up on a warranty?Have you had a good experience with a warranty?Typically warranties are not a good deal, but people like them becuase it

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160915430178691782006-10-15T07:30:00.000-05:002006-10-15T07:30:30.193-05:00

The stock market had its third straight week of gains and in that time the 3 major indicies have gained 2.4%. We will continue to see how oil prices have effected the economy as whole in Q4. So by the beginning of 2007 you might see a bump in many companies earnings because of energy prices dropping. The housing market, North Korea and the Middle East should not be forgotten. If any or all begin

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160828479611035042006-10-14T07:20:00.000-05:002006-10-14T07:21:19.626-05:00

We all dislike dealing with customer service employees for services we receive from a wide variety of companies ranging from credit cards to the gas company. It can be an ordeal to get through the red tape in order to get what you need.Remember to:Get the representative’s name each time you call in so you can refer to them when discuss your case.Get a case number of your issue so the

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160736240364524952006-10-13T05:43:00.000-05:002006-10-13T05:44:00.380-05:00

Fixed-Income AnnuityYou deliver a lump sum to the insurer and they pay you a set amount each month. As you get older and as interest rates rise you are paid more. You know how much you will receive each month which helps when you budget. However, inflation can eat away at your monthly payment. Shop around because all insurers are not the same and do not give the same rate.Variable-Income

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160649767070549002006-10-12T05:42:00.000-05:002006-10-12T05:42:47.093-05:00

When it comes to online investing there are many options for you. You need to look into which ones has the best fee schedule compared to your needs. Be careful for custodial fees, larger trading fees for retirment accounts, paper statement charges, minimum balances, and high fees for trading other than typical stocks.As always you need to do your homework because you do not want to get nickeled

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160582028670311042006-10-11T10:53:00.000-05:002006-10-11T10:53:48.693-05:00

When shopping for a home many buyers do not consider the impact on their monthly obligation. Obviously, it depends where you live to know if they are high or low, but you can do some homework when searching. Your county assessor’s office should be able to provide you with the most up-to-date property tax information for a property you are considering. If you are currently looking 2005 taxes

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160477595384273232006-10-10T05:52:00.000-05:002006-10-10T05:53:15.410-05:00

I know it’s early, but you need to start considering how much you can afford to spend on holiday gifts, etc. If you overspend and get behind after the New Year you need to budget better and be more realistic. Most Americans spend an unrealistic amount at this time of the year even though they cannot afford it. What a crummy way to start the New Year—further in debt. Maybe over the next

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160391425727691712006-10-09T05:54:00.000-05:002006-10-09T05:57:05.756-05:00

Many have caught on to the craze of websites that will appraise your home for free. Zillow.com and others of this ilk do provide some good information on past home sales, but other than that there is little reliable information to receive from these sites. Maybe in the future they will have a better way of appraising value, but for now do not count on them as your source for home values. These

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com1tag:blogger.com,1999:blog-26624677.post-1160312558384013252006-10-08T08:02:00.000-05:002006-10-08T08:02:38.400-05:00

There are many methods of going about cutting your household bills and here we will discuss some ways you can save too.BundlingYou may not be familiar with this, but if you use the same family of companies for phone, cell phone, internet, and cable you can have it all on one monthly bill and get a good percentage off retail price.Programable thermostatMany have thought of it, but have you gone

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160220150765469922006-10-07T06:21:00.000-05:002006-10-07T06:22:30.786-05:00

The Dow Jones Industrial Index broke through its all-time high this week. This can be interpreted in many different ways by investors. Does this mean more records being broken? Is this the peak before the fall? Is the stock market truly reflecting America’s financial state? These are good questions to consider when deciding where next to put your money. The Fed has stopped raising rates

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160131318322162222006-10-06T05:41:00.000-05:002006-10-06T05:41:58.340-05:00

Credit cards offer a wide variety of deals these days. My wife and I take advantage of one that gives 1% back on all purchases and 5% back on gas purchases. It may not seem like a lot, but if you charge most of your purchases it can add up to a lot over a full year.With rates rising you do not have much longer to take advantage of the 0% introductory rate many credit cards are offering. Try to

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1160044513721054422006-10-05T05:34:00.000-05:002006-10-05T05:35:13.736-05:00

Never purchase a mutual fund with a load: The only people who profit when you buy a front or back load fund is the fund and the broker and his firm. e.g. You invest $10,000 in a fund that has a front load of 5%. Right off the bat you are in the red and you do not have the basis of $10,000 to build off of--you have $9,500 to begin and the honor of paying $500 for poor investing advice.Never put

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159958270531144362006-10-04T05:37:00.000-05:002006-10-04T05:37:50.546-05:00

Many might think buying other peoples' used stuff, but eBay and craigslist can help you save hundreds, if not thousands of dollars on things you need.For example, my wife and I just bought an armoire off of craigslist. The armoire was high-end and custom-made. The owners no longer could use it. The piece was originaaly priced between $2,000-$3,000. We got it for $300. There is a minor things from

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159871908980644742006-10-03T05:38:00.000-05:002006-10-03T05:38:28.996-05:00

Real estate has been very popular as an invest in recent years, but investing in it does not mean just flipping property.Investment objectives are growth, diversification and inflation protectionLow liquidityLow to high fluctuation of principal and returnsYou get rental income. Capital appreciation is taxed in the year received

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159784997653103052006-10-02T05:29:00.000-05:002006-10-02T05:29:57.666-05:00

Mutual funds' popularity began to explode in the 1980s. Now it is the way most lesser experienced investors (and experienced ones too) used to watch their money grow.The Investment objectives are growth and incomeHigh liquidityLow to high fluctuation of principal and returnDividends and capital gains taxed in year receivedDiversification, Diversification, Diversification

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159708879599741902006-10-01T08:20:00.000-05:002006-10-01T08:21:19.613-05:00

Real estate has been very popular as an invest in recent years, but investing in it does not mean just flipping property.Investment objectives are growth, diversification and inflation protectionLow liquidityLow to high fluctuation of principal and returnsYou get rental income. Capital appreciation is taxed in the year received

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159623741597678282006-09-30T08:42:00.000-05:002006-09-30T08:42:21.613-05:00

Here we will discuss a couple options you have when deciding on what annuity is best for you.-Lifetime Income for you and your spouseHere you will be paid as long as you or your spouse still lives. Decide if the initial payment you receive is low or high or if payments will remain the same after the first person dies. The higher payment that drops by half when one spouse dies is another option to

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159526291853573002006-09-29T05:37:00.000-05:002006-09-29T05:38:11.873-05:00

Well, it looks as if the Fed choose correctly to stop the interest rate hicks a couple months back. The economy has reacted positively as has the stock market. Housing has cooled off, but that was expected and now the Dow Jones is near its all-time high. People seem very bullish on the immediate future for the stock market. The falling oil prices has helped the economy in many ways and soon it

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159440564038230322006-09-28T05:49:00.000-05:002006-09-28T05:49:24.060-05:00

Mutual funds are as popular as ever for most investors and they are a great way to have your money professionally managed and diversified. If you are investing in mutual funds I recommend that you do everything on your own. Doing the research is easy. Decide what type of fund you need and then go on to one of the many websites (Yahoo Finance, Smartmoney.com) that will screen out the funds you do

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159355838030029982006-09-27T06:16:00.000-05:002006-09-27T06:17:18.056-05:00

Cash and cash equivalents are type of investment.They . . .Preserve your principalHave low to high liquidityAre sometimes FDIC insuredHave very low fluctuation of principal and returnAre taxed as ordinary income in the year received evn when you roll it overAre short-term debt instrument issued by a bank or the U.S. government

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159268002351236592006-09-26T05:53:00.000-05:002006-09-26T05:53:22.370-05:00

U.S. Government bonds are consider one of the safest invest available. Since it is safe it does provide as much return as other bonds.Investment objective is to provide income while diversifyingLiquidity is from low to highThis is guaranteed for timely payment of principal and interest by the U.S. governmentLow to high fluctuation of principal and returnMay be exempt from state taxes and is taxed

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159180442704859082006-09-25T05:33:00.000-05:002006-09-25T05:34:02.723-05:00

Mutual funds are as popular as ever for most investors and they are a great way to have your money professionally managed and diversified. If you are investing in mutual funds I recommend that you do everything on your own. Doing the research is easy. Decide what type of fund you need and then go on to one of the many websites (Yahoo Finance, Smartmoney.com) that will screen out the funds you do

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159101383397991522006-09-24T07:36:00.000-05:002006-09-24T07:36:23.410-05:00

Municpal bonds are another form of bonds that investors can choose. We will discuss the characteristics of munipal bonds.Investment objectives are strictly incomeLiquidity low to highThere is a high to low fluctuation of pricipal and returnInterest payments are exempt from federal taxes. You may be subject to the alternative minimum tax (AMT). Federal taxes apply to any capital gainsYou are a

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1159010989312566072006-09-23T06:29:00.000-05:002006-09-23T06:29:49.413-05:00

Corporate bonds are a popular way to lower risk in your portfolio while diversifying. Here we will go over the traits of corporate bonds.Investment objective is income and diversificationLiquidity can be low or highFluctuation in pricipal and returns can be low or highInterest payments along with principal are taxed as ordinary income in the year received

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158922861215637462006-09-22T06:00:00.000-05:002006-09-22T06:01:01.236-05:00

International government bonds are the road less traveled but can be helpful to your portfolio. Here we will describe the aspects of investing in international bonds.Investment objectives are growth, income and diversificationLow liquidity because it is foreignThe fluctuation in principal and return goes from low to highInterest payments and principal taxed as ordinary income in the year reeived

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158835253757472222006-09-21T05:40:00.000-05:002006-09-21T05:40:53.770-05:00

Domestic large cap stocks are very popular with investors because they are the best-known companies out there. We will lay out the main characteristic when investing in large caps.Investment objectives are growth and income along with diversificationBecause they are large company there is always a market so they are very liquidJust like any other stock there is a high probability of fluctuation

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158749845970112762006-09-20T05:57:00.000-05:002006-09-20T05:57:25.983-05:00

Investing in U.S. small companies stocks is another asset class that goes along with a diversified portfolio. We will look at the essential characteristics of small company stock.Investment objectives are growth and diversificationHigh to low liquidity depending much on the volume of stock tradesExpect high levels of fluctuation in pricipal and return because smaller companies tend to go under

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158662664338058802006-09-19T05:44:00.000-05:002006-09-19T05:44:24.350-05:00

Another subset of international stocks is developed markets. These are 1st world countries with plenty of investment options.Investment objectives are growth and diversificationLow to high liquidityJust like U.S. stocks; international stocks range from low to high in risk, but the pricipal and returns can fluctuate a lot.The tax features reflect emerging markets'.While more stable these

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158575547009815232006-09-18T05:32:00.000-05:002006-09-18T05:32:27.023-05:00

International stocks can be categorized many ways. Here we will discuss Emerging Markets. Below you can find some characteristics of this asset class.The investments objectives for you are growth and diversificationThe Liquidity is lowFluctuation are principal and return is highCapital gains and dividends taxed in the year received in the country you earned it.Subject to political, economic,

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158502517443660402006-09-17T09:14:00.000-05:002006-09-17T09:15:17.463-05:00

The stock market is closely related to the health of corporations so the performance of the stock market often reflects what is going on in the economy.When downturns come in to the U.S. economy it is also felt in the stock market. If you graphed out all the recessions from 1945-2000 you will see that $1 invested at the end of 1945 becomes $1,000 by the end of 2000. However, the most important

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158413499622435782006-09-16T08:31:00.000-05:002006-09-16T08:31:39.643-05:00

When developing an asset allocation program you need to understand what your options are and what defines them.StocksYou can divide stocks into large, mid, and small cap stocks--strictly based on their market capitalization. Foreign companies are represented in international stocks. Owning some of each asset class you will lower your risk and help your portfolio's performance in the long

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158316350244960002006-09-15T05:32:00.000-05:002006-09-15T05:32:30.256-05:00

There was another report out recently that spelled the troubles of Americans when it comes to saving money. The U.S. had an average –0.5% saving rate last year—the lowest of any major economic nation in the world. The average household has over $7,000 in credit card debt. How is this sustainable?It is not. Attitudes and culture must change in America to change it from spend spend spend to save

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158230319815741232006-09-14T05:37:00.000-05:002006-09-14T05:38:39.830-05:00

Categories of InvestmentsStocksLarge Capitalization StocksMid Capitalization StocksSmall Capitalization StocksInternational StocksBondsGovernment BondsCorporate BondsMunicipal BondsInternational BondsCash EquivalentsMoney Market FundsTreasury BillsCertificates of DepositReal AssetsReal EstateCommoditiesGold

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158145807161080932006-09-13T06:09:00.000-05:002006-09-13T06:10:07.173-05:00

1920-1929: Black Thursday, October 24, 1929 marks the beginning of the Depression. The market had shown signs earlier in the year of weakness.1930-1939: By the summer of 1932 the stock market had lost 86% of its market capitalization1940-1949: After WWII the U.S. is the only economic superpower and begins the shift from war-time economy to peace-time.1950-1959: Time of steady, sustained growth

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1158058096375887342006-09-12T05:47:00.000-05:002006-09-12T05:48:16.386-05:00

Now is the time to take advantage of the automobile market. Ford and GM are in some serious pain with bankruptcy looming as a future possibility. They are doing whatever they can to sell a new car to you. Take advantage of being in a strong position. Even foreign car dealers have better than normal deals to jump on.Also, interest rates on vehicles are on the way up so strike while you can. Plus

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157972915236319132006-09-11T06:08:00.000-05:002006-09-11T06:08:35.253-05:00

If you have money worries you are not alone. Real estate is on a downward trend, average income levels have flattened, goods and services are more expensive as is oil. More and more Americans owe significant amounts of money on their credit cards. Money is getting more expensive and if you have not already acquired lower rates on your loans and debt--now is the time. If you have been putting off

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157916629684750652006-09-10T14:30:00.000-05:002006-09-10T14:30:29.696-05:00

As stated before contributing to tax-deffered savings plans can help you when the taxman comes calling. The government entices people to save for retirement by allowing pre-tax contributions. Because it is pre-tax it will affect your bottom line of how much money you will take home.Take two people: both gross $75,000. One sets aside 8% ($6,000) of pre-tax wages in a brokerage account while the

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157789973644394832006-09-09T03:19:00.000-05:002006-09-09T03:19:33.660-05:00

Cash-equivalents have historically been vulnerable to inflation and taxes. Taxes and inflation can completely eat away at any gains you receive by investing in them. Treasury bills, money market funds, and CDs can return negative growth when considering taxes and inflation.Take $10,000 in 1980-2000. Their average was 6.6% resulting in an ending value of $36,072, but when you add in the effects of

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157716900421169572006-09-08T07:01:00.000-05:002006-09-08T07:03:16.350-05:00

Obviously, taxes reduce the amount of return you receive on your investments. Here we will examine a hypothetical investor that has a normal long-term investment strategy and the tax consequences involved.Assume that stocks after taxes were purchased and held for five years and then sold then capital gains kicks in. The net proceeds from the sale were reinvested as were any dividends. From 1926-

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157625642514172162006-09-07T05:40:00.000-05:002006-09-07T05:40:42.526-05:00

Currency fluctuation is something you need to pay attention to when investing internationally. That fluctuation can increase or decrease the dollar value of an investment.Market performance: one component of fireign investingCurrency translation: supply and demand of a currency fluctuates the price of securities. Local currency investors of a certain country will have different returns than you

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157541068297889022006-09-06T06:10:00.000-05:002006-09-06T06:11:08.333-05:00

You can never completely rid yourself of risk in your portfolio, but diversification will help you sleep at night. Investing internationally will help your risk/return trade-off, but foreign investments have some risks the domestic stocks do not.Currency Risk: Changes in foreign currency rates can effects the returns of foreign investments. Exchange rates change constantly because of supply and

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157453113403194832006-09-05T05:44:00.000-05:002006-09-05T05:45:13.416-05:00

Take two portfolios: one is a Domestic investment portfolio and the other is a Global portfolio. When you examine the Domestic portfolio you see that it contains 60% U.S. stocks and 40% U.S. bonds while having an average return of 11.5% and risk of 10.9%. Now take the Global portfolio--42% U.S. bonds, 41% U.S. stocks and 17% International stocks. This mix results in the same average return of

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157374713283209312006-09-04T07:58:00.000-05:002006-09-04T07:58:33.300-05:00

If you decided in Q1 or Q2 to hold off on a home or real estate purchase it looks like you made an excellent choice. It might not be a bubble, but the current market is slow and sellers are not getting what they were getting several months or a year ago. Interestingly enough interest rates on mortgages have gone up, but very little compared to what it could have been. It looks like the flippers

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157285697720887172006-09-03T07:14:00.000-05:002006-09-03T07:14:57.723-05:00

The market continues to perform well despite all the exterior factors that can influence it. The S&P continues its steady rise and it looks like those that called for doom were wrong . . . at least in this short term. Good factors and bad factors alike seem not to shake the market's movement up Either this is irrational and the end is near or this could be a big climb that is just starting.

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157207653979055232006-09-02T09:33:00.000-05:002006-09-02T09:34:13.996-05:00

As you now know you can help your portfolio's risk/reward trade-off by including international stocks with your domestic investments.By expanding the the set of domestic portfolios to include foreign stocks you can improve that risk/reward trade-off. In comparing a portfolio of domestic stocks and one with global investments you can receive higher returns at certain levels of risk. Because of the

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157107925636047872006-09-01T05:51:00.000-05:002006-09-01T05:52:05.646-05:00

Investing abroad will enable you to to take advantage of broad diversification.The world is in flux constantly and investing internationally is essential to having a well diversified investment portfolio. Examine this: Take the period of 1969-2000 and invest $1,000 in a global, U.S., European and Pacific based portfolios. Which performs best?The global one outstrips the others with a result of

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1157022916358815652006-08-31T06:14:00.000-05:002006-08-31T06:15:16.376-05:00

If you look at historical returns the U.S. stock market, when compared to all markets worldwide, rarely is the leader of the pack.From 1994-2000 the U.S. lead all markets in performance only once--1995. So by broadening your investment horizons you increase your chances of good performance. It is rare to find one single stock market that consistently performs at the top of the global markets.

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com1tag:blogger.com,1999:blog-26624677.post-1156936778225040322006-08-30T06:19:00.000-05:002006-08-30T06:19:38.296-05:00

Here will will study the hypothetical growth of investing $1 in U.S. stocks and bonds, international stocks and bonds and inflation.While U.S. stocks ended this time period with the best returns, but for a majority of this time international stocks outstripped U.S. stocks. International bonds outperformed the U.S. bonds during this long time period as well. Because the two both perform well, but

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1156850128808547592006-08-29T06:15:00.000-05:002006-08-29T06:15:28.866-05:00

We will examine the historical range of 1970-2000 to see how global markets performed and the risk that went along with these results.The US averaged a 12.9% return during these years with a peak of 37.4% and trough of -26.5. Now the general international market returned 12.2% with a 69.9% peak and -23.2% trough. Then Europe averaged a 13% gain and had a high of 79.8% and a low of -22.8%. Finally

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1156763226989234262006-08-28T06:06:00.000-05:002006-08-28T06:07:07.006-05:00

If you do not invest internationally you are missing out on approximately half of the investable developed stock market opportunities worldwide. While the U.S. does make up 50% of the available investments, by ignoring countries like Japan, England and the like you can be missing some excellent investments. Also, it is important to remember that diversifying your portfolio through international

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1156713325814524602006-08-27T16:15:00.000-05:002006-08-27T16:15:25.830-05:00

We are going to discuss the advantages and disadvantages of investing globally in equities.Investment OpportunitiesInternational markets offer a different set of investment opportunities than just inbvesting in U.S. markets.Market HistoryInternational markets take up a large part of the world's available stocks.Growth PotentialSome international economies do not reflect the U.S.'s growth

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com2tag:blogger.com,1999:blog-26624677.post-1156594187151189842006-08-26T07:09:00.000-05:002006-08-26T07:09:47.160-05:00

We have talked about how historically that value has outstripped growth stocks over a long time span, but why is that? What explains the value premium and will this continue?Many academic studies have shown how the stock market and the herd over-reacts to bad news and under-reacts to good news. This may mean there is more room for value stocks to grow more, and better than growth stocks which

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com2tag:blogger.com,1999:blog-26624677.post-1156512270241835372006-08-25T08:24:00.000-05:002006-08-25T08:24:30.273-05:00

P/E is a essential way to determine if the stock market is over and under valued. Here we will examine the historical P/E for the S&P 500. You take the total market value of a company and divide it by the trailing one-year earnings to determine P/E ratios.Historical P/Es for the S&P 500 have varied much over the years, but in late 1990s when the average peaked at about 35 is right when the tech

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1156426515899501902006-08-24T08:34:00.000-05:002006-08-24T08:35:15.916-05:00

From 1928-2000 you can examine the risk and rewards of growth and value stocks. We will look at large cap growth and large cap value as well as small cap growth and small cap value. The rule of themb is the more risk the more reward should go along with it. However, it is always necessary so we examing the numbers.Small cap value stocks had the highest return (14%) and risk, or standard deviation

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1156339961354654462006-08-23T08:32:00.000-05:002006-08-23T08:32:41.370-05:00

Breaking down growth and value trends through decades is another important way to determine the breakdown of how you should allocate.Since the 1930s only that decade and the 1990s were periods growth outperfromed value. So the decades of the 1940s through 1980s value stocks were dominant. The 1990s was an anomaly because of the technology and internet-related stocks were in favor and that helped

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1156244296678233532006-08-22T05:58:00.000-05:002006-08-22T05:58:16.693-05:00

Different stock market conditions typically call for an emphasis placed on growth or value stocks. Examining the the annual premium of growth and value stocks in accordance to the book-to-market ratio you will see interesting results from 1928-2000. Growth stocks have low book-to-market ratios while value have high ones. When the annual premium of value stocks is positive they will outperform

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1156156954615360842006-08-21T05:42:00.000-05:002006-08-21T05:42:34.630-05:00

As stated previously value investing over the very long term has provided excellent returns especially compared to growth. However, if you shrink the time line to 10 years you will see differing results. For example, 1990-2000 large cap stocks performed the best, with large cap growth leading the way at 18.1%. Small growth stocks were the worst at a 14.0% average rate. Large cap value returned

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1156080718311832772006-08-20T08:31:00.000-05:002006-08-20T08:31:58.323-05:00

There are many different classess of stock that you can choose to diversify your portfolio. Growth and value stocks are just another way to distribute your investments.Examing the growth of $1 invested in large cap growth, large cap value, small cap growth and small cap value on December 31, 1927-2000 you will find interesting results.Value stocks outperformed growth stocks by a significant

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155991942774562562006-08-19T07:52:00.000-05:002006-08-19T07:52:22.786-05:00

For several months we have discussed budgets. There is no time like the present for examining how your budget is coming.What have you learned so far?Have you been able to apply what you learned?Have you been able to make cuts in your spending?Are you staying within your budgetDoes keeping a budget make you more conscious of the money you spend?Budgets can create discipline. You know that the end

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155899187164733362006-08-18T06:06:00.000-05:002006-08-18T06:06:27.180-05:00

The stock market has showed significant strength lately with oil prices dropping and the Israeli/Lebanon conflict in a cease fire. Investors hope this rally can sustain itself, but we will need to wait and see.Currently world conditions are relatively stable, however, with so many issues out there anything could happen and the immediate results would not be good for the stock market. Also, if the

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155820895137739152006-08-17T08:21:00.000-05:002006-08-17T08:21:35.150-05:00

Growth and Value is another method of classifying stocks or portfolios because usually they will have many aspects of one or the other. Like sectors and asset classes, it is important to know when growth is in or out and when value is in or out.Growth stocks are stocks of companies that historically have been able to grow their businesses faster than the average company and that growth is

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155726966762652612006-08-16T06:15:00.000-05:002006-08-16T06:16:06.780-05:00

We have discussed the ying and yang of investing many times. Another way of examing stocks is growth and value.Here are some characteristics of both:GrowthHigh growth rate of earnings and salesHigh price-to-book, price-toearnings ratiosReinvesting earnings in the business and paying little to no dividendValueSlower growth of earnings and salesHigher dividend yieldsLow price-to-book and P/E

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155640103849096262006-08-15T06:08:00.000-05:002006-08-15T06:08:23.936-05:00

The stock markets has cycles and at certain times certain asset classes or sectors can be in or out of favor. If you chart out sectors and asset classes you will see specific times when a sector is in favor and then will have a down period. So if you can find companies or mutual funds with good earnings and future growth with a P/E under the benchmark you can sometimes ride a strong wave to

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155471616059849582006-08-13T07:09:00.000-05:002006-08-14T06:04:02.810-05:00

A bull stock market makes it easy to stay on course with your long-term investment goals; the challenge is to do this during bear markets. It can be tough, but when that bull market comes if you are well-diversified there is nothing you should do but stay the course.If you examine performance during a a recessionary period of 1971-1974 you can see that stocks went down about 25%; if you had a

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155470856634189152006-08-13T07:07:00.000-05:002006-08-13T07:07:36.636-05:00

It is amazing to examine how investing early in life will help you in the long run. Compounding is the main reason for this.If an investor started investing $2,000 per year for each of the next ten years. Then in 1990 they stopped putting in $2,000 annually and let their account grow until 2000. At this time you would have invested $20,000, but your portfolio worth would be almost $230,000

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155384942962605982006-08-12T07:15:00.000-05:002006-08-12T07:15:42.973-05:00

Examining the period from 1980 to 2000 you can see that market timing can be detrimental to your portfolio value. Take $1 at December 31, 1980 and by December 31, 2000 that $1 would be $18.43--pretty good, right? However, when you take that $1 over the same period it would be worth $4.73 if you missed the best 15 months of the stock market returns. $1 invested in Treasury bills would be worth

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155301993107558872006-08-11T08:12:00.000-05:002006-08-11T08:13:13.123-05:00

Rebalancing is often overlooked in the grand scheme of investing, but can be very important in reaching your goals. Asset classes grow at different rates of return and this causes rebalancing to be necessary.Look at the 20-year period from 1980-2000. In 1980 you start with 50% stocks and 50% bonds. Without rebalancing by 2000 you would be 70% stocks and 30% bonds. This can lead to higher

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155207223099757912006-08-10T05:53:00.000-05:002006-08-10T05:53:43.110-05:00

When investing it is essential to reinvest the income you make off those investments. Your returns will decrease significantly if you take out your dividends or coupon payments.Look at the time period of 1980-2000 and take $1,000 and invest it in stocks with reinvestments, stocks without reinvestments, bonds with reinvestments and bonds without. It is stunning to see the differences.

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1155130749626978842006-08-09T08:38:00.000-05:002006-08-09T08:39:09.650-05:00

We have spoke many times on this blog about marketing dangers. This will be another illustration.Examining investors who attempt to market time run a significant risk of missing periods of huge returns. This, typically will have a negative effect on your portfolio.Take $1 in stocks at December 31, 1925. By the end of 2000 it would have grown to $2,587. However, if you missed the 40 best months

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154956489926714052006-08-07T08:14:00.000-05:002006-08-07T08:14:49.936-05:00

When you consider your retirement savings you need to forecast the withdrawal rate. You need to look at the portfolio mix, how long you plan to withdrawal from the portfolio, how much risk you want to take on, and spending patterns.At retirement a 50% stock and 50% bond portfolio is not uncommon. Let's say your retirement savings is $500,000 and you retired on December 31, 1972. Obviously, the

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154868659192915072006-08-06T07:50:00.000-05:002006-08-06T07:50:59.206-05:00

During a severe market downturn diversification can save you from deep losses. Bear markets are actually the best time to see the benefits of diversification. The December 1972-June 1976 recession and the June 1987-December 1990 are two examples.If you take $1,000 and diversify it: 35% stocks, 40% bonds, Treasury bills 25%. Then compare it versus a stock 100% portfolio.1970s $1,149

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154777055681265112006-08-05T06:23:00.000-05:002006-08-05T06:24:15.696-05:00

Risk is an important factor to consider when investing. You have to be able to accept risk if you want the opportunity at increased returns over a long period of time.From 1926-2000 period you should understand that the highs and lows of performance will offset one another. And as time passes volitility lowers.If you take 1-year, 5-year and 20-year time frames you can see this illustrated. Small

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154689679013537682006-08-04T06:07:00.000-05:002006-08-04T06:07:59.030-05:00

It is almost impossible to avoid taxes with most investments, but taxes can be deferred. Deferring your taxes can profit you substaintially over the long term.IRAs, 401k, 403b, Keogh plans and tax-deferred annuities are all examples tax-deferred investment vehicles. Tax-deferred plans work by allowing interest, dividends and capital gains to accumulate without incurring taxes. Taxes are due when

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154630608671488362006-08-03T13:41:00.000-05:002006-08-03T13:43:28.690-05:00

As we have discussed the more risk taken over a long time horizon the greater reward. It is also to include inflation when looking at long-term (1925-2000) investing because it can have a dramatic effect on how you should invest. Small caps hiostorically return over 12%; large caps around 11%; Government bonds over 5%; and T-bills around 3.8%. During this same period inflation has averaged 3.1%

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154524988241759962006-08-02T08:22:00.000-05:002006-08-02T11:04:06.850-05:00

Another important aspect of investing in your retirement is tax-deferred plans are allowed to be deducted from your paycheck before the goverment takes out any taxes. Pre-tax contributions to a retirement plan will often reduce the amount of taxes you pay each year.The government wants to encourage citizens to invest in their retirement and this is a main reason why you can make pre-tax

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154438630912872512006-08-01T08:23:00.000-05:002006-08-01T08:23:50.926-05:00

As you might guess, taxes have a major impact on the overall perfromance of an investment portfolio. Stocks are one of the few asset classes that has provided significant after-tax growth from 1925-2000.Examing returns after-taxes is a humbling experience because your winners do not seem as good as they did before you accounted for taxes. In this time period investments after taxes for stocks

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154351838968046952006-07-31T08:16:00.000-05:002006-07-31T08:17:18.983-05:00

One of the most important benefits of investing in a 401k plan at work is the potential for your employer to match a certain percentage of your contribution. Many 401k allow employers to contribute to the particpant's account, but not all. The amount is usually represented as a specific percentage of the your contribution to the plan. For example, if your employer has a 50% match then for each

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154270677337619782006-07-30T09:44:00.000-05:002006-07-30T09:44:37.350-05:00

Do not depend on Social Security as your only retirement income. You cannot count on that money even being thereRetirement age will be increasedPeople who depend on it today as their only retirement income are living in near povertyIf you are not in an some sort of qualified retirement plan it will be difficult to meet your retirement income needsIf you have no post-retirement wages the

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154176051469430942006-07-29T07:26:00.000-05:002006-07-29T07:27:31.480-05:00

Diversification might be boring, but it is prudent and profitable in the long term. Diversifying your portfolio holdings is the best way to make money in investing for the long run. By doing what is sometimes ignored because its lack of flash you will be positioned to handle good and bad economic and financial events.If you want to sleep at night and feel like you are not betting the house you

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1154092762568521732006-07-28T08:19:00.000-05:002006-07-28T08:19:22.586-05:00

What you pay for growth in stocks does matter; valuation still remains important. During the late 1990s investors chased high flying tech stocks right off the P/E charts abandoning more reasonably valued stocks in other sectors.You must judge the likely sustainability of earnings and revenue acceleration, potential price appreciation is greatest when a company's stock price does not fully reflect

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com3tag:blogger.com,1999:blog-26624677.post-1153997301653132172006-07-27T05:48:00.000-05:002006-07-27T05:48:21.666-05:00

Company-sponsored 401k plans can be very beneficial to your retirement. The following are some advantages to participating in your company's 401k plan. 1. Participant Control: You get to decide how much you will invest each pay period up to the IRS's annual limitYou get to choose how to invest your moneyThe assets in your 401k plan belong to you, so you take your vested accumulated plan assets

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com1tag:blogger.com,1999:blog-26624677.post-1153912214130805172006-07-26T06:09:00.000-05:002006-07-26T06:10:14.143-05:00

As you can imagine stocks and bonds have had varying return from 1926-2000. Historically, the stock market was very volatile until after the Great Depression and more legislation was passed to protect investors. Since World War II, the stock market has displayed much less volatility because of the economic turn around and regulations.Bonds have behaved the opposite as the stock market; it has had

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com4tag:blogger.com,1999:blog-26624677.post-1153824453568326302006-07-25T05:47:00.000-05:002006-07-25T05:47:33.570-05:00

We have gone over what you need to prepare in case something goes wrong, but let's also discuss what you need to ask your parents to make sure they have prepared you.Do you keep a budget? Make sure they know where the money will come from and where it will go.Do you have a will? If they do, great, but make sure it is up-to-date. If not make sure they prepare one as soon as they can.Do you have

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com3tag:blogger.com,1999:blog-26624677.post-1153739265272852982006-07-24T06:07:00.000-05:002006-07-24T06:07:45.283-05:00

Some people just hate debt. They never had credit card debt and they pay a huge down payment on their car so they do not have to worry about debt. However, sometimes it is good to do this with mortgages and sometimes it is not.If your mortgage rate is at 6% for 30 years that means when you pay it off earlier you are getting 6% return. If you examine historical stock charts that 6% is not a good

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com4tag:blogger.com,1999:blog-26624677.post-1153659212279643502006-07-23T07:32:00.000-05:002006-07-23T07:53:33.906-05:00

You should always have a plan in case the worst does happen. People do not want to think about it, but that is a selfish point of view. You want to take care of those that love you after you are gone so you need to gather the following:Estate planning documents: wills and powers of attorneysDeeds and other property documentsAssests and debtsAccount numbers and passwords for investments, banks,

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com2tag:blogger.com,1999:blog-26624677.post-1153575707460953602006-07-22T08:41:00.000-05:002006-07-22T08:41:47.473-05:00

Weighing risk and return there is always a trade-off. When you are putting together an investment plan and asset allocation for your portfolio the relationship between risk and return is essential.When you consider the historical risk and return of small caps, large caps, intermediate government bonds, long-term government bonds and Treasury bills you will again notice that over this 75 year

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com3tag:blogger.com,1999:blog-26624677.post-1153480255764637492006-07-21T06:10:00.000-05:002006-07-21T06:10:55.776-05:00

All people and families need to have an emergency fund even if you think you don't. After you have paid your debt off you need to start an emergency fund in case something happens and you are unable to work for several months. You should not even think of saving for a house until you have at least 6 months worth of living expenses saving in an emergency fund.Start putting that money in either a

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1153392931885496582006-07-20T05:55:00.000-05:002006-07-20T05:55:31.896-05:00

Often when looking at a certain investments return people ignore inflation. As stated before investing in small cap and large caps bring with it more risk and more potential for reward. During this period inflation averaged 3.2% per year. When you examine closer that would mean the return of Treasury bills at 3.9% per year is barely out-pacing inflation while exposing you to little risk.

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1153308765395616672006-07-19T06:32:00.000-05:002006-07-19T06:32:45.416-05:00

Diversification is essential to investing mainly because it lowers your company risk. It does not eliminate risk, but there is a correlation to having more stocks in your portfolio and having lower company risk. When you limit the number of securities you increase your level of risk while not receiving the benefit of higher returns. Investment tools like mutual funds typically have scores of

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1153220284681969612006-07-18T05:57:00.000-05:002006-07-18T05:58:04.700-05:00

When looking at annual ranges of returns for asset classes historically you can better understand the risk involved in each investment. Each asset class has some risk; some more than others. If look at the peak and trough of each asset class you will see the inherant risk.For example, small cap stocks between 1926 and 2000 had a peak of 142% and a trough of -58%. Large caps' best return was 54%

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com1tag:blogger.com,1999:blog-26624677.post-1153148102203209072006-07-17T09:54:00.000-05:002006-07-17T09:55:02.216-05:00

In investing, if you desire high long-term performance you have to be willing to take on high levels of volatility because those are the asset classes that typically produce that type of return.Risk can vary within asset classes and outside as well. Typically, different asset classes will have differing levels of risk.Treasury bills and CDs historically have provided low long-term performance,

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1153057333677022062006-07-16T08:41:00.000-05:002006-07-16T08:42:13.690-05:00

Money orders are sold in various places across the United States. MoneyGram, Western Union and the U.S. Post Office are the most popular places to go, but often you can acquire them at a local convenience store or grocery. There is often a charge to buy a money order at these places, but if you do have a bank they typically give you one for free.They are extremely useful if you do not have a

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1152967296372330552006-07-15T07:41:00.000-05:002006-07-15T07:41:36.383-05:00

With oil reaching new heights each day it is quite possible we will have $100 a barrel oil soon. That is no joke and many industry leaders would tell you the same. With the problems in the Lebanon escalating and Iran’s connections to Hezbollah the world is waiting for the other shoe to drop because many say Israel is going to far in their attacks and the U.S. is not stopping Israel.If Iran gets

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1152883150846426272006-07-14T08:16:00.000-05:002006-07-14T08:19:10.856-05:00

The S&P 500 fell to negative performance YTD after a tough week on Wall Street (June 30th article). Bears are currently dominating trading and it seems like The Herd is almost to a tipping point of negativity. Let’s hope it does not reach that point because that is when millions will follow and make the stock market bump a bruise.People are particularly nervous because oil has reached a new

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1152786991148669672006-07-13T05:36:00.000-05:002006-07-13T05:36:31.160-05:00

Have ever sat down and really examined what your financial goals are? Do you know exactly where your money goes? How are you saving for retirement? College funds? Medical costs?If this scares you—well it should. Because if you are not planning for the future it will be much more difficult to start being disciplined as you grow older. Don’t count on the government solving Social Security’s future

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1152702130094618292006-07-12T06:01:00.000-05:002006-07-12T06:02:10.103-05:00

A few weeks back we discussed the importance of taking personal finance classes. The face-to-face experience can be more effective for some people in order to learn what they need to know. Others can pick up through reading a blog or website with good content.Investing can be tricky and very scary for beginners and even investors with some experience.Investors Business Daily has investing classes

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0tag:blogger.com,1999:blog-26624677.post-1152616296914940532006-07-11T06:11:00.000-05:002006-07-11T06:11:36.940-05:00

The thrills that lead to an irrational exuberance in the U.S. housing market over the past several years might have come to an end. With the Fed continuing to raise rates mortgage rates have increased as well. This has started the slowdown; but this slowdown might turn in to a bubble.During this craze of the early 2000s many were talked into mortgages that were not in their best interests. The

Honest Abehttp://www.blogger.com/profile/00156684768429116266noreply@blogger.com0