MORE Making Your Own Decisions
February 16th, 2012 § Leave a Comment
In this valentine’s week, taking great care of your finances is a good way to take great care of yourself. Here are some additional definitions. Plod through!
* Mutual funds may also have bonds. The fund might be invested entirely in government, corporate or municipal bonds.
* Blended mutual funds are mutual funds with stocks and bonds. With an asset allocation of sixty-percent stocks and forty-percent bonds and cash they are mirroring the portfolio theory of diversification many advisors find a good fit for some clients.
Making Your Own Decisions
February 9th, 2012 § Leave a Comment
In our continuing saga, here’s another bit of info to help you master your money.
Mutual funds reflect their bond or stock holdings and help us invest to suit our needs. There are ‘equity’ mutual funds that hold a basket of stocks. They might be small-cap stocks or a basket of a particular sector, like technology. The mutual fund could also have a myriad basket of companies.
Making Your Own Decisions
February 2nd, 2012 § Leave a Comment
People feel overwhelmed by terminology. Let’s keep things simple.
A ‘stock’ is ownership in a company, a share, of a ‘publically traded’ firm. My company has shares of stock but they are not for sale and my company’s stock is not publically traded on a ‘stock exchange.’
A ‘bond’ is a debt ‘instrument.’ It’s sort of like a mortgage in that there was a financial need and instead of seeking funds from the local federal credit union, the bond issuers seek us to lend them money and they pledge to pay us back our borrowed money with interest. Whether the bond is government bond, from a municipality (to build a hospital or school), or issued by a corporation they may provide a source of cash-flow and possibly less risk that a stock.
Making Your Own Decisions – Mutual Funds
January 26th, 2012 § Leave a Comment
Mutual funds are the investment vehicle inside most retirement plans and they are comprised of a ‘basket’ of stocks and bonds. Stocks and bonds will be next week’s tiny tidbit.
Making Your OWN Decisions
January 19th, 2012 § Leave a Comment
There is no math calculation that will ensure you will earn money all of the time. But several investing philosophies have developed that may provide guidance depending on your goals, risk and dreams. Since there is no investment cookie cutter, no ‘one size fits all,’ within the financial community there are arguments about every style or investment philosophy. To borrow a phrase, nothing is ‘winning’ all the time.
Making Your Own Decisions
January 12th, 2012 § Leave a Comment
Life is busy. Work, family and all the other activities you do leave little room for learning about…your investments. (For the full dramatic effect, there should probably be the sound of a thunder-clap.)
Yes, the dreaded investments. I seldom meet people, no matter their profession, who feel that they have a good grasp on their investments. Here are some things to keep in mind when pondering your options.
Only Ponzi-scheme operators make money every time. The future is a mystery and none of us know it. I like and read economic news voraciously so I have more knowledge of issues that you in your busy life, may not know. But none of us knows what the stock market will do next week. We are all doing what works best for us and the best we know how to do.
Financially Frugal – Tip #4
January 5th, 2012 § Leave a Comment
Let’s talk about spending. You don’t have to be Uncle Scrooge, with a change-purse that has cobwebs in it, to be a disciplined money manager. Turn that smile upside down, for Pete’s sake and see the fun in being frugal. Generally, folks are spending more than they make, and we want to just keep on keeping on. You need to stop spending money as sport. Amuse yourself by being frugal, creative and in control financially.
Folks who have peace over their money don’t feel compelled to announce, “He who dies with the most toys wins.”
Financially Frugal – Tip #3
December 29th, 2011 § Leave a Comment
The next tip is to set money aside for a reserve. Put $500, $1000, even, (gasp!), 3 – 6 months of expenses, away in a high-interest savings account that is available, though not too available. FDIC insured high-interest accounts like PayPal, ING Direct and others offer no strings-attached, no minimum balance accounts that have been paying higher interest. Face it: You are not going to win the lottery. So, manage your finances the old fashioned way, by being disciplined.
Financially Frugal – Tip #2
December 22nd, 2011 § Leave a Comment
Second, manage your debt. It is generally said that there are two kinds of debt: bad debt and good debt. “Good” debt involves borrowing for an expenditure that will increase its worth over time. This includes school and business loans and a home mortgage. Bad debt is high-interest and revolving credit, borrowing on items that are disposable and also paying too much interest for the purchase.
Do everything you can to pay off credit cards. Whether it’s adding an extra $5 per month when you send out the bill or adding $500 per payment. No matter your income level, pay down debt, especially on high interest credit. Don’t add more purchases to the account. Don’t accept the 10% off for shopping today with your new store credit card! Just say NO. Be self-controlled and disciplined. Most of us are not in the situation where we are financially desperate, but trends indicate that we simply want what we want when we want it and just keep shopping. Knock that off.
Financially Frugal in Tough Times – Tip #1
December 16th, 2011 § Leave a Comment
Life is full of surprises, and not all of them are good ones. What’s the best way to manage your finances if this winter brings slow economic times? I’d like to suggest a few tips that may help bring a bit of stability in possibly uncertain times.
First, have a budget. What does that mean? No, a budget it won’t make your head explode. It should be very straightforward and needed be complicated with piles of paper. Think of it like this: Simply look every dollar in the eye and say, “Where do you think YOU’RE going?” Then write down each dollar’s purpose.
