Personal Finance Roundup

Recession Watch: Tips for Antsy Investors
[Business Week] “With the economy teetering at the brink and markets swinging wildly, what should you do? Here is some classic advice for
dealing with rocky financial times.”

Most Americans unprepared for retirement [Yahoo Finance]
“A majority of American workers will not be able to maintain their current standard of living after they retire, according to a report released
Tuesday.”

How to bottom-fish for stocks [MSN Money] “Here are some calculations to help you decide when the risk of buying a stock is worth it.”

Scratch Beginnings: An Interview with Adam Shepard [Get Rich Slowly] “Poverty is a complex issue — there are no easy answers. But one small piece of the puzzle is
teaching people the basics of personal finance.”

Don’t buy into dollar-cost averaging [CNN Money] “If you have a lump sum of cash, don’t invest it little by little. Decide on an asset allocation and buy in all at once.”

FREE MONEY FINANCE

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  1. ChrisC1234 says:

    “A majority of American workers will not be able to maintain their current standard of living after they retire, according to a report released
    Tuesday.”

    I don’t think I agree with this. This is going with the assumption that a majority of American workers will actually RETIRE. I don’t see that happening. They haven’t saved enough.

  2. STrRedWolf says:

    “Monies?”

    “Whoa! Moar monies!”

    “I can buy cheezburgers!”

    (I had to respond to the cute cats)

  3. laserjobs says:

    That is a great article from Jubak on calculating (NPV) net present value using future cash flows. That is true Warren Buffet style investing. Your return is going to be dependant on how good your research is.

  4. Pinget says:

    So, if you live to 95, and a majority of us will, you’re supposed to have $550K in the bank just to cover *health expenses* in retirement? Over 40 years of work, that means saving $13750 per year to make that sum. Ain’t gonna happen. The current IRA maximum contribution for most of us is $5K – and then you’re supposed to save this on top of that? Right. Uh huh. Sure. Tell that to this guy – [www.washingtonpost.com] At age 40 he’s got $20K in the bank toward retirement and just cashed out HALF to pay for milk and gas. HELLO! Reality is calling! Stop telling us about oughts and shoulds that clearly have no relationship to reality.

  5. CumaeanSibyl says:

    Aw, Finance Cat.

  6. n/a says:

    KITTY KITTY KITTY KITTY KITTY KITTY KITTY KITTY KITTY.

  7. Dollar-cast averaging is a valid practice, particularly if you’re purchasing securities as opposed to shares in a money manager. Most high net worth investors will benefit from a strategy that focuses on the cost basis of the investment. Walter Updegrave is notorious for being a reductivist because he ultimately doesn’t believe that investors will make optimal decisions.

    For example, the mathematical negative return on debt will almost always be higher than that of an investment. The optimal decision for owners of high-interest debt is to eliminate that debt before investing – but since Walter doesn’t believe that consumers will every truly stop using their credit cards for discretionary spending, he suggested simultaneously amortizing credit card debt and investing in a 401(k).

    While a valid understanding of human nature, that is not the optimal path. Disciplined investors of substantial net worth will typically benefit from dollar-cost averaging; investors who attempt to “time” the market will typically fail. Investors who buy all at once will almost invariably pay a higher price than those that wait for a downtick, and cost basis is king.

  8. CyberSkull says:

    Finance cat:

    Mony: I haz it.