There are three variables that impact the total return investors receive from an investment: the amount saved, the return rate, and the amount of time invested. Most investors spend a good amount of time and effort trying to increase all three. But what if we can’t do all three, if we’re inhibited by time, skill, knowledge, or ability (after all, many fund managers spend a lifetime trying to eek out an additional 1% return with limited success.) If we could only focus on one of the factors to impact, which is the best option? What is the best way to maximize investment returns?
investing
Madoff Asks Judge For 12-Year Sentence
By 6.23.09
“Mr. Madoff is currently 71 years old and has an approximate life expectancy of 13 years,” wrote Sorkin, whose letter was released on Tuesday. “A prison term of 12 years – just short of an effective life sentence – will sufficiently address the goals of deterrence, protecting the public and promoting respect for the law.”
By 6.20.09
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Here are 5 personal finance podcasts to subscribe to, download, and argue with during your commute or workout. [Automatic Finances] (Photo: uhuru1701)
10 Things Financial Planners Won't Tell You
By 6.19.09
Right after politicians and lawyers, financial planners have to be the most mistrusted, suspected, and questioned profession these days. And with good reason. With the Bernie Madoff’s of the world running rampant, fewer and fewer people are willing to turn their life savings over to someone else. (Yes, we realize Madoff was an investment advisor, not a financial planner per se, but you get the meaning.) Well, after reading this, you’ll probably be even less likely to hire a financial planner. financial planners won’t tell you as follows:
By 6.10.09
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Bond traders say stock traders are wrong, the Fed will not increase interest rates this year. [Bloomberg]
Interest Rates Will Rise Within The Year, Markets Bet
By 6.8.09
As growing global economic optimism begins to build, the market is betting that the Fed will raise interest rates by the end of this year. This will mean mortgages will get more costly and credit card APRs will rise, but the interest you make off your savings account will go up. [Bloomberg] (Photo: Ben Popken)
What The Heck Is An ETF?
By 5.20.09
f you are making regular contributions over time – say, investing a certain dollar amount each week or month – buying an index fund is more cost-effective. If you are rolling over a lump sum, however, you might choose an E.T.F.
Frontline Investigates Bernie Madoff
By 5.13.09
PBS’s documentary show FRONTLINE took on Bernie Madoff this week, exposing the history of his operation and how the SEC let him slip through their fingers.
Brooklyn Cab Driver Convinces You He Has A Hedge Fund, Steals $20 Million
By 5.4.09
Oh look, another Mini-Madoff! Meet Alan Fishman, 49, a livery cab driver from Brooklyn, NY who convinced people he was a hedge fund mastermind.
Personal Finance Columnist's Financial Advisor Accused Of Fraud
By 4.21.09
Last week, New York Times personal finance columnist Ron Lieber discovered that his family’s financial planner was being investigated for fraud, because millions of dollars had been transferred out of clients’ accounts without authorization. What’s funny is Lieber found the financial planner while writing a column on how to comparison shop for one.
Invest In Canned Food And Shotguns, Gremlins Advise
By 3.25.09
Forget T-bonds, money markets, gold, or even your mattress, Gremlins have taken over the New York Stock Exchange and they know exactly where you should put all of your money. (Thanks to Jonathan!)
Markets Leap On Treasury's Troubled Asset Purchase Details
By 3.23.09
Markets jumped after the Treasury presented the fleshed-out details of its plan to buy troubled bank assets. The need for getting toxic assets off bank books has been around for quite some time, but has stalled because banks and investors couldn’t compromise on the price. Banks didn’t want to sell for less than 60 cents on the dollar, investors didn’t want to pay more than 30. The Treasury plan makes the two ends meet by providing $75-$100 billion in financing for buyers. For it to work, private investors will have to step up, but with the S&P leaping up 7.1% the street is betting they will and it will unclog the credit markets.
Surviving A Lynch Mob – AIG Internal Staff Memo
By 3.20.09
Via Gawker: Considering the profound social unrest surrounding just about every aspect of their entire existence, AIG disseminated the following memo to their staffers to help them avoid getting hoisted by their necktie the nearest lamppost.
Ben Popken On "To The Point" Today At 3
By 3.20.09
American capitalism’s in crisis, and the public has lost confidence in banks, money managers and business reporters – even the Treasury Department. Friday, on To the Point, If the smartest guys in the room aren’t reliable, who do you trust with your money? Will the US become a nation of online traders?
Stocks Surge As Fed Prints More Money (Effectively)
By 3.18.09
Stocks surged today after the Fed said it would buy $300 billion in longterm Treasurys and hundreds of billions of mortgage-backed securities. Effectively, it’s like an interest rate cut, or printing more money. By increasing the amount of money in the system, banks will be able to borrow more cheaply and could prompt lower mortgage rates and more lending. Remember when we told you what “quantitative easing” was? This is it, folks, and it’s big.
Stock Market Rally Continues For 5 Out Of 6 Days
By 3.17.09
The market has continued to rally for the past five out of 6 days (it took a break on Monday). Yippie! [WSJ]
Recession Best Thing Ever For Non-Graybeards
By 3.17.09
Ever notice how most of the people bitching the hardest about the recession are old people? Here’s an alternative view, and how the economic meltdown might just be the best thing ever if you’re under 35, have a job, and aren’t strapped with debt. [MSN] (Photo: hanapbuhay)
