Ron Lieber just wrote a great column about play. Maybe you keep a budget. If you do, perhaps you have entries for travel or even specific entries for your hobbies. But even if you are not tracking every dollar and are lucky enough to have money left over beyond your basic needs, it is worth [...]
The Dow Jones Industrial Average (DJIA) isn't a very useful index. The S&P 500 is a better way to track big US companies and better for most purposes is to use a total market index which includes another 3500 other US public companies. Okay, now that we resolved that issue, I ran across a fascinating [...]
There have been some big developments recently on trying to make financial professional more accountable to their clients. Matt Yglesias does a great job explaining this: "While concerns about improper actions by investment advisors should certainly be addressed, an overly broad proposal could price professional financial advice beyond the reach of many modest income families." I [...]
A friend recently sought some counsel regarding a house purchase. I wrote up a few thoughts. Perhaps they are interesting to people beyond their initial recepient. For your reading pleasure: Compare real estate investment to other investments. It's typically unwise to buy if renting a comparable place is cheaper and you plan to move again within [...]
Today the CFPB launched a tool to help us all compare mortgage rates available in our areas. If you are shopping for a mortgage you should definitely check it out!
I recently ran across a great tool from the NYT The 1% More Savings Calculator. Play with it. It really helps show how much small changes in saving today can make an enormous difference down the road. Let me know what you think. http://www.nytimes.com/interactive/2010/03/24/your-money/one-pct-more-calculator.html
I was recently interviewed by Vox's Tim Lee for his story on home buying. It is well worth reading. I often work with clients on helping them think clearly about real estate, rent v. buy, and how to approach home buying. If you are thinking about those questions, contact me! If you know someone who would [...]
Specific sectors of the stock market (Industrials, Technology, Healthcare, etc) vary a lot year to year. Some years tech is a big winner (2003!) relative to other sectors. Other years it's a big loser (2001, 2002, and 2004) relatively. This is one reason why it is important to diversify. Allfinancialmatters puts together a great visual representation [...]
I recently had a conversation with wonderful and brilliant freelance writer Meghan Nesmith. The transcript is up over at the Billfold. It's a good intro to my views of money and relationship. It was a lot of fun to work on and I am really pleased with how it came out.
It wasn't long ago that major defining dichotomies in my peer group included things like Science v. Humanities. As the years have gone by Renting v. Buying has made a big showing as an important and interesting question. People don't discuss it much in person considering how important it is. I think that this is [...]