Recent research shows that investors who begin investing during bear markets do better over the long run than investors who begin in bull markets. T. Rowe looked at four different thirty-year periods, two of which that started with bear markets (1929 and 1970) and two that began with bull markets (1950 and 1979). They looked at the difference in the outcomes for investors who contributed $500 a month over these periods. They found, the investors who had begun investing in bear markets had much higher overall returns than the investors who had started investing in during a …Read More
Your state planning documents are designed to safeguard you when incapacitated as well as to efficiently pass on your assets when you’re gone. Unfortunately, you should not “do them once” and forget about them. Here are some tips that can help.
1. Review your powers of attorney and verify those agents listed represent your current ideas on who you want to handle your affairs when you can’t. Perhaps your children have grown old enough and they would now be appropriate. Maybe you had listed parents who have since died.
2. Store your documents in a safe and secure location, …Read More
For 39 of the past 40 years the US government was allowed deficit spending. Our federal government is providing us with more services than we are paying for. The difference (the deficit) is made up by the US selling more Government Bonds that will be paid in the future by later tax payers.
By definition, a Ponzi scheme is an operation that pays returns to current investors (tax payers) from the money paid by subsequent investors (our kids and grandkids). It usually offers returns that other investments cannot guarantee (living above our means).
The 2008 deficit was:
- $12 Trillion current
Do you often lose sleep, or hair, predicting the size of your nest egg? Everyone recognizes the need to save for retirement, but very few of us feel comfortable with the amount we are actually able to consistently invest for our future. So how do your saving habits compare with the average individual?
Every three years, the Congressional Research Service Department of the Library of Congress publishes data containing statistics and trends concerning American’s savings and retirement patterns. It should be noted that the most recent information was published in May, 2006 and utilizes data collected in …Read More
During the summer months the volume of investments is usually very low, which is where the term “Sell in May and go Away” came from. It does not take a lot of trading to create a move up or down and most trends are short term.
I had expected the current stock market down turn to have occurred at the beginning of June when Chrysler and General Motors were in Chapter 11. I was actually disappointed that it did not happen then. Well, people seem to have been on vacation and too busy to do it then, so they are …Read More