The Value of Diversification It’s not always easy to grasp the value of diversification—why, in other words, it’s better to own many stocks inside a mutual fund than one or two stocks on their own. But recent research conducted by Arizona State U. finance professor Hendrik Bessembinder offers some insight. Bessembinder is not afraid of […]
What NOT to Skimp On Save and invest. Save and invest. Isn’t that all you hear when it comes to planning your financial life? An online article by an individual who refers to himself as “the Financial Samurai” makes a more balanced case regarding how you deploy your money. Yes, you should be capable of […]
Savings Rates Decline You don’t hear much about America’s personal savings rate these days, and the reason may be because the news is discouraging: collectively, the percentage of our income that we save is trending downward again, and may be about to hit record lows. The Federal Reserve Bank of St. Louis tracks the U.S. […]
The Economic Myth-Destroyer Gets His Due Imagine a person who always, in every circumstance, makes rational decisions with his money. He saves when he ought to and spends exactly as he should spend, in order to maximize the “utility” of whatever wealth he happens to possess. He defers gratification with ease. When he invests, he […]
How Do You Stop Yourself from Overspending? The urge to splurge is one of the toughest challenges to a monthly budget, and leads to unhappy encounters with the credit card statement. But psychologists say there are solutions for the chronic overspender. The first thing to understand is that overspending is viewed as a way to […]
The Cost of Pets What does it really cost to own a pet? More than non-pet-owners probably realize, although if you do own a dog, cat or fish, you probably have a good idea that they’re not cheap. Start with the initial expenses. You can bring home a rescue pet—not just dogs and cats but […]
Your financial plan is about your goals and finances. But is it also about your health? In a recent blog post on the Forbes.com website, financial planner and medical professional Carolyn McClanahan suggests that your health status may be a crucial input into your overall financial plan. Why? Because it helps you know how long […]
Inflation has been pretty benign over the last 20 years, right? The U.S. Consumer Price Index has ranged from negative 0.4% in 2009 to a high of 3.8% in the awful 2008 economic year. In 13 of those 20 years, the CPI was below 2.5%, which is hardly comparable to the double-digit inflation rates that […]
Everybody should have a power of attorney. But not everybody knows exactly what it is or why it’s so important. A power of attorney is a legal document that empowers a person you trust to handle your financial affairs if and when you become incapacitated. While you’re up and around, the document just sits in […]
