Let’s say you just inherited $10,000 on January 1, 2011 from your Great Uncle Herbert. Uncle Herbert may have been quick to lecture and always smelled like icy hot, but he was a financial whiz who knew how to save and invest. In his will, smelly Uncle Herb put one condition on your inheritance. You…
Category Archives: Investing
Help, I’m 27 and Obsessed with Retirement
As I picked up the latest SmartMoney magazine up off my desk, I realized that I am usually drawn to the retirement articles first. I’m always eager to check out the latest information and can’t digest enough of it to satisfy my questions, such as: Am I saving enough for retirement? What if I really…
Its Deja Vu All Over Again
Times must be good, you know why? It’s been awhile since I noticed a story touting hot stocks like this one on the front page of MSN. I don’t necessarily suggest you start paying attention to anybody predicting which stocks to follow, but you should take a moment to think back over the past couple…
What is Dollar Cost Averaging?
Dollar Cost Averaging is a simple and common investment strategy used to minimize the average cost per share of an investment over time. When done correctly, the investor determines the amount to be invested, how frequently they will invest their predetermined amount, and how long they plan to make their periodic investments. Why You…
Rule of 72
I always hated math. I know it isn’t evident from my writing style or the plethora of monosyllabic words used throughout this blog, but I always preferred English…well band, athletics, and lunch really. However, I do love simple formulas that reveal useful things that are applicable to the real world. Hence, The Rule of 72:…
Free Cars For Life?
Would you like to drive free cars for the rest of your life? And what if I told you that you could become a millionaire while doing so? According to a plan entitled, "Drive Free, Retire Rich" on Dave Ramsey's website, you can do just that. Interested? If you are like me, then I bet…
What’s a Bond? – Part 1
I'm not an investing pro, but I'm not a newbie either. I've sat through several classes and learned the basics, including those on bonds. However, I've never spent much time outside the classroom researching this investment class. The biggest reason has to do with my investing style. I'm 25 years old and the only investments…
How To Estimate Your Retirement Income Needs
How much is enough? That can be an overwhelming question for someone in their 50′s or 60′s and downright unfathomable for someone in their mid-twenties. There are just too many “what-if’s” in our future. A few obvious “what-if’s” include: When do I want to retire? When can I retire? How long will I live? How…
Excitement Grows as Stocks Slide
The Dow plunged 640 points today, the fourth largest point drop in history, and I couldn’t be happier. That’s right, I said happier! Of course, I am in a unique position to benefit long-term from the recent market’s turmoil. Let me explain: I am 26 years old and have little assets. In other words, I…
Financial Guideline # 1
“Building a Solid Financial Foundation – Before you Invest!” There is no shortage of advice encouraging you to begin investing at a young age, or at least as soon as possible. This argument is a valid one. The earlier you begin investing, the more time your money is subjected to the positive effects of compound…