Analysis Topic: Personal FinanceThe analysis published under this topic are as follows.
Friday, December 19, 2014
In the spirit of the holidays, I’m sharing a happy truth: many people do, in fact, retire rich. Who are these rare birds and what can they teach us?
Rich Retire #1—The Pension Holder. If you have a large pension in 2014, you likely are or were a government employee. Many government workers receive pensions equal to 75-80% of their working salaries. In some government departments, it’s the unwritten custom for department heads to bump a worker’s salary 20% or so when he or she is a year or two from retirement. This boosts the employee’s base for his retirement pay.Read full article... Read full article...
Wednesday, December 17, 2014
One of the most important financial questions someone of retirement age in the United States faces is when to start collecting their Social Security payments ─ and this crucial decision deserves the best possible information to work from.
Recently, there has been quite a bit of publicity about studies showing that for a retiree who lives to an average age, there is a six figure advantage to waiting until age 70 to begin the collection of Social Security payments. That is an amazing advantage ─ but does it hold up under close scrutiny?Read full article... Read full article...
Tuesday, December 16, 2014
Inflation figures released today show that the Consumer Prices Index (CPI) fell from 1.3% to 1% during November.
To beat inflation, a basic rate taxpayer at 20% needs to find a savings account paying 1.25% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 1.67%.Read full article... Read full article...
Tuesday, November 25, 2014
Is it even possible today to retire rich? The short answer is “yes.” We all know people who have done just that. Watching your neighbors Bob and Betty Rich live the good life well into their 90s only tells you it’s possible, not whether you’re prepared to do it too. So let’s forget about the Riches and focus on you.
The first question you should ask yourself is: “Do I have enough money for the duration?” Or, if you’re still in your 30s, 40s or 50s: “Am I on track to save enough?”Read full article... Read full article...
Monday, November 24, 2014
When you’re starting out at options trading, you need to consider carefully a range of service providers that will enable you to execute your trades. In this article we will investigate the key characteristics that you should evaluate in order to determine which service provider is best suited to your needs and budget.Read full article... Read full article...
Monday, November 03, 2014
Moral Hazard and Socialism in Collective Security Agreements Such as NATO / Personal_Finance / GeoPolitics
Patrick Barron writes: The economic phenomenon known as the "tragedy of the commons" instructs us that commonly-held resources that are insufficiently protected will be plundered to extinction. The phenomenon was recognized in the early nineteenth century to explain why the commons in England quickly came to be denuded by sheep. All sheepherders had an equal right to graze sheep on the commons. There often was no agreement as to how many sheep each could graze, so it was sheer rational self-interest for each to graze as many sheep on the common ground as possible. In short order the commons came to be overgrazed. What later came to be called "the tragedy of the commons" was a simple and imminently understandable explanation.Read full article... Read full article...
Tuesday, October 28, 2014
While it would be nice to essentially use our investment opportunities as a method for paying off our debts, the likelihood of that happening is slim to none. You see, you need to have money to invest in order to turn a profit, and if you’re in debt, chances are you don’t REALLY have money to invest. As long as you owe someone, the money you’re investing is not your own.
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Monday, October 27, 2014
The latest Moneyfacts Personal Pension and Annuity Trends Treasury Report, has revealed how the annuity market endured a perfect storm during Q3 2014 as a combination of plummeting gilt yields and a marked slowdown in demand following the 2014 Budget took their toll on annuity rates.Read full article... Read full article...
Thursday, October 23, 2014
By Andrey Dashkov
Unlike Jack Nicholson’s character in A Few Good Men, we trust that you can handle the truth. No matter your age, securing a comfortable retirement is a huge concern. Folks want the whole truth about their financial outlook, but straight answers are hard to come by.
Both sides of the mainstream media habitually present opinion-tainted partial facts. Case in point: the unemployment numbers announced earlier this month. One side is cheering because unemployment dropped to a six-year low, while the other side is calling it pure fraud.Read full article... Read full article...
Monday, October 20, 2014
There is an unspoken difference between debt that is designed to be paid back and debt (disguised as perpetual flow) to finance pre-existing streams of debt service.
The second type of debt is a Ponzi large enough to make Bernie Madoff blush. And crash the system. In the current system, debt is money for nothing used to create asset bubbles. Including the equity lift-off we see today.Read full article... Read full article...
Tuesday, October 14, 2014
“In theory there is no difference between theory and practice. In practice there is.”—Yogi Berra
It’s October, AKA the major league baseball postseason. As a lifelong baseball fan, I take the wisdom of Yogi Berra seriously. And when it comes to planning for the autumn of life, Yogi is spot on.
It seems as though every day an article titled “5 Tips for Retirement Saving” or something similar hits my inbox. I scan for the author’s name, and I’m amazed by how often it’s distinctly contemporary—Jennifer, Brandon, or another name of that vintage. Jennifer’s title is something like “staff writer,” and I immediately picture a fresh-faced young person with a newly minted journalism degree. After work, maybe she jumps in her starter BMW and heads to a local watering hole with her friends to gripe about student loan repayments.Read full article... Read full article...
Tuesday, October 14, 2014
Inflation figures released today show that the Consumer Prices Index (CPI) fell from 1.5% to 1.2% during September.
To beat inflation, a basic rate taxpayer at 20% needs to find a savings account paying 1.5% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 1.9%.
Of the 621 non-ISA accounts in the market today, there are 170 that basic rate taxpayers can choose to negate the effects of tax and inflation.Read full article... Read full article...
Thursday, October 09, 2014
Today’s forecast: yield-starved investors forced into the market by seemingly permanent low interest rates will continue to be collateral damage. For some, that collateral damage may involve more than the loss of income opportunities… many could be wiped out completely.
At the Casey Research Summit last month, I asked the participants in our discussion group: “If there were safe, fixed-income opportunities available paying 5-7%, would you move a major portion of your portfolio out of the market?”Read full article... Read full article...
Thursday, October 02, 2014
Touring the Alamo, presenting on how retirees can succeed in a crisis economy, and picking the brain of one of the world’s top economists, Dr. Lacy Hunt, about the future of low interest rates were among the highlights of my recent trip to San Antonio for the Casey Research Summit. In addition to authoring two books and countless articles for leading financial publications, Dr. Hunt is executive vice president of Hoisington Investment Management Company, a firm that manages $5.4 billion.
Lacy is also a favorite speaker of mine because in addition to being a terrific economist capable of running rings around the likes of Alan Greenspan, he can relate the big economic picture to average investors. He rates very high on the common-sense scale—a good philosophical fit for the Miller’s Money team.Read full article... Read full article...
Wednesday, October 01, 2014
By Louis James, Chief Metals & Mining Investment Strategist
At our San Antonio summit, Rick Rule gave a talk that, as always, was well reasoned, packed with facts, and powerfully cogent. His message was simply that bear markets are for buying and bull markets are for selling—and in the future, resource investors with staying power would look back on the current market as “the good old days” when they were able to buy great stocks cheap.