Oh, how I love John Bogle of Vanguard. He is an inventor and proponent of index funds and investing principles so simple that a 5 year old can comprehend. I just read an interview with him that, as always, impressed me. Bogle, by the way, saved my sanity during the financial meltdown, when I witnessed all my savings/investments lose tons of money. In one of his books, he says "Things always revert to the average." That's the argument for index funds also.
Next up: the great blogger Une Femme d'un Certain Age. I discovered her blog over a year ago when I strayed from my usual reading on frugality. Well! As the Wife of Bath says (paraphrased), women do tend to wander by the way. Une Femme is a writer of great talent, with a great eye for style as well. She also writes on more serious subjects, even when she seems to be writing only on style.
Anyway, yesterday when I returned to the blog world after having been out of town for a good bit, I discovered that Une Femme took on the topic of----FRUGALITY. And, guess what? She was inspired by one of my posts. I am so honored.
Her post is one of the best statements I've seen on frugality, which has to do with good use of resources--not just money, but time, stuff, and so on.
I wish Une Femme would write a book. In the meantime, Bogle has penned many. Here is one I've read.
And this one.
Showing posts with label Investments. Show all posts
Showing posts with label Investments. Show all posts
Tuesday, 4 January 2011
Friday, 29 October 2010
Time to Buy Real Estate?
Just reading CNN and came upon this article. Australians are buying US rental properties in depressed markets as investments. Places include the usual suspects: in addition to Tennessee, which is featured, we have Florida and Arizona.
Could this mean that if you have cash (as the Australians seem to), the best thing would be to buy another house in addition to your underwater home bought during the bubble?
My mother's Florida condo, bought 16 years ago for the price of a Long Island ranch home, is now worth less than the initial cost, while the Long Island home, I'm sure, is worth much more, in spite of the bubble.
Somewhat facetiously, one could call this dollar cost averaging with real estate. The only problem, of course, besides the risk of any real estate investment, is that you need wads of cash. Which Australians do, evidently.
Is this a mad idea? Would you buy rental property in depressed markets if you had some cash?
Could this mean that if you have cash (as the Australians seem to), the best thing would be to buy another house in addition to your underwater home bought during the bubble?
My mother's Florida condo, bought 16 years ago for the price of a Long Island ranch home, is now worth less than the initial cost, while the Long Island home, I'm sure, is worth much more, in spite of the bubble.
Somewhat facetiously, one could call this dollar cost averaging with real estate. The only problem, of course, besides the risk of any real estate investment, is that you need wads of cash. Which Australians do, evidently.
Is this a mad idea? Would you buy rental property in depressed markets if you had some cash?
Monday, 11 October 2010
5.25% Checking Account: Not Buying It
Today I received a tempting email from my credit union: 5.25% checking! That's amazing these days: my Vanguard money market is at .1% (if that); my high-yield savings is at 1.3%; I am considering a 1.9% CD.
With La Cap's All Access Advantage checking account, you have the chance to earn dividends as you make purchases.* With no monthly fees and no minimum balance, it's a great way to make the most of your checking account. It's just our way of showing you that we care about giving you the best rates and services possible.
Open an Account Now
*APY = Annual Percentage Yield. La Cap Checking (Share draft) Accounts are variable rate accounts. La Cap may change the dividend rate for your account as determined by the credit union Board of Directors. Dividends are posted and compounded monthly. No minimum balance required to maintain the account. Applicable fees and conditions could reduce the earnings on your account. Qualifications to earn dividends: - 25 or more non-ATM debit card transactions posted per month: - 5.25% APY on balances up to but not exceeding $5,000 - .15% APY on balances exceeding $5,000. If qualification stated is not met: - .15% APY on entire balance.
Read the fine print. The offer is only for your first $5000.00 and you must make at least 25 non-ATM debit card transactions per month.
Let's do the math. If you have the whole $5000.00, you can get about $262.00. That's nothing to sneeze at.
Let's do the math some more. The earnings total about $5.00 a week. That's much less tempting. I don't have a debit card; I don't buy something 25 days of the month. For $5.00 a week, I can do other things that I enjoy more than keeping track of debit transactions.
I can go to Big Lots and save $5.00 on food. Ditto for looking at the grocery ads and planning my menu around something on sale. I can check 2 movies out of the library. I can hand wash a sweater rather than sending it to the dry cleaner (I do that anyway). You get the idea.
Since I find keeping track of things extremely stressful, I don't use that supposed Holy Grail of frugality: the grocery coupon. I don't know how to sew and am glad that, because of a small fire in the home ec room, I never had to finish my skirt, since I was on my way to getting a bad grade.
There are so many ways to be frugal! Aren't we lucky that we can find ones that suit our temperaments? Which are your favorites?
With La Cap's All Access Advantage checking account, you have the chance to earn dividends as you make purchases.* With no monthly fees and no minimum balance, it's a great way to make the most of your checking account. It's just our way of showing you that we care about giving you the best rates and services possible.
Open an Account Now
*APY = Annual Percentage Yield. La Cap Checking (Share draft) Accounts are variable rate accounts. La Cap may change the dividend rate for your account as determined by the credit union Board of Directors. Dividends are posted and compounded monthly. No minimum balance required to maintain the account. Applicable fees and conditions could reduce the earnings on your account. Qualifications to earn dividends: - 25 or more non-ATM debit card transactions posted per month: - 5.25% APY on balances up to but not exceeding $5,000 - .15% APY on balances exceeding $5,000. If qualification stated is not met: - .15% APY on entire balance.
Read the fine print. The offer is only for your first $5000.00 and you must make at least 25 non-ATM debit card transactions per month.
Let's do the math. If you have the whole $5000.00, you can get about $262.00. That's nothing to sneeze at.
Let's do the math some more. The earnings total about $5.00 a week. That's much less tempting. I don't have a debit card; I don't buy something 25 days of the month. For $5.00 a week, I can do other things that I enjoy more than keeping track of debit transactions.
I can go to Big Lots and save $5.00 on food. Ditto for looking at the grocery ads and planning my menu around something on sale. I can check 2 movies out of the library. I can hand wash a sweater rather than sending it to the dry cleaner (I do that anyway). You get the idea.
Since I find keeping track of things extremely stressful, I don't use that supposed Holy Grail of frugality: the grocery coupon. I don't know how to sew and am glad that, because of a small fire in the home ec room, I never had to finish my skirt, since I was on my way to getting a bad grade.
There are so many ways to be frugal! Aren't we lucky that we can find ones that suit our temperaments? Which are your favorites?
Monday, 16 August 2010
Why Would I Want to Refinance a Paid-Off House: A Financial Fantasy
As an expansion of my last post, which struck many as mad.
Here is the fantasy. Let's just say I did a cash-out refinance* for about, ohhhh, 1/4 of the value of my paid-off house. Let's say, I just put it in an insured CD. At that point, I'd be paying about 2-3% on my loan, the difference between the CD and the super-low mortgage rate.
Let's say I kept rolling over the CDs as they matured. I have a feeling that rates are going to go up, at least some time in the next 30 years.
What is the origin of this fantasy? My parents got a 5% mortgage in the early 60s. Their Principle and Interest payments were minimal. In the 70s--when I was in grad school and had NO MONEY--interest rates went through the roof. My parents and many others were able to invest in newly-available bank money market accounts that were paying 20%. Even Treasury Bonds--risk-free then as now--were paying in the teens.
Still thinking about it, though I'm probably toooooo lazy to go through the process.
Does my financial fantasy still seem mad?
*Cash Out Refinance is when your mortgage includes CASH. My friends in the biz were urging such a refi during the housing bubble--for college savings, for kitchen remodels, and the like. If you've kept up with the news, you will see many stories of families that ended up owing $500,000 on a house they originally paid $100,000 for. The other $400,000 (based on the house's appreciation) went to vacations, tuition, credit card debt, Viking stoves, major remodels, SUVs, and Coach bags.
Here is the fantasy. Let's just say I did a cash-out refinance* for about, ohhhh, 1/4 of the value of my paid-off house. Let's say, I just put it in an insured CD. At that point, I'd be paying about 2-3% on my loan, the difference between the CD and the super-low mortgage rate.
Let's say I kept rolling over the CDs as they matured. I have a feeling that rates are going to go up, at least some time in the next 30 years.
What is the origin of this fantasy? My parents got a 5% mortgage in the early 60s. Their Principle and Interest payments were minimal. In the 70s--when I was in grad school and had NO MONEY--interest rates went through the roof. My parents and many others were able to invest in newly-available bank money market accounts that were paying 20%. Even Treasury Bonds--risk-free then as now--were paying in the teens.
Still thinking about it, though I'm probably toooooo lazy to go through the process.
Does my financial fantasy still seem mad?
*Cash Out Refinance is when your mortgage includes CASH. My friends in the biz were urging such a refi during the housing bubble--for college savings, for kitchen remodels, and the like. If you've kept up with the news, you will see many stories of families that ended up owing $500,000 on a house they originally paid $100,000 for. The other $400,000 (based on the house's appreciation) went to vacations, tuition, credit card debt, Viking stoves, major remodels, SUVs, and Coach bags.
Monday, 29 March 2010
Good CD rates?
So, readers, what do you think of these rates from First Guaranty Bank:
2 year 2.75%
3 year 3%
4 year 3.25%
5 year 3.5%
Strangely, they don't have 1 year advertised.
Would you bite (and if so, which maturity) or would you wait?
2 year 2.75%
3 year 3%
4 year 3.25%
5 year 3.5%
Strangely, they don't have 1 year advertised.
Would you bite (and if so, which maturity) or would you wait?
Wednesday, 6 May 2009
Microsavings
Once again, I am inspired by Funny About Money, who, in a recent post, mentioned that her financial advisor opined that she had a talent for small savings.
I think I have a talent for microsavings. Many bloggers, whatever their take on frugal tips, declare that the big savings are what count: mortgage, insurance, travel, car purchases, and so forth. Elizabeth Warren and Daughter say the same in All Your Worth: The Ultimate Lifetime Money Plan" Count the Dollars, Not the Pennies.
Of course, I'd rather save dollars than pennies. But it's not always possible: only the microfrugalities have a guaranteed and steady payoff.
On insurance, for instance. I live in a state where some former Insurance Commissioners reside in prison. I have known several people who had insurance from smaller companies that went out of business, leaving them with unpaid medical bills and car insurance claims. Because of this, Mr. FS and I have always bitten the bullet and stayed with national companies. Post-Katrina, we had little trouble.
On travel,too. Yes, we use the on-line sites for deals. Often poor Mr. FS will spend hours on plane fares, only to end up saving $15.00, or worse, watching fares go UP. Sometimes he does quite well, but sometimes it's a waste of time. And it's never guaranteed.
On the auto purchases, yes we got the prices from Consumer Reports and used them well. But you can't do super-well on cars that are in high demand for good reasons. So we are happy with our Camry (1998) and Civic Hybrid (2003), both bought new for good, but not great prices.
But every week, I can save at least 20% on groceries, just by picking up the loss leaders. This amounts to pennies, but week in and out, year in and out, it adds up. I can always save pennies.
The only guaranteed way of saving dollars these days seems to reside in paying off your mortgage. I guess it's a good thing I already did that. I'd love to hear about other strategies.
So, dear Readers, do you think my concept of microsavings works? How do you microsave? And, if you have bigger ways to save, of course, please share.
I think I have a talent for microsavings. Many bloggers, whatever their take on frugal tips, declare that the big savings are what count: mortgage, insurance, travel, car purchases, and so forth. Elizabeth Warren and Daughter say the same in All Your Worth: The Ultimate Lifetime Money Plan" Count the Dollars, Not the Pennies.
Of course, I'd rather save dollars than pennies. But it's not always possible: only the microfrugalities have a guaranteed and steady payoff.
On insurance, for instance. I live in a state where some former Insurance Commissioners reside in prison. I have known several people who had insurance from smaller companies that went out of business, leaving them with unpaid medical bills and car insurance claims. Because of this, Mr. FS and I have always bitten the bullet and stayed with national companies. Post-Katrina, we had little trouble.
On travel,too. Yes, we use the on-line sites for deals. Often poor Mr. FS will spend hours on plane fares, only to end up saving $15.00, or worse, watching fares go UP. Sometimes he does quite well, but sometimes it's a waste of time. And it's never guaranteed.
On the auto purchases, yes we got the prices from Consumer Reports and used them well. But you can't do super-well on cars that are in high demand for good reasons. So we are happy with our Camry (1998) and Civic Hybrid (2003), both bought new for good, but not great prices.
But every week, I can save at least 20% on groceries, just by picking up the loss leaders. This amounts to pennies, but week in and out, year in and out, it adds up. I can always save pennies.
The only guaranteed way of saving dollars these days seems to reside in paying off your mortgage. I guess it's a good thing I already did that. I'd love to hear about other strategies.
So, dear Readers, do you think my concept of microsavings works? How do you microsave? And, if you have bigger ways to save, of course, please share.
Friday, 13 March 2009
Talbots: New Style, New Stock?
This is a rather rambling post. It ends up asking a question about how to pick stocks. Gender issues in finance and aesthetics are also raised.
Before I began this blog, I spent some time reading blogs by people interested in frugality and personal finance. These piqued my desire to write on the topic myself. But lately I've found some new blogs that I like on the topic of style for women "of a certain age." Two favorites are Une Femme d'un Certain Age and Passage des Perles.
I will now reveal how I happened upon these. I had noticed that Talbots had updated its style. My mother, age 78, has long been a Talbots shopper, but I think that's because she summers in the Berkshires, and the store, with its New England vibe, reminds her of her Boston girlhood. When we would visit the Lenox branch, my mother would shop, while I, age 55, would make an effort to find something halfway decent to try on. My daughter, age 18, would sit in a chair reading In-Style magazine. You can gauge the demographic from this scene.
Last summer I was amazed by the new fall clothing coming in. These were things I might even buy (on sale, of course). Then, in the fall, as my retirement accounts continued their precipitous decline, I thought, I should buy Talbots stock. Now, I don't own any stocks, because--chicken that I am--I always stuck to mutual funds.
The only other stocks I ever wanted to buy were Home Depot (20 years ago!) and Big Lots (about 5 years ago!). I didn't buy either, but should have.
So I googled "Talbots stock" and discovered that the Motley Fool fellows picked it as their Halloween stock--scary, scary, scary. The price was about $1.80/share the day I started thinking about this.
e
Then I googled "Talbots new style" and discovered Une Femme and, through that blog, Passage des Perles. Une Femme d'un Certain Age, especially, admired the newly chic style brought in by the new president of Talbots.
The Motleys are, needless to say, men. The bloggers are women. The stock is now $3.06, a rather impressive percentage rise in a few months, especially given the economic news and the further precipitous declines of nationwide retail sales and my retirement accounts.
I bought some items yesterday, since I got a further 20% off the sale prices and free shipping. I don't know how any of these will look, but I can always return to the store in the next town. What do you think of my choices?
So Ladies and Gentlemen of the Jury: do you think Talbots has a future? Would you buy the stock? Do the chic women bloggers know something that the investment professionals do not? Did I make the mistake of buying the sweaters rather than the stock?
Before I began this blog, I spent some time reading blogs by people interested in frugality and personal finance. These piqued my desire to write on the topic myself. But lately I've found some new blogs that I like on the topic of style for women "of a certain age." Two favorites are Une Femme d'un Certain Age and Passage des Perles.
I will now reveal how I happened upon these. I had noticed that Talbots had updated its style. My mother, age 78, has long been a Talbots shopper, but I think that's because she summers in the Berkshires, and the store, with its New England vibe, reminds her of her Boston girlhood. When we would visit the Lenox branch, my mother would shop, while I, age 55, would make an effort to find something halfway decent to try on. My daughter, age 18, would sit in a chair reading In-Style magazine. You can gauge the demographic from this scene.
Last summer I was amazed by the new fall clothing coming in. These were things I might even buy (on sale, of course). Then, in the fall, as my retirement accounts continued their precipitous decline, I thought, I should buy Talbots stock. Now, I don't own any stocks, because--chicken that I am--I always stuck to mutual funds.
The only other stocks I ever wanted to buy were Home Depot (20 years ago!) and Big Lots (about 5 years ago!). I didn't buy either, but should have.
So I googled "Talbots stock" and discovered that the Motley Fool fellows picked it as their Halloween stock--scary, scary, scary. The price was about $1.80/share the day I started thinking about this.
e
Then I googled "Talbots new style" and discovered Une Femme and, through that blog, Passage des Perles. Une Femme d'un Certain Age, especially, admired the newly chic style brought in by the new president of Talbots.
The Motleys are, needless to say, men. The bloggers are women. The stock is now $3.06, a rather impressive percentage rise in a few months, especially given the economic news and the further precipitous declines of nationwide retail sales and my retirement accounts.
I bought some items yesterday, since I got a further 20% off the sale prices and free shipping. I don't know how any of these will look, but I can always return to the store in the next town. What do you think of my choices?
So Ladies and Gentlemen of the Jury: do you think Talbots has a future? Would you buy the stock? Do the chic women bloggers know something that the investment professionals do not? Did I make the mistake of buying the sweaters rather than the stock?
Subscribe to:
Posts (Atom)