My post on the Sales Lesson from a Real-Life James Bond was included in this week's Sales Stories Carnival.
Sunday, 31 May 2009
Friday, 29 May 2009
Best Personal Financial Planning and Personal Investment Articles this Week from Personal Finance Blogs
Welcome to the May 30, 2009 Edition #91 of the Carnival of Financial Planning.
The Carnival of Financial Planning takes a long-term view of personal financial planning for individuals and families. We focus on efficient and sustainable personal financial planning practices that can lead to lifetime financial security.
This edition is arranged by subject heading, so that you can browse efficiently.
Enjoy!
The Skilled Investor, Editor
Budgeting
Barry presents Saving Money At The Amusement Park posted at Associate Money.
The Budgeter presents Let the Bad Press on the Economy Work in Your Favor posted at Keep Your Cash, saying, "The recession, while painful, can help you find bargains when you are out shopping."
Pasadena Financial Advisor presents Financial Planning Reading List posted at Pasadena Financial Advisor, saying "When I work with clients to develop their customized lifetime financial and investment plans, they often ask what they should read to improve their financial literacy. This article provides a list of recommended reading from among the many hundreds of articles that I have authored in the past several years."
Economics
rajeev presents FINANCIAL CRISIS - MORE THAN WHAT MEETS THE EYE posted at Investment and Personal Finance, saying, "This post tells few shocking truth about US financial crisis. It also has a video which encapsulates the view postulated by few on the origin of this crisis which was led by some sinister designs of Fed."
Dorian Wales presents On Causality and Correlation in Economics posted at The Personal Financier,
saying, "Causality is perhaps the most fundamental element of empirical evidence available to economists. However, it is also the source of many misconceptions due to its elusive nature."
Bank Savings Review presents FDIC is Running Out of Money but You are Safe posted at Bank Savings Review, saying, "FDIC is running out of money for sure but your money is probably still safe even if your bank goes under."
Finance Tips 101 presents Working Out A Family Budget Will Help You Save Money posted at Finance Tips 101.
Dorian Wales presents Stress Tests and Capital Adequacy Explained posted at The Personal
Financier,saying, "The highly anticipated FED stress test results may very well serve as fuel for further gains or, more likely in my opinion, as a sought after excuse for turning the tide (in the short run)."
Estate Planning
Tushar Mathur presents Getting finances in order posted at Everything Finance, saying, "Keeping organized records is a gift to your family and to yourself. It helps ensure that your wishes are followed, that your assets are accounted for, and that your money is available to meet your family's needs in a timely fashion."
Financial Planning
Silicon Valley Blogger presents Best High Interest Savings Accounts In Online Banking posted at The Digerati Life, saying, "Thanks!"
The Smarter Wallet presents Facing A Job Layoff? 6 Tips For Coping With Job Loss posted at The Smarter Wallet.
Tushar Mathur presents How to choose a financial planner posted at Everything Finance, saying, "There's retirement to plan for and college tuition for the kids. Insurance. Estate planning. And, oh, don't forget a wedding for your daughter. If all this sounds familiar, it may be time for you to start shopping around for a financial planner."
Silicon Valley Blogger presents Prevent Identity Theft: Some Credit Report Monitoring Services and Options posted at The Digerati Life
Financing a Home
Tallahassee Real Estate presents Killearn Lakes Unit 1 Home Prices Holding posted at Tallahassee Real Estate Blog,
saying, "A classic example of why most real estate reports are flawed. They lead you to believe that prices are going up or prices are going down, solely based upon the movement of the average sales price. This article shows why it is possible for the average home price to go up,while real home values are dropping."
Alex Fotopoulos presents When is it Smart to Refinance a Mortgage? posted at My Trader's Journal, saying, "Some key points to consider when refinancing your home."
Financing Education
Jeff Rose presents Buying Property at Auction? What You Need to Know posted at Jeff Rose.
Income
Praveen presents Easy Ways to Generate Cash posted at My Simple Trading System, saying, "Easy ways to generate extra cash"
KCLau presents The Most Common Habit of Rich People posted at KCLau's Money Tips, saying, "About the common habits of the rich"
Investing
FIRE Getters presents What is the Current Inflation Rate? posted at FIRE Finance.
Patrick @ Cash Money Life presents How to compare online brokers posted at Cash Money Life, saying, "Tips on how to find the best online brokerage for your needs."
Zach Scheidt presents Risk and Reward - What the Last 18 Months Have Taught Us posted at ZachStocks, saying, "Balancing returns with proper risk controls will allow investors to realize superior gains over time and cut back on volatility and risk of loss"
ABC presents Investment Time Horizons for Retirees posted at ABCs of Investing, saying, "Discussing investment asset allocations and time horizons for retirees."
Dividends4Life presents Is Now The Right Time To Start Investing? posted at Dividends Value, saying, "Over the last six to eight months, there have been several prognosticators saying the market has finally hit bottom. In most cases they were quickly proven wrong as stocks continued to decline. What’s an investor to do? When is the right time to start investing?"
Frank Vertin presents Just Buy Index Funds Directly posted at No Load Index Funds, saying, "Buying an S&P 500 index fund through an investment counselor can substantially increase your initial purchasing costs and and drive up your annual management expense fees. Unfortunately, the vast majority of individual investors buy mutual funds and ETFs through brokers and investment advisers. Rarely do financial advisors recommend
that you buy index funds with low fees. This is because low cost, no load mutual funds do not pay them as well as loaded, high fee mutual funds.".
Darwin presents The Riskiest ETFs on Earth - 3X Sector ETF Short/Long posted at Darwin's Finance, saying, "With investors are enamored by weekly returns in excess of 20%, this article demonstrates the destructive and volatile nature over time of the Riskiest ETFs on Earth - 3X sector ETFs."
Praveen presents Three Stock Picking Ideas From Forbes Magazine posted at My Simple Trading System, saying, "Three Stock Picking Ideas"
ChristianPF presents 3 keys to safe investing posted at Money in the Bible | Christian Personal Finance Blog, saying, "These are three keys that every investor should be following if they are looking for safe and successful investments"
ABC presents Commodities posted at ABCs of Investing, saying, "A brief explanation of commodities."
Alex Fotopoulos presents SPY Chart - Premarket posted at Chart Analysis, saying, "Chart of the large S&P 500 ETF, SPY. Alex analyzes the SPY chart using trend lines, moving averages and the Williams %R indicator."
Larry Russell presents 7 Ways to Pick the Best Noload Mutual Funds and ETFs posted at NoLoad Mutual Funds, saying, "Taken as a whole, the vast body of investment research studies
show that there really are better approaches to buying and owning mutual funds and ETFs. You do not need to frantically chase fund performance. Performance chasing simply does not work."
Four Pillars presents Asset Allocation - Include Future Contributions? posted at Quest For Four Pillars, saying, "Can a small investor ignore asset allocation?"
Praveen presents Successful Trading is About More than Generating A Buy Signal.. posted at Stock Trading Riches,
saying, "When buying stocks, your initial purchase is the least important part of successful investing. Your return is determined by how well you manage the trade - i.e. knowing when to add to your position and when to take profits."
ABC presents Warning - Not All Index Funds and ETFs Are Low Cost posted at ABCs of Investing, saying, "Some index funds and etfs are too expensive."
Zach Scheidt presents ZachStocks Podcast 11: Chrysler, Market Pullback, Retail Weakness and Economist Projections posted at ZachStocks,
saying, "Chrysler bankruptcy, market rally pulls back, retail sales figures disappoint, WSJ survey of economists sheds light on recession and eventual rebound."
Richard M. Rothschild presents Low Cost Taxable Bond Mutual Funds posted at Best Bond Index Funds, saying, "The top 14 low cost taxable US fixed income funds with a
$10,000 or lower initial deposit. Low investment management fees are very important with fixed income funds. Simply put, if you pay higher bond mutual fund fees, then these bond management expenses tend just to be a deadweight loss to you. When you pay more in bond mutual fund fees, you are just wasting your money."
Wally Fouse presents 7 Ways to Pick the Best Noload Mutual Funds and ETFs posted at Best Index Funds, saying, "The vast body of investment research studies show that there
really are better approaches to buying and owning mutual funds and ETFs. You do not need to frantically chase fund performance. Performance chasing simply does not work."
Four Pillars presents Transfer In Kind posted at ABCs of Investing, saying, "An explanation of transfering your investments "in kind"."
Zach Scheidt presents Bankruptcies, M&A, and Playing Defense posted at ZachStocks, saying, "A discussion on current economic reports and their effect on the markets, Bank stress tests as a catalyst for selling, and defensive strategies to protect your portfolio from losses."
ABC presents Investment Time Horizons for Retirees posted at ABCs of Investing, saying, "A short and concise analysis of retirement asset allocation possibilities."
Managing Debt
Mr Credit Card presents Credit Cards to Rebuild Credit - Credit Score of 640-680- What Cards Can I Get? posted at Ask Mr Credit Card, saying, "This post gives some suggestions on credit cards to get if your credit score is in the mid 600 area."
nickel presents How to Find the Best Mortgage Rates posted at fivecentnickel.com, saying, "Tips and tricks for getting a killer deal on your next mortgage."
KCLau presents Do You Have a Wedding Debt? posted at KCLau's Money Tips, saying, "Most couples want to begin their married life auspiciously and
free from the problems. However, it is not uncommon to hear about married couples who go into debt just to get married. Article explores the reasons."
Miscellaneous
SpendingIt presents The Three Biggest Opportunities to Save Money posted at Spending It.
Retirement Planning
Patrick @ Military Money presents Roth Option for TSP Close to Reality posted at Military Finance Network, saying, "A new investing option for military members and government employees is about to become a reality."
Risk Management and Insurance
Brian McKay presents Homeowners Insurance: Taking Inventory of Your Possessions posted at MonitorBankRates.com, saying, "Having homeowners insurance or renters insurance is a must if you want to protect yourself from making a bad situation worse in the event of a fire, theft or some other damage to your property."
jim presents Researching Life Insurance posted at Blueprint for Financial Prosperity.
Silicon Valley Blogger presents Lower Your Car Insurance Rates! How To Cut Insurance Premiums In Half posted at The
Digerati Life, saying, "I offer some suggestions and tips for lowering your car
insurance and keeping your car related costs (and budget) to a minimum."
MoneyNing presents 20 Different Areas to Think About for a Cheaper Auto Insurance Policy posted at Money Ning,
saying, "Insurance is something we usually forget, yet we pay quite a bit for it regularly. If you can spend a few minutes and save big, why not?"
KCLau presents Bad Experience of Car Insurance Claim posted at KCLau's Money Tips, saying, "a story of bad experience with vehicle insurance claim"
Savings
KCLau presents Easy Pawn Shops - Do you need to Pawn? posted at KCLau's Money Tips, saying, "Pros and cons of pawning"
Money Saving Advice presents British consumers have New Year resolution to save more money! posted at Money Saving Tips, Consumer Finance, Expert, Advice and Help | Talk Money Blog, saying, "The Financial Times reported that new research commissioned by
the ABI showed that almost fifty percent of British consumers had made this New Year’s resolution to start saving more money for the future."
Four Pillars presents 397 Ways To Save Money - Squawkfox Book Review posted at Quest For Four Pillars, saying, "397 Ways To Save Money - Book review on Squawkfox.com's new release!"
MoneyNing presents How to Save Money on Your Wedding posted at Money Ning, saying, "We go through the big day at least once but many people think it's one of the most expensive days of our lives. Here are some tips that will help reduce the expenses of this important day."
The Skilled Investor presents Most
Individual Investors Are Poor Personal Portfolio Managers | Personal Investment Management posted at Personal
Investment Manager, saying, "Investors more easily understand investment costs that are directly measurable, such as fees deducted on investment statements. However, many investors ignore or are unaware of the opportunity costs of their sub-optimal investment behaviors. Opportunity costs are usually much more difficult to measure directly, but these investment costs can be even higher than more visible investment fees."
Taxes
MoneyNing presents Let Businesses Deal with Sales Tax - Government Improvement Series posted at Money Ning, saying, "Government really needs to improve on somethings and I say to let businesses deal with sales taxes!"
Barb A. Ryan presents Asset Allocation, Investment Asset Tax Location, and Emergency Cash Management posted at Independent Financial Planner, saying As you move your cash, bond, and stock financial assets into lower cost, more broadly diversified investment mutual funds and/or
ETFs, you should also consider how to locate your investment asset allocation with respect to more optimal taxation. This article will discusses some ideas about where and how to hold your cash assets and how to make emergency cash available."
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Thursday, 28 May 2009
The major U.S. Airlines (United, American, Delta, etc.) have all signed up with Aircell to offer its Gogo Wi-Fi service on its flights.
Boeing, meanwhile, scrapped its Connexion system - taking a $320 million pretax write-down of its investment.
Why did little Aircell succeed, while giant Boeing failed?
The answer is that Aircell followed the KISS principle, and kept it small and simple.
Connexion was a complicated system that bounced signals off satellites, and had 3 strikes:
1. It cost users $26.95.
2. It cost airlines $1 million per plane to install and took the plane out of service for 2 weeks.
3. It added 800 pounds to each airplane.
Aircell, on the other hand, started with the simple objectives that their system would add less than 100 pounds, would cost less than $100,000 per plane to install, and would require only one night of installation. Users would pay as little as $5.95.
They accomplished this by coming up with a simple and elegant way to cover the whole U.S. with only 92 cell towers. The only drawback is that their system will not work on overseas flights, but that is something they can work on for the next iteration.
Boeing, meanwhile, scrapped its Connexion system - taking a $320 million pretax write-down of its investment.
Why did little Aircell succeed, while giant Boeing failed?
The answer is that Aircell followed the KISS principle, and kept it small and simple.
Connexion was a complicated system that bounced signals off satellites, and had 3 strikes:
1. It cost users $26.95.
2. It cost airlines $1 million per plane to install and took the plane out of service for 2 weeks.
3. It added 800 pounds to each airplane.
Aircell, on the other hand, started with the simple objectives that their system would add less than 100 pounds, would cost less than $100,000 per plane to install, and would require only one night of installation. Users would pay as little as $5.95.
They accomplished this by coming up with a simple and elegant way to cover the whole U.S. with only 92 cell towers. The only drawback is that their system will not work on overseas flights, but that is something they can work on for the next iteration.
1. McKesson (MCK) - This drug distributor's two largest customers are Rite Aid and CVS Caremark. There is concern that Rite Aid may default on its debt, and the CVS contract is up for renewal this summer. The stock is recommended because the analyst thinks that its price already reflects the worst-case scenario of McKesson losing both customers. Instead, McKesson could take business from its competitor Cardinal Health.
Also, MCK could pay off their $1.8 billion in debt with one year of cash flow from operations.
2. Intel (INTC) - They own 80% of the PC microprocessor market, and they are moving into notebook computers, mobile internet devices, etc.
3. American Express (AXP) - This stock was down with all the other financial stocks. Forbes thinks it will come back because of the virtuous circle that earned them a ten-year average return on equity of 10%: American Express attracts high spending card holders, which allows them to charge higher merchant fees. AmEx then invests some of this money into cardholder rewards/perks. This, in turn, attracts more high spenders.
Also, MCK could pay off their $1.8 billion in debt with one year of cash flow from operations.
2. Intel (INTC) - They own 80% of the PC microprocessor market, and they are moving into notebook computers, mobile internet devices, etc.
3. American Express (AXP) - This stock was down with all the other financial stocks. Forbes thinks it will come back because of the virtuous circle that earned them a ten-year average return on equity of 10%: American Express attracts high spending card holders, which allows them to charge higher merchant fees. AmEx then invests some of this money into cardholder rewards/perks. This, in turn, attracts more high spenders.
The May 11, 2009 issue of Forbes had a profile on LG Electronics, and its CEO Yong Nam.
After becoming CEO, Nam started having brainstorming sessions with employees whenever he visited an office.
During one of the sessions, the purchasing staff noted that different suppliers were selling the same part to LG with different part numbers.
As a result of this observation, LG greatly simplified its logistics by requiring vendors to adopt a unified code.
After becoming CEO, Nam started having brainstorming sessions with employees whenever he visited an office.
During one of the sessions, the purchasing staff noted that different suppliers were selling the same part to LG with different part numbers.
As a result of this observation, LG greatly simplified its logistics by requiring vendors to adopt a unified code.
Forbes magazine recently had an article about how venture capitalists (VC's) are now only interested in funding start ups that do not depend on advertising for income.
They give the example of online real estate brokerage Redfin. Two years ago, VCs were not interested in the company because their revenue model was to collect fees from people buying and selling homes, rather than from ads. Today, Redfin has gotten five or 6 unsolicited calls in the last few months.
Forbes gives two reasons why the ad supported start-ups are out of favor:
1. Ad rates are down due to the recession.
2. Too many copy-cat social networking and MySpace widget companies.
The Forbes article then mentioned a Redwood City, California based start-up called Renkoo, which let people send things like virtual glasses of beer to their friends, and made money showing ads.
According to the article, in early 2008, they ceased being a viable business when their advertising rates dropped from $15 per thousand page views down to 10 cents.
They give the example of online real estate brokerage Redfin. Two years ago, VCs were not interested in the company because their revenue model was to collect fees from people buying and selling homes, rather than from ads. Today, Redfin has gotten five or 6 unsolicited calls in the last few months.
Forbes gives two reasons why the ad supported start-ups are out of favor:
1. Ad rates are down due to the recession.
2. Too many copy-cat social networking and MySpace widget companies.
The Forbes article then mentioned a Redwood City, California based start-up called Renkoo, which let people send things like virtual glasses of beer to their friends, and made money showing ads.
According to the article, in early 2008, they ceased being a viable business when their advertising rates dropped from $15 per thousand page views down to 10 cents.
Who among us wouldn't like a little more money?
Here are some ways that you might be able to generate some quick cash:
1. Search for Unclaimed Cash - These include dormant bank accounts, old paychecks, forgotten safe deposit boxes, inheritances, etc. If unclaimed property belonging to you have been turned over to the government, you can do a free search at Missingmoney.com.
2. Sell Things - You can hold a local garage sale, or sell online through sites like Craigslist or Ebay. You can sell old electronics at sites like Gazelle.com, Buymytronics.com, and MyBoneyard.com.
3. Rent Stuff - You can rent things like tools to people in your local area through sites like Zilok.com and iRent2u.com.
4. Employer 401k Match - If your employer offers to match your retirement contribution, take it!
5. Credit Card Rewards - Reward and cash back programs are a great way to generate extra money from normal use of your credit card, especially if you pay off your balance each month.
You can register your existing card at RewardsNetwork.com to get cash back from dining out.
6. Rebate Portals - Go through these if you are shopping online. CompareRewards.com evaluates rewards programs. They recommend portals like Extrabux.com.
7. Better Interest - Search for higher rates on bank accounts and CDs at sites like Bankrate.com or MoneyAisle.com.
8. Price guarantees - You can monitor your purchases at Priceprotectr.com. If the price goes down right after you buy something, a lot of retailers will give you the lower price and refund the difference.
Here are some ways that you might be able to generate some quick cash:
1. Search for Unclaimed Cash - These include dormant bank accounts, old paychecks, forgotten safe deposit boxes, inheritances, etc. If unclaimed property belonging to you have been turned over to the government, you can do a free search at Missingmoney.com.
2. Sell Things - You can hold a local garage sale, or sell online through sites like Craigslist or Ebay. You can sell old electronics at sites like Gazelle.com, Buymytronics.com, and MyBoneyard.com.
3. Rent Stuff - You can rent things like tools to people in your local area through sites like Zilok.com and iRent2u.com.
4. Employer 401k Match - If your employer offers to match your retirement contribution, take it!
5. Credit Card Rewards - Reward and cash back programs are a great way to generate extra money from normal use of your credit card, especially if you pay off your balance each month.
You can register your existing card at RewardsNetwork.com to get cash back from dining out.
6. Rebate Portals - Go through these if you are shopping online. CompareRewards.com evaluates rewards programs. They recommend portals like Extrabux.com.
7. Better Interest - Search for higher rates on bank accounts and CDs at sites like Bankrate.com or MoneyAisle.com.
8. Price guarantees - You can monitor your purchases at Priceprotectr.com. If the price goes down right after you buy something, a lot of retailers will give you the lower price and refund the difference.
Wednesday, 27 May 2009
| Radio Host Mancow Muller thought that waterboarding wasn't torture, but he changed his mind after undergoing it... Here is the video: http://www.youtube.com/watch?v=qUkj9pjx3H0 |
Saturday, 23 May 2009
|
Wednesday, 20 May 2009
Monday, 18 May 2009
My post on Successful Trading is About More than Generating A Buy Signal... was included in the Carnival of 20 Somethings Finance blog carnival.
The post is on my new Stock Trading Riches blog.
The post is on my new Stock Trading Riches blog.
Saturday, 16 May 2009
| I was recently interviewed about my book on a writer's media website. |
Tuesday, 12 May 2009
15-Second Principle, The , Revised Edition
by Al Secunda.
This book is meant to be a general self-help book, but I found the principles have really helped me in business. The book's premise is that, when we try to pursue our dreams, we get paralyzed by fear and procrastination. So, it offers two main solutions:
1. Instead of putting something off, promise yourself to at least work on it for a short time (i.e. 15 seconds or a minute), and then you are free to stop. Usually momentum will cause you to work longer on it.
2. Pleasure vs. perfection. When learning or doing something new, favor pleasure (i.e. enjoying yourself) over mastery. The author taught tennis, and felt his students had longer term success if they enjoyed themselves, rather than if they got a stroke completely correct right away.
I found these 2 principles helping me tackle difficult business challenges, instead of procrastinating.
by Al Secunda.
This book is meant to be a general self-help book, but I found the principles have really helped me in business. The book's premise is that, when we try to pursue our dreams, we get paralyzed by fear and procrastination. So, it offers two main solutions:
1. Instead of putting something off, promise yourself to at least work on it for a short time (i.e. 15 seconds or a minute), and then you are free to stop. Usually momentum will cause you to work longer on it.
2. Pleasure vs. perfection. When learning or doing something new, favor pleasure (i.e. enjoying yourself) over mastery. The author taught tennis, and felt his students had longer term success if they enjoyed themselves, rather than if they got a stroke completely correct right away.
I found these 2 principles helping me tackle difficult business challenges, instead of procrastinating.
Monday, 11 May 2009
Friday, 8 May 2009
I have a regular feature of this blog where I like to spotlight interesting niche websites and businesses that I come across.
I think that the best way for small businesses to be successful is to find a niche that they enjoy, and then fill it.
Today's post is on Jameson Management, who specialize as Dental Consultants.
In other words, rather than join the crowded field of coaching and consulting for small businesses in general, they focused on the niche of dental practices.
This is a win-win situation, because dentists can benefit from the specialized advice, experience, and expertise that Jameson has acquired over time. In return, Jameson stands out among dentists from the more general management consultant firms.
This will create the positive cycle found in successful niche businesses: dentists in need of business consulting will be attracted to Jameson since they focus on the niche, and then Jameson will get better at servicing this niche, and dentists will be morel likely to refer their colleagues to Jameson.
I think that the best way for small businesses to be successful is to find a niche that they enjoy, and then fill it.
Today's post is on Jameson Management, who specialize as Dental Consultants.
In other words, rather than join the crowded field of coaching and consulting for small businesses in general, they focused on the niche of dental practices.
This is a win-win situation, because dentists can benefit from the specialized advice, experience, and expertise that Jameson has acquired over time. In return, Jameson stands out among dentists from the more general management consultant firms.
This will create the positive cycle found in successful niche businesses: dentists in need of business consulting will be attracted to Jameson since they focus on the niche, and then Jameson will get better at servicing this niche, and dentists will be morel likely to refer their colleagues to Jameson.
Thursday, 7 May 2009
My post on Combining Fundamental and Technical Analysis is included in the latest edition of the Money Hacks Carnival.
| If you are looking for a last-minute mother's day gift, you might want to consider an Amazon.com gift card - with a mother's day design. |
Wednesday, 6 May 2009
Last year, the FDIC raised its insurance limit to $250,000. That means that, if your bank goes under, your money (up to $250,000) is guaranteed by the government.
But did you know that you can actually get an FDIC insured CD up to $50 million?
It turns out that a lot of banks belong to CDARS - the Certificate of Deposit Account Registry Service.
Basically, you would go to one of these banks and open up a CDARS CD. As far as you are concerned, you will have one large, FDIC insured CD - i.e. one rate and one statement.
In the background, the money will be broken up and scattered amongst all the network banks to guarantee that each portion is within the FDIC limit of $250,000.
But did you know that you can actually get an FDIC insured CD up to $50 million?
It turns out that a lot of banks belong to CDARS - the Certificate of Deposit Account Registry Service.
Basically, you would go to one of these banks and open up a CDARS CD. As far as you are concerned, you will have one large, FDIC insured CD - i.e. one rate and one statement.
In the background, the money will be broken up and scattered amongst all the network banks to guarantee that each portion is within the FDIC limit of $250,000.
My post on Business Skills of a Basketball Coach was included in the latest edition of the Athletic Alley Blog Carnival.
Monday, 4 May 2009
Yesterday, my wife and I sold our 1990 Toyota Celica. We are now a suburban rarity: a family with only one car (a 2002 Toyota Camry).
Actually, for most of the past 20 years, I have only had one car (the Celica). I bought it in 1990, after I graduated college. I always either worked near my home or took the train downtown, so I never drove much (the Celica only had 110,000 miles when I sold it yesterday).
In 2005, we got the Camry because we were expecting my son, and needed a four-door car. Also, with an infant, my wife could not drop me off at the train station early in the morning. We bought a 2002 Camry for cash because, based on the longevity of the Celica, we learned that it is a waste of money to buy a new car (especially with a loan).
Today, we don't really need two cars. My wife doesn't work, and I now work from home - so the Celica was mostly parked on my driveway. By converting the car into cash, I figure that I have trimmed more than $50 per month in expenses (insurance, license plate fee, maintenance, gas, etc).
I put an ad on Craigslist Saturday morning, and sold it on Sunday. I listed the car for $2100 and managed to get $1550 (I disclosed the power steering leak). My wife thought we should have gotten $2000, but most of our friends thought I did well selling a 20 year old car for that much in the current market.
This experience demonstrates the depreciating nature of cars (as opposed to houses):
I bought the Celica for $18,000 in 1990 dollars. I paid more because I had a five year loan at about 13% (I paid it off in 2 years).
I sold the Celica for $1,550 in 2009 dollars.
I think I made out well because I kept the car for 20 years. But, to me, the experience reinforces my view that one should never buy a new car.
Actually, for most of the past 20 years, I have only had one car (the Celica). I bought it in 1990, after I graduated college. I always either worked near my home or took the train downtown, so I never drove much (the Celica only had 110,000 miles when I sold it yesterday).
In 2005, we got the Camry because we were expecting my son, and needed a four-door car. Also, with an infant, my wife could not drop me off at the train station early in the morning. We bought a 2002 Camry for cash because, based on the longevity of the Celica, we learned that it is a waste of money to buy a new car (especially with a loan).
Today, we don't really need two cars. My wife doesn't work, and I now work from home - so the Celica was mostly parked on my driveway. By converting the car into cash, I figure that I have trimmed more than $50 per month in expenses (insurance, license plate fee, maintenance, gas, etc).
I put an ad on Craigslist Saturday morning, and sold it on Sunday. I listed the car for $2100 and managed to get $1550 (I disclosed the power steering leak). My wife thought we should have gotten $2000, but most of our friends thought I did well selling a 20 year old car for that much in the current market.
This experience demonstrates the depreciating nature of cars (as opposed to houses):
I bought the Celica for $18,000 in 1990 dollars. I paid more because I had a five year loan at about 13% (I paid it off in 2 years).
I sold the Celica for $1,550 in 2009 dollars.
I think I made out well because I kept the car for 20 years. But, to me, the experience reinforces my view that one should never buy a new car.
Sunday, 3 May 2009
Its 55th (and last) edition has a lot of great posts, including my post on Niche Business Focus: Astrologists Sara Freder and Larry Pesavento.
Friday, 1 May 2009
| In Oswego, IL, a far southern Chicago suburb, a townhouse project called "Seasons at Southbury" has been abandoned by the developer, who just disappeared. Of the 38 buildings planned, only 8 buildings have been started. They are still a mix of finished and unfinished units. Now, owners there are stuck with dirt yards, boarded-up houses next door, and dumped mounds of trash. They have to worry about animals and they do not know if they will have any association services. They still pay their monthly dues but, because most of the land still belongs to the developer, the developer is the homeowner's association. |
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