Analysis Topic: Personal FinanceThe analysis published under this topic are as follows.
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.
Thursday, September 25, 2014
Don’t Be a Freedom Wimp: Live from the Casey Research Summit in San Antonio / Personal_Finance / Learning to Invest
By Doug Hornig, Senior Editor
On Day Two of the Casey Research Summit in San Antonio, the emphasis was decidedly on the “deep state,” as Doug Casey termed it: what it is, what it’s doing, and how to thrive despite its ubiquitous reach.
The deep state begins with government, an institution Doug describes as intrinsically evil and destructive. That’s because it’s empowered by enforced coercion—one of only two ways in which humans interact with one another (the alternative being voluntary cooperation).Read full article... Read full article...
Thursday, September 25, 2014
Boris Dzhingarov writes: Your ability to obtain credit is crucial to securing many of the biggest purchases in life, and this ability is largely dependent on your credit score. In many cases, the higher your score, the cheaper your credit will be. The key to maintaining a healthy score involves knowing exactly what factors contribute - and here are five of the most common.
Wednesday, September 24, 2014
Not even the biggest hike in tax-free allowance since the launch of ISAs has stirred the savings market from its apathy. Moneyfacts.co.uk can reveal that the ISA sector has remained largely subdued and the majority of rates have actually fallen further since the increased allowance was announced.Read full article... Read full article...
Thursday, August 21, 2014
For many a car lover, retiring rich requires the end of a lifelong love affair. I empathize with them all; I’ve had my own romance over the last 50-plus years.
Cars have a special resonance for people of my generation. George Lucas’ classic coming of age film American Graffiti is proof positive of that. As teens we flocked to auto dealers when new models came out and fantasized about actually being able to own our favorite. And let’s face it: cool cars were chick magnets. In our 20s and 30s, with the help of a friendly finance company, those dreams became reality, and every few years we’d get the new car itch again.Read full article... Read full article...
Tuesday, August 19, 2014
Inflation figures released today show that the Consumer Prices Index (CPI) fell from 1.9% to 1.6% during July.
To beat inflation, a basic rate taxpayer at 20% needs to find a savings account paying 2% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 2.67%.Read full article... Read full article...
Thursday, August 14, 2014
Wall Street is “rigged.” That’s the word Michael Lewis, author of the bestseller Flash Boys, is spreading among the news networks, and it’s produced a vast outcry in the financial community.
Really? As Gordon Gekko, the unscrupulous corporate raider in the ‘87 classic Wall Street, says, “Come on, pal. Tell me something I don’t know.”
There’s a lot to learn from Gekko, who spends the bulk of the film demanding a young stockbroker named Bud Fox bring him information—information no one else can or will deliver. A few Gekko-isms should jolt your memory of the movie:Read full article... Read full article...
Tuesday, August 05, 2014
Your Insurance Company Lands in Rehab—Will Your Annuity Survive? / Personal_Finance / Pensions & Retirement
Your insurance company probably won’t go under; however, one might have said the same of AAA bonds in 2007. As many investors found out, sometimes the unlikely suddenly becomes your very own nightmare.
In 2012 the Financial Guaranty Insurance Company with $2.1 billion in assets failed. Also, in 2009 the Shenandoah Life Insurance Company with $1.7 billion in assets went under. In 2008, Standard Life Insurance Company of Indiana with $2 billion in assets collapsed as well. Although these failures weren’t all national front-page news like the AIG fiasco, anyone who owns an annuity or is thinking of buying one should take note.Read full article... Read full article...
Friday, August 01, 2014
UK Savers’ Still Paying the Cost of Funding for Lending Scheme / Personal_Finance / Savings Accounts
The ill-fated Government initiative to kick-start the housing market, (Funding for Lending Scheme) was withdrawn this January, but not before it had decimated the savings market.
Now the dust has settled, Moneyfacts has analysed what, if any, impact the withdrawal of FLS has had on the savings market.Read full article... Read full article...
Thursday, July 31, 2014
Need-to-Know Tips for Buying Annuities… And Knowing When They’re Not For You / Personal_Finance / Pensions & Retirement
You're probably something of an expert in your own field—and that field probably isn't insurance or annuities. How, then, can you work through the minefield of clauses, guarantees, and pages of small print? Here are nine ways to start.
While you may feel uncomfortable doing this, you're the one putting down thousands of dollars, and you have every right demand this. Remember: caveat emptor! It's the buyer who must beware; you must protect yourself. Ultimately, the language in the annuity contract is what matters, but it doesn’t hurt to memorialize your verbal agreement with the agent in writing.Read full article... Read full article...
Monday, July 28, 2014
Shah Gilani writes: This is amazing.
If you’re about to become a college student, if you’re already a college student, or if you’re simply in debt and need more credit and plan on becoming a student again, you’re in luck.
Financial services giants Discover Financial Services Inc. (NYSE: DFS), Capital One Financial Corp. (NYSE: COF), Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), and U.S Bancorp (NYSE: USB), to name a few players in the student credit game, are bending over backward for you.Read full article... Read full article...