How to Invest When Interest Rates Rise

How to Invest When Interest Rates RiseFixed income is considered by most investors to be the cornerstone of a well-constructed portfolio, usually through investment-grade bonds with laddered maturities. For more than 30 years, this has worked well, rewarding investors with a steady stream of income and well-preserved capital. But we now find ourselves at a well-covered inflection point of ultra-low returns and near-certain imminent increases in interest rates — the double whammy of bond investing. This…

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Financial Advice that is Popular And Wrong

Financial Advice that is Popular And WrongSome financial advice is so oft-repeated that everyone takes it for granted: You shouldn’t bring debt into retirement. Debit cards are safer than credit cards. Older folks should invest more conservatively. As they used to say on Seinfeld, yadda yadda yadda. The problem is, a lot of that is bad advice. At best it fit a bygone era; at worst it was never right and is dangerous. Here is a…

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Passive Investing Still Takes Work

Passive Investing Still Takes WorkThe dream of passive investing is to build a portfolio so that you no longer have to do anything active to get a steady return. But it takes some work to make it come true, especially now when interest rates are low and markets are volatile. The goal is to find the kind of stable assets that will eventually do all the work of earning money for you. When you…

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Investing In Gold And Silver

Investing In Gold And SilverFirst, it’s necessary to decide how you want to deal with these precious metals. (I’m adding silver into the discussion, though other metals, like platinum and copper, are also significant.) People have been using them for coinage and ornamental purposes for thousands of years; early civilizations like the Sumerians and Egyptians seem to have focused primarily on gold for jewelry and ornamentation. Weighing your choices Gold is measured by troy…

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What to do with $10,000 Right Now

What to do with $10,000 Right NowFor most people, getting a windfall of $10,000-through an inheritance, a severance payment or a small lottery win on the weekly Scratch ‘N Win card-can make a huge difference in their lives. Whether you invest in your small business, save it towards a long-term goal like retirement, pay off hefty consumer debt or help your kids with their college education bills, doing so can speed up your journey down the…

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30 Financial Moves Before 30 – Ideas Worth Trying

30 Financial Moves Before 30 - Ideas Worth TryingI started reading the Art of Non-Conformity the other day and the idea of the life list/bucket list got me thinking again. I started thinking about my bucket list for what I want to accomplish before I turn 30 (in 7 years). Then I started to get more specific. I started thinking about what I want to accomplish financially before 30. Then I realized that my mind was all over…

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Index Investing Becoming a Victim of Its Own Success

Index Investing Becoming a Victim of Its Own SuccessToo much of a good thing can end up being bad. That includes using a benchmark index as the basis for an investing apparently. In the July 2010 paper (download here from SSRN; acknowledgement to Stingy Investor where I found the link) On the Economic Costs of Index-Linked Investing, NYU prof and NBER research associate Jeffrey Wurgler reviews some research results that are disquieting for investors who follow a passive…

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