Friday Reading: Sequester, What Sequester?

By Harry Sit

I’m out of the country on a business trip. I heard the sequester is moving forward. For once we are going into something as promised. That’s a change from all those "if Congress doesn’t act …" things. The stock market as a leading indicator is telling us the country and the economy will do just fine.

PenFed CD Rates Will Be Falling in March by Ken Tumin at DepositAccounts.com

After offering market-leading rates for the last few months, PenFed will cut the interest rates on its CDs in March. The rate for the 5-year CD will be 1.65%. It’s still competitive with Discover Bank and Ally Bank. 

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Vanguard Managed Payout Funds Review by Mike at Long-Term Returns

I think Mike is a little too harsh on the Vanguard Managed Payout Fund. It can be better by Vanguard standards but there are many worse ones out there.

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How to build a better 5 percent income fund by Allan Roth at CBS MoneyWatch

Instead of using a Vanguard Managed Payout Fund, can you get your 5% income by following the strategy in this article? The keyword here is "better."

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Insurance Should Stink by Mike Piper at Oblivious Investor

It should stink because insurance has value, in the same way having your payout managed has value. If you want value, you must pay or do it yourself.

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Should You Max Out Your 401(k)? by Matthew Amster-Burton at MintLife

Absolutely. I maxed out my 401(k) every year since I started working full time. It took more than 20% of my income in the beginning. You get used to it fast.

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What low interest rates mean for stocks by Larry Swedroe at CBS MoneyWatch

Research says stock returns could be low too. Oh no, I need them higher!

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Agonizing Over Optimal by Rick Ferri at RickFerri.com

I experiment and deviate but I don’t agonize.

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Is the U.S. Turning Into Japan? We Should Be So Lucky by Zachary Karabell at The Atlantic

U.S. turning into Japan would be really bad, because we would get all the bad in Japan but none of the good. We don’t have Japan’s savings culture. We won’t get that culture just because the economy stops growing.

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Posted on March 1, 2013 under News. Keywords: , , , .

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One Comment on Friday Reading: Sequester, What Sequester?

  1. AWB on March 5, 2013
     

    The stock market as a leading indicator is not always accurate. Recent history illustrates that point as the market was very bullish even as the housing market was deteriorating, and the Fed had already started lowering interest rates. The signs were there via market conditions and monetary policy before the stock market reacted.

    As Warren Buffett recently stated, the stock market is a deal because there aren’t that many other options for a decent long-term yield. Still, the risk in equity is quite a bit higher than say a well diversified international bond ETF or high-yielding domestic municipal bond from a solvent county.

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