Speaking of inflation, I noticed that people have irrational sensitivity to gas prices. Warehouse club Costco stores in my area also sell gas. The price is usually a little cheaper than the price at other gas stations. I can tell by the length of the lines how much cheaper it is. If it’s five cents […]
Latest Blog Posts
Fitness Trainer and Financial Advisor
In a previous post Pay Someone to Enforce the Discipline, I compared fitness trainers to financial advisors. "I’m pretty sure [the trainees] can get exercise routines off the Internet and do the same exercises on their own. Are those people foolish in paying good money for nothing?" Peter Sagal is the host of NPR’s new […]
Mortgage Refinance: Don’t Overlook Adjustable Rate Mortgages (ARMs)
The mortgage rates dropped again. I’m refinancing my mortgage again. It’s amazing it hasn’t been even a year since I did it last time. The rates were low last year because of the anticipation for QE2. Once QE2 started, rates went up. Now rates are low again. Why? I don’t know. Maybe the market is […]
Save More For Retirement Or Save For House Down Payment?
I see this question come up a lot from recent college graduates. After you contribute enough to get the employer match in the 401k or 403b plan, should you save more for retirement, or should you save for a house down payment? The question is asked presumably because the income does not allow one to […]
Vote for New Mortgage Disclosure Form Design
The new Consumer Finance Protection Bureau is asking the public to vote on two draft designs for the mortgage disclosure form. The goal is to make it easier for the borrower to understand the loan terms. They call it "Know What You Owe." The new form, when it’s finalized, will replace the current Good Faith […]
Better Work For A Large Company Or For A Small Company?
If you work as an employee, do you work for a large company or for a small company? If you have worked for both types, which do you prefer? Speaking of looking for a new job for better pay, a former colleague just told me an opportunity at the company he’s working now. Because he […]
Take Money Off the Table After a Good Run
Almost three years ago, when the stock market entered a bear market, I devised a plan for overbalancing, which called for increasing the percentage of my portfolio invested in stocks as the market goes lower. Stock Market Allocation to Stocks -5% 60% -10% 60% -15% 60% -20% 65% -25% 65% -30% 70% -35% 70% -40% […]
In-Plan Roth Rollover: Practically Useless
A new law passed last year, Small Business Jobs Act of 2010, added a provision to allow participants in 401k or 403b plans to move their money from a traditional 401k or 403b account to a Roth 401k or 403b account within the same plan. This is called an “in-plan Roth rollover.” As a practical […]
Career Advancement Or Side Business?
Reader simplesimon left this comment to my post last week Wages During and After Recession: Regarding how to earn more, check out the I Will Teach You To Be Rich blog by Ramit Sethi. He tries to get people thinking on what their skills are and how to turn that into income. From what I’ve […]
Inherited IRA and Roth Conversion Pro-Rata Rule
An inherited IRA isn’t yours. It isn’t included in the pro-rata calculation unless you are the spouse of the deceased and you make the inherited IRA your own IRA.