After my FFCB bond was called in December, I’ve been mulling over what I should do with the proceeds. I decided to use the money for my 2008 IRA contribution and buy more REITs there. The Vanguard REIT ETF (VNQ) dropped 25% in the last 3 months, causing it to be the asset class which […]
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Looking Inside a Credit Card Portfolio
I was searching for some information about my credit card the other day and I accidentally stumbled upon a collection of interesting documents. They are the offering documents for Bank of America’s borrowing backed by its credit card receivables. Bank of America lends money to credit card holders. It borrows the money from the capital […]
Better Gift Cards
It’s holiday time. Many stores are pushing gift cards and gift certificates. I heard a radio ad for a lottery gift card! You give someone a gift card so they can buy lottery tickets. Isn’t that insane? The lottery has long been said as a tax on the poor. You give someone a gift so […]
A Different World
I’m traveling on business again. I read this interesting letter from a reader in the US Airways Magazine. I added the link so you will see what he’s talking about. “On my US Airways flight, I would typically call my situation “unfortunate” -sitting on the runway for over an hour waiting for take-off. However, I […]
How a Callable Bond Worked
The Federal Farm Credit Banks (FFCB) bond I bought in February finally got called. For more info about federal agency/GSE bonds, see my previous post Agency Bonds for Higher Yield Over Treasury. A callable bond means after a certain date, the bond issuer can redeem the bond early, before the bond’s stated maturity date. When […]
Why Banks Push Debit Cards
The Wall Street Journal reporters at FiLife started a series of “Why Don’t They …” blog posts making suggestions about services and practices which seem to make sense to the customers but not offered by the financial institutions. I gave a one-word answer — economics. If you think they should do something but they are […]
Salute to the American Consumers
If you read financial stories in the media you must have come across the talk of a forthcoming recession, like this article on Bloomberg, Recession Hits U.S. Profits; Economy Might Be Next. The lead paragraph reads “U.S. corporate profits are in a recession, and the entire economy may not be far behind.” I went shopping […]
Unsure About Socially Responsible Investing (SRI)
I read this question in a recent issue of the Yoga Journal magazine: “I don’t want to support tobacco companies or environmental polluters, but my broker claims that socially responsible investing will cost me. How can I persuade my broker to make investments that align with my values?” The official answer from the magazine pointed […]
Take the Bait On No Interest Financing?
No interest, no payments for 12 months! That’s a typical financing offer by furniture and electronics stores. I noticed recently some airlines started offering the same type of financing. For example American Airlines’ credit card offers 6 months no payments, no interest on purchases from aa.com. These cards are specific to the airline. They don’t have a Visa or MasterCard logo. You can’t […]
What To Do If Your Health Insurance Says Your Treatment Is Not Covered
Last Friday, I happened to pick up a copy of the Wall Street Journal somebody left on the train. There was an intriguing article on the front page — How U.S. Health System Can Fail Even the Insured. It’s a long story but the story line is familiar. A Mrs. Barbara Calder has a rare genetic illness but […]