Investing

Balancing An Investment Portfolio For The First Time

As the year ends, I’m thinking about one of the most common suggestions that people offer as an annual financial task: rebalancing my investment portfolio. For me, this is a relatively new concept, as I previously just selected something at random for my retirement money to go into and assumed it would do “well” without …

Categories: Investing

Rule #1: Implementing The Rule

During this final week in 2006, The Simple Dollar is reviewing one of the top investment book of the year (based on Amazon.com sales). What does Phil Town’s Rule #1 really all about, and does it bring anything useful to the plate that we didn’t already know? This week, we aim to find out. So, …

Calculating Phil Town’s “Sticker Price”: An Example

Yesterday, I posted a discussion of several interesting aspects of Phil Town’s book Rule #1. One of these points was Phil’s requirement that any stock you invest in have a Margin of Safety. To determine this margin, Phil offers up a formula that calculates a stock’s “sticker price,” which can be calculated by retrieving some …

Categories: Investing

Rule #1: The Five Numbers

During this final week in 2006, The Simple Dollar is reviewing one of the top investment book of the year (based on Amazon.com sales). What does Phil Town’s Rule #1 really all about, and does it bring anything useful to the plate that we didn’t already know? This week, we aim to find out. In …

Rule #1: The Four Ms

During this final week in 2006, The Simple Dollar is reviewing one of the top investment book of the year (based on Amazon.com sales). What does Phil Town’s Rule #1 really all about, and does it bring anything useful to the plate that we didn’t already know? This week, we aim to find out. The …

Yahoo! Finance Disappoints: Powerball Jackpot Climbs To $75 Million?

As I was surfing through Yahoo! Finance last night, I spotted an article on the front page that disappointed me greatly. Right on the front page was a link to an article with the headline Powerball Jackpot Climbs To $75 Million!, including the exclamation point. For those unaware, Powerball is a multi-state lottery in the …

How To Read A Mutual Fund Prospectus

Once you begin investing, you’ll find yourself receiving a wide array of financial documents. One of the most useful – and the most intimidating for new investors – is the mutual fund prospectus. This document is often written in a very dense fashion that convinces casual readers that they should be reading something else, but …

Categories: Investing

Rule #1: Overview

During this final week in 2006, The Simple Dollar is reviewing one of the top investment book of the year (based on Amazon.com sales). What does Phil Town’s Rule #1 really all about, and does it bring anything useful to the plate that we didn’t already know? This week, we aim to find out. I …

Should I Pay Off Student Loans or Invest?

Recently, I received an email from Nate, a reader of The Simple Dollar. He was wondering whether it makes more sense to invest or to pay off his student loans: I’m a regular reader of your site. I’m also a senior getting ready to graduate. I’m in an interesting situation and I was wonder what …

Extra Mortgage Payment vs. Investments

As my wife and I begin the process of finding and buying a home, we repeatedly find ourselves investigating various aspects of home ownership. Right now, we’re in a situation where we are able to save and invest far more each month than we will be spending on a home mortgage in the price range …

Categories: Housing, Investing

When Should I Begin Investing?

Lots of people who begin putting their financial house in proper order quickly begin to wonder when they should start investing in high-return items with risk, particularly the stock market. They see the 10%-12% average annual return, have cash that they want to sock away for a while, and talk themselves into investing before they’re …

Live Like You Were Dying

So many of us have imagined what we would do with our lives if we had just one year to live. Most of these fantasies involve quitting a job, spending time with loved ones, and traveling around the world. What’s keeping you from doing this right now? Debt? Responsibilities? Don’t know? Don’t worry, you’re not …

An Idea That Will Teach Kids About Money & Investing

I recently was chatting with a fellow “new” parent about ways that we could teach our kids about money. She related to me an interesting tale that I thought I’d share with all of you. On the day her husband was born, his father put $600 into a mutual fund (the exact investment was unimportant, …

Categories: Family, Investing

Five Solid Companies To Invest In

I subscribe to the general philosophy that you should invest in what you know. Although I currently don’t own individual stocks, I have begun following the stock market with great interest and have been keeping an eye on what makes money and what doesn’t. What I’ve seen, time and time again, is that companies that …

Is Living Cheap Really Worth It? Ask Alan and Bob

I was enjoying a rather brazen post at Personal Finance Advice on the topic of the utter simplicity of the basics of personal finance (it’s just spend less than you earn and invest the difference) when this comment, left by “StevenL,” really got me thinking: I think this makes sense to a degree, but in …

Categories: Investing

The Bogleheads Have Won: Dipping My Toes Into A Mutual Fund With Vanguard

As I’ve mentioned before, I am rather timid when it comes to investment risk. I am very very wary about letting others have control of my money, especially when there’s a chance they could lose some of it. Yet I continued to see the astounding rates of return of many mutual funds, and as I …

Categories: Investing

#10: The Nest Egg

This is part of a series in which we re-evaluate Money Magazine’s “25 Rules To Grow Rich By”. One “rule” will be re-evaluated each weekday until the series concludes; you can keep tabs on the action at the 25 Rules index. Build a Large Retirement Nest Egg Rule #10: Aim to build a retirement nest …

Categories: Investing, Money, Retirement

Facing My Financial Fears: Investment Risk

This week, The Simple Dollar is doing a five part series on financial topics that scare me just a bit. Researching and then writing about them will (hopefully) alleviate some of that fear Other fears include buying a car, estate planning, and Roth IRAs. My fear of financial risk goes back to the stock market …

Categories: Investing

#9: Mutual Fund Fees

This is part of a series in which we re-evaluate Money Magazine’s “25 Rules To Grow Rich By”. One “rule” will be re-evaluated each weekday until the series concludes; you can keep tabs on the action at the 25 Rules index. Rule #9: The most you should pay in annual fees for a mutual fund …

Categories: Investing, Money