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 …

Cashing In Savings Bonds Early: Is It Worthwhile?

I have four $100 (face value) Series EE savings bonds sitting in my safe right now. Every time I open up my safe and peek at them, I would wonder what they were worth and whether that money could be put to better use somewhere else, but then I’d just close the safe and not …

Categories: Investing

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, Parenting

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 …

Categories: Investing, Stocks

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 …

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 …

What Can A Dollar A Day Get You? And An Inspirational Idea

Here’s something to get your wheels turning. Let’s say you’re celebrating your eighteenth birthday and you commit yourself to putting just a dollar a day into some sort of investment for the future. Your uncle advises you to use an HSBC savings account to start and a Vanguard 500 mutual fund (assuming historical growth) once …

Categories: Investing

#8: Portfolio Diversity

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 #8: Invest no more than 10% of your portfolio in your company stock …

Investment Management: The Automatic Thousandaire

Recently, I mentioned that I strongly value an emergency fund and that I had reached my short-term goal of a two month emergency fund, currently held in a high-interest savings account. Since I reached this goal, I’ve continued to automatically drop the same large amount each week into that account. “That’s great,” you might think, …

Categories: Investing, Retirement

#7: Stock Portfolio

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. How Much Should I Invest in Stocks? Rule #7: To figure out what percentage …

#6: Long-Term Investments

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. How Should I Invest My Long Term Retirement Assets? Rule #6: All else being …

Investing A Young Child’s Allowance

When I was young, my best friend’s family used to give him and his siblings an allowance based on their age (I didn’t have an allowance, mostly because there simply wasn’t the money for it). When you were ten, for example, you would multiply your age by a certain factor (in their case, $1) and …

Categories: Investing, Parenting