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  • Happy Hour: Bubbles and Stock Guru Index

    November 15, 2013

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    Jon

    Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

    Bubbles

    Bubbles are all the rage these days. So much so, that everyone is looking for one. It reminds me of Bigfoot. It’s out there somewhere (maybe), we just haven’t found it, yet.

    NPR recently covered the opposing views of Fama and Shiller on bubbles and the ability to predict them. Fama believes bubbles are not predictable. And if someone can predict bubbles, that person somehow has information not available to the market. That, according to Fama, is impossible because an efficient market has all the information and is priced accordingly. Continue Reading…


  • Happy Hour: Casino Effect And Deflation

    November 8, 2013

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    Jon

    Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

    Casino Effect

    I’m not a fan of gambling analogies for investing. It’s a better fit with speculation. Rather, investing is based on probabilities  – the likelihood that something will happen. Continue Reading…


  • Federal Income Tax Brackets 2012 to 2017

    November 7, 2013

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    Jon

    Federal Income Tax BracketsThe federal income tax brackets are a fickle thing. Between political meddling and inflation, something changes almost every year. Of course, knowing about these tax changes in advance, makes it easier for you to plan your taxes and hopefully save money.

    There are two things that can happen to the tax brackets every year: the tax rates may change and the tax brackets can be adjusted for inflation.

    When the tax rates change, you can blame Congress for messing with the tax laws (unless it’s in your favor).

    Otherwise, the federal tax brackets are indexed to inflation. This prevents inflation creep from pushing you into a higher tax bracket. The IRS looks at the CPI data (Consumer Price Index) over a twelve month period. If inflation is high enough, the IRS will make adjustments to the income limits for each bracket. Continue Reading…


  • Happy Hour: Paying What It’s Worth & Deserted Island

    November 1, 2013

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    Jon

    Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

    Paying What It’s Worth

    We’re used to paying full price for hings and if not full price, then sales price. With the number of constant sales going on, you could argue sales are really full price disguised in as shiny red tags. Anyways, what if you could pay what you thought something was worth?

    Rather than paying full price or sales price, there was no sticker price at all. You paid (or didn’t) what it was worth to you. This idea was tested by the folks at Freakonomics and came to an interesting conclusion. Continue Reading…


  • 401k Plan: The Definitive Resource Guide

    October 29, 2013

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    Jon

    401k plan guideAt some point in your working life, you’ll be handed a 401k plan packet full of information and investment choices, told to fill things out, and, if you’re lucky, someone might actually explain it all for you.

    At least, that’s how it happened for me. Except, a couple of salesmen from the plan provider rushed through it in fifteen minutes.

    When you know saving for retirement is important, it’s hard to put your trust in a tool that you don’t entirely understand. Luckily, I knew enough to get by while I researched the rest on my own.

    The 401k plan is the staple retirement plan offered by employers these days. Yet, dealing with one can be overwhelming and tricky. Your 401k is more than just another retirement account. It’s your primary savings tool for retirement.

    This guide will tell you everything you need to know about the traditional 401k plan, the rules and limits, so you can take full advantage of this employer-provided retirement tool. Continue Reading…


  • Happy Hour: Athlete Stocks And Other Signs Of Exuberance

    October 25, 2013

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    Jon

    Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

    Athlete Stocks

    The idea of investing in people isn’t new. The last big celebrity offering was David Bowie in 1997. The Bowie Bonds were tied to his intellectual property. That song catalog of his still made money and you could own a piece of that revenue stream. It was an opportunity for Bowie to get access to some of that material’s value immediately while investors earned a decent interest over time. A side note, for Bowie it was perfect timing, right at the peak for music before Napster came along and killed the industry. Continue Reading…


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