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  • Happy Hour: Shutdown And Your Money

    October 4, 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.

    Shutdown

    There’s nothing like a self-inflicted shutdown to stir things up. On Oct. 1, the government was shutdown for the first time since 1996. In the process, all nonessential government workers were sent home without pay until this is resolved. Though, maybe the essential workers should be sent home. When you can’t stop a shutdown, how essential are you.

    This is all due to a spending bill that Congress can’t agree upon. Oh, and something about that Obamacare thing too. Seems a few people in Congress still don’t like Obamacare. Mostly, it’s the Republicans. So their holding the spending bill hostage and will try to use the debt ceiling which needs to be dealt with in two weeks, to further their cause. Continue Reading…


  • Roth IRA Rules: The Ultimate Guide

    October 3, 2013

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    Jon

    Roth IRA RulesWhether you know it or not, retirement is the biggest savings goal of your life. In order to succeed you need a plan that takes advantage of the tools available. Tools like a Roth IRA help thanks to its tax advantages. But is it a good fit for your retirement plan? This guide covers everything you need to know about the Roth IRA rules and more. If you want to be fully informed, I suggest you look over the traditional IRA rules too.

    Why A Roth IRA?

    The Roth IRA is a relatively new retirement account introduced back in 1997. The plan was to offer something different from the traditional IRA. To that end, it was a success.

    The biggest difference is the Roth uses after tax income. The Roth IRA takes after tax dollars and allows for tax-free growth of that money. That means, the money you put in the IRA is already taxed, so it won’t be taxed when you take it out. In return, you lose the tax deduction you would get with a traditional IRA. Continue Reading…


  • Happy Hour: Home Trade And Stamp Arbitrage

    September 27, 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.

    Home Trade

    Several years ago Warren “The Oracle” Buffett gave a prophesy on the potential in housing. He basically uttered the immense opportunity and if it was practical he would buy a couple hundred thousand homes. Wall Street firms and hedge funds took that to heart and bought big. Of course, others had bought up houses already, picking up foreclosed homes for pennies on the dollar and renting them out. Continue Reading…


  • An Intro To Special Situations Investing

    September 26, 2013

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    Jon

    special situationsBuyout and spinoff announcements can cause big price swings in stocks. Yet investors are always trying to find the next big deal. Even though it’s a speculative venture at best. Once a deal is announced, that’s where the opportunity ends for most investors. For others, myself included, this is where the real opportunity begins. It’s known as special situations investing and, speaking from experience, can offer a low risk, high reward way to invest your money.

    What are Special Situations?

    Special situations are known events within a company that present an opportunity for above average returns. When you combine this information with a value investing approach, the high returns can be achieved with a small amount of risk. Continue Reading…


  • Ways To Avoid The IRA Early Withdrawal Penalty

    September 24, 2013

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    Jon

    If you’re looking for some semi secret loophole to get money out of your IRA early, so you can spend it, think again. The tax code has that covered. The gist of the IRA early withdrawal penalty states that anyone under age 59½ who withdraws money from their IRA, is hit with a 10% penalty. Of course, the number one way to avoid the penalty is to wait until you’re old enough to get your money. That’s the point of an IRA in the first place – to keep the money there until retirement.

    That said, the IRA rules have exceptions and exemptions where you won’t be penalized for taking money out early.  Some are added benefits built into the IRA, others help with unforeseen hardship, and the IRS is very specific about each one. Continue Reading…


  • Happy Hour: 5yr Returns & That Ceiling Thing…Again

    September 20, 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.

    5yr Fund Returns

    October 2008 was a bad month for the market. Actually the whole year was bad. Stock mutual fund performance were abysmal. The same can be said for index funds. That year, the S&P 500 fell from 1,447 to 903, a 38% drop.

    It’s had a big impact on fund performance numbers. Especially the 5 year average returns of stock funds pointed out here. But the slate is being wiped clean, so to speak, by time and with it, those numbers will improve dramatically. Continue Reading…


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