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  • Happy Hour: Active Picking And Late to the Game

    November 22, 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.

    Active Picking

    I ran across a recent commentary about why stock picking is back. It’s not too far-fetched, yes it is possible, and Warren Buffett isn’t the only one who does it. The people doing it aren’t the ones bragging about it. So your stock picking neighbor who only picks winners, probably isn’t one of them.

    The author’s theory is nothing new. If everyone is investing the same way, it stands to reason their returns will eventually languish, and other investment styles will rise out of the opportunity. Continue Reading…


  • The Beginner’s Guide To Tax Efficient Investing

    November 21, 2013

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    Jon

    Tax Efficient InvestingTaxes are an unfortunate side effect of successful investing, but there are ways to avoid it. You can build a tax efficient investing strategy to help lower those taxes over time. More importantly, it will leave more money in your pocket to reinvest, compound, and grow.

    A tax efficient investment strategy is nothing new. It’s been used by the wealthy since tax codes were enacted. It’s legal and you don’t need a high-priced CPA to put an effective strategy together. If you know the current tax rates, you are half way there. After that you just need to know how to use the tax code in your favor. In order to do that we need to start with the basics.

    What Is Tax Efficient Investing?

    Taxes eat into your investment gains like any other costs. This puts a limit on how your money grows. But thanks to our overly complex tax system, you have ways to reduce, suspend, or eliminate them.

    The basic tax efficient investing strategy should lower your tax liability based on your financial goals both now and in the future. When done right, it should maximize your after tax dollars, which is the ultimate goal. Continue Reading…


  • 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

    ·

    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

    ·

    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

    ·

    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…


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