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Protecting Your Future, Today |
| Your Financial Planning Resource
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2nd Quarter 2008 |
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Greetings!
Thank you for your continued business. If you know of anyone that could benefit from my services, please feel free to forward this newsletter on to them.
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Six lies we tell ourselves about why we spend |
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Self-deception and a lack of control are the chief reasons for many poor spending decisions, and whiny explanations about wasteful purchases are nothing more than excuses for bad spending behavior.
If you are an impulse shopper who simply can't stop throwing money around, recognizing some of the common lies people tell themselves to justify their spending could help you rein in your urges.
- I could die tomorrow, so I'll live for today. This immature attitude justifies actions of the buy-it-now and pay-for-it-whenever class. It's the primary excuse for not saving money.
- I work hard, I deserve it. This is akin to a four-year-old throwing a tantrum in a toy store crying "Gimme, gimme."
- I don't have a head for numbers. This is the excuse given for not paying attention to personal finances.
- I'm too busy to compare prices or manage money. This might be true for a small fraction of people, but mostly it's a lie.
- It's an investment. Most consumer purchases aren't investments, because almost all of them plummet in value the moment you leave the store.
- I don't earn enough to save money. Saving is not about what you earn, it's about what you keep.
See full story, located at MercuryNews.
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Latest e-mail scam targets TurboTax |
As if the mad rush for Americans to collect all the necessary financial data and file their taxes wasn't bad enough, cybercrooks are beefing up spam attacks concerning taxes as April 15 approaches.
Some spammers are targeting the wildly popular, do-it-yourself tax software giant TurboTax with an e-mail message telling the recipient to download software updates in order to comply with new IRS requirements. But the URL provided doesn't take you to TurboTax's official Web site. According to Symantec Security, you are delivered to a URL made up of a blank page with a pop-up window instructing you to download a file, which is really a virus. | |
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The TurboTax spam e-mail message is similar to many other spam e-mails people receive daily that appear to be coming from trusted banks and financial institutions around the globe. They look legitimate but can unleash a virus or seek to obtain financial or personal information that should not be given out.
FOXBusiness.com reports that taxpayers have forwarded to the IRS more than 33,000 spam e-mail messages that mimic a trusted source, representing about 1,500 different scams. The IRS doesn't contact taxpayers by e-mail and if you have received an unsolicited e-mail from the IRS, you can forward the message to phishing@irs.gov.
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| The world according to Warren |
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Warren Buffett's latest annual shareholder letter just arrived. And in these uncertain times, it's more prescient than ever. Every year, Buffett writes a lengthy letter to shareholders. Devoid of the usual buzzwords and corporate-speak, it's full of original ideas and clever explanations of old ones.
'Fanciful figures -- how public companies juice earnings'
Over the years Buffett has had a lot to say about the improprieties of corporate accounting and the messes it leads to (think Enron and option accounting, for instance).
This year he takes aim at corporate pension accounting. He notes that 363 of the 500 companies in the S&P 500 have pension plans, and that on average they assumed an 8% annual return on pension plan investments in 2006.
So, since 28% of pension plan assets are held in bonds likely to return 5% or less, the remaining 72% of assets held must achieve a rate of return of 9.2% to hit that overall 8%.
Trade free or die
Recent political stumps have called for the rework of Nafta or its elimination altogether. Careful -- it's a two way street. By eliminating Nafta we might protect a lot of American jobs, but we'd lose just as many if not more by hampering exports. Such a policy tried during the Great Depression only made things worse.
See full story, located at Market Watch. (free registration may be required)
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| Add glitter to your golden years |
With stocks down, it's a prime time to increase retirement-plan contributions.
Falling stocks are roadblocks to a comfortable retirement. At times like this, when the path looks especially rocky, it's tempting to reduce your regular contributions to a 401(k) portfolio or other automatic investment plan. In fact, with U.S. and international stocks both down sharply so far this year, it's actually a prime time to boost your commitment to these all-terrain retirement vehicles. Take a bit extra from each paycheck, buy more shares at lower prices, and let the market's long-term upward trend do the rest.
Increasing payroll contributions to a retirement plan, regardless of market conditions, will likely earn you more over time.
Yet with rising prices at the supermarket and the gas pump, an uncertain outlook for jobs, and the pressure of mortgage payments on homes that have lost value, many Americans are stretched thin. A 401(k) may be a lifetime plan, but to many people at this moment it's a piggy bank to cover the bills.
Focus on the big picture. Trimming retirement contributions puts more money in your pocket, but you'll have less once you stop working, and you may even have to work longer to make up the difference. Look for ways to cut spending or consult with a credit counselor before you slash savings.
See full story, located at StockHouse.
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STRIVING TO EDUCATE OUR CLIENTS IN THE EVER-CHANGING FACE OF THE
INSURANCE AND FINANCIAL INDUSTRY.
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Disclaimer
This eNewsletter is a digest of information published by a variety of web-based sources and is published as a service to our users. Horan Associates, Inc | Horan Securities, Inc. is not the author of the material unless specifically noted. We review each article to ensure that it is related to the interests of our subscribers. Horan Associates, Inc | Horan Securities, Inc. does not endorse the individual authors of these articles, although Horan Associates, Inc | Horan Securities, Inc. has reviewed these articles, for accuracy and completeness and your independent review for personal relevance should be undertaken. Reliance on this material should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. All articles are copyrighted to their publishers. This publication is intended for general information only and not as legal advice. You should discuss specific details with your advisor.
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End your promotion with a kick -- consider a postscript to reinforce one of the key product or service benefits.
Sincerely,
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