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 Personal Money Planning'se-Newsletter for July 25, 2009 (to look at past issues, click here) |
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Not all bad, yet |
Household income declined by 40% in the U.S. during the Great Depression. (source: Barron's)
And while around 10 million mortgages exceed the value of the property, 25 million American households own the roof over their head free and clear. (source: American Housing Study, Money Magazine)
But before you get all giddy: with three months left in the fiscal year, our federal deficit has hit an all-time high of over $1 trillion. That's $1,000,000,000,000 and counting. |
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Disclosure |
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This newsletter is produced by Gary Silverman, dba Personal Money Planning, a registered investment advisor located in Wichita Falls, Texas.
Information in this newsletter is believed to provide accurate and authoritative information in regards to the subject matter covered. However, the accuracy, timeliness, or applicability of the information is not guaranteed and is provided with the understanding that we are not rendering legal, accounting, tax, or other professional advice or services.
This publication should not be construed by any consumer and/or prospective client as Personal Money Planning's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Nor should links provided to other sites be construed as the recommendation of the services or products mentioned on those sites. If such services are required, the help of a competent professional should be sought.
Remember that past performance may not be indicative of future results. Therefore, you should not assume that the future performance of any specific investment, investment strategy, or product made reference to (directly or indirectly) on this Website will be profitable or equal to indicated performance levels. Different types of investment involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for your investment portfolio.
Historical performance results for investment indexes and categories generally do not reflect the deduction of transaction or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results.
A copy of Personal Money Planning's current written disclosure statement discussing Personal Money Planning's business operations, services, and fees (known as an ADV Part II) is available from Personal Money Planning upon written request (and can be downloaded from our web site).
Personal Money Planning does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Personal Money Planning's web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
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And that's the way it is.
Forty years ago, when more than half of our current population wasn't even born, I watched the first landing on the moon. It was on a black and white TV set in a motel in Atlantic City. The pool, boardwalk, and beaches were eerily empty as everyone was glued to a TV set.
Most of us were watching Uncle Walter report.
Every American from the WWII and Baby Boomer generations knows that sign-off. Walter Cronkite, one of the most respected television journalists ever, died last week at the age of 92. As President Obama said, Cronkite was "someone we could trust to guide us through the most important issues of the day..." He continued later that he "invited us to believe in him, and he never let us down."
Having grown up with him leading me through the happenings of the day and the changing society in which I lived, Cronkite was like a wise Uncle for whom you felt both a kinship with and held a reverent awe.
And he earned it. From breaking with the media's neutral position to question the Vietnam War, to the tears he shed with us on learning of President Kennedy's death, to his exhuberance in reporting the first Lunar landing (and staying in the anchor's chair 27 of the next 30 hours to report it to us).
He wasn't just a newsman, he was the newsman. I just wonder if he'd be appreciated today.
Gary
Gary Silverman, CFP |
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Tips for New Businesses |
The IRS has a list of the top seven tips for taxpayers starting a new business. With the economy in a tizzy and many people out of work, quite a few take the opportunity to step out and start a business. With entrepreneurship comes tax issues.
Learn these tips to get your new business off to a clean start:
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Try Your Hand at Curling |
Sunday, July 26 (in other words, tomorrow), you can live the dream of curling. Regular readers of this newsletter know that I've taken up the sport of curling. Those who have seen me in action know that I'm a lot more enthusiastic than good. Fortunately curlers are quite happy and forgiving people.
In preparation for the Winter Olympics in February, why not run down to Duncanville and try your hand at this ancient Scottish sport? An open house of my D/FW Curling Club is Sunday from 5 p.m. to 7 p.m. You won't only have the opportunity to see curling, you're invited out on the ice to try it yourself.
No equipment is needed. All you need to bring is yourself. While they ask for a $5-10 donation, just say "Gary sent me" and they'll know I'll make the donation for you.
Sorry, I can't be there, but as I said, you'll be with a lot of friendly people who love the sport and who are a lot better at it than I am.
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Is Diversification Dead? |
One recommendation you hear over and over is to diversify. The idea is that if you split your money across asset classes, you'll avoid having all your eggs in the basket that gets dropped.
So what happened last year?
Find out if diversification is dead by reading the rest of the article at:
(This article was originally printed in the Wichita Falls Times Record News.)
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Preparing for the Next Market Cycle |
The stock market, like the economy, bounces up and down. In just the last decade we've experienced two cycles beginning with the rise of the tech stocks and ending with our present credit crisis.
(This article was originally printed in the Wichita Falls Times Record News.)
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Collegiate Credit |
It's summer. So you're not really thinking of college. But this is just a temporary respite. Soon the halls of knowledge will swing open again-and with it, debt. Credit cards are a wonderful convenience. But they seem to be getting too convenient for college students. Find out what the problems are and how to keep your college student from falling for them by reading the rest of the article here: http://www.personalmoneyplanning.com/ourviews.aspx?LinkId=88735&spid=18786
(This article was originally printed in the Wichita Falls Times Record News.)
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parting thoughts
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You may have missed it, but an important milestone occurred last month. General Motors was booted out of the Dow Jones Industrial Average (DJIA).
The original DJIA began with twelve stocks back in 1896. (The only one that still exists in its original form is General Electric.) General Motors was added in 1915 as the first car company on the list. A major reorganization took place in 1916 expanding the index to 20 stocks and Studebaker replaced General Motors. GM returned to the index in 1925 bouncing out Studebaker. When the average grew to its present size of 30 industrial stocks, Chrysler joined GM. Chrysler was replaced by IBM in 1979 at the dawn of the information age.
On June 8, 2009, after an 83-year run as a component of the Dow, Cisco replaced General Motors. According to a statement from Dow Jones, "its communications and computer-networking products are vital to an economy and culture still adapting to the Information Age--just as automobiles were essential to America in the 20th Century." The era of the automobile being synonymous with industrialized America came to a close.
When it comes to stocks, nothing is forever.
You can find a history of the Dow components at
Gary
Gary Silverman, CFP
Personal Money Planning
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©2008 Personal Money Planning. All rights are reserved by Personal Money Planning and content may not be reproduced, disseminated, or transferred in any form or by any means, except with the prior written permission of Personal Money Planning unless specifically noted. (Permission is not difficult to obtain.) The one exception is for downloading and printing information this newsletter for general education by the original recipient. |
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