PiggyBankWritingPersonal Money Planning's

e-Newsletter for August 22, 2009

(to look at past issues, click here)
Also In This Issue
Unanswered Questions (humor)
Mutton Busting
Balancing Uncle Sam's Budget
Updated Consumer Finance Site
Bubbles in the Rolling Stone
A Mini-Madoff
Fixing the Financial Markets
Of Poker and Business
parting thoughts: Hell Hath No Fury
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Unanswered Questions
Part 2
 
Why are you IN a movie, but you're ON TV?
 
Why do people pay to go up tall buildings, then put money in binoculars to look at things on the ground?
 
Why do doctors leave the room while you change?  They're going to see you naked anyway.
 
Why is "bra" singular and "panties" plural?

 
(From an anonymous Internet source.)

 

Disclosure

 

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.

 
 Gary Silverman, CFP  
Keep Up with FaceBook
 
For the last couple of months I've been experimenting with the social web site, FaceBook. While it can be a great waste of time, it can also help me keep people more up-to-date with information.
 
Tentatively, my plans are to first put articles, links, etc., out on my FaceBook page. Then I'll gather them all together and re-post them in this newsletter.
 
That doesn't mean that everything will show up in both spots. Some material is better suited to this newsletter and some stuff I'll put on FaceBook will be out-of-date by the time this rolls around.
 
If you want to keep up with me and my thoughts, you can just keep reading this newsletter. If you hate waiting for things then become my friend on FaceBook and you'll get information from me a bit quicker. Even better, do both. That way you won't miss anything.
 
Here's my FaceBook link:
http://www.facebook.com/GaryWSilverman
 
Gary
 
Gary Silverman, CFP
Full Speed Ahead
"It's okay to be scared....Just hang on."
We can learn a lot from Colby, the 6-year-old Mutton Bustin champion. Whether you are being dragged around in the mud by a sheep, staying invested in the stock market, or hanging tough at work, Colby's advice will hit home with you.
 
You'll find this article by Vince Poscente, Olympian, author, and speaker, at http://www.vincepocente.com/full-speed-ahead-archive.cfm?ItemID=227
How to Balance the Federal Budget
No, I don't have the answers for balancing the Federal Budget. However, the Congressional Budget Office (CBO) does. This month they published a report outlining options for altering federal spending and revenues. The CBO does not make recommendations, but rather presents these options to Congress who then decide what to do with them.
Find out some of the potential answers and let your Senators and Representative know which ones you like. Here's the link to the report: http://www.cbo.gov/ftpdocs/102xx/doc10294/08-06-BudgetOptions.pdf
Warning: it's 284 pages of Budget Options.
Building a Sound Financial Plan
 
The Financial Planning Association unveiled a newly reformatted consumer-oriented site. You'll find articles and guidance on topics like Retirement, Credit Repair, and College Savings.
 
You can go back each week and see what's new, or just visit when you have a specific topic you need information on. You can even search out a financial planner--buy why? You've got me!
 


The Great American Bubble Machine
Rolling Stone magazine is not known as a powerhouse in the world of investigative financial reporting. While I can't attest to its accuracy (and I question the extremes they conclude), this article seems well researched. The author portends that Goldman Sachs was directly responsible for the current crisis and points to how the company's alumni seem to be spread across command positions in the world's financial system.
Could they be onto something? Determine that for yourself. You can read the article at:
http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine
Mini-Madoff, Zabalaoui
Here's a mini-Madoff that you may not have heard of. She was a pioneer in the field of fee-only financial planning, but greed got the better of her.
 
From the article: "This was a very egregious offense. The scheme was very complex and very sophisticated, like the Bernard Madoff scheme but on a smaller scale," Letten said. "Fake companies were set up, and fake communications were used, as in the Madoff case. It was a very deep level of deceit."

Read the full version at FA News: http://www.fa-mag.com/fa-news/4374-fee-only-pioneer-zabalouai-sentenced-to-8-years.html 

How to Fix the Financial Markets
Bold reforms are necessary to restore investor confidence in U.S. financial markets, said a report (PDF) issued today by the Investors' Working Group (IWG). The IWG is a blue-ribbon panel of experts chaired by two former U.S. SEC chairs, William Donaldson, CFA and Arthur Levitt Jr.

If you want to learn what they came up with (and most likely, what Congress will completely ignore), Here's the link to the .pdf: http://www.cfainstitute.org/centre/pdf/us_investors_working_group_report.pdf
Of Poker and Business
I've always found a knowledge of poker to be a great benefit in explaining investing. One of the greatest poker players around, Annie Duke, recently appeared on Celebrity Apprentice (she came in second). In this USA Today article she explains how poker can give great insights into the business world: http://www.usatoday.com/money/companies/management/advice/2009-07-19-annie-duke-advice-from-the-top_N.htm
 
parting thoughts 
Curtain Rods
This is where I usually put in some profound wisdom. This time I'm putting in some humor. Thanks to John Alexander for forwarding this to me in a recent e-mail.
 
She spent the first day packing her belongings into boxes, crates and suitcases.

On the second day, she had the movers come and collect her things.

On the third day, she sat down for the last time at 'their' beautiful dining room table by candlelight, put on some soft background music, and feasted on a pound of shrimp, a jar of caviar, and a bottle of spring-water.

When she had finished, she went into each and every room and deposited a few half-eaten shrimp shells dipped in caviar into the hollow of the curtain rods. She then cleaned up the kitchen and left.
 
When the husband returned with his new girlfriend, all was bliss for the first few days. Then slowly, the house began to smell.

They tried everything; cleaning, mopping and airing the place out. Vents were checked for dead rodents and carpets were steam cleaned. Air fresheners were hung everywhere. Exterminators were brought in to set off gas canisters, during which they had to move out for a few days and in the end they even paid to replace the expensive wool carpeting.
Nothing worked!!!

People stopped coming over to visit. Repairmen refused to work in the house. The maid quit. Finally, they could not take the stench any longer and decided to move.

A month later, even though they had cut their price in half, they could not find a buyer for their stinky house. Word got out and eventually even the local realtors refused to return their calls.

Finally, they had to borrow a huge sum of money from the bank to purchase a new place.

The ex-wife called the man and asked how things were going.

He told her the saga of the rotting house. She listened politely and said that she missed her old home terribly and would be willing to reduce her divorce settlement in exchange for getting the house.

Knowing his ex-wife had no idea how bad the smell was, he agreed on a price that was about 1/10th of what the house had been worth, but only if she were to sign the papers that very day. She agreed and within the hour his lawyers delivered the paperwork.

A week later the man and his girlfriend stood smiling as they watched the moving company pack everything to take to their new home ... And to spite the ex-wife, they even took the curtain rods.
 
That's all for now.
 
Gary Silverman caricature
 
 
 

Gary

 
Gary Silverman, CFP
Personal Money Planning  
 
 

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