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 Personal Money Planning'se-Newsletter for October 31, 2009 (to look at past issues, click here) |
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Profound Quotes |
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Judge a man by his questions rather than his answers.
-- Voltaire
I shall never permit myself to stoop so low as to hate any man.
-- Booker T. Washington
We are not human beings on a spiritual journey. We are spiritual beings on a human journey.
-- Pierre Teilhard de Chardin
Business or toil is merely utilitarian. It is necessary, but does not enrich or ennoble a human life.
-- Aristotle
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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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I guess I'm supposed to come up with some sort of Halloween-inspired intro today. Frankly, I think that the last year or so has been scary enough.
So, instead, here's a BBC video that I posted on the facebook page a while back. Imagine that you are the videographer that is dumped into the water ahead of a dozen or so male whales battling each other and chasing a female in heat.
Gary
Gary Silverman, CFP |
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Social Security Bonus |
Why I don't think an extra $250 is a good idea
Someone is about to think I am hateful of seniors. You see, this little article is critical of the idea of sending everyone on Social Security a $250 bonus check.
The reason this one-time payment is being considered is that seniors are, like the rest of us, embroiled in this economic crisis. They are getting no cost-of-living increase this year. In fact, some may even see their monthly checks go down a bit. That's not fair, they should not suffer, let's write them a check.
There are several reasons that I think this is a bad idea:
- The reason there is no cost-of-living increase this year is because there has been no increase in the cost-of-living. Seniors received a very large increase last year due to the high prices at the gas pump. When those prices came down, their checks did not decrease. Because of this they are actually getting a bit more than calculations would have them get. However, part of the cost-of-living adjustment is a provision that checks can only go up, not down. Therefore if prices retract, checks do not decrease, instead, like now, they just stay the same until prices catch up. In other words, based on inflation, no cost-of-living adjustments should be made this year.
- Then there's the issue of who you're helping with this. A senior with $1 billion in their investment account will get the tax-free check the same as the widow down to her last mite. This means that we are giving away the checks to the group as a whole, not to those that actually might need the money. Part of the reasoning is that this will stimulate the economy. In that case, why that group? Why not to single parents, college students, or members of the military?
- And last, it just doesn't seem fair. A whole lot of people have not gotten a raise in the last year. Many have actually seen their pay get cut as companies try to make it through this recession. Yet, at the same time, their payroll deductions for health care have often gone up at the same time. These workers are having great difficulty making ends meet. They, like the seniors, to use the words of our President, are some of those "hardest hit by this recession."
Yes, I know that there are seniors who are suffering financially. I know that many make the weekly choice of food or medicine, clothing or electricity. My point is that this is not merely a senior issue and therefore if help is deemed appropriate the help should not stay a senior issue.
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| from gary's facebook page |
Live Big |
What does it mean to Live Big in these trying times?
Elissa Buie and Dave Yeske run a wealth management firm (that means they only deal with BIG money). The two are married, live on opposite coasts, and come up with really interesting and effective ideas from time to time. This link takes you to their "Live Big" list. They began putting it together to help folks who, after seeing their investments go down, began feeling down themselves. So they came up with a list of mostly free things that can help you live a big life without much money. To them, living big is not about the size of your account, but the size of your life.
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| from gary's facebook page |
Risk |
How much risk can you stand?
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| gary's newspaper column |
Christmas Shopping |
From the October 25 Times Record News
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| gary's newspaper column |
Keep Your Job |
From the October 4 Times Record News
Layoffs tend to affect those who are doing what the company asks...it's just that the company doesn't need as many people doing it. And while you are probably going to get unemployment benefits, you're still out of a job. With employment numbers not expected to start getting better for another year, more will be affected by this recession.
While there are times when nothing you do will make a difference, I offer my thoughts for how you might be able to escape the axe.
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| gary's newspaper column |
Socialism vs Capitalism |
From the October 11 Times Record News
We're hearing a lot about the evils of socialism. We're hearing a lot about the evils of capitalism. Are we here for the good of society or for the good of ourselves? Are we to work as hard as we can for the good of the whole even if it is to our own detriment? Or are we to be rewarded directly for the work we do, regardless if we contribute, and even if we are detrimental to society as a whole? My guess is that neither sounds like a good alternative. Socialism taken to an extreme stinks. Capitalism taken to an extreme stinks. Either way, things get smelly. Smelling starts here: http://www.personalmoneyplanning.com/ourviews.aspx?LinkId=93184&spid=86755 |
| gary's newspaper column |
When An Emergency Fund Isn't |
From the October 18 Times Record News
I was reading Money magazine the other day and saw the results of a CNNMoney.com poll. It asked participants, "How much is in your emergency fund?" That 22% had less than three months of reserves and another 22% had none wasn't the most disturbing part of the poll. What bothered me were the participant quotes. Learn from them how not to treat your emergency fund: http://www.personalmoneyplanning.com/ourviews.aspx?LinkId=93185&spid=93426 |
| from gary's facebook page |
Too Big to Fail |
Can regulating banks control risk?
Too Big to Fail? This concept doesn't mean a financial institution can't fail, just that the government can't afford to let it fail. Here's an article examining this concept from Knowledge@Wharton.
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| from gary's facebook page |
European Socialism |
When the state decides who should get your money regardless of what your will says
From the article:
"Europe's inheritance laws pit the Anglo-Saxon emphasis on freedom and markets against a continental focus on social "solidarity", meaning the belief that shielding people from the vagaries of fate is an overriding public interest..." Read the rest of this article from the staff at The Economist: http://www.economist.com/world/europe/displaystory.cfm?story_id=14644403 |
| from gary's facebook page |
Reversing an IRA Distribution |
Find out after the fact that you didn't have to make an IRA distribution?
Did you take a required minimum distribution from your IRA this year only to find out later that it isn't required? The IRS has given you some relief. Most individuals now have until the LATER of November 30, 2009, or 60 days after the date the distribution was received to deposit the proceeds into an IRA or eligible retirement account.
Note: Distributions from Inherited IRAs may not be eligible for rollover.
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| from gary's facebook page |
Punish the Bankers! |
But let's not be stupid about it
I know that we want to punish the evil rich people at the banks that got all of our tax money, but there is a grave danger in the government deciding on what "appropriate" pay is. This Wall Street Journal article looks at this danger.
BTW: I'm all in favor of punishing the crooks, just maybe with a bit more nuance.
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| from gary's facebook page |
Do We Really Love the Sinner? |
Hating the sin because we love the sinner
Do we hate the sin and love the sinner? In this article, Terry Austin wonders if that's possible without having already loved the sinner first.
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parting thoughts
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The other night I was attending the annual gathering of the Wichita Falls Area Community Foundation. My tablemate (and newsletter subscriber), Tom Longest, came up with what I think is a terrific descriptor of my writing style: Rambling Lucidity. This captures two aspects to my writing. First, I tend to clarify issues and concepts that can be complicated or confusing. And I take my sweet time getting to the point.
How would you describe my writing style?
That's all for now.
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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