PiggyBankWritingPersonal Money Planning's

e-Newsletter for April 9, 2011

(to look at past issues, click here)

Also In This Issue
Is Our Economy A Joke?
Seminar Announcement
Your Money Column
Biz to Biz Column
Facebook Postings
parting thoughts: The Other Bank
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Is Our Economy A Joke?
(Not sure, but these are!)
 

 

Despite enormous fluctuations in the Dow Jones average this week, billionaire investor Warren Buffett announced Friday that he will continue to invest in the stock market during the current financial crisis. So remember, everyone, this is no time to panic, as long as you're the richest man on earth. 

--Amy Poehler

 



After [the meeting of all 5 living Presidents] there was a fight over who would pay the lunch bill, but eventually they all agreed to leave it up to future generations.

 --Seth Meyers 

 

 

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
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When is a bank not a bank?  

 

 

You know what a bank is. It's that place where, in person or online, you deposit money so that you can write checks, or get some interest back while your money is kept safe. It's also the place you can go when you want to buy a car or house but don't have the cash. If you are a bit more entrepreneurial, a bank is the place you may get the money to make your dream of owning a business a reality.

 

That bank is a good bank. It has nothing to do with our latest little credit debacle (or as I like saying, "the greatest financial crisis since the Great Depression"). The bank we are thinking about is like the one that Jimmy Stewart ran in It's a Wonderful Life. That bank helps us get our first car, own our first home, and provide an education for our children.

 

That bank provided the funding for that little company with a big dream that developed the laptop computer you use today. It provides the money to buy the laboratory equipment so that research into the cure for cancer can be continued. It gathers the assets of thousands into one place, so that a company can expand and build a manufacturing plant in your town, which in turn provides jobs for you and your friends.

 

Yes, that bank will make money, and while we may not like everything that it does, the services that we gain from its existence make a better life for all of us.

 

Then there's the other bank. Click to the bottom of this newsletter for a few words about them.

 


 
Gary Silverman, CFP

 

 

P.S. If you are in the Wichita Falls area Sunday, April 10, at 2:00 p.m., come celebrate Texas' 175th birthday at "Sam Houston & the Battle of San Jacinto" at the North Texas History Museum (720 Indiana). Sherry Cannedy and Robert Palmer will tell the story, Kenny Mayo will provide the music of the time, and there may be some surprises!  
 

P.S. (again)

April 16 is the Better Business Bureau's "Secure Your ID Day". Click here  to see if a shredding event is being held in your area. If you are around Wichita Falls, the event will be at Albert Records Management, 4401 Barnett Road in Wichita Falls from 8 a.m. to 11 a.m. You may bring up to 3 bags or boxes of papers to shred for free. 

Seminar Announcement

Mark Your Calendars!

Free Upcoming Seminar!

 

Tuesday, April 19, 2011

5:30 p.m. - 7:30 p.m.

Courtyard by Marriott Wichita Falls

 3800 Tarry Street

 

Investing Foundations

How to Avoid Doing Really Stupid Stuff

   

When the market is riding a roller-coaster, your emotions may be going through some 'loop-the-loops' of their own. Don't let those scary times compel you to make investment decisions you'll regret. 

 

Investing Foundations will cover the basics of investing by outlining base strategies and philosophies to prepare you for the inevitable market swings.

 

This seminar, Investing Foundations, is the second in a series of seminars that look at different aspects of investing, insurance, retirement planning and estates.

 

We will be serving light refreshments and will have handouts, so please RSVP to help us ensure we have enough of both. Call 940-692-6885, email [email protected] or fill out the form on our website.
 
   
gary's newspaper column Newspaper Articles You May Have Missed
From the Wichita Falls Times Record News
 
Time To Invest In Stocks
Gary answers the question, "Why stocks?" with the question, "Why not stocks?"
   

 
Hit Me With Your Best Shot
Now that you've learned the benefits of getting into the stock market, be prepared to deal with a few punches.

gary's other

newspaper column

Biz to Biz Article You May Have Missed
From the Wichita Falls Times Record News Biz to Biz
 
Business And Social Media:  Is It For You?
The average Facebook user spends almost an hour a day on Mark Zuckerberg's creation. Does this mean your business should spend an hour a day managing social media? Here's Gary's take on the subject.
   
 
 

from gary's facebook pages
 
 
Facebook Stuff You May Have Missed
 

Facebook
  
  
 

Small Business Start-up Help

Thinking of starting a business? Check out the Small Business Administration's 10-point plan in this Fox News slide show to get you up and running without forgetting something.   


From The Dallas Fed
Last month, the Federal Reserve Bank of Dallas released an overview of the economic conditions in Texas.  

Links from Gary:

 

Want To Move? Your Whole House?

I'm not sure if this would be a viable moving company business model, but it was sure fun to see the movie "Up!" come to life. 
 http://news.cnet.com/8301-17938_105-20040371-1.html
 

 
  

bottomparting thoughts
  

The Other Bank

 

 

The other banks are the investment banks. They trade massive portfolios of stocks, bonds, and extraordinarily complicated derivative securities. If someone wants to bet that a market might move in one direction, they'll be happy to be the bookie and either take the other side of the bet (if they think you are wrong) or sell it to some other sucker if they think you are right.

 

While it may not seem so, I have no problem with the existence of that sort of bank. But I do take issue when the two are actually one. That's the situation we had prior to the crisis. All indications point to our having the exact same system now.

 

Banks that we thought were dependent on our deposits and our loans to be successful, instead tied their fortunes to leveraging an ever-increasingly convoluted investment portfolio. The same type of portfolio we now know they didn't really understand.

 

The entity we think of as the "good bank" needs capital to be able to make all those loans. This is necessary for us to be able to pursue the American dream and for our industry to build and expand to compete on the world stage. But if the investment side of the bank gambles and loses, then the side that's the "real" bank, the one that keeps the lifeblood of a modern economy moving, pretty much stops.

 

While extremely oversimplified, that's what happened in 2008. We continue to feel the ramifications of it today, and yet the actions of the investment sides of the banks still threaten our economy.

 

 

  
 
Gary Silverman caricature



 
Gary


Gary Silverman, CFP
Personal Money Planning
 


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