Recent Posts



Archive for July, 2008

Consumption versus Investment

Thursday, July 31st, 2008, by

So, why is it so much easier for some families to save and invest? Experience has taught me that it is not a function of intelligence or education. If anything, it is the simple acceptance of delayed gratification as a life skill…and this take a great deal of focus and persistence in a culture geared […]

Not all Millionaires are Created Equal

Wednesday, July 30th, 2008, by

Nothing is ever as clear-cut as it seems. Take millionaire status, for example. I can think of three variations, at least, that have significantly diverging structures and outcomes. None are unwelcome, but some have more utility than others. 1. Real Estate Millionaires First off are the residential real estate millionaires, who got there by the […]

Focus on What You Control

Tuesday, July 29th, 2008, by

It’s time to re-focus your efforts in pursuit of your financial independence. And in the process, you are going to have a great burden lifted from your shoulders. There are two distinct and binary outcomes that we must deal with: Actions that we directly control Actions over which we have no control whatsoever. When I […]

Dumb and Dumber: the 401(k) Debit Card

Monday, July 28th, 2008, by

Nominations are now available for the stupid human trick of the year award. It would be hard to beat the multi-taskers who are texting while driving, but since this is a wealth management blog, we need to narrow the category accordingly, or we will be inundated with candidates. (If your humor runs to the dark […]


Friday, July 25th, 2008, by

So, what do you think is the strongest force in the universe? Thermonuclear fusion, maybe? Nope. It’s investor inertia. And it has reached epidemic proportions. Inertia at IndyMac You’ve seen the network news clips of depositors lined up around the block to withdraw their funds from the recently failed IndyMac bank. Now that the FDIC […]

TIC Tac Dough?

Thursday, July 24th, 2008, by

The neverending saga of investors versus experts continues. No surprise that the investors are still the underdog. One investment especially will tire even the most diligent investor: Real Estate. See our earlier post on the misnamed “passive investment” which is rental property. When individuals want to retire from direct ownership, there is an out, but […]

Auction Rate Securities…going, going, gone…

Wednesday, July 23rd, 2008, by

At the time, I’m sure it seemed like a good idea: To create a hybrid security that allowed municipalities to borrow long-term, typically thirty years, yet have its debt securities owned by a series of short-term borrowers, who could enter and exit their holdings at any of the regular scheduled weekly auctions. Benefits of Auction […]

Congress Cuts Short-Selling Short

Tuesday, July 22nd, 2008, by

You want more proof of how kinky things are on Wall Street? The SEC is now moving to restrict the short selling technique known as “naked shorting”. A Quick Review: Selling Short Selling short is selling stock you have borrowed from your broker. Eventually, you must purchase the stock to replace the borrowed shares. If […]