Archive for the ‘Investing’ Category

One of my key believe about building wealth is (1) never stop experimenting, and (2) always look for ways to build, diversify, and shift my income streams toward passive sources. So I got interested when Prosper became an advertiser on my blog — thank god for the blog, because I wouldn’t have known about [...]

This is the inaugural issue of the Ask The Expert column by Larry Swedroe. You can see Larry’s full biography and important disclaimer below. If you are interested in having your question answered by Larry, please send me an email via the contact page.
Now, let’s get to the questions and answers (please [...]

In “7 Costly Retirement Savings Mistakes to Avoid,” I had mentioned that waiting too long is the number one mistake. I am afraid I didn’t demonstrate it well, so here is a different look at the concept.

Assume that in each scenario, the investment grows at 10% per year*.
* Based on historical data, investment gain [...]

First, I want to declare that I know little about world economy, but I am intrigued by it. I am writing this in hope that you (my readers) can pitch in with your thoughts on this. So let’s get started… Last week, I asked my readers What’s Wrong with this 401k [...]

Larry Swedroe has graciously offered opportunity for Moolanomy’s readers to ask for his second opinion. If you are interested in hearing his insight, please use the contact form below to send in your question.
If your question is selected, your question along with Mr. Swedroe’s answer will be posted here (schedule to be determined). Please indicate [...]

Market timing does not work (1). However, there are still plenty of investors who believe in market timing, and a subset of these believe that January Effect and October Effect are real. In a true MythBusters‘ fashion, I did some historical data analysis and have a few statistical factoids to share with you. [...]

I just got hammered by a mutual fund double whammy. Since I bought my SSgA Tuckerman Active REIT (SSREX), it lost nearly 6%, then the fund distributed $2.9418 per share last Friday. The end result? The fund is now down almost 20% and I will have to pay capital gains tax on [...]

You may have heard the expression “cut your losses early” before. This is probably the most profound wisdom for stock investors. The table below will illustrate the reason behind this insight.

The table shows that it is exponentially harder to recover from the decline in stock value. For example:

If a stock loses 10% of [...]

When discount brokerage firms like Charles Schwab, E*Trade, and TD Ameritrade emerged on the scene, they made stock trading more affordable. The trade commissions in the sub $20 range were a refreshing change from the exorbitant fees traditionally charged by full service brokers. If that was good, now it must be great with [...]

After I wrote “The Weak Dollar is Killing Americans’ Wealth” for Consumerism Commentary last Thursday, I was still intrigued by this new perspective on wealth. As a visual person, I thought this alternative look at the same concept may be easier to grasp and would like to share it here.
Just press the big [...]