read the complete article here: The Benefactor – Spring 2011 | Fidelity Charitable Gift Fund.
How the Really Smart Money Invests
From Shawn Tulley – Fortune Magazine, July 6, 1998
Suppose you made a list of the smartest people alive in finance–those who have done the most to advance our understanding of how the stock market really works. Somewhere near the top you’d surely place Eugene Fama of the University of Chicago, the leading champion of the efficient-market theory and a favorite to win a Nobel Prize one day. You’d obviously want to include Merton Miller of Chicago, who earned a Nobel by analyzing the effect of a corporation’s capital structure on its stock price, and Myron Scholes of Stanford, who won his Nobel by explaining the pricing of options. You’d also pencil in Fama’s collaborator Kenneth French of MIT, as well as consultant Roger Ibbotson and master data cruncher Rex Sinquefield, who together compiled the most trusted record of stock market returns going back to 1926.
Money Rules to Help You Have a Richer LifeTo get rich, the basic rules are simple: Spend less money than you earn, and save the rest! Of course, knowing the rules and actually following them are two different things. So here are some more “rules” to help you get on track and have a richer life:
Microphilanthropy is becoming big. We can all help others – even if we don’t have much to share ourselves. Here’s an interesting article on a young couple who is making a difference through microphilanthropy.
Let me know what you think.
Microfinance is most simply thought of as providing — and managing — small loans or financial services to poor individuals or small communities who otherwise wouldn’t ever get on a regular bank’s radar screen.
Microphilanthropy is similar — philanthropy aimed at helping meet the needs of poor individuals or small organizations that otherwise might get the attention of many large non-profit, humanitarian organizations.
There’s a crisis of confidence in microfinance right now, usually, inaccurately, personified in the recent trials and tribulations of the Nobel Peace Prize-winning economist Muhammad Yunus.
The author of this article has an interesting take on target date funds. I’m not a big fan of these funds because they are a “one-size fits all” approach to defining the appropriate level and type of diversification for investors. The best portfolio is based on a diversification allocation that is designed specifically for you – and which chooses the investments most appropriate for you.
Let me know what you think of the article.
Lily Tomlin, comedienne, actress and writer/producer once suggested something about target date funds – although she wasn’t speaking about them directly; but she very well could have – saying, “Don’t be afraid of missing opportunities. Behind every failure is an opportunity somebody wishes they had missed.” Target date funds are a basket of missed opportunities wrapped in a potential failure, gift wrapped with hope.
There’s been a lot of talk about the national debt ceiling recently.
This article about the “personal debt ceiling” struck a chord with me.
Personal debt is NOT GOOD – and it is always a challenge to get rid of …..
We’ve all made financial commitments like mortgages, rent payments, college tuition and utility bills. When you combine those commitments, you end up with the foundation for a budget. But what happens when those commitments exceed your income?
After we become accustomed to a certain lifestyle, it can be difficult to make adjustments when the amount of money coming in decreases. But unlike the federal government, real people don’t have the option to take a vote and raise their personal debt ceiling. In the real world, increasing your personal debt ceiling only works for so long. At that point, there are only two options:
1. Earn more
2. Spend less
Simple math, tough choices.
Here’s an interesting article about a subject that is becoming of interest to more and more people – what do you do if adult children become caretakers for their parents, how do you handle the responsibities and should the child be paid …..
A written agreement is recommended whenever the caregiver and aging adult agree that the caregiver should be compensated for his or her services. Although for many families, caregiver services would be rendered without any expectation of monetary reward, reasonable compensation is a recognition of the often significant sacrifices in time, effort and emotional commitment that a caregiver may make for an aging parent’s needs. A Caregiver Agreement can even help minimize the negative family dynamics when one ….
read the complete article here: Caregiver Agreements – Paying Kids To Care For Parents | Financial Awakenings.