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From AllFinancialMatters - view blog entries - visit this blogDecember 14, 2007 at 2:05 pm ET
I received the following email last night from a reader looking for some help in trying to decide whether or not to contribute to a Roth 401(k).
JLP,
First, I love the AFM blog. Tell your father-in-law I loved his article and that his fans want more. =)
I have a question that maybe you can [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 14, 2007 at 11:47 am ET
According to today’s Wall Street Journal, Goldman Sachs made bets against the subprime market ($) and made lots of money:
The group’s big bet that securities backed by risky home loans would fall in value generated nearly $4 billion of profits during the year ended Nov. 30, according to people familiar with the firm’s finances. Those [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 13, 2007 at 12:24 pm ET
This is from Alan Greenspan’s opinion piece, The Roots of the Mortgage Crisis (free), that was in yesterday’s Wall Street Journal (emphasis mine):
I do not doubt that a low U.S. federal-funds rate in response to the dot-com crash, and especially the 1% rate set in mid-2003 to counter potential deflation, lowered interest rates on adjustable-rate [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 13, 2007 at 10:43 am ET
I have been after my father-in-law to write up something for my blog and he’s finally obliged. Here’s his thoughts on life and commissions (my response follows):
I was raised on a farm in the Panhandle of Texas. I drove 12 miles to go to school in a town of 1200. I learned [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 12, 2007 at 6:44 pm ET
There’s an interesting piece in the January, 2008 issue of Money. The article, Make the Right Call, addresses six financial delimas that most of us face at one point in our lives. The dilema that interested me the most was the one subtitled “Prepay your Mortgage OR Invest.” Long-time readers of this [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 12, 2007 at 3:59 pm ET
In the literal sense of the word, money does represent other things, namely goods and services. In a more philosophical sense, money can represent freedom, security, or happiness, among many other things. ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 12, 2007 at 3:05 pm ET
I was asked by SingleMa to write a post comparing index mutual funds and exchange-traded funds. I was about to do just that when I came across The Honest Dollar’s post titled Index Funds vs. ETFs. Lily, the blog’s owner, did such a great job comparing the two that I don’t think it [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 12, 2007 at 3:05 pm ET
I was asked by SingleMa to write a post comparing index mutual funds and exchange-traded funds. I was about to do just that when I came across The Honest Dollar’s post titled Index Funds vs. ETFs. Lily, the blog’s owner, did such a great job comparing the two that I don’t think it [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 12, 2007 at 11:14 am ET
Jeremy’s post, Santa Isn’t Coming This Christmas Because There Isn’t Any Home Equity To Tap, reminded me of something.
The other night I was watching TV and was absolutely floored when I saw a payday loan (it might have been a title loan, I can’t remember for sure) commercial that showed a woman who was sad [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 12, 2007 at 8:27 am ET
Do market drops make you want to “do something?” Something like sell EVERYTHING and move your money to a CD or sell the one stock or mutual that is down and put that money in something that’s performing better? Sure, we all talk about keeping our emotions in check when it comes to [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 11, 2007 at 4:56 pm ET
Here’s today’s chart for the Dow Jones Industrial Average:
I guess the market wanted a bigger cut in the discount rate . ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 11, 2007 at 1:01 pm ET
It looks like (some) private mortgage insurance (PMI) rates are on the increase:
PMI Group Inc., a Walnut Creek, Calif., mortgage insurer, this fall stopped writing mortgage insurance for borrowers with credit scores below 620 who are financing more than 95% of their home’s value. PMI also has boosted prices for most borrowers who have credit [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 10, 2007 at 2:20 pm ET
Here’s an interesting tidbit from one of the cover stories ($) in today’s Wall Street Journal:
Over the past decade, Wall Street built a market for more than $2 trillion in securities sold globally and backed by loans to U.S. homeowners on two long-accepted beliefs and one newer one. The prevailing logic: The value of the [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 10, 2007 at 1:08 pm ET
I remember being told during broker training for PaineWebber (now UBS) that if a prospect asked about fees or commissions that I was to basically show them the door. PaineWebber’s stance was that clients who bickered about fees weren’t going to be good clients. Of course there will always be people who want [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 10, 2007 at 12:35 pm ET
I read an interesting Business Week article titled Redrawing the Route to Retirement, which is about Devon Energy’s ‘Super 401(k).’ The ‘Super 401(k)’ was set up to take the place of their traditional 401(k) and pension plan. Employees who sign up for the new plan and contribute 6% of their salary to the [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 9, 2007 at 11:55 pm ET
It was another busy week in the blog world. Here’s some of what happened in the MoneyBlogNetwork and beyond.
You’ve read my ramblings about the subprime mortgage debacle. Now read NCN’s thoughts as well as Nickel’s opinion.
A look at MBH’s financial goals for 2008.
JD looks at the pros and cons of Sharebuilder.
FMF with taxes [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 9, 2007 at 6:07 pm ET
This quote is from an editorial titled Homeland Insecurity ($) by Barrack Obama in this weekend’s WSJ (emphasis mine):
This week, President Bush outlined a limited agreement with lenders to ensure that some families don’t face higher mortgage payments they can’t afford. It is a start. But we need to do more. That’s why, several months [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 9, 2007 at 6:07 pm ET
This quote is from an editorial titled Homeland Insecurity ($) by Barack Obama in this weekend’s WSJ (emphasis mine):
This week, President Bush outlined a limited agreement with lenders to ensure that some families don’t face higher mortgage payments they can’t afford. It is a start. But we need to do more. That’s why, several months [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 8, 2007 at 12:46 pm ET
I just wanted to let AFM readers know that I added three new blogs to the Links section:
CashMoneyLife - Your money. Your career. Your life.
The Happy Rock - change yourself, change your wealth
Moolanomy - the science of money
All of these blogs have been around awhile and I’m ashamed to admit that I hadn’t [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 7, 2007 at 3:50 pm ET
In light of all the silliness that went on in the mortgage market over the last few years, I thought it would be a good idea to write a post that focuses on how big a mortgage people can actually afford. It’s obvious from some of the articles I have highlighted over the past [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 7, 2007 at 12:13 pm ET
Here’s a rather long snippet from a WSJ piece titled How the Subprime Mess Hit Poor Immigrant Groups that was published yesterday. I normally try to keep direct quotes to a minimum. However, this story was too good to pass up. It starts in the middle of the article but you should [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 7, 2007 at 10:48 am ET
Geez…
Now Jesse Jackson has written an op-ed piece ($) for the Wall Street Journal. The title of his piece is “A Marshall Plan for Mortgages.”
Jackson opens with:
This holiday season, families will reflect on the past year and make new goals and resolutions for 2008. But for the two million homeowners who face [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 6, 2007 at 12:05 pm ET
I just received an email from a PR person for Discover Financial Services. Below is the press release to their 2007 Holiday Shopping Survey. One thing I found interesting from the press release below was this bullet point:
Seventeen percent of respondents ages 18 to 24 said that money was no object.
This is troubling [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 6, 2007 at 11:33 am ET
It seems more and more people are falling behind on their car payments. That’s according to this front page article ($) in today’s WSJ. According to the article:
About 4.5% of auto loans made in 2006 to top-rated borrowers were at least 30 days delinquent as of the end of September, up from 2.9% [...] ... ( more)
From AllFinancialMatters - view blog entries - visit this blogDecember 5, 2007 at 1:04 pm ET
A reader of AFM sent me an email with an article by Dylan Jovine, who writes The Tycoon Report. As many of you know, I’ve been pretty vocal (and lots of you have too) about this mortgage bailout plan that Washington is trying to push through. Dylan’s rather long piece compares this crisis [...] ... ( more)
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