Mad as Hell: By a Doctor, About Doctors
August 12th 2011As most doctors know, an upset patient will tell 10 others. One way for a doctor to reduce patient annoyance is to make patients feel that he/she cares. This starts before the patient is seen, even while she is in the waiting and examination room.
401K Expenses in the News Again: How it Can Help You
June 8th 2011401K expenses are making headlines again now that a lawsuit filed in 2006 by ABB employees in Kansas City, Mo. regarding losses in their 401K plans is now in trial. If successful, the U.S. Department of Labor, which has recently approved new rules for fee disclosure, may go even further in insisting greater transparency for the 401K process.
A Welcome Diversion: The Cone Sisters of Baltimore
May 25th 2011When the stock market is falling and moral fiber seems to be near rock bottom (see Arnold Schwarzenegger and Dominique Kahn-Strauss), it is pleasant to transfer one's thoughts to a subject that is uplifting. This is indeed the case with the current exhibit, "Collecting Matisse and Modern Masters: The Cone Sisters of Baltimore," at the Jewish Museum in New York City.
When It Makes Sense to Buy a Home to Rent
May 12th 2011On the face of it, selling some stocks with big gains now seems reasonable. The stock market is toppy. Housing, on the other hand, just seems to be going lower. For some, this begs the question: Should I sell some stock, buy a depreciated house and rent it out? Here's a great calculator that does the math for you.
Clock Is Ticking on Gift-Tax Exemption
May 3rd 2011Estate planning can be tricky in this volatile political and economic environment, but one thing is almost certain: In December 2012, the current $5 million federal gift-tax exemption for individuals will likely be reduced to $1 million or even less. Failing to take advantage of this short-lived tax break could impact your relatives substantially.
Testosterone and Financial Risk Taking
March 18th 2011Testosterone levels have been directly associated with risk-taking behavior in multiple studies. For example, when trial lawyers who take courtroom risks are compared to non-trial lawyers, they have higher testosterone levels. Now, a new study shows we have to rethink our concept about testosterone and risk taking when it comes to making economic decisions.
A Sobering Similarity: Jordan and Iran
March 8th 2011The unrest in the Middle East is happening for a variety of reasons -- and leaders throwing lavish celebrations, among other excesses, while their citizens suffer financial hardships is one of them. Leaders in Jordan, widely seen as the steady force for level-headiness in its region, may soon learn this lesson.
Spiking Oil, King Abdullah, and the World
March 2nd 2011If unrest continues in the Middle East, a disruption of oil supply could lead to a worldwide recession. Saudi Arabia could save the globe from that fate. Whether or not its King Abdullah and his family can contain calls for political change in his country is anybody's bet. For Americans, the best we can hope for is that not too much happens too soon.
Challenging Human Nature to Make Easy Money
February 22nd 2011I sometimes seem to be better at knowing what to do than I am at doing it. This is a common human foible, one that costs even the smartest among us money. Though there is no such thing as easy money, re-allocating investments in your portfolio is the next best thing. It just takes fighting human nature, that tendency we all have toward complacency. Here's how.
Riding the Big Wave: Momentum Investing
February 15th 2011Momentum investors, who trade on the theory that high-performing stocks continue to soar for a period of time, have a lot in common with big wave surfers. Both often incur high costs in search of riding the "big wave," and both have a greater chance of wiping out when the wave gets the best of them.
Tax-Smart Investment Strategies: Part II
February 1st 2011Many financial advisors ignore tax efficiency when investing, and their clients end up paying more taxes than they should. Last week, I addressed the importance of investing the right types of securities in tax-advantaged savings accounts. In the second of my two-part series on minimizing taxes, we'll look at investing in taxable accounts.
Smart Investing in Tax-Advantaged Accounts
January 25th 2011Advice from financial experts are as varied as the types of investments they suggest -- and all too often, few pay attention to the tax consequences when making their recommendations. This week, I'll cover the pros and cons of common investment advice for tax-advantaged accounts.
Contain Expenses to Increase Returns
January 18th 2011Studies on managed mutual funds show that less than 20% regularly beat unmanaged benchmark indexes. So why pay money-management expenses that can average 1.5% to 2.0% for performance that rarely beats the benchmark? The easiest way to guarantee performance over the long-term is to keep your investment expenses contained.
Why Men and Women Differ in Financial Decision-Making
January 11th 2011A soon-to-be-released study shows that women and men approach financial decision-making differently, in part because of their brain function. The data suggest that differences in financial choices between the genders may not be solely to do the disparate ways boys and girls are raised – a common explanation.
Late to Wall Street's Party … Still Want to Dance?
January 7th 2011The stock market is nearly double its level of March 2009, with the Dow Jones Industrial Average returning to highs not seen since the Dot-Com bubble. Investors seem upbeat and encouraged about the outlook for the U.S. economy for the first time in years. Still, not everyone is in on the fun -- and some are wondering whether they can still join in on the festivities. Is it too late? Hard to say, but here are some investments to limit your risk either way.
Are You a Born Financial Risk-Taker?
December 14th 2010A study of Swedish twins found evidence that financial risk-taking is hereditary. As we know, the willingness to take on too much risk can be detrimental to your wealth. To find out whether you've inherited a high risk tolerance, or adopted a conservative streak, take this quiz.
A New Concept: Art for the Average Investor
November 18th 2010A global financial-services firm plans to bring the concept of investing in art to the not-super-wealthy investor. Art adds diversification to an investment portfolio in that it has low correlation with stocks -- meaning, when stocks go up or down, art does not necessarily follow.
Using Emotions to Your Financial Advantage
November 9th 2010Emotions tend to guide our financial decisions -- often leading us to make mistakes with money. But studies show that embracing your emotions when making financial decisions can sometimes be helpful. Example: If you feel like you're being ripped off, you probably are.