Investment Achievements by Supposed Timing Experts

Be careful of investment experts who claim how well they have beaten the averages by trying to time and then trade the market. Chances are they have not been as successful as they say.

Apart from not providing accurate comparisons (whether dividends are or aren’t included in the figures compared) they invariably forget to tell you of tax bites of their short-term trades. Most folks have most of their investments in taxable accounts, so any short-term profits are severely reduced by IRS rules.

And remember, studies show that timing the markets is a fools’ game even among the supposed experts. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Insurance Deductibles as a Consumer Shopping Device

Unlike Government services, whose charges bear no relation to the cost of providing what’s being offered, private insurance is based on cost experience to the company. Therefore, the consumer can easily shop the exact service wanted, at its lowest charge.

The higher the deductible in a policy, the less administrative and outlay expense to an insurance company and the more the consumer can receive per premium dollar. The principle makes it possible for the purchase of maximum coverage for catastrophic events.

Policies that pay for every small bill cannot accomplish this for the insurance consumer. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Investing Overseas

Many large American companies do business overseas. Investing in the S&P 500 will therefore give you a measure of global diversification.

If you buy overseas investments to broaden strategy, there are emerging or developing, as well as developed countries in which to participate. Using indexed funds or exchange traded funds (ETFs), you can invest around the globe with varying regional emphasis.

Use indexed funds which are not hedged against currency value changes. This also helps diversify against inflation in the U.S. and acts as a currency hedge. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

The U.S. is Fast Becoming Another European Financial Disaster

Add the total obligations of the U.S., and you find much higher debt in terms of GDP and other standards than that of Europe and even Greece.

Yet, America is supposed to be the leader of the free world, not a tiny, struggling country. We are called on to be a global leader,  as an economic catalyst,  and a defender of democratic principles.

Unfortunately,  politicians responsible for the financial crisis-to-come, as the result of U.S. debt, may be out of office when disaster occurs.

And the blame then will be placed on the shoulders of administrations who will attempt to clean up the impossible mess.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Will Your Working Wife be Cheated on Her Social Security?

Mrs. Jones  worked and had Social Security taxes deducted from her earnings.Mrs. Smith never worked and thus never paid Social Security taxes.

In our example: Their husbands, Mr. Jones and Mr. Smith, both worked and paid Social Security taxes. Both Mr. Jones and Mr. Smith earned the same income for the same number of years and retired at the same time.

Their spouses, Mrs. Jones and Mrs. Smith retired. .Both received one half of their husband’s benefit.

Obviously. Mrs. Jones paid taxes and got no benefits in return. She got the same as Mrs. Smith who made no contribution.

If Mrs. Jones was entitled to more benefits than Mr. Jones, she would get merely some extra compensation, not the full compensation for her contributions.

I have written repeatedly why private Social Security could be fair and remunerative, while Uncle Sam dispenses a pseudo and unfair plan. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Official Financial Upheaval

Left-leaning politicians  make a mess out of an ordinary economic cycle and blame it on others.

What was a simple sub-prime mortgage problem, that normally would lead to a minor recession, has become a near Depression and Stagnation, comparable in many ways to that of the 1930’s, because of political meddling and bumbling.

The Great Depression observers see how Franklin D. Roosevelt over-reacted with spending. Then he over-taxed and over-regulated business and created a Depression psychology that prevailed until World War II, which acted as a giant economic stimulus.

The same political meddling and bumbling is occurring today. The extraordinary spending has produced a crises, in the form of senseless, business-stifling regulation and taxes. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

The Rule of 72 to Measure Interest Rates

The Rule of 72 is a quick way to get an approximate reading of interest rates or total returns.

Example: An investment takes about 12 years to double. How much is the annual return?  Simply divide 72 by 12 and you get 6. It thus takes about 6% return for the investment to double.

What if the investment doubles in six years. Then divide 72 by 6 for an answer of 12. The investment is producing returns at about the rate of 12% a year.

Just divide 72 by the number of years to get an idea of return. Or 72 by returns to get the number of years for the approximate time to double the principal.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)